China Communications Services (552) H2 2025 earnings summary

Executive summary

• Achieved stable operating results in 2025, with revenue of RMB150,093 million (CNY 150.1 billion) and net profit of RMB3,610 million (CNY 3.61 billion), both up 0.1% year-over-year, amid cautious customer investment and intense competition.

• Strategic emerging businesses, including digital infrastructure and smart city, drove growth, with new contracts up 22% year-over-year and accounting for over 46% of total new contracts.

• AI integration and digital transformation initiatives positioned the company as a leader in digital intelligence infrastructure and services.

• Maintained resilience through quality enhancement, cost reduction, business diversification, and technological innovation.

• Final dividend proposed at RMB0.2241 per share, up 2.5% year-over-year, with a payout ratio of 43%.

Financial highlights

• Revenue reached RMB150,093 million; net profit was RMB3,610 million, with a net profit margin of 2.4%.

• Gross profit margin for 2025 was 11.3%, down 0.4 percentage points year-over-year, but stabilized in the second half.

• New contracts totaled RMB205.7 billion, with strategic emerging businesses contributing RMB94.9 billion.

• Free cash flow for the year was RMB795 million, with a 14.1% increase in the second half.

• Dividend per share CAGR during the 14th Five-year Plan period was 6.9%.

Outlook and guidance

• Will deepen AI Plus initiatives and Five Major Projects to drive the second growth curve and future transformation.

• Focus on optimizing strategic deployment, strengthening innovation, and seizing emerging market opportunities, including green energy and recurring smart maintenance.

• Emphasizing integrated full-cycle services and leveraging core competencies during the 15th Five-year Plan period.