China Communications Services Corporation Limited (China Comservice) reported revenue of RMB 74.48 billion for 1H 2026, down 3.2 % year on year (YoY). Gross profit contracted 5.8 % to RMB 7.43 billion, pushing gross margin down 0.3 ppt to 10.0 %. Profit attributable to equity shareholders fell 7.5 % to RMB 1.97 billion (-3.2 % on a comparable basis), while basic EPS slipped to RMB 0.284.

Operating profit inched up 1.2 % YoY to RMB 1.73 billion as selling, general and administrative expenses were cut 7.7 % to RMB 5.71 billion. Free cash flow remained negative at RMB 7.71 billion. Net cash outflow narrowed to RMB 6.81 billion from RMB 8.07 billion a year earlier, aided by lower investment outflows.

AI-driven services outperformed: revenue from the “AI+” portfolio (AIDC and AI applications) surged 62 % YoY to represent 10 % of group turnover. New contract value across the six designated growth arenas—including AIDC, AI applications, CCS Smart Maintenance, dual carbon, power distribution networks and low-altitude economy—rose 11 %, comprising roughly 34 % of total new signings.

By business line, Telecommunications Infrastructure Services (TIS) generated RMB 36.60 billion (-4.4 % YoY), Business Process Outsourcing (BPO) contributed RMB 22.10 billion (-1.2 %), and Applications, Content & Other (ACO) brought in RMB 15.77 billion (-3.1 %). Market-wise, revenue from domestic telecom operators advanced 1.9 % to RMB 38.92 billion, offset by a 9.1 % decline in the domestic non-operator segment to RMB 33.25 billion. Overseas revenue grew 7.4 % to RMB 2.31 billion.

Total assets stood at RMB 139.21 billion at end-June, up RMB 2.53 billion from end-2025, while total liabilities rose to RMB 90.08 billion, lifting the debt-to-asset ratio marginally to 64.7 %. Cash and cash equivalents fell to RMB 7.53 billion from RMB 14.34 billion over six months.

To bolster shareholder returns, the board outlined a three-year dividend policy targeting a payout ratio of at least 46 % by FY 2028, up from 43 % in 2025. Management reaffirmed its strategy of positioning China Comservice as a “New Generation Integrated Smart Service Provider,” highlighting ongoing investment in AI capabilities, expansion in digital infrastructure, and continued focus on the six growth areas to drive high-quality development.