亚太卫星(01045) - 2025 - 中期业绩

I. Company Overview and Performance Summary 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 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] 1.2 Interim Results Overview 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] 1.3 Interim Dividend 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] II. Business Review and Outlook 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 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] - 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] 2.1.1 APSTAR-5C Satellite 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] - The satellite carries high-throughput beams covering Southeast Asia, providing enhanced broadband communication services to users in the region[9] 2.1.2 APSTAR-6C Satellite 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] 2.1.3 APSTAR-7 Satellite 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] 2.1.4 APSTAR-9 Satellite 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] 2.1.5 APSTAR-6D Satellite 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] - 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] 2.1.6 APSTAR-6E Satellite 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] - APSTAR-6E satellite carries high-throughput multi-beams and possesses advanced capabilities, providing high-quality satellite broadband services for Southeast Asia[14] 2.2 Ground Facilities 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] - 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] - 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] 2.3 Transponder Leasing Business 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] - Changes in market conditions and increased competition from low-Earth orbit satellite operator Starlink's service launch significantly impacted the transponder leasing business[16] - 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] 2.4 Other Satellite-Related Services 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] 2.5 Business Outlook 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] - 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] - 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] III. Financial Review and Condition 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 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][21] 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 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] 3.3 Other Net Income 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] 3.4 Finance Costs 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] 3.5 Fair Value Changes of Financial Assets 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] - 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] 3.6 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] 3.7 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] 3.8 Capital Expenditure, Liquidity, and Debt-to-Asset Ratio 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] - 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] - 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] 3.9 Capital Structure and Foreign Exchange Risk 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] - 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] 3.10 Pledged Assets and Capital Commitments 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 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$116,900,000 buyer's credit loan from China Exim Bank to its associate company, APT Starlink[38] - The guarantee covers 20% of the principal amount of the drawn loan plus accrued interest, and any other amounts payable by APT Starlink under the relevant loan agreement[38] Financial Guarantee Responsibilities | Item | June 30, 2025 (HK$ 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 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] - 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] IV. Financial Statements 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 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] 4.2 Unaudited Condensed Consolidated Statement of Comprehensive Income 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] 4.3 Unaudited Condensed Consolidated Statement of Financial Position 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][45] 4.4 Unaudited Condensed Consolidated Statement of Changes in Equity 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] 4.5 Unaudited Condensed Consolidated Statement of Cash Flows 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] - 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] V. Notes to the Financial Statements 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 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] - 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] - 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][51] 5.2 Segment Reporting 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] - The Group has a diversified customer base, with one customer's transaction amount accounting for over 10% of the Group's revenue[55] 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 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] - The Group's business is not significantly affected by seasonal fluctuations[58] 5.4 Composition of Profit Before Tax 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 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] 5.6 Dividend Details 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] 5.7 Earnings Per Share 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] - 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] 5.8 Property, Plant and Equipment 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] - 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] - 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] - The Directors believe there are no indications of impairment that would suggest an impairment loss on the carrying amounts of non-financial assets[70] 5.9 Investment Properties 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] 5.10 Intangible Assets 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] - 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] - 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] 5.11 Investments in Associate Companies 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] - 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] 5.12 Financial Assets at Fair Value Through Profit or Loss 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] - 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] - As of December 31, 2024, the net book value of financial assets at fair value through profit or loss was HK$0[75] 5.13 Net Trade Receivables 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] 5.14 Deposits, Prepayments and Other Receivables 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 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 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] - 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] - 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] 5.17 Share Capital 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 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$7,909,000, with no transfers between fair value levels during the period - IFRS/HKFRS 13 "Fair Value Measurement" categorizes fair value measurements into a three-level hierarchy[82] Fair Value Hierarchy of Assets (HK$ 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] 5.19 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 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 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 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] VI. Other Information 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 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] 6.2 Share Dealings 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] 6.3 Closure of Register of Members 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] - 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] 6.4 Compliance with Corporate Governance Code 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] 6.5 Audit and Risk Management Committee 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] - 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] 6.6 Publication of Interim Report 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] - 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] 6.7 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]