Financial Performance - For the first half of 2019, the group's revenue was HKD 564,976,000, a decrease of 9.4% compared to HKD 623,343,000 in the same period of 2018[5] - Shareholders' profit attributable to the company was HKD 234,666,000, down 16.1% from HKD 279,558,000 in the previous year[5] - Basic and diluted earnings per share were both HKD 0.2521, compared to HKD 0.3003 for the same period in 2018[5] - Revenue for the six months ended June 30, 2019, was HKD 564,976,000, a decrease of 9.4% compared to HKD 623,343,000 for the same period in 2018[24] - EBITDA for the same period decreased to HKD 467,326,000, with an EBITDA margin of 82.7%, down from 83.9% in the previous year[28] - The company reported a net profit attributable to shareholders of HKD 234,666,000, a decrease of 16.1% from HKD 279,558,000 in the prior year[24] - Operating profit for the period was HKD 287,176,000, compared to HKD 330,579,000 in the previous year[42] - The company's profit for the six months ended June 30, 2019, was HKD 234,666,000, a decrease of 16.0% compared to HKD 279,558,000 for the same period in 2018[44] - Total comprehensive income for the same period was HKD 234,660,000, down from HKD 274,315,000, reflecting a decline of 14.5%[44] Dividend and Shareholder Information - The board declared an interim dividend of HKD 0.045 per share, an increase from HKD 0.040 per share in the previous year[6] - The proposed interim dividend per share increased to HKD 0.045 from HKD 0.040 in 2018, with total dividends payable amounting to HKD 41,886,000 compared to HKD 37,232,000 in the previous year[74] - As of June 30, 2019, major shareholders include China Aerospace Science and Technology Corporation with 54.67% equity, China Satcom Group Co., Ltd. with 53.22%, and APT Satellite International Company Limited with 51.78%[107] - The company’s major shareholders include Temasek Holdings and Singapore Telecommunications, each holding approximately 5.51% equity[107] Assets and Liabilities - The total cash and bank balances as of June 30, 2019, were HKD 548,061,000, a decline of 20.2% from HKD 686,848,000 at the end of 2018[21] - The total assets decreased by 3.3% to HKD 6,915,041,000 from HKD 7,154,466,000 at the end of 2018[21] - Total liabilities as of June 30, 2019, were HKD 1,139,937,000, a reduction of HKD 368,478,000 compared to December 31, 2018, primarily due to the repayment of the 2016 financing[32] - The debt-to-asset ratio decreased to 16.5%, down 4.6 percentage points from December 31, 2018[32] - The group recorded a net cash outflow of HKD 482,366,000 for the six months ended June 30, 2019, compared to a net inflow of HKD 117,049,000 in the same period last year[32] - The company's total equity as of June 30, 2019, was HKD 5,775,104,000, up from HKD 5,647,487,000 at the end of 2018, representing an increase of 2.3%[47] Satellite Operations and Services - The satellite fleet, including Apstar 5C, 6C, 7, and 9, continues to operate well, providing stable and reliable services[7] - The satellite system covers over 75% of the global population, enhancing service capabilities across Asia, Australia, the Middle East, Africa, Europe, and the Pacific[8] - Apstar 5C satellite, launched on September 10, 2018, has expanded coverage, particularly in Southeast Asia, providing improved communication services[9] - Apstar 6C satellite began commercial operations on July 1, 2018, successfully replacing Apstar 6 without impacting business operations[10] - Apstar 7 satellite is positioned at 76.5 degrees East, equipped with 28 C-band and 28 Ku-band transponders, covering the Asia-Pacific region, the Middle East, Africa, and Europe[11] - The company experienced a significant decline in revenue from satellite broadcasting and telecommunications services, which fell by 58.0% to HKD 4,527,000[22] - Other satellite-related service revenue increased by 118.3% to HKD 42,185,000, compared to HKD 19,323,000 in the previous year[22] Financial Management and Costs - Financial costs for the period increased to HKD 6,312,000, attributed to costs related to the commercial operation of satellites[25] - Capital expenditure for the period was HKD 110,723,000, a significant decrease from HKD 515,809,000 in the same period last year[29] - The group maintained a conservative capital management policy, ensuring a solid foundation for future development[34] - The company plans to continue focusing on operational efficiency and cost management to improve profitability in the upcoming quarters[49] Compliance and Governance - The interim financial report is prepared in accordance with the Hong Kong Stock Exchange Listing Rules and International Accounting Standards, reflecting the same accounting policies as the previous year[51] - The report includes a summary of consolidated financial statements and important events affecting the group's financial position since the last annual report[52] - The interim financial report has been reviewed by KPMG in accordance with the Hong Kong Institute of Certified Public Accountants' standards[52] - The company complied with the Corporate Governance Code as of June 30, 2019, with some exceptions regarding the tenure of non-executive directors[114] - The company has adopted a code of conduct for directors' securities transactions that meets or exceeds the standards set by the Corporate Governance Code[115] Lease Accounting and Standards - The company has initiated the application of the revised International Financial Reporting Standards regarding leases, which may impact future financial reporting[44] - The new International Financial Reporting Standard 16 on leases has been adopted, requiring all leases to be capitalized, excluding short-term leases and low-value assets[54] - The group has chosen to apply the modified retrospective approach for the adoption of the new lease standard, adjusting the opening equity balance as of January 1, 2019[54] - The group will capitalize all leases, including those previously classified as operating leases under the old standard, except for short-term and low-value leases[56] - The group recognized lease liabilities and right-of-use assets for leases with a remaining lease term of less than 12 months as of the first application date[61] - The total amount of lease liabilities recognized as of January 1, 2019, was adjusted based on the present value of future lease payments[63] - The group’s property, plant, and equipment increased from HKD 5,393,820,000 to HKD 5,418,578,000 due to the capitalization of operating leases[64] - The intangible assets increased from HKD 133,585,000 to HKD 312,848,000 following the adoption of IFRS 16[64] Revenue Breakdown - Revenue from Hong Kong, Greater China, Southeast Asia, and other regions for the six months ended June 30, 2019, was HKD 51,140,000, HKD 206,796,000, HKD 225,021,000, and HKD 82,019,000 respectively, compared to HKD 61,482,000, HKD 163,964,000, HKD 302,075,000, and HKD 95,822,000 for the same period in 2018[66] - Revenue from satellite transponder capacity and telecommunications services from a subsidiary amounted to 54,297,000 HKD for the six months ended June 30, 2019, down from 88,308,000 HKD in the same period of 2018[104] - The company reported interest income from loans to associates' subsidiaries of 0 HKD for the current period, compared to 2,827,000 HKD in the previous period[104] - The company reported a total of 50,209,000 HKD in revenue from technical support and project management services provided to associates during the reporting period[104]
亚太卫星(01045) - 2019 - 中期财报