Annual Report 24 March 2010

2  Financial Highlights  Operations Review  Business Prospects

Financial Highlights 3

4

(HK$ M) 2009 (HK$ M) Turnover Profit Attributable to Equity Shareholders Profit excluding Non- Recurring Tax item in Annual Results (2)

6

77

(HK$’000) 2009 (HK$’000) Turnover 719,435578,115 Cost of services (369,359)(322,049) Gross profit 350,076256,066 Other net income 5,24235,535 Valuation gain/(loss) on investment properties 233(295) Administrative expenses (76,788)(80,680) Profit from operations 278,763210,626

(HK$’000) 2009 (HK$’000) Profit from operations 278,763210,626 Finance costs (6,330)(4,868) Gain from liquidation of a subsidiary _6,146 Profit before taxation 272,433211,904 Income tax (expenses)/credit (73,934)42,180 Profit after taxation 198,499254,084

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11

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

13

14

2010 (HK$ Million) 2009 (HK$ Million) Total Assets3,8023,119 Total Liabilities1, (As at 31 December 2010)

16

2010 (HK$ Million) 2009 (HK$ Million) Free cash Pledged deposits (As at 31 December 2010)

Operations Review 18

APSTAR 678.7% 70.8% APSTAR 5 (APT’s transponders) 80.6%80.5% APSTAR 2R83.2%87.4%

20 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

21  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

22  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

23  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

24  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 Q 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. 24

25  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 26

27  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.

28 APT Satellite Holdings Limited