Interim Report 29 August 2011

2  Financial Highlights  Operations Review  Business Prospects

Financial Highlights 3

4 1H/2010 (HK$ M) 1H/2011 (HK$ M) % Turnover % Profit Attributable to Equity Shareholders % Interim Results

 The Board has resolved to declare an interim dividend of HK2.00 cents per share for the six months ended 30 June 2011, given the fact that profit attributable to equity shareholders rose 5.7% for the first half of 2011, and the need of the implementation of APSTAR 7 and APSTAR 7B Satellites for the replacement of APSTAR 2R. 5

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8 1H/2010 (HK$M) 1H/2011 (HK$M) Turnover Cost of services (189.9)(181.3) Gross profit Other net income Valuation gain on investment properties 0.1 Administrative expenses (39.3)(42.0) Profit from operations

9 1H/2010 (HK$ M) 1H/2011 (HK$ M) Profit from Operations Finance costs(3.7)(11.8) Profit before taxation Income tax(35.9)(36.8) Profit after taxation Attributable to: Equity shareholders of the Company Earnings per share – Basic (HK cents) Earnings per share – Diluted (HK cents)

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

Operations Review 13

14 30 June June 2011 APSTAR 2R82%84% APSTAR 676% 73% APSTAR 5 (APT’s transponders) 78%79%

15  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 utilization rate 84% with strong income stream

16 APSTAR 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  Strong market penetration in Asia Pacific region and China

17  Launched in June 2004, positioned at 138⁰E orbital slot  APT keeps 20 C-Band & 9 Ku-Band Transponders  The mission life is about 15 years  Maintained high utilization rate with further growth potential  Strong competitive edge in Asia Pacific region

18  SpaceBus 4000 C2 platform, Scheduled to be launched in Q 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  Construction is smooth, and at final stage of assembly and testing

19  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 Q in case launch of APSTAR 7 is unsuccessful  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 while meeting the time schedule requirement. 19

20  Satellite TV Broadcasting Services APT Satellite TV Development Ltd. for Television Service Licence under Non- Domestic Television Programme Licence.  Satellite-based Telecommunications Services APT Telecom Services Limited  Transponder lease services have been successfully established new customers and explored markets in Nepal, Philippines, Cambodia, Indonesia, India, New Zealand

Business Prospects 21

22  Global economy and politics still holds uncertainties, however Supply and demand of transponders has been maintained at a stable level resulting sustainable growth  Steady growing demand for transponders and services  Replacement Programme of Apstar 2R boosts market confidence  Successful pre-launch sales of the Ku-Band transponders of APSTAR for emerging markets in Asia, Middle East, Africa.

23 APT Satellite Group