6e85b00b-2822-4dab-9e74-5f7783dcdcc6.pdf

China Communication Telecom Services Company Limited

r1il • t1 II B ili E al

(Incorporated in the Cayman Islands with llmlted llablllty) (Stock Code : 8206)



2 0 1 5

I N T E R I M R



Characteristics of the Growth Enterprise Market ('GEM') of The Stock Exchange of Hong Kong Limited (the 'Stock Exchange')


GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors.


Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board and no assurance is given that there will be a liquid market in the securities traded on GEM.


Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report.


This report, for which the directors (the 'Directors') of China Communication Telecom Services Company Limited (the 'Company') collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM of the Stock Exchange (the 'GEM Listing Rules') for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this report is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this report misleading.



This report is printed on environmentally friendly paper


Highlights


  • Revenue of the Group for the six months ended 30 September 2015 was approximately HK$16,685,000.


  • Net loss attributable to owners of the Company was approximately HK$8,425,000 for the six months ended 30 September 2015.


  • Loss per share for the six months ended 30 September 2015 was approximately HK0.65 cent.


  • The board of the Directors (the 'Board') does not recommend the payment of a dividend for the six months ended 30 September 2015.


The Directors hereby present the unaudited consolidated results of the Company together with its subsidiaries (collectively the 'Group') for the six months ended 30 September 2015.


Financial Performance

The Group recorded consolidated revenue of approximately HK$16,685,000 for the six months ended 30 September 2015, representing a decrease of approximately 17.5% as compared to approximately HK$20,232,000 for the six months ended 30 September 2014. The revenue for the six months ended 30 September 2015 was attributable to the provision of promotion and management services for an electronic smart card 'Shentong Card' in the People's Republic of China (the 'PRC').


The Group made a net loss attributable to the owners of the Company of approximately HK$8,425,000 for the six months ended 30 September 2015 as compared to approximately HK$4,310,000 for the six months ended 30 September 2014. The decline in results was mainly due to the decline in revenue and gross profit.


2 China Communication Telecom Services Company Limited • Interim Report 2015/16


Business Review

Starting from 2010, the Group made continuous efforts to restructure and streamline the business operations so as to improve the overall financial status of the Group. In March 2010,

the Group completed the acquisition of 100% of the equity interest in 北京神通益家科技服務

有限公司 (Beijing Shentong Yijia Technology Services Company Limited#) ('Yijia'). Since December 2011, the Group concentrates on the business in promotion and management services for Shentong Card in the PRC.


For the six months ended 30 September 2015, the segment profit generated from promotion and management services was approximately HK$1,092,000, representing a decrease of approximately 60.3% as compared to approximately HK$2,751,000 for the six months ended 30 September 2014. The decrease in the segment profit generated from promotion and management services was primarily due to the downturn of the PRC economic environment.


Apart from concentrating on the business in promotion and management services for Shentong Card, the Directors will continue to do their best to deploy their strengths and capabilities to expand the revenue base of the Group and capture the new opportunities offered by the prosperity of PRC market.


Provision of promotion and management services

For the six months ended 30 September 2015, the revenue derived from the provision of promotion and management services was approximately HK$16,685,000 as compared to approximately HK$20,232,000 for the six months ended 30 September 2014.


# English name is for identification purpose only


China Communication Telecom Services Company Limited • Interim Report 2015/16 3

distributed by