For Immediate Release May 2, 2000
APT Satellite announces final result
Aims to achieve diversified development
Asia's leading satellite transponder service provider, APT Satellite Holdings Limited ("APT", or "the Company", Stock Code: 1045 or ATS) today announced the audited annual results of th e Company and its subsidiaries'
("the Group") for the year ended 31 December 1999. Group turnover was HK$482 million (1998: HK$588 million). Profit attributable to shareholders was HK$375 million (1998: HK$59 m illion). Earnings per share was 89.18 HK cents, a 532% increase from 1998.The Board recommended the payment of a final dividend of 35 HK cents per share (1998:Nil) subject to shareholders'
approval at the Company's Annual General Meeting on 2 June 2000. Upon approva l, payment of the final dividend shall be made on 28 July 2000 to shareholders recorded in the Company's Register of Members on 2 June 2000.Economies in the Asia Pacific region gradually showed signs of recovery in 1999. But owing to the demand and supply situation of regional satellites, growth in the satellite transponder leasing business continued to be slow.
However, the Group strived to pursue multifaceted development deriving from the traditional transponder leasing business, and was granted a Satellite Television Uplink and Downlink License ("the License") by the government of the Hong Kong Special Administration Region ("the SAR Government") on 6 July 1999, the conditions of which were further extended by the SAR Government in January this year. According to the Licence, the Group is able to use the newly acquired uplink platform an d downlink system, together with certain encryption and compression technologies, to provide digital satellite television uplink and downlink services through the Group's APSTAR-I, APSTAR-IA and APSTAR-IIR satellites. This triggered off another significa nt breakthrough in the Group's business development.
"As the telecommunications industry in Hong Kong deregulates rapidly, the Group has endeavored to re-access its business strategy and positioning, in order to gradually expand its business from mainly providing satellite transponders f or lease to the inclusion of satellite and telecommunications network services. The Group is conducting active discussions with the concerned authorities of the SAR Government." said Group President, Mr. He Ke Ra ng.
Moreover, the Group's VSAT business achieved good progress in the PRC market. In September 1999, an agreement was reached with the People's Bank of China, Guangzhou Branch, for the construction of a network providing VSAT television c onference, TV-phone system and services. The Group expects good development prospects for VSAT services.
"Along with the economic recovery in the Asia-Pacific region, the Group manages to improve the utilization rate of its satellites in order to improve economic return. It aims at expanding business, raising efficiency and providing cust omers with high-quality, comprehensive "one-stop" telecommunications services. In addition, the Group will continue to reinforce its investment and development in the satellite business so as to maintain broad d evelopment prospects, particularly with the new satellites APSTAR-IIIA and IIIB, as well as APSTAR-IV, which will be mainly responsible for the direct satellite broadcasting services, and APSTAR-V, which will replace APSTAR-I in mid-2004. Relying on a sou nd and stable foundation, the Group is confident that it will make good use of the opportunities brought about by the deregulation of the IT industry."
said Mr. He.On the other hand, the three in-orbit satellites of the Group, together with the corresponding ground telemetry, tracking and monitoring system, were rendered fully compliant with Y2K requirements on 23 December 1999, and had safely rol led over year 2000, with no occurrence of Y2K induced problem in the course of rollover.
Listed on the Hong Kong and New York stock exchanges, APT Satellite Holdings Limited is a leading provider of satellite transponder services for the broadcasting and telecommunications sectors in Asia Pacific. Currently, it operates thr ee in-orbit geo-stationary satellites with a total capacity of 76 C-band transponders and 16 Ku-band transponders. Other corporate information on APT Satellite can be found on its web site: http://www.apstar.com.
Issued by:
APT Satellite Holdings Limited
Contact: Brian Lo
Tel: (852) 29188013 Fax: (852) 2522 0419
Email: aptir@apstar.com
Through:
Keith Statham Associates PR
Tel: 28108108 Fax: 2905 1582
Contact: Marie Cheung ( mariec@ksa.com.hk ) Tel: 28010023
Winnie Yiu (winnieyiu@ksa.com.hk) Tel: 28010035
