亚太卫星(01045) - 2024 - 中期业绩

Chairman's Report This section provides an overview of the Group's interim financial performance, including key financial highlights and dividend declarations Interim Results Summary 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 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] - The dividend is expected to be distributed on or about October 14, 2024[3] Business Review and Outlook This section details the Group's operational performance, market challenges, and strategic initiatives for future growth and diversification Business Review 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 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] - 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] Ground Facilities 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] - 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] Core Business 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] - The launch of low-earth orbit satellite operators like Starlink has intensified market competition, significantly impacting the transponder leasing business[12] - Leveraging its licenses and facilities, the Group continues to provide diversified services including satellite TV broadcasting, satellite telecommunications, data centers, and gateway stations[13] Business Outlook 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] - 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] - 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] Financial Review 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 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 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 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] - 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] - 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] - 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] Capital Expenditure, Liquidity, and Financial Resources 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] - The Group holds revolving loan facilities from multiple banks totaling approximately HKD 860 million, with no outstanding principal balances at the period end[26] - At the period end, the Group held cash and bank balances of HKD 2.134 billion, with 93.72% denominated in USD[27] Key Risks and Commitments 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] - As of June 30, 2024, the Group's contracted capital commitments amounted to HKD 143,845,000[31] - 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] Unaudited Condensed Consolidated Financial Statements 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 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 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 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 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 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 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 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] - Although this interim financial information is unaudited, it has been reviewed by the auditor, BDO Limited, Hong Kong[40] Segment Reporting 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] 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 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 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] - Investment properties were revalued at the period end, resulting in a revaluation loss of HKD 309,000[57] - 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] Related Party Transactions 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 This section covers the Group's human resources, share-related matters, and corporate governance practices during the reporting period Human Resources 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] Share-Related Matters 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] - To qualify for the interim dividend, the share register will be closed from September 24 to 26, 2024[77] Corporate Governance 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] - The Audit and Risk Management Committee, comprising four independent non-executive directors, has reviewed this interim financial report[79]