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2010 Annual Report

24 March 2010

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Financial Highlights Operations ReviewBusiness Prospects

Financial Highlights

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2010

(HK$ M)

2009(HK$ M)

Turnover 719.4 578.1

Profit Attributable to

Equity Shareholders198.5 254.1

Profit excluding Non-

Recurring Tax item in

2009

198.5 165.2

Annual Results (2)Annual Results (2)

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77

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2010

(HK$’000)

2009

(HK$’000)

Turnover 719,435 578,115

Cost of services (369,359) (322,049)

Gross profit 350,076 256,066

Other net income 5,242 35,535

Valuation gain/(loss) on investment properties 233 (295)

Administrative expenses (76,788) (80,680)

Profit from operations 278,763 210,626

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2010

(HK$’000)

2009

(HK$’000)

Profit from operations 278,763 210,626

Finance costs (6,330) (4,868)

Gain from liquidation of a subsidiary _ 6,146

Profit before taxation 272,433 211,904

Income tax (expenses)/credit (73,934) 42,180

Profit after taxation 198,499 254,084

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Note: EBITDA Margin represents earnings before interest income / expenses, other income, taxation, depreciation, amortization and impairment loss as a percentage of turnover.

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2010(HK$ Million)

2009(HK$ Million)

Total Assets 3,802 3,119

Total Liabilities 1,315 829

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(As at 31 December 2010)

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2010(HK$ Million)

2009(HK$ Million)

Free cash 121 276

Pledged deposits 77 8

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(As at 31 December 2010)

Operations Review

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2010 2009

APSTAR 6 78.7% 70.8%

APSTAR 5

(APT’s transponders)

80.6% 80.5%

APSTAR 2R 83.2% 87.4%

2020

APSTAR 6APSTAR 6 Launched in April 2005, positioned at

134⁰E orbital slot

High-power satellite with 38 C-band and 12 Ku-band transponders

Started commercial operation in June 2005

Operation mission life over 15 years

Maintained high utilization rate with further growth potential

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Launched in June 2004, positioned at 138⁰E orbital slot

Commenced operation in August 2004

APT keeps 20 C-Band & 9 Ku-Band Transponders

The mission life is about 15 years

Maintained high utilization rate with further growth potential

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Launched in October 1997, positioned at 76.5⁰E orbital slot contains 28 C-band transponder and 16 Ku transponders.

APT terminated the Lease Agreement with Telesat on 9 July 2009 and took up 43 transponders with reputable customers

The C-band transponders cover Europe, Asia, Africa, and Australia, approx. 75% of the world’s population

High filling rate for C-Band transponders with strong income stream

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SpaceBus 4000 C2 platform, Scheduled to be launched in Q1 2012 to replace APSTAR 2R

Same orbital slot as APSTAR 2R with 28 C and 28 Ku transponders to ensure seamless service transition for customers

Welcome by customers of APSTAR 2R, including HBO, to continue their services with APSTAR 7

Ku-band transponders are built with China Beam, Middle East and North Africa Beam, African Beam, and Steerable Beam, APT can further expand the satellite capacity and coverage of the Group to above said regions

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As a back up satellite of APSTAR 7, from same suppliers

Based on Spacebus 4000 C2 platform with 28 C-Band & 23 Ku-Band transponders

Scheduled to be delivered in Q2 2012 in case launch failure of APSTAR 7

To be transferred to China Satellite Communications Co. Ltd. in case APSTAR 7 is successfully launched to recoup the capital expenditure made for APSTAR 7B

It is a very successful arrangement because the Group can save up enormous amount of back-up satellite investment, and meet the time schedule requirement.

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Satellite TV Broadcasting Services APT Satellite TV Development Ltd.

Television Service Licence renewed in February 2010 for another 12 years.

Satellite-based Telecommunications Services

APT Telecom Services Limited. New broadcasting customers including Xin Hua News.

Transponder lease services have been successfully established new customers and explored markets in Nepal, Philippines, Cambodia, Indonesia, India, New Zealand

Business Prospects

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Global economy and politics still holds uncertainties, however Supply and demand of transponders has been maintained at a stable level resulting sustainable growth

Fierce market competition

Steady growing demand for transponders and services

Replacement Programme boosts market confidence and gear up the promotion and sales of the Ku-Band transponders of APSTAR for emerging markets in Asia, Middle East, Africa.

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APT Satellite Holdings

Limited

www.apstar.com