CN Communica Telecom Services : 2016/17 Q1 Results Announcement & Approving the Change of Company Name to “Shentong Robot Education Group Company Limited”

"Shentong Robot Education Group Company Limited"

• Revenue of the Group for the three months ended 30 June 2016 was approximately HK$17,055,000.

• Loss attributable to owners of the Company was approximately HK$1,737,000. Excluding the professional fee incurred for the acquisition, the adjusted profit attributable to owners of the Company was approximately HK$700,000.

• EBITDA (earnings before interest, taxes, depreciation and amortisation) for the three months ended 30 June 2016 was approximately HK$1,065,000 (Q1 2015/16: loss of approximately HK$1,971,000).

[Hong Kong, 5 August 2016] - China Communication Telecom Services Company Limited (the "Company", together with its subsidiaries, the "Group", HKEx stock code: 8206) announced its first quarter results for the three months ended 30 June 2016. The Group also announced that the special resolution on the change of company name has been approved at the Annual General Meeting ("AGM") held today, to better reflect the Group's current business and its direction of future development.

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.

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.

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.

In addition, the special resolution of the change of the English name of the Company to "Shentong Robot Education Group Company Limited", and to adopt the Chinese name "神通機器人教育集團有限公司" as the dual foreign name of the Company was passed

during the AGM on 5 August. The new name will provide the Company with a more appropriate corporate image and identity which will benefit the Group's future development. The change of company name will not affect any rights of the shareholders of the Company or the Company's daily operations or its financial position. All the existing share certificates in issue bearing the present name of the Company will, after the proposed change of company name having become effective, continue to be effective and as documents of title to the shares of the Company.

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China Communication Telecom Services Company Limited (the "Company", Stock Code: 8206), since becoming the provider of promotion and management services for the electronic smart card Shentong Card in the PRC in 2010, has been focusing on tapping related business opportunities. Upon completion of the full acquisition of the service provider of China Robot Competition ("CRC") in Heilongjiang Province on 16 May 2016, the Company will possess the sole and exclusive rights on using the CRC Shentong Card as the payment and intelligence management system in Heilongjiang Province. As such, the Company will primarily focus on the organisation of exclusive CRC events and providing CRC-related training courses in the Province. The Company is also supporting the work of the National School Sports Robot League in order to expand school-based robot teaching business in the country (the "CQE business").

At present, the Company's three business pillars are: 1) "CRC business" (in operation) - for hosting the robot sports competitions and providing relevant training in the PRC;

2) "CQE business" (in preparation and under development) - for school-based robot teaching in the PRC; and 3) "Promotion of Shentong Card and the usage of CRC Shentong Card" (in operation) - for the electronic smart card within the PRC.

Upon completion of the full acquisition of the service provider of CRC in Heilongjiang Province on 16 May 2016, China Communication Telecom Services Company Limited will have the exclusive rights to organise CRC events and provide relevant CRC training courses in the Heilongjiang Province. Currently, the Company's principle business, or "CRC Business", is the organisation of the robot sports competition and the provision of relevant training in the PRC.

The schools and training organisations in Heilongjiang Province wishing to become an official CRC Training Centre are required to submit applications to the CRC Working Committee through the Company. The Company then coordinates with the registered CRC Training Centres to provide them with CRC courses and CRC teaching materials, equipment and tutors. Once the CRC Training Centre starts to provide CRC training courses, it will be a CRC Course Provider and provide authorised CRC courses in the Province. The revenue proportion between the Company and those schools and training centres, is 50:50 and 30:70 respectively. By the end of 2015, the number of CRC Course Providers (including self-operated CRC demonstration centres) was around 50. The Company will also reach out to more schools and training organisations, by promotion, site visits and demonstrations in Heilongjiang Province, to encourage them to be CRC Course Providers.

China Communication Telecom Services Company Limited Tel: (852) 3102 8166

Email:contact@ccpi.com.hk