China Comservice Share Capital

The Company was incorporated on 30 August 2006 with a registered share capital of, 960,000,000 domestic state-owned ordinary shares with a par value of RMB1.00 each. Such shares were issued to CTC, Guangdong Telecom Industry Group Corporation and Zhejiang Telecom Industry Corporation, as a consideration for the transferring of the Predecessor Operations and injection of cash to the Company (see note 1). In December 2006, the Company issued 1,484,986,000 H shares with a par value of RMB1.00, at a price of HK$2.20 per H share and 148,498,600 domestic state-owned shares of RMB1.00 each owned by CTC were converted into H shares in connection with the initial public offering. All shareholders are entitled to receive dividends as declared from time to time except for the special dividends and are entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Company’s residual assets.