I. [Company Overview and Performance Summary](index=1&type=section&id=Chairman%27s%20Statement) This section presents the unaudited interim results for the six months ended June 30, 2025, highlighting a decrease in revenue and profit attributable to shareholders, along with the declared interim dividend [1.1 Chairman's Statement](index=1&type=section&id=Chairman%27s%20Statement) The Board of Directors of APT Satellite Holdings Limited is pleased to announce the unaudited interim results for the six months ended June 30, 2025, which have been reviewed by the Audit and Risk Management Committee and independent auditors - These interim results have been reviewed by the Company's Audit and Risk Management Committee and independent auditors[4](index=4&type=chunk) [1.2 Interim Results Overview](index=1&type=section&id=Interim%20Results) The Group's revenue for H1 2025 was HK$379,673,000, a 3.11% YoY decrease, mainly due to reduced satellite transponder capacity revenue, with profit attributable to shareholders decreasing by 23.88% to HK$77,383,000 Key Financial Indicators for H1 2025 | Indicator | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 379,673 | 391,842 | -3.11% | | Profit attributable to shareholders | 77,383 | 101,660 | -23.88% | | Basic and diluted earnings per share | 8.33 HK Cents | 10.95 HK Cents | -23.93% | - The decrease in revenue was primarily due to reduced income from providing satellite transponder capacity during the period[5](index=5&type=chunk) [1.3 Interim Dividend](index=1&type=section&id=Interim%20Dividend) The Board declared an interim dividend of HK2.50 cents per ordinary share, down from HK4.50 cents last year, payable on or about October 14, 2025 Interim Dividend Distribution | Period | Dividend per ordinary share (HK Cents) | | :--- | :--- | | Six months ended June 30, 2025 | 2.50 | | Six months ended June 30, 2024 | 4.50 | - The interim dividend will be paid on or about Tuesday, October 14, 2025, to shareholders whose names appear on the Company's register of members at the close of business on Wednesday, September 24, 2025[6](index=6&type=chunk) II. [Business Review and Outlook](index=2&type=section&id=Business%20Review) This section reviews the operational status of the Group's in-orbit satellites and ground facilities, analyzes the transponder leasing and other satellite-related services, and outlines the business outlook amidst market competition [2.1 In-orbit Satellites](index=2&type=section&id=In-orbit%20Satellites) The Group's APSTAR series in-orbit satellites (including APSTAR-5C, 6C, 7, 9, 6D, and 6E) and ground control systems maintained good operation in H1 2025, providing stable services to customers and covering over 75% of the global population - The Group's in-orbit APSTAR series satellites and ground satellite control systems maintained good operational status, continuously providing stable and reliable quality services to the Group's customers[8](index=8&type=chunk) - The Group's satellite fleet provides extensive coverage and strong service capabilities across Asia, Europe, Africa, and Oceania, serving regions with over **75%** of the global population[8](index=8&type=chunk) [2.1.1 APSTAR-5C Satellite](index=2&type=section&id=APSTAR-5C%20Satellite) APSTAR-5C satellite, located at 138°E, carries 63 transponders, covering the entire Asia-Pacific region and providing high-throughput beam services for broadband communication in Southeast Asia - APSTAR-5C satellite is positioned at **138°E** orbital slot, carrying **63** transponders (including C, Ku, and Ka bands), covering the entire Asia-Pacific region[9](index=9&type=chunk) - The satellite carries high-throughput beams covering Southeast Asia, providing enhanced broadband communication services to users in the region[9](index=9&type=chunk) [2.1.2 APSTAR-6C Satellite](index=2&type=section&id=APSTAR-6C%20Satellite) APSTAR-6C satellite is positioned at 134°E orbital slot, carrying 45 transponders, covering the entire Asia-Pacific region - APSTAR-6C satellite is positioned at **134°E** orbital slot, carrying **45** transponders (including C, Ku, and Ka bands), covering the entire Asia-Pacific region[10](index=10&type=chunk) [2.1.3 APSTAR-7 Satellite](index=2&type=section&id=APSTAR-7%20Satellite) APSTAR-7 satellite is positioned at 76.5°E orbital slot, carrying 56 transponders, covering Asia-Pacific, Middle East, Africa, and parts of Europe - APSTAR-7 satellite is positioned at **76.5°E** orbital slot, carrying **56** transponders (including C and Ku bands), covering the Asia-Pacific region, Middle East, Africa, and parts of Europe[11](index=11&type=chunk) [2.1.4 APSTAR-9 Satellite](index=2&type=section&id=APSTAR-9%20Satellite) APSTAR-9 satellite is positioned at 142°E orbital slot, carrying 46 transponders, covering the entire Asia-Pacific region - APSTAR-9 satellite is positioned at **142°E** orbital slot, carrying **46** transponders (including C and Ku bands), covering the entire Asia-Pacific region[12](index=12&type=chunk) [2.1.5 APSTAR-6D Satellite](index=2&type=section&id=APSTAR-6D%20Satellite) APSTAR-6D satellite, operated by associate company APT Mobile SatCom, is positioned at 134°E, serving as the first high-throughput satellite optimized for satellite mobile services in China and the Asia-Pacific region - APSTAR-6D satellite (operated by "APT Mobile SatCom") is positioned at **134°E** orbital slot[13](index=13&type=chunk) - APSTAR-6D satellite is the first high-throughput satellite optimized for satellite mobile services, providing high-quality broadband satellite services for China and the entire Asia-Pacific region[13](index=13&type=chunk) [2.1.6 APSTAR-6E Satellite](index=3&type=section&id=APSTAR-6E%20Satellite) APSTAR-6E satellite, operated by associate company APT Starlink, is positioned at 134°E, carrying high-throughput multi-beams to provide quality satellite broadband services for Southeast Asia - APSTAR-6E satellite (operated by "APT Starlink") is positioned at **134°E** orbital slot[14](index=14&type=chunk) - APSTAR-6E satellite carries high-throughput multi-beams and possesses advanced capabilities, providing high-quality satellite broadband services for Southeast Asia[14](index=14&type=chunk) [2.2 Ground Facilities](index=3&type=section&id=Ground%20Facilities) The Group has established or acquired gateway station service capabilities in Hong Kong, Australia, Indonesia, and Malaysia, and is constructing a satellite ground station in Chung Hom Kok, Hong Kong, to enhance integrated space-ground services and ensure satellite control security - The Group has established or acquired gateway station service capabilities in Hong Kong, Australia, Indonesia, and Malaysia, and provides services to customers[15](index=15&type=chunk) - The gateway station facilities significantly enhance the Group's integrated space-ground service capabilities in the Asia-Pacific region, helping to maintain its competitive advantage in satellite quality and overall service capabilities[15](index=15&type=chunk) - The Group has commenced construction of a satellite ground station in Chung Hom Kok, Hong Kong, which will expand C-band telemetry by relocating it from Tai Po to Chung Hom Kok, avoiding 5G interference and ensuring satellite control security[15](index=15&type=chunk) [2.3 Transponder Leasing Business](index=3&type=section&id=Transponder%20Leasing%20Business) In H1 2025, the global and Asia-Pacific satellite transponder market remained sluggish, with oversupply leading to lower bandwidth leasing prices and increased competition from LEO satellite operator Starlink; the Group actively expanded new markets, achieving positive business growth in mainland China and Southeast Asia - The global and Asia-Pacific satellite transponder market remained in a continuous downturn, with weak demand growth for satellite broadcasting and telecommunication services, no improvement in oversupply, and a significant downward trend in satellite transponder bandwidth leasing prices[16](index=16&type=chunk) - Changes in market conditions and increased competition from low-Earth orbit satellite operator Starlink's service launch significantly impacted the transponder leasing business[16](index=16&type=chunk) - The Group actively expanded into new markets and businesses, achieving significant progress and positive business volume growth in mainland China, Southeast Asia, and other markets[16](index=16&type=chunk) [2.4 Other Satellite-Related Services](index=4&type=section&id=Satellite%20TV%20Broadcasting%20Services%2C%20Satellite%20Telecommunication%20Services%2C%20Data%20Center%20Services%20and%20Gateway%20Station%20Services) The Group continues to expand its service offerings, leveraging its licenses, ground facilities, data centers, and gateway stations to provide satellite TV broadcasting transmission, satellite telecommunication, data center, and gateway station services - Leveraging its Non-domestic Television Programme Service License, Unified Carrier License, satellite ground facilities, data center facilities, and gateway station facilities, the Group continues to expand its service scope, providing users with satellite TV broadcasting transmission services, satellite telecommunication services, data center services, and gateway station services[17](index=17&type=chunk) [2.5 Business Outlook](index=4&type=section&id=Business%20Outlook) For H2 2025, the satellite transponder market faces intense competition and expected price declines; the Group will maintain its strategic positioning, vigorously expand traditional satellite resource leasing, provide broadband services via high-throughput satellites, explore overseas integrated satellite services, and increase investment in new satellite projects and business areas - The highly competitive state of oversupply in the global and Asia-Pacific satellite transponder market is expected to persist, with anticipated lower market prices, varying degrees of economic downturn and fiscal budget tightening across regions, a strong US dollar, and foreign exchange shortages in some client countries coupled with rising operating costs leading to payment difficulties, all significantly impacting the market[18](index=18&type=chunk) - The Group will vigorously expand its traditional satellite resource leasing business for APSTAR-5C, APSTAR-6C, APSTAR-7, and APSTAR-9 satellites, while effectively utilizing the two high-throughput satellites, APSTAR-6D and APSTAR-6E, from its associate companies to provide high-quality satellite broadband services to customers[18](index=18&type=chunk) - The Group will continue to leverage its healthy financial position and abundant capital, actively exploring and increasing investment in new satellite projects and expanding into new business areas, building upon the completion of its satellite ground facilities in Chung Hom Kok, Hong Kong[18](index=18&type=chunk) III. [Financial Review and Condition](index=4&type=section&id=Financial%20Review) This section provides a comprehensive financial review, including key performance indicators, revenue analysis, cost structures, capital expenditure, liquidity, and details on financial guarantees and pledged assets [3.1 Financial Summary](index=4&type=section&id=Financial%20Summary) As of June 30, 2025, the Group's financial position remained robust, despite a 3.11% YoY revenue decrease, 29.62% gross profit decline, and 23.88% profit attributable to shareholders decrease; EBITDA fell by 13.89%, with the EBITDA margin dropping 8.7 percentage points to 68.7%, while total assets slightly decreased, total liabilities reduced by 3.64%, and the debt-to-asset ratio decreased to 12.1% - As of June 30, 2025, the Group's financial position remained robust[19](index=19&type=chunk)[21](index=21&type=chunk) Summary of Financial Performance for H1 2025 | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 379,673 | 391,842 | -3.11% | | Gross profit | 103,257 | 146,705 | -29.62% | | Profit before tax | 97,309 | 117,582 | -17.24% | | Profit attributable to shareholders | 77,383 | 101,660 | -23.88% | | Basic earnings per share (HK Cents) | 8.33 | 10.95 | -23.93% | | EBITDA | 261,020 | 303,138 | -13.89% | | EBITDA margin (%) | 68.7% | 77.4% | -8.7 percentage points | Key Balance Sheet Indicators | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total cash and bank balances | 2,511,187 | 2,448,394 | +2.56% | | Total assets | 6,964,810 | 6,966,130 | -0.02% | | Total liabilities | 845,473 | 877,443 | -3.64% | | Net asset value per share (HK$) | 6.59 | 6.56 | +0.46% | | Debt-to-asset ratio (%) | 12.1% | 12.6% | -0.5 percentage points | | Current asset ratio | 12.71 times | 12.27 times | +0.44 times | [3.2 Revenue Analysis](index=6&type=section&id=Revenue) Total revenue for H1 2025 was HK$379,673,000, a 3.11% YoY decrease, primarily due to a 5.90% reduction in satellite transponder capacity revenue, partially offset by a 17.99% increase in other satellite-related services revenue Revenue by Service Item | Service Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue from providing satellite transponder capacity | 323,371 | 343,652 | -5.90% | | Revenue from providing satellite broadcasting and telecommunication services | 1,917 | 2,096 | -8.54% | | Revenue from other satellite-related services | 54,385 | 46,094 | +17.99% | | **Total** | **379,673** | **391,842** | **-3.11%** | - The decrease in revenue was primarily due to reduced income from providing satellite transponder capacity during the period[23](index=23&type=chunk) [3.3 Other Net Income](index=6&type=section&id=Other%20Net%20Income) Total other net income for the six months ended June 30, 2025, was HK$51,406,000, a slight 0.37% YoY increase, mainly driven by a significant 225.12% rise in foreign exchange gains, offsetting a decrease in bank deposit interest income Composition of Other Net Income | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Interest income from bank deposits and other interest income | 43,507 | 56,443 | -22.92% | | Foreign exchange gain/(loss) | 7,182 | (5,740) | +225.12% | | Rental income from properties | 468 | 312 | +50.00% | | Other income | 249 | 200 | +24.50% | | **Total** | **51,406** | **51,215** | **+0.37%** | - The increase was due to higher foreign exchange gains during the period[24](index=24&type=chunk) [3.4 Finance Costs](index=7&type=section&id=Finance%20Costs) Finance costs for the six months ended June 30, 2025, were HK$2,154,000, a decrease of approximately 15.76% YoY, primarily comprising interest on lease liabilities Changes in Finance Costs | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 2,154 | 2,557 | -15.76% | - Finance costs, including interest on the Group's lease liabilities, decreased by approximately **15.76%** compared to the same period last year[25](index=25&type=chunk) [3.5 Fair Value Changes of Financial Assets](index=7&type=section&id=Fair%20Value%20Changes%20of%20Financial%20Assets) There were no fair value gains on financial assets in H1 2025, whereas H1 2024 saw a HK$1,388,000 fair value gain from the resumption of trading of Jin Ye Holdings Limited shares; the Group disposed of all its shares in Jin Ye in 2024 Fair Value Changes of Financial Assets | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Fair value changes of financial assets | – | 1,388 | - As of June 30, 2024, the fair value of the listed equity investment in Jin Ye was remeasured at market value to **HK$1,388,000**, with a fair value gain of **HK$1,388,000** recognized in profit or loss[26](index=26&type=chunk) - For the year ended December 31, 2024, the Group disposed of all its shares in Jin Ye for a consideration of **HK$1,133,000**[26](index=26&type=chunk) [3.6 Taxation](index=7&type=section&id=Taxation) Taxation expenses for the six months ended June 30, 2025, increased to HK$19,497,000 compared to the prior year, primarily due to a decrease in deferred tax credits Changes in Taxation Expenses | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Taxation | 19,497 | 15,922 | +22.45% | - The increase was mainly due to a decrease in deferred tax credits during the current period[28](index=28&type=chunk) [3.7 EBITDA](index=7&type=section&id=EBITDA) Due to reduced business revenue, EBITDA for the six months ended June 30, 2025, decreased by 13.89% to HK$261,020,000, with the EBITDA margin declining from 77.4% to 68.7% Changes in EBITDA and Margin | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | EBITDA | 261,020 | 303,138 | -13.89% | | EBITDA margin (%) | 68.7% | 77.4% | -8.7 percentage points | - Due to reduced business revenue, EBITDA for the six months ended June 30, 2025, decreased by **13.89% to HK$261,020,000**, while the EBITDA margin declined from **77.4% to 68.7%**[29](index=29&type=chunk) [3.8 Capital Expenditure, Liquidity, and Debt-to-Asset Ratio](index=7&type=section&id=Capital%20Expenditure%2C%20Liquidity%2C%20Financial%20Resources%20and%20Debt-to-Asset%20Ratio) Capital expenditure for the period was HK$15,550,000, mainly for new equipment and construction in progress, funded by internal resources and operating cash flows; the Group has ample bank loan facilities with no outstanding principal at period-end, total liabilities decreased by HK$31,970,000, reducing the debt-to-asset ratio to 12.1%, and a net cash outflow of HK$16,153,000 was recorded Capital Expenditure and Cash Flow | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Capital expenditure on property, plant and equipment | 15,550 | 20,124 | -22.73% | | Net cash outflow/(inflow) | (16,153) | 92,932 | -117.38% | | Net cash inflow from operating activities | 113,133 | 117,653 | -3.84% | - Bank of China (Hong Kong) Limited has granted a loan facility totaling up to **US$85,600,000** to APT Satellite Company Limited, a wholly-owned subsidiary of the Company[31](index=31&type=chunk) - As of June 30, 2025, the Group's total liabilities were **HK$845,473,000**, a decrease of **HK$31,970,000** from December 31, 2024, primarily due to reductions in deferred revenue, lease liabilities, and deferred income tax liabilities, resulting in a debt-to-asset ratio decrease to **12.1%**[32](index=32&type=chunk) - As of June 30, 2025, the Group held **HK$2,511,187,000** in cash and bank balances, of which **88.67%** was denominated in US dollars[33](index=33&type=chunk) [3.9 Capital Structure and Foreign Exchange Risk](index=8&type=section&id=Capital%20Structure%20and%20Foreign%20Exchange%20Risk) The Group maintains a conservative capital management system and a robust capital structure; due to the HKD peg to the USD, USD exchange rate fluctuations have minimal impact on operations, though the RMB appreciated against the HKD during the period - The Group maintains a conservative capital management system, with its robust capital structure and strong financial strength laying a solid foundation for future sustainable development[34](index=34&type=chunk) - Due to the Hong Kong dollar's peg to the US dollar, fluctuations in the US dollar exchange rate have minimal impact on the Group's operations; for the six months ended June 30, 2025, the Renminbi appreciated against the Hong Kong dollar[35](index=35&type=chunk) [3.10 Pledged Assets and Capital Commitments](index=9&type=section&id=Pledged%20Assets%20and%20Capital%20Commitments) As of June 30, 2025, the Group had pledged bank deposits of HK$367,000 and properties with a net book value of HK$2,502,000; contracted capital commitments increased to HK$169,871,000 from year-end Pledged Assets and Capital Commitments | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Pledged bank deposits | 367 | 367 | | Net book value of properties pledged | 2,502 | 2,560 | | Contracted capital commitments | 169,871 | 125,758 | [3.11 Financial Guarantees](index=9&type=section&id=Financial%20Guarantees) APT Satellite, a wholly-owned subsidiary, provides a 20% joint and several guarantee for an US$116,900,000 buyer's credit loan from China Exim Bank to associate company APT Starlink; as of June 30, 2025, financial guarantee liabilities were HK$2,545,000, with a maximum guarantee responsibility of HK$178,732,000 - APT Satellite provides a guarantee for a **US$116,900,000** buyer's credit loan from China Exim Bank to its associate company, APT Starlink[38](index=38&type=chunk) - The guarantee covers **20%** of the principal amount of the drawn loan plus accrued interest, and any other amounts payable by APT Starlink under the relevant loan agreement[38](index=38&type=chunk) Financial Guarantee Responsibilities | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Financial guarantee liabilities | 2,545 | 2,355 | | Maximum financial guarantee responsibility (RMB) | 163,629 | 163,440 | | Maximum financial guarantee responsibility (HK$) | 178,732 | 177,382 | [3.12 Non-Adjusting Events After Reporting Period](index=9&type=section&id=Non-Adjusting%20Events%20After%20Reporting%20Period) The Board proposed an interim dividend totaling HK$23,214,000 after the reporting period, with details disclosed in Note 7 - After the reporting period, the Directors recommended an interim dividend, details of which are set out in Note 23 of this announcement[40](index=40&type=chunk) - The Board declared an interim dividend totaling **HK$23,214,000** after the reporting period, with details provided in Note 7 of this announcement[88](index=88&type=chunk) IV. [Financial Statements](index=10&type=section&id=Financial%20Summary) This section presents the unaudited condensed consolidated financial statements, including the statements of profit or loss, comprehensive income, financial position, changes in equity, and cash flows [4.1 Unaudited Condensed Consolidated Statement of Profit or Loss](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section presents the unaudited condensed consolidated statement of profit or loss for the six months ended June 30, 2025, showing specific data and YoY changes in revenue, gross profit, operating profit, and profit attributable to shareholders - Profit for the period was **HK$77,812 thousand**, of which **HK$77,383 thousand** was attributable to owners of the parent[41](index=41&type=chunk) [4.2 Unaudited Condensed Consolidated Statement of Comprehensive Income](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This section presents the unaudited condensed consolidated statement of comprehensive income for the six months ended June 30, 2025, showing the sum of profit for the period and other comprehensive income, primarily from exchange differences - Total comprehensive income for the period attributable to owners of the parent was **HK$91,429 thousand**, primarily comprising profit for the period of **HK$77,812 thousand** and exchange differences on translation of **HK$13,617 thousand**[47](index=47&type=chunk) [4.3 Unaudited Condensed Consolidated Statement of Financial Position](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the unaudited condensed consolidated statement of financial position as of June 30, 2025, detailing the composition of non-current assets, current assets, current liabilities, non-current liabilities, and shareholders' equity - As of June 30, 2025, total assets less current liabilities were **HK$6,743,028 thousand**, and net assets were **HK$6,119,337 thousand**[44](index=44&type=chunk)[45](index=45&type=chunk) [4.4 Unaudited Condensed Consolidated Statement of Changes in Equity](index=14&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section presents the unaudited condensed consolidated statement of changes in equity for the six months ended June 30, 2025, reflecting movements in equity components such as share capital, share premium, reserves, and retained earnings - As of June 30, 2025, total equity attributable to owners of the Company was **HK$6,118,601 thousand**, with non-controlling interests at **HK$736 thousand**[46](index=46&type=chunk) [4.5 Unaudited Condensed Consolidated Statement of Cash Flows](index=15&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statement of cash flows for the six months ended June 30, 2025, showing cash flows from operating, investing, and financing activities, and the net change in cash and cash equivalents - For the six months ended June 30, 2025, the net decrease in cash and cash equivalents was **HK$16,153 thousand**[47](index=47&type=chunk) - Net cash inflow from operating activities was **HK$113,133 thousand**, net cash outflow from investing activities was **HK$45,945 thousand**, and net cash outflow from financing activities was **HK$83,341 thousand**[47](index=47&type=chunk) V. [Notes to the Financial Statements](index=16&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed notes to the unaudited condensed consolidated interim financial information, covering accounting policies, segment reporting, profit before tax composition, taxation, dividends, earnings per share, and asset details [5.1 Basis of Preparation and Accounting Policies](index=16&type=section&id=Basis%20of%20Preparation) This interim financial information is prepared in accordance with IAS 34 and HKAS 34 and has been reviewed by independent auditors; the Group adopted the same accounting policies as its 2024 annual consolidated financial statements, except for the IAS/HKAS 21 amendment "Lack of Exchangeability" effective in 2025, which is not expected to have a significant impact - This interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[48](index=48&type=chunk) - Although this interim financial information is unaudited, it has been reviewed by the Company's auditors, BDO Limited, in accordance with Hong Kong Standard on Review Engagements 2410[49](index=49&type=chunk) - The Group's interim financial information adopted the same accounting policies and methods of computation as those used in the 2024 annual consolidated financial statements, except for the following new amendment first effective in 2025: Amendments to IAS/HKAS 21 Lack of Exchangeability[50](index=50&type=chunk)[51](index=51&type=chunk) [5.2 Segment Reporting](index=17&type=section&id=Segment%20Reporting) The Group's primary business is providing satellite transponder capacity and related services, accounting for approximately 90% of revenue, thus no other separate financial segment information is provided; the Group has a diversified customer base, with one customer contributing over 10% of revenue, and regional revenue primarily from Greater China, Southeast Asia, and Hong Kong - As approximately **90%** of the Group's revenue, operating results, and assets for the six months ended June 30, 2025, and 2024, were derived from providing satellite transponder capacity and related services, no other separate financial information for resource allocation and assessment purposes was provided to the executive directors[55](index=55&type=chunk) - The Group has a diversified customer base, with one customer's transaction amount accounting for over **10%** of the Group's revenue[55](index=55&type=chunk) Geographical Revenue Distribution (HK$ Thousand) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Hong Kong | 70,091 | 63,310 | | Greater China (excluding Hong Kong) | 176,918 | 167,708 | | Southeast Asia | 86,000 | 117,619 | | Other regions | 46,664 | 43,205 | [5.3 Seasonality of Revenue and Business](index=18&type=section&id=Seasonality%20of%20Revenue%20and%20Business) The Group's main businesses, including satellite transponder capacity, satellite broadcasting and telecommunication services, and other satellite-related services, are not significantly affected by seasonal fluctuations - The Group's principal activities include maintaining, operating, and providing satellite transponder capacity, satellite broadcasting and telecommunication services, and other satellite-related services[57](index=57&type=chunk) - The Group's business is not significantly affected by seasonal fluctuations[58](index=58&type=chunk) [5.4 Composition of Profit Before Tax](index=19&type=section&id=Profit%20Before%20Tax) Profit before tax is derived after deducting or including various items, including other net income, finance costs, depreciation, amortization, gain/loss on disposal of property, and impairment loss on trade receivables Key Components of Profit Before Tax (HK$ Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Other net income | 51,406 | 51,215 | | Finance costs (interest on lease liabilities) | 2,154 | 2,557 | | Depreciation (property, plant and equipment) | 191,723 | 189,014 | | Depreciation (right-of-use assets) | 9,774 | 16,148 | | Amortization | 4,368 | 4,368 | | Loss on derecognition of property, plant and equipment | 2,926 | – | | Impairment loss recognized on trade receivables | 965 | 904 | [5.5 Taxation Details](index=20&type=section&id=Taxation) Current period tax expense was HK$19,497,000, primarily comprising Hong Kong profits tax, overseas tax, and deferred tax; Hong Kong profits tax is calculated at 16.5% (8.25% for some subsidiaries), and management believes no top-up tax is required under OECD Pillar Two model rules Composition of Taxation Expenses (HK$ Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current tax – Hong Kong profits tax | 31,922 | 35,494 | | Current tax – Outside Hong Kong | 3,822 | 6,198 | | Deferred tax – Hong Kong | (16,247) | (25,770) | | **Taxation expenses** | **19,497** | **15,922** | - The Group's management believes that the Group is not required to pay top-up tax under the Pillar Two model rules[62](index=62&type=chunk) [5.6 Dividend Details](index=21&type=section&id=Dividends) The Board proposed an interim dividend of HK2.50 cents per ordinary share, totaling HK$23,214,000; additionally, a final dividend of HK6.50 cents per share, totaling HK$60,357,000, for the previous fiscal year was approved and paid during the period Dividend Distribution (HK$ Thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Proposed interim dividend (2.50 Cents/4.50 Cents per share) | 23,214 | 41,786 | | Final dividend approved and paid (6.50 Cents/14.50 Cents per share) | 60,357 | 134,643 | - As the interim dividend was proposed after the reporting period, it has not been recognized as a liability as of the date of this announcement[63](index=63&type=chunk) [5.7 Earnings Per Share](index=21&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, both basic and diluted earnings per share were HK8.33 cents, a decrease from the prior year, with no potential ordinary shares having a dilutive effect Earnings Per Share (HK Cents) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic earnings per share | 8.33 | 10.95 | | Diluted earnings per share | 8.33 | 10.95 | - Basic earnings per share are calculated based on the profit attributable to owners of the Company of **HK$77,383,000** and the weighted average number of ordinary shares in issue of **928,573,000** during the period[65](index=65&type=chunk) - For the six months ended June 30, 2025, and 2024, there were no potential ordinary shares with dilutive effects, thus diluted earnings per share are the same as basic earnings per share[66](index=66&type=chunk) [5.8 Property, Plant and Equipment](index=22&type=section&id=Property%2C%20Plant%20and%20Equipment) No new right-of-use assets were added during the period; total additions to property, plant, and equipment amounted to HK$15,550,000, while items with a net book value of HK$2,926,000 were derecognized, resulting in a loss, and directors believe no impairment indicators exist - No increase in right-of-use assets was recognized as the Group did not enter into any new/renewed lease contracts during the six months ended June 30, 2025, and 2024[68](index=68&type=chunk) - For the six months ended June 30, 2025, the Group acquired property, plant, and equipment with a total cost of **HK$15,550,000**[69](index=69&type=chunk) - Property, plant, and equipment items with a net book value of **HK$2,926,000** were derecognized during the six months ended June 30, 2025, resulting in a derecognition loss of **HK$2,926,000**[69](index=69&type=chunk) - The Directors believe there are no indications of impairment that would suggest an impairment loss on the carrying amounts of non-financial assets[70](index=70&type=chunk) [5.9 Investment Properties](index=22&type=section&id=Investment%20Properties) Investment properties were revalued to HK$7,909,000 as of June 30, 2025; fair value changes during the period included a revaluation loss of HK$206,000 and an exchange gain of HK$62,000 Revalued Investment Properties (HK$ Thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Revalued investment properties | 7,909 | 8,053 | - For the six months ended June 30, 2025, fair value changes, including a revaluation loss of **HK$206,000** and an exchange gain of **HK$62,000**, were recognized in profit or loss during the period[71](index=71&type=chunk) [5.10 Intangible Assets](index=22&type=section&id=Intangible%20Assets) The Group holds an intangible asset with an indefinite useful life (orbital slot operating rights), which is not amortized and has no impairment loss; amortization expense for leased intangible assets (orbital slots) was HK$4,368,000 - The Group acquired the right to operate a satellite at an orbital slot in 2009, and this intangible asset is considered to have an indefinite useful life and is not amortized[72](index=72&type=chunk) - For the six months ended June 30, 2025, and 2024, the Group conducted impairment assessments on its intangible assets and determined that no impairment loss was to be recognized[72](index=72&type=chunk) - Amortization expense of **HK$4,368,000** for the six months ended June 30, 2025, was included in "cost of services" in the condensed consolidated statement of profit or loss[73](index=73&type=chunk) [5.11 Investments in Associate Companies](index=23&type=section&id=Investments%20in%20Associate%20Companies) The Group invested in APT Satellite Broadband Communications (Shenzhen) Co., Ltd. (30% stake) and APT Starlink Satellite Co., Ltd. (20% stake), both accounted for using the equity method, with primary business in constructing and developing high-throughput satellite communication systems - The Group has invested **RMB600 million** (equivalent to **HK$708 million**), representing a **30%** equity interest in APT Mobile SatCom, whose principal business is the construction and development of a global high-throughput satellite communication system and participation in the manufacturing, delivery, and launch of the APSTAR-6D satellite project[74](index=74&type=chunk) - The Group has invested **US$6 million** (equivalent to **HK$46.8 million**), representing a **20%** equity interest in APT Starlink, whose principal business is the construction and development of a global high-throughput satellite communication system and participation in the manufacturing and launch of the APSTAR-6E satellite project[74](index=74&type=chunk) [5.12 Financial Assets at Fair Value Through Profit or Loss](index=23&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) On March 1, 2024, Jin Ye Holdings Limited shares resumed trading, leading to a HK$1,388,000 fair value gain recognized by the Group as of June 30, 2024; the Group disposed of all its shares in Jin Ye by December 31, 2024, resulting in a zero net book value at period-end - As of June 30, 2024, the fair value of the listed equity investment in Jin Ye was remeasured at market value to **HK$1,388,000**, with a fair value gain of **HK$1,388,000** recognized in profit or loss[75](index=75&type=chunk) - For the year ended December 31, 2024, the Group disposed of all its shares in Jin Ye for a consideration of **HK$1,133,000**[75](index=75&type=chunk) - As of December 31, 2024, the net book value of financial assets at fair value through profit or loss was **HK$0**[75](index=75&type=chunk) [5.13 Net Trade Receivables](index=24&type=section&id=Net%20Trade%20Receivables) As of June 30, 2025, net trade receivables totaled HK$272,383,000, a significant increase from year-end 2024; credit terms are generally 30 days, with expected recovery within one year Aging Analysis of Trade Receivables (HK$ Thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 222,611 | 126,368 | | 31-60 days | 6,595 | 2,176 | | 61-90 days | 13,026 | 2,126 | | 91-120 days | 11,253 | 248 | | Over 120 days | 18,898 | 16,546 | | **Total** | **272,383** | **147,464** | - The Group generally grants credit terms of **30 days** from the date of revenue recognition to its trade customers; trade receivables are expected to be recovered within one year from the end of the reporting period[76](index=76&type=chunk) [5.14 Deposits, Prepayments and Other Receivables](index=24&type=section&id=Deposits%2C%20Prepayments%20and%20Other%20Receivables) As of June 30, 2025, total deposits, prepayments, and other receivables amounted to HK$36,182,000, a slight decrease from year-end 2024, with interest receivables constituting a significant portion Composition of Deposits, Prepayments and Other Receivables (HK$ Thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Deposits | 3,526 | 1,561 | | Prepayments | 15,500 | 11,043 | | Interest receivables | 16,489 | 21,860 | | Other receivables | 667 | 3,685 | | **Total** | **36,182** | **38,149** | [5.15 Cash and Cash Equivalents](index=25&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the Group's bank balances and cash totaled HK$452,365,000, a decrease from year-end 2024 Cash and Cash Equivalents (HK$ Thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank balances and cash | 452,365 | 465,893 | [5.16 Payables and Accrued Expenses](index=25&type=section&id=Payables%20and%20Accrued%20Expenses) Trade payables are generally due within 3 months, and other payables and accrued expenses are expected to be settled within one year; the Group provides a financial guarantee for an associate company's buyer's credit loan, with financial guarantee liabilities of HK$2,545,000 as of June 30, 2025 - Trade payables are generally aged within **3 months**, and other payables and accrued expenses, except for the financial guarantee issued as described below, are expected to be settled within one year from the end of the reporting period[79](index=79&type=chunk) - APT Satellite Company Limited, a wholly-owned subsidiary of the Company, entered into a guarantee agreement with The Export-Import Bank of China to provide a guarantee for a buyer's credit loan with a principal amount of **US$116,900,000** granted by the bank to APT Starlink, an associate company of the Group[79](index=79&type=chunk) - As of June 30, 2025, financial guarantee liabilities of **HK$2,545,000** were recognized under "other payables" in the condensed consolidated statement of financial position[80](index=80&type=chunk) [5.17 Share Capital](index=26&type=section&id=Share%20Capital) As of June 30, 2025, the Company's authorized share capital was HK$200,000,000 (2,000,000 thousand shares), with issued and fully paid share capital of HK$92,857,000 (928,573 thousand shares), remaining unchanged from year-end 2024 Composition of Share Capital (Thousand Shares/HK$ Thousand) | Item | June 30, 2025 (Thousand Shares) | June 30, 2025 (HK$ Thousand) | December 31, 2024 (Thousand Shares) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Authorized share capital (HK$0.10 par value per share) | 2,000,000 | 200,000 | 2,000,000 | 200,000 | | Issued and fully paid ordinary shares | 928,573 | 92,857 | 928,573 | 92,857 | [5.18 Fair Value Measurement](index=26&type=section&id=Fair%20Value) The Group's fair value measurements are categorized into three levels; as of June 30, 2025, investment properties were measured at Level 3 fair value of HK$7,909,000, with no transfers between fair value levels during the period - IFRS/HKFRS 13 "Fair Value Measurement" categorizes fair value measurements into a three-level hierarchy[82](index=82&type=chunk) Fair Value Hierarchy of Assets (HK$ Thousand) | Asset | Level 1 | Level 2 | Level 3 | | :--- | :--- | :--- | :--- | | Investment properties | – | – | 7,909 | - There were no transfers between fair value levels for the six months ended June 30, 2025, and for the year ended December 31, 2024[82](index=82&type=chunk) [5.19 Commitments](index=27&type=section&id=Commitments) As of June 30, 2025, the Group's contracted capital commitments for the acquisition of property, plant, and equipment increased to HK$169,871,000 from year-end 2024 Capital Commitments (HK$ Thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted for acquisition of property, plant and equipment | 169,871 | 125,758 | [5.20 Pledged Assets](index=27&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group had pledged bank deposits of HK$367,000 and properties with a net book value of HK$2,502,000 belonging to a subsidiary, to secure bank guarantees Pledged Assets (HK$ Thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Pledged bank deposits | 367 | 367 | | Net book value of properties pledged | 2,502 | 2,560 | [5.21 Significant Related Party Transactions](index=28&type=section&id=Significant%20Related%20Party%20Transactions) The Group engaged in several significant related party transactions, including revenue from satellite transponder capacity and telecommunication services from fellow group subsidiaries, a shareholder's holding company, and associate companies, as well as service fees paid to related parties Significant Related Party Transactions (HK$ Thousand) | Transaction Type | 2025 | 2024 | | :--- | :--- | :--- | | Revenue from fellow group subsidiaries | 141,788 | 133,243 | | Revenue from a holding company of a shareholder of the Company | 2,403 | 1,959 | | Revenue from associate companies | 2,925 | 5,075 | | Revenue from a subsidiary of an associate company | 46,584 | 36,003 | | Fees paid to fellow group subsidiaries | (10,129) | (1,887) | | Fees paid to an associate company | (196) | (187) | | Fees paid to a subsidiary of an associate company | (5,189) | (3,584) | [5.22 Non-Adjusting Events After Reporting Period](index=28&type=section&id=Non-Adjusting%20Events%20After%20Reporting%20Period) The Board declared an interim dividend totaling HK$23,214,000 after the reporting period, as detailed in Note 7 - The Board declared an interim dividend totaling **HK$23,214,000** after the reporting period, with details provided in Note 7 of this announcement[88](index=88&type=chunk) VI. [Other Information](index=29&type=section&id=Human%20Resources) This section provides additional information on human resources, share dealings, corporate governance compliance, the Audit and Risk Management Committee's review, and the publication details of the interim report [6.1 Human Resources](index=29&type=section&id=Human%20Resources) As of June 30, 2025, the Group's employee count increased to 118 from the prior year; the Group continues to provide on-the-job training and regularly reviews its remuneration policy Changes in Employee Count | Period | Employee Count | | :--- | :--- | | June 30, 2025 | 118 | | June 30, 2024 | 113 | - The Group continuously arranges on-the-job training for its employees and regularly reviews its remuneration policy based on each employee's responsibilities and market conditions[90](index=90&type=chunk) [6.2 Share Dealings](index=29&type=section&id=Purchase%2C%20Sale%20and%20Redemption%20of%20the%20Company%27s%20Listed%20Shares) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[91](index=91&type=chunk) [6.3 Closure of Register of Members](index=29&type=section&id=Closure%20of%20Register%20of%20Members) The Company will suspend its register of members from September 24 to September 26, 2025, to determine eligibility for the interim dividend - The Company's register of members will be closed from Wednesday, September 24, 2025, to Friday, September 26, 2025 (both dates inclusive), during which no transfers of shares will be registered[92](index=92&type=chunk) - To qualify for the interim dividend, all duly completed transfer forms, together with the relevant share certificates, must be lodged with the Company's Hong Kong Share Registrar and Transfer Office by 4:30 p.m. on Tuesday, September 23, 2025[92](index=92&type=chunk) [6.4 Compliance with Corporate Governance Code](index=29&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) For the six months ended June 30, 2025, the Group complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, except for code provision B.2.2 (Chairman and Chief Executive not required to rotate) - For the six months ended June 30, 2025, the Group complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, except for code provision B.2.2: The Chairman and Chief Executive are not required to rotate, as this helps the Company maintain consistency in its decisions[93](index=93&type=chunk) [6.5 Audit and Risk Management Committee](index=29&type=section&id=Audit%20and%20Risk%20Management%20Committee) The Audit and Risk Management Committee reviewed the Group's accounting principles, practices, and interim financial report on August 21, 2025, and discussed audit and internal control matters; the committee comprises four independent non-executive directors - At the meeting on August 21, 2025, the Audit and Risk Management Committee, together with management, reviewed the Group's adopted accounting principles and practices, as well as the unaudited interim financial report for the six months ended June 30, 2025, and discussed audit and internal control matters[94](index=94&type=chunk) - The Audit and Risk Management Committee comprises four independent non-executive directors: Ms. Yan Jiamin (Chairperson), Dr. Lin Xiguang, Mr. Cui Liguo, and Dr. Meng Xingguo[94](index=94&type=chunk) [6.6 Publication of Interim Report](index=30&type=section&id=Interim%20Report) The financial information contained in this announcement is a summary of the interim financial report; the Company's 2025 interim report will be published on the HKEX and Company websites in due course - The unaudited financial information presented above does not constitute the Company's interim financial report for the six months ended June 30, 2025, but serves as a summary of the interim financial report[95](index=95&type=chunk) - The Company's 2025 interim report, containing information required by Appendix D2 of the Listing Rules, will be published on the HKEX (www.hkexnews.hk) and the Company's (www.apstar.com) websites in due course[95](index=95&type=chunk) [6.7 Acknowledgements](index=30&type=section&id=Acknowledgements) The Chairman, on behalf of the Board, extends gratitude to customers, directors, and all employees for their support and efforts in the Group's business - I take this opportunity to express my gratitude to our customers for their support of the Group's business, and to all directors and employees for their efforts[96](index=96&type=chunk)

世界那麽大， 亞太伴您闖天下。 APT Satellite Holdings Limited Stock code: (1045) 2025 Interim Results 2025.08.22 CONTENT 目 錄 PART PART PART 1 2 3 Financial Highlights Satellite Fleet Business Prospects PART PART PART PART 4 5 6 7 Financial Highlights PART 1 Financial Highlights | | 2025.6 | 2024.6 | Change | | --- | --- | --- | --- | | | (HK$ M) | (HK$ M) | （%） | | Revenue | 380 | 392 | -3.1% | | Profit Attributable | | | | | to Equity | 77 | 102 | -23.9% | | Shareholders | | | | Dividend The Board has resolved to declare ...

Core Viewpoint - Rocket Lab has become a significant launch service provider in Japan's growing small satellite sector, establishing strong partnerships with major Japanese aerospace companies [1] Group 1: Company Overview - Rocket Lab provides launch services primarily from its New Zealand facility, which is increasingly integral to Japan's satellite program development [1] - The CEO, Peter Beck, indicated that planned launch missions for Japan are approaching one-third of all Electron rocket missions [1] Group 2: Industry Context - The Asia-Pacific region is increasingly recognizing the importance of the space sector for both security and economic development opportunities [1] - Other Asian countries are expected to follow Japan's model in developing their space capabilities [1] Group 3: Competitors and Collaborators - Key players in Japan's aerospace sector include Mitsubishi Heavy Industries, Ariane Group, SpaceX, Canon's Space One, Toyota-backed Interstellar Technologies, and Honda's research division [1]

格隆汇8月4日丨亚太卫星(01045.HK)公布，公司将于2025年8月22日举行董事会会议，藉以考虑包括通 过公司以及其附属公司截至2025年6月30日止六个月的中期业绩公布，以及考虑派发中期股息的建议 （如合适）。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任 何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） * （股份代號：1045） 董事會召開日期 亞太衛星控股有限公司（「本公司」）董事會（「董事會」）謹此公佈，本公司將於二零 二五年八月二十二日舉行董事會會議，藉以考慮包括通過本公司以及其附屬公司 截至二零二五年六月三十日止六個月之中期業績公佈，以及考慮派發中期股息之 建議（如合適）。 承董事會命 公司秘書 非執行董事︰ 孫京 （主席） 、尹衍樑、付志恒、林建順、李曉梅、梁嘉輝及曾達夢 （尹衍樑之替任 董事） 獨立非執行董事︰ 林錫光、崔利國、孟興國及嚴加敏 於本公告刊發日期，本公司之董事如下︰ 執行董事︰ 汪鴻濱 （總裁） 及閆釗 （副總裁） 劉翠玲 香港，二零二五年八月四日 * 僅供識別 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 亞太衛星控股有限公司（於百慕達註冊成立之有限公司） 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01045 | 說明 | 普通股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.1 HKD | | 200,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.1 HKD | | 200,000,000 | ...

Financial Performance - For the fiscal year ending December 31, 2024, the group's revenue was HKD 784.65 million, a decrease of HKD 49.33 million or 5.9% compared to 2023[17]. - The group's profit before tax for 2024 was HKD 233.27 million, down HKD 45.76 million or 16.4% from 2023[18]. - Shareholders' profit for 2024 was HKD 205.22 million, a decline of HKD 32.43 million or 13.6% compared to 2023, with basic and diluted earnings per share at HKD 0.2210[19]. - The EBITDA margin for 2024 was 76.8%, down from 80.2% in 2023 and 81.0% in 2022[12]. - In 2024, the company's revenue was HKD 784,650,000, a decrease of HKD 49,325,000 or 5.9% compared to 2023's revenue of HKD 833,975,000[39]. - The company's net profit attributable to shareholders for 2024 was HKD 205,221,000, down from HKD 237,654,000 in 2023[39]. - Gross profit declined by 20.1% to HKD 284,129,000 from HKD 355,565,000 year-over-year[52]. - The pre-tax profit decreased by 16.4% to HKD 233,265,000, down from HKD 279,021,000 in the previous year[52]. - The EBITDA for the year was HKD 602,477,000, representing a 9.9% decrease from HKD 668,880,000 in 2023[52]. - Other net income increased by 26.4% to HKD 111,811,000, primarily due to increased interest income from bank deposits[58]. Dividends - The company declared an interim cash dividend of HKD 0.045 per share and proposed a final cash dividend of HKD 0.065 per share for the fiscal year 2024[20]. - The board of directors will propose the final dividend at the annual general meeting scheduled for May 23, 2025[20]. - The company has adopted a dividend policy based on financial condition, business outlook, future income, cash flow, and other specified factors[136]. Satellite Operations - The satellite fleet includes APT 5C, APT 6C, APT 7, APT 9, APT 6D, and APT 6E, providing coverage to over 75% of the global population[22]. - APT 5C satellite, in partnership with Telesat Canada, is equipped with 63 transponders and provides enhanced broadband services in Southeast Asia[23]. - APT 6D satellite is the first high-throughput satellite optimized for mobile services, offering quality broadband satellite services across China and the Asia-Pacific region[27]. - The company continues to maintain a strong operational status of its satellite systems, ensuring reliable service for its customers[21]. - The company plans to expand its traditional satellite resource leasing business while leveraging high-throughput satellites to provide quality broadband services[34]. Financial Position - The company maintained a strong cash position with approximately HKD 2,448,394,000 in cash and bank deposits as of December 31, 2024[40]. - The total cash and bank balance increased by 14.0% to HKD 2,448,394,000 from HKD 2,148,555,000[54]. - The total liabilities decreased by 12.7% to HKD 877,443,000 from HKD 1,004,523,000[54]. - The company maintains a healthy financial position with sufficient internal funds and cash inflows from transponder leasing services to meet any financial obligations[48]. - The company has secured financing agreements totaling up to 85,600,000 USD (approximately 667,680,000 HKD) with Bank of China (Hong Kong) for its subsidiary, with no outstanding principal balance as of December 31, 2024[68]. Corporate Governance - The company continues to uphold high standards of corporate governance and internal controls to ensure compliance and ethical conduct[35]. - The board has established audit and risk management committees to ensure high standards of corporate governance[86]. - The company has complied with the corporate governance code throughout the year, with minor exceptions noted[87]. - The board consists of two executive directors, six non-executive directors, and four independent non-executive directors[89]. - The company emphasizes continuous review and adjustment of its business strategies to adapt to changing market conditions[84]. Risk Management - The company has established a risk management system aimed at managing risks to achieve business objectives[120]. - The board is responsible for ensuring robust internal controls and risk management to protect shareholder investments[120]. - The Audit and Risk Management Committee is tasked with monitoring the independence and objectivity of the external auditor[119]. - The internal control and risk management committee conducted an annual review of the effectiveness of the internal control system and risk management for the year ending December 31, 2024[125]. - The company has established a whistleblower protection policy to handle complaints regarding suspected fraud and unethical behavior, ensuring confidentiality of whistleblower identities[129]. Environmental, Social, and Governance (ESG) - The company has established a comprehensive ESG strategy, focusing on environmental protection, social responsibility, and corporate governance[139]. - The company has identified 37 key ESG issues through stakeholder consultation, prioritizing them based on their significance to both the business and stakeholders[155]. - The report covers the company's performance in environmental and social responsibilities from January 1, 2024, to December 31, 2024[150]. - The company has made progress in waste management and radiation emissions control at its satellite ground stations[140]. - The company aims to reduce greenhouse gas emissions from operations, with a focus on minimizing indirect emissions from purchased electricity and business travel[196]. Employee and Workplace - The company employed a total of 122 employees as of December 31, 2024, an increase from 108 in 2023, representing a growth of 12.96%[165]. - The employee turnover rate decreased to 10.0% in 2024 from 19.0% in 2023, indicating improved employee retention[166]. - The company provides competitive compensation packages, including medical insurance and performance bonuses, to retain top talent[161]. - The company emphasizes a diverse and inclusive workforce, hiring without discrimination based on gender, race, nationality, or religion[161]. - The company conducted regular fire drills and safety training to enhance workplace safety awareness among employees[169]. Training and Development - In 2024, 101 employees received training, representing 82.8% of the total workforce, compared to 93.5% in 2023[174]. - The average training hours per employee decreased from 14.6 hours in 2023 to 12.8 hours in 2024[176]. - The company emphasizes continuous professional development for directors, with training participation reported for various governance and anti-corruption programs[102]. - The management level employees received an average of 11.8 training hours in 2024, compared to 11.3 hours in 2023[176]. Community Engagement - The company actively participates in community activities and invests in social responsibility initiatives without utilizing financial resources this year[189]. - Stakeholder engagement is maintained through various communication channels, including press releases and annual reports[153].

Financial Performance - The group's revenue for the fiscal year 2024 was HKD 784,650,000, a decrease of HKD 49,325,000 or 5.9% compared to HKD 833,975,000 in 2023[5] - The group's profit before tax for 2024 was HKD 233,265,000, down HKD 45,756,000 or 16.4% from HKD 279,021,000 in 2023[6] - The profit attributable to shareholders for 2024 was HKD 205,221,000, a decline of HKD 32,433,000 or 13.6% compared to HKD 237,654,000 in 2023, with basic and diluted earnings per share at HKD 0.2210[7] - Gross profit fell by 20.1% to HKD 284,129,000 from HKD 355,565,000, with a pre-tax profit decline of 16.4% to HKD 233,265,000[26] - EBITDA decreased to HKD 602,477,000, with an EBITDA margin of 76.8%, down from 80.2%[33] - The operating profit decreased to HKD 294,902,000, a decline of 14.2% compared to HKD 343,800,000 in the previous year[48] - The annual profit attributable to the company was HKD 202,320,000, representing a decrease of 15.0% from HKD 237,654,000 in 2023[48] - Total tax expenses for the year were HKD 30,945,000 in 2024, down from HKD 41,367,000 in 2023, reflecting a reduction of 25.1%[68] Dividends - The company declared an interim cash dividend of HKD 0.045 per share and proposed a final cash dividend of HKD 0.065 per share for the fiscal year 2024, down from HKD 0.145 per share in 2023[9] - The company declared a dividend of HKD 41,786,000 for the year 2024, compared to HKD 46,429,000 for 2023[54] - The interim dividend per ordinary share decreased to HKD 0.045 in 2024 from HKD 0.050 in 2023, a reduction of 10%[72] - The proposed final dividend per ordinary share decreased significantly to HKD 0.065 in 2024 from HKD 0.145 in 2023, a decrease of 55.2%[72] - The company declared a final dividend of HKD 60,357,000 after the reporting period[90] Market Conditions - The satellite transponder market remains in a state of oversupply, with declining rental prices impacting the group's transponder leasing business[20] - The company expects continued pressure on market expansion in the transponder leasing business due to economic challenges and currency shortages in client countries[22] Business Strategy - The company plans to expand its traditional satellite resource leasing business while leveraging high-throughput satellites to provide quality broadband services[22] - The group aims to integrate satellite ground systems, gateway operations, network operations, and transponder resources to offer comprehensive services to clients[22] - The company is actively exploring new satellite project investments and business areas to enhance competitiveness and service capabilities[23] - The group has established or acquired gateway station service capabilities in locations such as Hong Kong, Australia, Indonesia, and Malaysia to support high-throughput satellite operations[18] Assets and Liabilities - Total cash and bank balances increased by 14.0% to HKD 2,448,394,000, with a current asset ratio of 12.27 times, up from 9.80 times[26] - Total liabilities decreased by 12.7% to HKD 877,443,000, resulting in a debt-to-asset ratio of 12.6%, down 1.6 percentage points from the previous year[37] - The company's non-current liabilities decreased to HKD 662,822,000 from HKD 770,961,000 in the previous year[52] - The financial guarantee liability as of December 31, 2024, was HKD 2,355,000, compared to zero in 2023[45] - The company has a maximum financial guarantee liability of RMB 163,440,000 (equivalent to HKD 177,382,000) as of December 31, 2024[45] Income and Revenue Sources - Revenue from satellite transponder capacity for 2024 was HKD 680,358,000, a decrease of 7.8% from HKD 737,997,000 in 2023[60] - Revenue from satellite broadcasting and telecommunications services increased to HKD 4,123,000 in 2024 from HKD 3,979,000 in 2023, reflecting a growth of 3.6%[60] - The revenue from a major customer accounted for HKD 229,111,000 in 2024, slightly up from HKD 225,319,000 in 2023, representing a growth of 0.8%[61] - Non-current assets are primarily located in Hong Kong, with total revenue from Hong Kong customers amounting to HKD 136,785,000 in 2024, up from HKD 133,446,000 in 2023[63] - Interest income from bank deposits increased to HKD 108,786,000 in 2024 from HKD 87,597,000 in 2023, representing a growth of 24.5%[64] Capital Expenditures - Capital expenditures for property, plant, and equipment amounted to HKD 48,733,000, significantly higher than HKD 17,182,000 in 2023[34] - Construction in progress increased significantly to HKD 38,022,000 in 2024 from HKD 14,309,000 in 2023, indicating a growth of 165.5%[78] Corporate Governance - The company maintained strict corporate governance standards, focusing on regulatory compliance and internal controls[92] - The company has complied with the Corporate Governance Code during the fiscal year 2024, with some exceptions noted[95] Employee Information - The group employed a total of 122 staff members as of December 31, 2024, and continues to provide on-the-job training for employees[93]

Financial Performance - For the first half of 2024, the group's revenue was HKD 391,842,000, a decrease of 6.64% compared to HKD 419,728,000 in the same period of 2023[6] - Shareholders' profit attributable to the company was HKD 101,660,000, down 13.72% from HKD 117,829,000 in the previous year[6] - Basic and diluted earnings per share were both HKD 0.1095, compared to HKD 0.1269 in the same period last year[6] - The gross profit for the first half of 2024 was HKD 146,705,000, down 21.89% from HKD 187,812,000 in the previous year[22] - The EBITDA for the first half of 2024 was HKD 303,138,000, representing a decline of 12.08% from HKD 344,769,000 in the same period of 2023[22] - Operating profit decreased to HKD 144,544,000, a decline of 16.0% from HKD 172,117,000 in the previous year[40] - Total comprehensive income for the period was HKD 83,951,000, slightly down from HKD 85,631,000 in the previous year[42] - The company reported a foreign exchange loss of HKD 17,709,000 for the period, compared to a loss of HKD 32,198,000 in the previous year[42] Revenue Breakdown - The decrease in revenue was primarily due to a reduction in satellite transponder capacity income during the period[6] - Revenue from satellite transponder capacity decreased by 8.69% to HKD 343,652,000, while revenue from satellite broadcasting and telecommunications services increased by 7.38% to HKD 2,096,000[25] - Revenue from satellite transponder capacity was HKD 343,652,000, down from HKD 376,370,000, reflecting a decline of 8.7%[54] - Revenue from satellite broadcasting and telecommunications services increased to HKD 2,096,000 from HKD 1,952,000, representing a growth of 7.4%[54] - Revenue from other satellite-related services rose to HKD 46,094,000, up from HKD 41,406,000, marking an increase of 11.5%[54] Dividend and Shareholder Returns - The board declared an interim dividend of HKD 0.045 per share, down from HKD 0.050 per share in the previous year[7] - The interim dividend proposed for ordinary shares is HKD 0.045 per share, down from HKD 0.050 per share in 2023, totaling HKD 41,786,000 compared to HKD 46,429,000 in the previous year[62] - The company paid dividends of HKD 132,685,000, a decrease from HKD 155,562,000 in the previous year[46] Assets and Liabilities - As of June 30, 2024, the total cash and bank balance was HKD 2,134,303,000, a slight decrease of 0.66% from HKD 2,148,555,000 at the end of 2023[22] - The company reported a total asset value of HKD 6,997,048,000, down 1.25% from HKD 7,085,442,000 at the end of 2023[22] - As of June 30, 2024, total liabilities were HKD 966,821,000, a decrease of HKD 37,702,000 from December 31, 2023, leading to a debt-to-asset ratio of 13.8%, down 0.4 percentage points[32] - The company has outstanding capital commitments for the acquisition of properties, plants, and equipment totaling HKD 143,845,000 as of June 30, 2024, down from HKD 169,871,000 as of December 31, 2023[80] Cash Flow and Investments - The group recorded a net cash inflow of HKD 92,932,000 for the six months ended June 30, 2024, compared to a net cash outflow of HKD 229,278,000 for the same period last year[32] - Operating cash flow for the six months ended June 30, 2024, was HKD 139,390,000, a decrease of 34.4% from HKD 212,367,000 in 2023[46] - Cash used in investing activities amounted to HKD 123,640,000, a significant improvement from cash used of HKD 265,013,000 in 2023[46] - The company reported a net cash inflow from investing activities, contrasting with a net cash outflow in the previous year[46] Market and Operational Insights - The company anticipates continued pressure in the satellite transponder rental market due to oversupply and increased competition from low Earth orbit satellite operators like Starlink[16] - The company plans to expand its traditional satellite resource leasing business while also exploring high-throughput satellite communication markets and services[18] - The company continues to maintain stable and reliable services through its satellite system, ensuring operational efficiency[8] Employee and Governance - The number of employees increased to 113 as of June 30, 2024, compared to 107 on June 30, 2023, with ongoing training and regular salary reviews[39] - The company has complied with the Corporate Governance Code during the six-month period, except for the provision regarding the rotation of the chairman and CEO[91] - There were changes in the board of directors, with Mr. Lin Chengguang resigning and Mr. Liang Jiafei appointed as a non-executive director[90] Accounting and Financial Reporting - The company has not made significant changes to its accounting policies compared to the previous year[48] - The company has adopted new accounting standards effective from 2024, but these are not expected to impact the financial statements significantly[49] - The audit and risk management committee reviewed the group's accounting principles and practices as of June 30, 2024[94] - No significant matters were noted that would lead to the belief that the condensed consolidated interim financial statements were not prepared in accordance with IAS 34 or HKAS 34[97]

[Chairman's Report](index=1&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E6%9B%B8) This section provides an overview of the Group's interim financial performance, including key financial highlights and dividend declarations [Interim Results Summary](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) In the first half of 2024, the Group experienced a year-on-year decline in total revenue and profit attributable to equity holders, primarily due to reduced satellite transponder capacity revenue Key Financial Indicators for H1 2024 | Indicator | Six Months Ended June 30, 2024 (HKD) | Six Months Ended June 30, 2023 (HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 391,842,000 | 419,728,000 | -6.64% | | Profit Attributable to Equity Holders | 101,660,000 | 117,829,000 | -13.72% | | Basic and Diluted Earnings Per Share | 10.95 HK Cents | 12.69 HK Cents | -13.71% | [Interim Dividend](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors has resolved to declare an interim dividend of 4.50 HK cents per ordinary share for 2024, a decrease from 5.00 HK cents in the prior year - The 2024 interim dividend is **4.50 HK cents per share**, lower than **5.00 HK cents per share** in the same period of 2023[3](index=3&type=chunk) - The dividend is expected to be distributed on or about October 14, 2024[3](index=3&type=chunk) [Business Review and Outlook](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%B1%95%E6%9C%9B) This section details the Group's operational performance, market challenges, and strategic initiatives for future growth and diversification [Business Review](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's in-orbit satellites and ground facilities maintained good operations, but the core transponder leasing business faced significant pressure from market oversupply and new competitors [In-Orbit Satellites](index=2&type=section&id=%E5%9C%A8%E8%BB%8C%E8%A1%9B%E6%98%9F) The Group's in-orbit satellite fleet, including APSTAR 5C, 6C, 7, 9, and the associated 6D, operated stably, covering over 75% of the global population - The Group's APSTAR satellite fleet (APSTAR 5C, 6C, 7, 9, 6D) and ground control systems maintained good operational status[4](index=4&type=chunk) - The APSTAR 6E high-throughput satellite, operated by associate company APT Satellite, has completed in-orbit testing and will provide high-throughput satellite broadband services to Southeast Asia[10](index=10&type=chunk) [Ground Facilities](index=3&type=section&id=%E5%9C%B0%E9%9D%A2%E8%A8%AD%E6%96%BD) To support high-throughput satellite development, the Group has established or acquired gateway station capabilities in Hong Kong, Australia, Indonesia, and Malaysia, with a new ground station under construction in Hong Kong - The Group has established gateway stations in Hong Kong, Australia, Indonesia, and Malaysia to support high-throughput satellite business[11](index=11&type=chunk) - A new satellite ground station is under construction at Chung Hom Kok, Hong Kong, to enhance ground service capabilities, serve as a backup for existing facilities, and mitigate future 5G signal interference risks[11](index=11&type=chunk) [Core Business](index=3&type=section&id=%E6%A0%B8%E5%BF%83%E6%A5%AD%E5%8B%99) The transponder leasing business faces a severe market environment with oversupply and competition from LEO operators like Starlink, yet the Group achieved positive volume growth in mainland China and Southeast Asia while diversifying services - The global satellite transponder market remains sluggish with oversupply, leading to significant declines in bandwidth leasing prices[12](index=12&type=chunk) - The launch of low-earth orbit satellite operators like Starlink has intensified market competition, significantly impacting the transponder leasing business[12](index=12&type=chunk) - Leveraging its licenses and facilities, the Group continues to provide diversified services including satellite TV broadcasting, satellite telecommunications, data centers, and gateway stations[13](index=13&type=chunk) [Business Outlook](index=4&type=section&id=%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B) The market's oversupply and intense competition are expected to persist in the second half of 2024, increasing pressure on transponder leasing, while the Group focuses on expanding high-throughput satellite communications and diversifying services - The oversupply and competitive landscape in the global and Asia-Pacific satellite transponder market are expected to persist in the second half of 2024, with market prices anticipated to decline[14](index=14&type=chunk) - The Group's strategic focus will include vigorously expanding traditional satellite resource leasing, developing the high-throughput satellite communication market, and diversifying into satellite video integrated services, project management, and frequency resource management[14](index=14&type=chunk) - Leveraging its healthy financial position and abundant capital, the Group will actively explore and increase investments in new satellite projects and expand into new business areas[14](index=14&type=chunk) [Financial Review](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides a detailed analysis of the Group's financial performance, including revenue, profitability, capital expenditure, liquidity, and key financial risks [Financial Performance Summary](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E6%91%98%E8%A6%81) The Group maintained a robust financial position in the first half of 2024, with reduced total liabilities and a slightly lower gearing ratio, despite year-on-year declines in revenue, gross profit, profit before tax, and profit attributable to equity holders Financial Summary | Indicator | Six Months Ended June 30, 2024 (HKD Thousands) | Six Months Ended June 30, 2023 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 391,842 | 419,728 | –6.64% | | Gross Profit | 146,705 | 187,812 | –21.89% | | Profit Attributable to Equity Holders | 101,660 | 117,829 | –13.72% | | EBITDA | 303,138 | 344,769 | –12.08% | | EBITDA Margin | 77.4% | 82.1% | –4.7 Percentage Points | | **Indicator** | **As of June 30, 2024** | **As of December 31, 2023** | **Change** | | Total Cash and Bank Balances | 2,134,303 | 2,148,555 | –0.66% | | Total Assets | 6,997,048 | 7,085,442 | –1.25% | | Total Liabilities | 966,821 | 1,004,523 | –3.75% | | Gearing Ratio | 13.8% | 14.2% | –0.4 Percentage Points | [Revenue Analysis](index=6&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Total revenue decreased by 6.64% year-on-year, primarily due to an 8.69% decline in core satellite transponder capacity revenue, partially offset by growth in satellite broadcasting, telecommunication, and other satellite-related services Revenue Composition | Revenue Source | H1 2024 (HKD Thousands) | H1 2023 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue from Satellite Transponder Capacity Services | 343,652 | 376,370 | –8.69% | | Revenue from Satellite Broadcasting and Telecommunication Services | 2,096 | 1,952 | +7.38% | | Revenue from Other Satellite-Related Services | 46,094 | 41,406 | +11.32% | | **Total** | **391,842** | **419,728** | **–6.64%** | [Profitability Analysis](index=6&type=section&id=%E7%9B%88%E5%88%A9%E8%83%BD%E5%8A%9B%E5%88%86%E6%9E%90) Despite a 12.08% decrease in EBITDA due to lower revenue, other net income significantly increased by 59.38% from higher bank interest, while tax expenses decreased due to reduced provisions, and a fair value gain was recognized from a resumed trading share - Total other net income amounted to **HKD 51.215 million**, representing a **59.38% year-on-year increase**, primarily driven by a **39.31% substantial increase** in bank deposit interest income[20](index=20&type=chunk) - The Group recognized a fair value gain of **HKD 1,388,000** on financial assets due to the resumption of trading for a suspended share[22](index=22&type=chunk) - Taxation expenses decreased from **HKD 22.022 million** in the prior period to **HKD 15.922 million**, mainly due to reduced provisions for Hong Kong profits tax and overseas taxation[23](index=23&type=chunk) - Due to decreased business revenue, EBITDA decreased by **12.08%** year-on-year to **HKD 303 million**, with the EBITDA margin declining from **82.1%** to **77.4%**[24](index=24&type=chunk) [Capital Expenditure, Liquidity, and Financial Resources](index=7&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF%E3%80%81%E6%B5%81%E5%8B%95%E6%80%A7%E8%88%87%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group's capital expenditure for the period was HKD 20.124 million, primarily for new equipment and construction in progress, funded by internal resources, while maintaining robust financial resources with HKD 2.13 billion in cash and no outstanding bank loans - Capital expenditure on property, plant and equipment for the period amounted to **HKD 20,124,000**, an increase year-on-year, primarily funded by internal resources[25](index=25&type=chunk) - The Group holds revolving loan facilities from multiple banks totaling approximately **HKD 860 million**, with no outstanding principal balances at the period end[26](index=26&type=chunk) - At the period end, the Group held cash and bank balances of **HKD 2.134 billion**, with **93.72%** denominated in USD[27](index=27&type=chunk) [Key Risks and Commitments](index=9&type=section&id=%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA%E8%88%87%E6%89%BF%E6%93%94) The Group's primary risk is foreign exchange fluctuations, particularly the RMB against HKD, with contracted capital commitments of HKD 143.8 million and a maximum financial guarantee of approximately HKD 152 million for an associate's buyer credit loan - The Group's revenue and capital expenditures are primarily denominated in USD, making it less susceptible to USD exchange rate fluctuations, but it faces foreign exchange risk from RMB depreciation[29](index=29&type=chunk) - As of June 30, 2024, the Group's contracted capital commitments amounted to **HKD 143,845,000**[31](index=31&type=chunk) - The Group provided a financial guarantee for its associate, APT Satellite, with a maximum financial liability of **RMB 147 million** (approximately **HKD 152 million**) under this guarantee at the period end[32](index=32&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2024, including the statement of profit or loss, comprehensive income, financial position, changes in equity, and cash flows [Condensed Consolidated Statement of Profit or Loss](index=10&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) The statement of profit or loss shows a 21.9% year-on-year decrease in gross profit as revenue decline outpaced cost control, leading to a 16.0% drop in operating profit, with profit attributable to equity holders ultimately decreasing by 13.7% to HKD 102 million Profit or Loss Statement Summary | Item (HKD Thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 391,842 | 419,728 | | Gross Profit | 146,705 | 187,812 | | Operating Profit | 144,544 | 172,117 | | Profit Before Taxation | 117,582 | 139,851 | | Profit Attributable to Equity Holders | 101,660 | 117,829 | [Condensed Consolidated Statement of Comprehensive Income](index=11&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) After accounting for a HKD 17.71 million exchange loss from translating foreign operations' financial statements, total comprehensive income for the period was HKD 83.95 million, a slight decrease from HKD 85.63 million in the prior year Comprehensive Income Statement Summary | Item (HKD Thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit for the Period | 101,660 | 117,829 | | Other Comprehensive Income for the Period | (17,709) | (32,198) | | **Total Comprehensive Income for the Period** | **83,951** | **85,631** | [Condensed Consolidated Statement of Financial Position](index=12&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2024, the Group's total assets were HKD 7.00 billion, total liabilities HKD 0.97 billion, and net assets HKD 6.03 billion, with both total assets and liabilities decreasing from year-end 2023, maintaining a stable asset structure and increased net current assets Statement of Financial Position Summary | Item (HKD Thousands) | As of June 30, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | Non-current Assets | 4,564,342 | 4,796,306 | | Current Assets | 2,432,706 | 2,289,136 | | **Total Assets** | **6,997,048** | **7,085,442** | | Current Liabilities | 239,930 | 233,562 | | Non-current Liabilities | 726,891 | 770,961 | | **Total Liabilities** | **966,821** | **1,004,523** | | **Net Assets** | **6,030,227** | **6,080,919** | [Condensed Consolidated Statement of Changes in Equity](index=14&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Beginning total equity was HKD 6.08 billion, which decreased to HKD 6.03 billion at period-end due to the combined effect of HKD 83.95 million in total comprehensive income for the period and the payment of HKD 135 million in prior year's dividends Summary of Changes in Equity | Item (HKD Thousands) | Amount | | :--- | :--- | | Balance as of January 1, 2024 | 6,080,919 | | Total Comprehensive Income for the Period | 83,951 | | Approved Dividend for Prior Year | (134,643) | | **Balance as of June 30, 2024** | **6,030,227** | [Condensed Consolidated Statement of Cash Flows](index=15&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) The Group recorded a net cash inflow of HKD 92.93 million for the period, a significant improvement from a net outflow of HKD 229 million in the prior year, primarily driven by a shift from net cash outflow to inflow from investing activities, offsetting reduced operating cash inflow and financing cash outflow Cash Flow Statement Summary | Item (HKD Thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 117,653 | 205,260 | | Net Cash from/(used in) Investing Activities | 123,640 | (265,013) | | Net Cash Used in Financing Activities | (148,361) | (169,525) | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | **92,932** | **(229,278)** | [Notes to the Financial Information](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes on the basis of preparation, accounting policies, segment reporting, dividends, asset-related information, and related party transactions [Basis of Preparation and Accounting Policies](index=16&type=section&id=%E7%B7%A8%E6%92%B0%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) This interim financial information is prepared in accordance with IAS 34 and HKAS 34, reviewed by the company's auditor, with accounting policies consistent with the 2023 annual report, and no significant impact from new standard amendments during the period - The interim financial report is prepared in accordance with International Accounting Standard 34 and Hong Kong Accounting Standard 34[40](index=40&type=chunk) - Although this interim financial information is unaudited, it has been reviewed by the auditor, BDO Limited, Hong Kong[40](index=40&type=chunk) [Segment Reporting](index=17&type=section&id=%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group does not present operating segment information as over 90% of its revenue, operating results, and assets are derived from satellite transponder capacity and related services, with Greater China (excluding Hong Kong) being the largest revenue source at approximately 42.8% - The Group does not present operating segment information as over **90%** of its revenue, results, and assets are derived from providing satellite transponder capacity and related services[42](index=42&type=chunk) Revenue by Geographical Region (H1 2024) | Region | Revenue (HKD Thousands) | Percentage | | :--- | :--- | :--- | | Greater China (excluding Hong Kong) | 167,708 | 42.8% | | Southeast Asia | 117,619 | 30.0% | | Hong Kong | 63,310 | 16.2% | | Other Regions | 43,205 | 11.0% | [Dividends](index=21&type=section&id=%E8%82%A1%E6%81%AF) The Board proposes an interim dividend of 4.50 HK cents per share for 2024, totaling approximately HKD 41.79 million, in addition to the HKD 135 million final dividend of 14.50 HK cents per share for 2023 approved and paid during the period Dividend Details | Item | Per Ordinary Share | Total Amount (HKD Thousands) | | :--- | :--- | :--- | | 2024 Proposed Interim Dividend | 4.50 Cents | 41,786 | | 2023 Final Dividend Paid | 14.50 Cents | 134,643 | [Notes on Assets](index=22&type=section&id=%E8%B3%87%E7%94%A2%E7%9B%B8%E9%97%9C%E9%99%84%E8%A8%BB) During the period, the Group incurred HKD 20.12 million in property, plant, and equipment additions, recognized a HKD 0.31 million revaluation loss on investment properties, found no impairment for indefinite-lived intangible assets (orbital slot operating rights), and holds investments in two associates, APT Satellite Broadband Communications (Shenzhen) Co., Ltd. (30%) and APT Satellite Company Limited (20%) - For the six months ended June 30, 2024, the total cost of additions to property, plant and equipment amounted to **HKD 20,124,000**[55](index=55&type=chunk) - Investment properties were revalued at the period end, resulting in a revaluation loss of **HKD 309,000**[57](index=57&type=chunk) - The Group holds investments in two associates: APT Satellite Broadband Communications (Shenzhen) Co., Ltd. (APT Satellite Broadband, **30% shareholding**) and APT Satellite Company Limited (APT Satellite, **20% shareholding**)[60](index=60&type=chunk) [Related Party Transactions](index=28&type=section&id=%E9%97%9C%E9%80%A3%E6%96%B9%E4%BA%A4%E6%98%93) The Group engaged in several significant related party transactions, primarily providing satellite transponder capacity and telecommunication services to fellow group subsidiaries, generating HKD 133.24 million in revenue during the period, and also providing services to associates and their subsidiaries Major Related Party Transactions (H1 2024) | Transacting Party | Transaction Content | Amount (HKD Thousands) | | :--- | :--- | :--- | | Fellow Group Subsidiaries | Revenue from Satellite Services | 133,243 | | Subsidiaries of Associates | Revenue from Satellite Services | 36,003 | | Holding Company of a Shareholder of the Company | Revenue from Satellite Services | 1,959 | | Associates | Revenue from Satellite Services | 5,075 | [Other Information](index=29&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E8%A8%8A) This section covers the Group's human resources, share-related matters, and corporate governance practices during the reporting period [Human Resources](index=29&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2024, the Group's total number of employees was 113, a slight increase from 107 in the prior year - As of June 30, 2024, the Group had **113 employees**, compared to **107** in the prior year period[75](index=75&type=chunk) [Share-Related Matters](index=29&type=section&id=%E8%82%A1%E4%BB%BD%E7%9B%B8%E9%97%9C%E4%BA%8B%E5%AE%9C) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed shares, and the share register will be closed from September 24 to 26, 2024, for interim dividend entitlement - For the six months ended June 30, 2024, the Company did not purchase, sell, or redeem any of its listed shares[76](index=76&type=chunk) - To qualify for the interim dividend, the share register will be closed from September 24 to 26, 2024[77](index=77&type=chunk) [Corporate Governance](index=29&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Group complied with most provisions of the Corporate Governance Code during the reporting period, with the only exception being that the Chairman and President are not subject to rotation, and the Audit and Risk Management Committee has reviewed this interim financial report - The Group complied with the Corporate Governance Code, with one deviation: the Chairman and President are not subject to rotation, to maintain consistency in decision-making[78](index=78&type=chunk) - The Audit and Risk Management Committee, comprising four independent non-executive directors, has reviewed this interim financial report[79](index=79&type=chunk)