China Communication Telecom Services Company Limited (8206.HK) announces its first quarter results for the three months ended 30 June 2016.

Mr. He Chenguang, Chairman of the Company said, “We are very pleased towards the revenue contribution from the CRC business during the first quarter, which is in line with the Group’s development strategy. It is a testimony of the achievements of our proactive new business expansion and new income source.

For the three months ended 30 June 2016, the Group recorded consolidated revenue of approximately HK$17,055,000, representing an increase of approximately 108.4% as compared to the same period in 2015. The increase was mainly attributable to the organisation of China Robot Competition (“CRC”) and relevant education and training courses (the “CRC business”) in Heilongjiang Province upon the completion of the acquisition on 16 May 2016. Revenue from the CRC business between 17 May 2016 and 30 June 2016 has been included in the Group’s consolidated results for the first quarter of 2016/17, while profit after tax from the CRC business was approximately HK$2,600,000 during the period. The CRC business successfully broadened the Group’s revenue base and realised the Group’s aim of optimising business operation. Loss attributable to owners of the Company during the period was approximately HK$1,737,000 (Q1 2015/16: loss of approximately HK$3,096,000). Excluding the professional fee incurred for the acquisition, the adjusted profit attributable to owners of the Company was approximately HK$700,000 for the period.

CRC business with revenue contribution to the Group in just over a month after the acquisition, represents a good start for the Group’s business operation optimisation. Looking ahead, the Group will continue to endeavor in the expansion of CRC business and business network development so as to strengthen the overall operating capability of the Group.The Group actively develops its three business pillars, including the expansion of CRC Business; preparation of school-based robot teaching in the PRC (“CQE Business”); and promotion of Shentong Card and usage of CRC Shentong Card. With growing reputation and status of the CRC events, and the accelerating number of participants in robot training courses in the PRC, it is expected that income from the CRC business will continue to increase.