APT Satellite Holdings Limited Announces 2025 Annual Results

Key Highlights and Developments for Shareholders

Financial Performance

• Revenue: The Group reported revenue of HK\$739.1 million for 2025, down 5.8% from HK\$784.7 million in 2024. This decline was mainly due to reduced income from satellite transponder capacity services.
• Profit Before Taxation: Profit before tax fell sharply by 31.3% to HK\$160.2 million (2024: HK\$233.3 million).
• Profit Attributable to Equity Shareholders: Decreased 31.1% to HK\$141.4 million (2024: HK\$205.2 million).
• Basic/Diluted EPS: HK15.23 cents (2024: HK22.10 cents).
• Gross Profit: HK\$201.9 million, a significant 29% decrease from 2024.
• EBITDA: HK\$501.0 million, down 16.9% from 2024, with EBITDA margin falling from 76.8% to 67.8%.
• Cash & Bank Balances: Increased 11.7% to HK\$2,734.7 million.
• Total Assets: Stable at HK\$6.94 billion (-0.3%), with total liabilities decreasing 11.2% to HK\$779.3 million.
• Net Assets Per Share: HK\$6.64 (2024: HK\$6.56).
• Gearing Ratio: Improved to 11.2% from 12.6%.
• Liquidity Ratio: 13.82x (2024: 12.27x), indicating strong liquidity.

Dividend Declaration

• Interim Dividend: HK2.50 cents per share (already paid).
• Final Dividend: HK6.00 cents per share proposed (2024: HK6.50 cents), subject to shareholder approval at the AGM on 22 May 2026. Payment is scheduled for 17 June 2026.

Business Review and Operations

• Satellite Fleet: The Group’s fleet (APSTAR-5C, 6C, 7, 9, 6D, 6E) and ground TT&C systems continued reliable operations, providing services covering more than 75% of the world’s population across Asia, Oceania, Middle East, Africa, Europe, and the Pacific.
  • APSTAR-5C: 63 transponders, high throughput satellite (HTS), 57% owned by the Group, provides broadband to Southeast Asia.
  • APSTAR-6C: 45 transponders, broad Asia-Pacific coverage.
  • APSTAR-7: 56 transponders, covers Asia-Pacific, Middle East, Africa, and part of Europe.
  • APSTAR-9: 46 transponders, Asia-Pacific coverage.
  • APSTAR-6D/6E: HTS satellites for broadband mobility, operated by associates, focus on China and Southeast Asia.
• Ground Facilities: Completed/acquired multiple gateway stations in Hong Kong, Australia, Indonesia, and Malaysia, enhancing service capability. Construction of the Chung Hom Kok (CHK) station in Hong Kong is underway and will further expand ground network security and capacity, especially as C-band facilities are moved from Tai Po to avoid 5G interference.

Market Conditions and Strategic Response

• Industry Challenges: The satellite transponder business faced a downturn in 2025. There is oversupply and intense competition, with lease prices in decline. Notably, the entry of LEO operators like Starlink has increased competition and impacted transponder leasing.
• Growth Initiatives: Despite market challenges, the Group achieved positive growth in Mainland China and Southeast Asia, actively diversifying services and intensifying market development efforts.
• Service Expansion: The Group continues to expand satellite TV broadcasting, satellite telecommunication, data centre, and gateway station services.

Business Outlook for 2026

• Market Prospects: The Group expects persistent oversupply and fierce competition in the Asia-Pacific transponder market, with pressure from falling prices and economic headwinds. Traditional video broadcasting is shrinking, and LEO constellations pose additional threats.
• Opportunities: Advances in satellite technology and declining costs are leading to new opportunities, particularly with demand growth in Southeast Asia. The Group aims to strengthen its core satellite leasing business, improve utilization, and expand through local teams and deeper cooperation with key customers.
• Ongoing Investments: Completion of CHK Station in Hong Kong expected in 2026. Preparations for new-generation satellite projects and business expansion into new areas are underway.

Other Financial and Corporate Information

• Revenue Breakdown:
  • Satellite transponder capacity: HK\$626.6 million (-7.9%).
  • Satellite-based broadcasting/telecom: HK\$3.5 million (-15.3%).
  • Other satellite-related income: HK\$109.0 million (+8.9%).
• Major Customers: Two customers accounted for HK\$315.6 million of revenue (over 40% of total).
• Geographical Revenue:
  • Hong Kong: HK\$139.9 million
  • Greater China: HK\$342.8 million
  • Southeast Asia: HK\$168.9 million
  • Other regions: HK\$87.5 million
• Capital Expenditure: HK\$49.1 million, mainly for construction in progress.
• Outstanding Loan Facilities: Significant undrawn banking facilities (over HK\$860 million) with no outstanding borrowings at 2025 year-end, providing strong funding capacity for future projects.
• Financial Guarantee: The Group (APT HK) provided a guarantee for up to 20% of a US\$116.9 million credit facility to its associate APSTAR Alliance (exposure as of year-end: HK\$182.1 million maximum liability; HK\$9.8 million accrued as liability). This is a potentially price-sensitive item, increasing contingent liabilities.
• Capital Commitments: HK\$116.1 million in contracted capital commitments remain outstanding.
• Trade Receivables: Increased to HK\$201.4 million, with some balances over 120 days—potential risk worth monitoring.
• Dividend Payment Schedule: Final dividend (HK6.00 cents) payable 17 June 2026, subject to AGM approval. Record date: 4 June 2026.
• Share Capital: 928,573,000 ordinary shares in issue; no share buyback or issuance during the year.

Corporate Governance & Human Resources

• Governance: The Group maintains high standards of internal control, whistleblower protection, and compliance. Four independent non-executive directors serve on the Audit and Risk Management Committee.
• Employees: 124 employees as of year-end. Ongoing training and market-based remuneration policies in place.
• Code Provisions: The company complied with all but one Corporate Governance Code provision (B2.2: Chairman/President not subject to rotation, to maintain business consistency).

Key Shareholder Dates

• AGM: 22 May 2026. Share transfer cutoff: 18 May 2026.
• Final Dividend Record Date: 4 June 2026. Cutoff for share transfers: 3 June 2026.

Potential Price-Sensitive Issues and Shareholder Considerations

• Significant Decline in Profitability: The 31% drop in profit and lower final dividend may negatively affect investor sentiment and share price.
• Industry Headwinds: Persistent market oversupply, falling lease prices, and competition from LEO satellites (e.g., Starlink) could impact future growth and profitability.
• Major Customer Concentration: Reliance on a few large customers for a significant portion of revenue increases risk.
• Financial Guarantee Exposure: The guarantee for APSTAR Alliance’s loan increases contingent liabilities and could be a concern if the associate experiences financial difficulty.
• Strong Liquidity and Capital Position: The Group’s ample cash reserves and undrawn credit lines provide a buffer and support future investment, potentially offsetting some negative market factors.
• Ongoing Investment in Infrastructure: The completion of the CHK Station and preparation for new satellite projects could support long-term growth if market conditions improve.

Management Message

The Chairman extended appreciation to customers, staff, and directors for their support and efforts, emphasizing the Group’s commitment to steady operations, financial health, and delivering shareholder value.

Disclaimer: This article is for informational and analytical purposes only and does not constitute investment advice. Investors should review official filings and consult professional advisers before making investment decisions. All financial data are as reported by APT Satellite Holdings Limited in its 2025 annual results announcement.

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