China Telecom holds a majority stake.
PCCW pointed out that mainland enterprises spent $34 billion on information technology solutions this year, and $7 billion in the financial sector alone.
PCCW signed a legally binding agreement with China Telecom to set up a joint venture company before the end of the year. China Telecom will hold 565,438+0.5% equity of the joint venture company, and PCCW will hold 48.5% equity. The joint venture company will initially focus on developing information technology solutions for the mainland financial industry, but it does not rule out the possibility of entering other industries in the future.
In February this year, PCCW established a joint venture with Sinopec, with the former holding 45% of the shares, aiming at providing IT services for Sinopec and China petrochemical industry. Telecom value-added service is one of the earliest fields opened to foreign investment in Chinese mainland, but at present, foreign investors are not allowed to hold shares in joint ventures.
Have high hopes for the mainland joint venture company.
Li Zekai, Chairman of PCCW, said that cooperation with China Telecom is the most important development strategy of PCCW in Chinese mainland. As the largest fixed-line telephone operator in Hong Kong, PCCW will hold 48.5% of the joint venture company, while China Telecom will hold the remaining 565,438+0.5%.
The chief operating officer of PCCW said that PCCW will exercise management rights in the joint venture company. "We will bring PCCW's expertise and experience in IT solutions to the Mainland, especially for financial enterprises. The cooperation between the two companies will bring a win-win situation. "
The joint venture company headquartered in Beijing will be established within 30 days and will start operation within 90 days. It is estimated that the number of employees will exceed 100. After establishing two joint ventures with mainland enterprises, PCCW said that it is expected to start more cooperation next year. Last year, PCCW's revenue from the mainland increased by 20%, but it was still only 90 Niu Yi cents for the company's operating income of HK$ 20 billion.
Li Zekai has high hopes for joint ventures in the Mainland. He believes that the company will achieve rapid growth and is expected to contribute 65,438+00% of sales revenue to PCCW this year.