China Telecom subsidiary says AI wave drives steady growth in digital services market

China Communication Services sees the proliferation of AI projects accelerating digital transformation across thousands of industries

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Telecommunications tower maintenance forms part of the business process outsourcing segment of China Communication Services. Photo: Handout

Published: 7:41pm, 21 Aug 2025

China Communication Services, the country’s leading telecommunications infrastructure contractor, said a wave of artificial intelligence projects is now driving digital transformation in thousands of industries and providing a boost to the company’s three major business segments.

Beijing-based China Comservice, a subsidiary of China Telecom, made that assessment on Thursday as the firm reported its latest financial results, which showed growth in both revenue and net profit in the first six months of the year.

The Hong Kong-listed company reported a 3.4 per cent year-on-year increase in revenue to 76.94 billion yuan (US$10.71 billion), while net profit rose a modest 0.2 per cent to 2.13 billion yuan.

“AI has a significant effect in driving the development of the company’s various businesses,” said Luan Xiaowei, executive director and chairman at China Comservice.

Shares of China Comservice closed up 2.10 per cent to HK$4.86 on Thursday.

The applications, content and other services business segment remains the core driver of revenue growth for China Comservice. Photo: Handout

The company’s latest interim results reflect how it continued to benefit from AI application projects and heightened demand for digital transformation across thousands of industries on the mainland, it said.

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