China Communications Services Corp, a mainland telecommunications outsourcing service provider, plans to expand into overseas markets including Africa and the Middle East in the next two years, its chief executive said yesterday. The subsidiary of China Telecom Group has earmarked 100 million yuan (HK$111.42 million) to 200 million yuan from the 1.5 billion yuan raised in a share placement this month for overseas growth. 'We have set up a subsidiary for international expansion,' said chief executive Li Ping yesterday during a Hong Kong news conference on its annual results. 'We plan to explore overseas opportunities in partnership with vendors such as Nokia, Huawei and ZTE.' Mr Li said the group aimed to have overseas business account for 2 per cent of revenue in the next two to three years. An analyst said revenue from overseas was 'not a significant part of group revenue. But it is a logical step to follow mainland vendors overseas'. Mr Li said: 'We want to provide network maintenance, outsourcing services and work on telecoms infrastructure services.' China Communications Services will jointly explore overseas business opportunities with newly acquired China International Telecommunications Construction Corp. 'We aim to explore business opportunities across China, including Hong Kong and Macau, to enable us to better leverage our mainland resources in providing network and maintenance services,' Mr Li said. 'We also want to expand our business in the resource-rich Middle East and Africa where mainland telecoms vendors have strong exposure.' He also said the launch of TD-SCDMA 3G services would drive growth. 'We have budgeted 800 million yuan in preparation for 3G mobile services,' Mr Li said. 'We are investing in 3G system trials, expertise training and other related projects. Once 3G licences are issued, we can provide support and full services like network construction and network management for all 3G standards.' The company helped build TD-SCDMA networks in Baoding, Guangzhou and Shenzhen. Mr Li said it held a 30 per cent market share of existing TD-SCDMA construction projects. The company said last year's net profit rose 42.9 per cent to 1.17 billion yuan with revenue up 21.9 per cent at 23.53 billion yuan. Earnings per share were 21.4 fen and a final dividend of 6.82 fen per share was declared. The company did not declare a final dividend last year.