2008 Annual Report

7 April 2009

2

Financial Highlights

Updates on Operation

Financial Highlights

4

2008

(HK$ M.)

2007

(HK$ M.)

Turnover 403.7 451.6

Profit Attributable

to Equity

Shareholders

49.6 5.6

Annual Results

5

33%

62%

5%

37%

59%

4%

43%

52%

5%

0%

20%

40%

60%

80%

100%

2006 2007 2008

BroadcastingTelecomOther

Turnover Breakdown by Business

6

49%

38%41%

14%14%13% 12%14%13%12%

20%19%13%14%14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

China HK S'pore Indonesia Others

2006

2007

2008

Turnover Breakdown by Region

7

2008

(HK$ M)

2007

(HK$ M)

Turnover 403.7 451.6

Cost of Services (277.6) (314.8)

Gross Profit 126.1 136.8

Other net income 68.9 26.3

Administrative expenses (84.9) (81.9)

Valuation (losses) / gains on investment properties

- 0.2

Impairment Loss recognised in respect of property, plant and equipment

(8.4) -

Consolidated Income Statement (1)

8

2008

(HK$ M)

2007

(HK$ M)

Profit from operations 101.7 81.4

Finance costs (24.8) (55.3)

Share of results of jointly controlled entities 2.4 (1)

Gain on disposal of a subsidiary 3.2 -

Gain on disposal of a jointly controlled entity 9.6 -

Profit before taxation 92.1 25.1

Income tax (42.6) (20.4)

Profit for the year 49.5 4.7

Minority interest (0.1) (0.9)

Profit attributable to shareholders 49.6 5.6

Profit per share – Basic (HK cents) 12.00 1.35

Consolidated Income Statement (2)

9

69% 70% 70%

18% 18%22%

13% 12%6%

0% 0% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cost ofServices

Admin. Financecosts

I mpairmentloss

2006 2007 2008

Expenses Breakdown

10

71%77%

14% 14%5% 5%

9%

1% 1% 3%

0%

20%

40%

60%

80%

100%

Depreciation Insurance Licence & OrbitSlot Fees

Satellite-basedBroadcasting and

Telecommunication

Others

2007

2008

Cost of Service Breakdown

11

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

53%62% 63%

0%

20%

40%

60%

80%

100%

2006 2007 2008

EBITDA Margins

12

Assets & Liabilities

HK$ Million

Total Assets 2,546

Total Liabilities 506

(As at 31 December 2008)

13

Gearing

25%

58%

72%

42%37%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2006 2007 2008

Debt-equity ratio

Debt-ratio

14

Cash

Free Cash: HK$122 million

Pledged Deposit : HK$1 million

(As at 31 December 2008)

Updates on APT’s OperationsUpdates on APT’s Operations

16

Transponder Utilization Rates

31 Dec 07 31 Dec 08

APSTAR VI 59% 72%

APSTAR V

(APT’s transponders)

72% 83%

17

SS/L FS1300

Commenced operation in August 2004

APT keeps 21 C & 10 Ku

The mission life is about 15 years

Utilization rates remains high with further increase potential

APSTAR V

18

APSTAR VI

Thales Alenia Space (f/k/a Alcatel Space) SB4100C1

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

Started commercial operation on June 7, 2005

Operation mission life over 15 years

Utilization rate increased significantly

19

Satellite TV Broadcasting Platform

APT Satellite TV Development Ltd. (A Subsidiary)APT Satellite TV Development Ltd. (A Subsidiary)

Successfully established a satellite TV uplink and broadcasting services platform for broadcasting services under the Satellite TV Uplink and Downlink Licence of Hong Kong SAR

As at December 31, 2008, the Broadcasting Platform uplinks and broadcasts up to 87 satellite TV channels

APT Telecom Services LimitedAPT Telecom Services Limited （（ a subsidiara subsidiary)y)

Provides VSAT and teleport uplink services to Hong Kong and Asian telecom users including satellite operators, telcos & ISPs

Provides two-way satellite internet services and teleport uplink services

Satellite-basedSatellite-basedTelecommunications ServiceTelecommunications Service

Data Centre

Disposed APT Satellite Telecommunication Ltd., which provide Data Centre Business with its Telepark

Continue to provide Data Centre business in Tower 2 with cooperation with internationally renowned IT firm for an airliner of Hong Kong

Support broadcasting and telecom services of the Group

Additional Revenue will start in 2H 2009

Future growth potential

22

New Satellites in China Market

Two new satellites launched in mid 2007 and one in 1H 2008

More satellite launching will result in intensive market competition

Cope with the market change with better services

As a whole, APT’s performance was not adversely affected

Business Outlook

Global financial crisis leads to unfavourable business environment

Market competition still be fierce due to supply over demand

Market demand for transponders and services may be affected by financial crisis

Better competitive edges further improves utilization rates

APT Satellite Holdings Limited

7 April 2009

www.apstar.com