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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF AUGUST 1997
APT SATELLITE HOLDINGS LIMITED
(Registrant's name)
ROOM 3111-3112, 31/F, ONE PACIFIC PLACE, 88 QUEENSWAY, HONG KONG K3
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-__________.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on behalf by the
undersigned, thereunto duly authorized.
APT SATELLITE HOLDINGS LIMITED
Date: August 29, 1997 By /s/ Qin Shen
-------------------------------------
Name: Qin Shen
Title: Director and Vice President
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APT Satellite Holdings Limited
1997 Interim Announcement
The Board of Directors (the "Board") of APT Satellite Holdings Limited (the
"Company") is pleased to announce the unaudited interim results of the Company
and its subsidiaries (the "Group") for the six months ended 30th June, 1997
prepared in accordance with accounting principles generally accepted in Hong
Kong.
For the six months ended 30th June, 1997, the Group's consolidated turnover and
net profit attributable to shareholders amounted to HK$251,090,000 and
HK$56,414,000 respectively, representing an increase of 68.0% and 43.1%
respectively over the corresponding period in 1996. Earnings per share amounted
to HK13.4 cents, which recorded a 7.2% increase over the corresponding period
last year.
FINANCIAL SUMMARY
<TABLE>
<CAPTION>
For the six months ended 30th June, Percentage
1997 1996 Increase/
(Unaudited) (Audited) (Decrease)
Notes HK$'000 HK$'000
<S> <C> <C> <C> <C>
Turnover 251,090 149,472 68.0%
======= =======
Profit before
taxation 65,340 42,925 52.2%
Taxation 2 (8,926) (3,506) 154.6%
------- -------
Net profit
attributable
to shareholders 56,414 39,419 43.1%
======= =======
Earnings per share 3 13.4 cents 12.5 cents 7.2%
========== ==========
</TABLE>
Notes :
1. The Company was incorporated in Bermuda on 17th October, 1996 as an exempted
company under the Companies Act 1981 of Bermuda (as amended). Pursuant to a
corporate reorganisation in preparation for the listing and initial public
offering of shares of the Company, the Company became the holding company of the
Group on 14th November, 1996. The results of
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the Group for the six months ended 30th June, 1996 (the "Relevant Period") have
been prepared using the merger basis of accounting, under which the Company has
been treated as the holding company of its subsidiaries throughout the Relevant
Period with effect from 1st January, 1996 or since their respective dates of
incorporation where these are shorter periods.
2.
<TABLE>
<CAPTION>
For the six months ended 30th June,
1997 1996
HK$'000 HK$'000
<S> <C> <C>
Current period provision:
Hong Kong 9,500 3,500
Overseas 6 6
----- -----
9,506 3,506
Deferred taxation (580) -
----- -----
8,926 3,506
===== =====
</TABLE>
Hong Kong profits tax has been provided at the rate of 16.5% on
the estimated assessable profits arising in Hong Kong during the period. Taxes
on profits assessable in overseas jurisdictions have been calculated at the
rates of taxation prevailing in the countries in which the Group operates.
3. The calculation of earnings per share for the six months ended 30th June,
1997 is based on the net profit attributable to shareholders for the period of
HK$56,414,000 (For the six months ended 30th June, 1996: HK$39,419,000) and the
number of shares of 420,000,000 shares (For the six months ended 30th June,
1996: 315,000,000 shares) in issue during the period.
INTERIM DIVIDEND
To keep pace with the Group's future business development, the Board has decided
not to declare an interim dividend for the six months ended 30th June, 1997.
(For the six months ended 30th June, 1996 - Nil.)
PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S SHARES
Neither the Company nor any of its subsidiaries purchased, sold or redeemed any
of the Company's shares during the six months ended 30th June, 1997.
BUSINESS REVIEW AND PROSPECTS
During the first half of 1997, the demand for satellite transponders in the
Asia-Pacific region remained very high. As the telecommunication and
broadcasting business in the Asia-Pacific region grows and the general living
standard of the region improves, the demand for satellite transponders shall
maintain at a higher level towards the turn of the century. In order to become a
leading satellite transponder services provider for telecommunications and
broadcasting sectors worldwide and in the People's Republic of China ("PRC"),
the Company will continue to pursue
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its business development strategies by focusing on the Asia-Pacific market, and
leveraging shareholders' relationship in establishing a competitive edge in the
market.
In the past six months, the Company's two in-orbit satellites, APSTAR-I and
APSTAR-IA, operated normally in the orbit. In an effort to enhance the
utilization rate of these satellite transponders, the Company had made proper
arrangements regarding the use of several satellite transponders in APSTAR-I and
APSTAR-IA, and ultimately improved the utilization of the capacity of both
satellites. In April and June this year, the Company successfully entered into
agreements with China Broadcasting Film Television Satellite Co. Ltd. under the
Ministry of Radio, Film and Television of PRC to lease two transponders of
APSTAR-IA for broadcasting television programmes for Yunnan Television Station
and Guizhou Television Station respectively. The securing of Yunnan and Guizhou
television stations as users of APSTAR Systems demonstrates that APSTAR Systems'
high quality and reliable satellite transponder services are well-received by
customers in PRC as well as overseas. As at mid-1997, over 90% of the
transponder capacities of APSTAR-I and APSTAR-IA have been leased out, bringing
substantial revenue to the Company, which is encouraging.
The third satellite of the Company, APSTAR-IIR, built by Space Systems/Loral
Inc., is a FS-1300 satellite with high output power, carrying 28 C-band
transponders and 16 Ku-band transponders. The construction process of the
satellite has been smooth and delivery will take place at the end of August for
launch preparation. China Great Wall Industry Corporation ("Great Wall"), the
launch service provider of APSTAR-IIR, has successfully launched four satellites
with its Long March-2D, Long March-3A, Long March-3 and Long March-3B launch
vehicles respectively since October 1996. This illustrates that Great Wall has
adopted effective measures to improve its quality system and strengthen the
reliability and successful rate of its launch services. The Company will monitor
more closely the quality system and reliability of satellite launch services of
Great Wall. Upon request by the Company on the quality requirement of its launch
services, Great Wall has postponed the scheduled date for the launch of
APSTAR-IIR for a short period to conduct more detailed and major tests on the
reliability of the launch vehicle, Long March-3B, to ensure its success.
For the launch of APSTAR-IIR, the Company has actively arranged for insurance
coverage in order to protect the interests of the Company and minimize its
contingent risk. In early August, the Company signed an agreement with a
syndication of banks for a term loan facility in the amount of US$50 million for
the APSTAR-IIR funding arrangements. The Company expects that following the
successful launch of APSTAR-IIR into orbit and the commencement of its
commercial operations in the fourth quarter of this year, the Company will be
able to set up a comprehensive and advanced satellite system to provide
satellite broadcasting and telecommunication services with its high output power
transponders for more than 100 countries, serving approximately 75% of the
world's population.
During the handover period of Hong Kong between late June and early July 1997,
the Company assumed the task of satellite broadcasting the handover ceremony and
associated programmes, and at the same time was responsible for the transmission
to Hong Kong the celebration events
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held in Beijing; thus enabling the people in the PRC, including Hong Kong, and
the rest of the world to watch this historical event live or promptly.
In order to promote satellite direct-to-home television broadcasting in the PRC,
the Company is currently conducting in-depth and solid technical and commercial
discussions with relevant authorities of the PRC, with an aim to concluding the
terms of cooperation as soon as possible.
At the same time, the Company has started planning for the launch of a high
output power satellite with C-band and Ku-band coverage by the end of 2000 to
satisfy the expected market demand.
In view of the business progress in the first half of the year, the Company
expects that the second half of the year will be a crucial stage for more rapid
development. The Company is confident that it will capture every opportunity to
expand its business as well as to manage and operate its APSTAR satellites to
its best for the long-term prospects of the Company and the interest of its
shareholders.
On behalf of the Board
Xie Gao Jue
Chairman
Shenzhen, 27th August, 1997
