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2011 Interim Report

29 August 2011

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Financial Highlights Operations ReviewBusiness Prospects

Financial Highlights

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1H/2010

(HK$ M)

1H/2011(HK$ M)

%

Turnover 363.2 372.1 2.5 %

Profit Attributable

to Equity

Shareholders

97.5 103.1 5.7 %

Interim Results 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.

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77

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1H/2010

(HK$M)

1H/2011

(HK$M)

Turnover 363.2 372.1

Cost of services (189.9) (181.3)

Gross profit 173.3 190.8

Other net income 3.0 2.8

Valuation gain on investment properties 0.1 0.1

Administrative expenses (39.3) (42.0)

Profit from operations 137.1 151.7

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1H/2010

(HK$ M)

1H/2011

(HK$ M)

Profit from Operations 137.1 151.7

Finance costs (3.7) (11.8)

Profit before taxation 133.4 139.9

Income tax (35.9) (36.8)

Profit after taxation 97.5 103.1

Attributable to:

Equity shareholders of the Company 97.5 103.1

Earnings per share – Basic (HK cents) 15.71 16.59

Earnings per share – Diluted (HK cents) 15.71 16.59

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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.

Operations Review

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30 June 2010 30 June 2011

APSTAR 2R 82% 84%

APSTAR 6 76% 73%

APSTAR 5

(APT’s transponders)

78% 79%

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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 utilization rate 84% with strong income stream

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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

Strong market penetration in Asia Pacific region and China

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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

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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

Construction is smooth, and at final stage of assembly and testing

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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

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.

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2020

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

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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

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.

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APT Satellite Group

www.apstar.com