Asia Satellite Telecom : Final Results for the Financial Year Ended 31 December 2015

ASIA SATELLITE TELECOMMUNICATIONS HLDG LTD

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

ASIA SATELLITE TELECOMMUNICATIONS HOLDINGS LIMITED

亞洲衛星控股有限公司 *

(Incorporated in Bermuda with limited liability) Stock Code: 1135

Announcement

Final Results for the Financial Year Ended 31 December 2015

The Board of Directors (the "Board") of Asia Satellite Telecommunications Holdings Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2015, together with comparative figures for the corresponding year in 2014 as follows:

Consolidated Statement of Comprehensive Income

Year ended 31 December
Note	2015	2014
HK$'000	HK$'000
Revenue	2	1,310,991	1,364,958
Cost of services	4	(578,226)	(577,418)
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Gross profit	732,765	787,540
Administrative expenses	4	(143,329)	(149,848)
Other gains - net	3	19,256	88,640
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Operating profit	608,692	726,332
Finance expenses	5	(76,695)	(3,112)
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Profit before income tax	531,997	723,220
Income tax expense	6	(92,242)	(164,200)
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Profit and total comprehensive income for the year	439,755	559,020
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Profit and total comprehensive income attributable to:
Owners of the Company	439,755	559,139
Non-controlling interests	-	(119)
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439,755	559,020
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Earnings per share attributable to the owners of the Company for the year (expressed in HK$ per share)	7
Basic earnings per share	1.12	1.43
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Diluted earnings per share	1.12	1.43
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Consolidated Statement of Financial Position

As at 31 December
Note	2015	2014
HK$'000	HK$'000
ASSETS
Non-current assets
Leasehold land and land use rights	18,368	18,951
Property, plant and equipment	6,889,238	6,710,503
Unbilled receivables	12,041	7,668
Deposit	2,616	2,616
Total non-current assets	6,922,263	6,739,738
Current assets
Trade and other receivables	9	359,596	460,515
Cash and bank balances	237,579	3,345,672
Total current assets	597,175	3,806,187
Total assets	7,519,438	10,545,925
EQUITY
Equity attributable to owners of the Company
Share capital	39,120	39,120
Reserves
- Retained earnings	2,597,197	7,036,123
- Other reserves	37,191	30,998
2,673,508	7,106,241
Non-controlling interests	782	782
Total equity	2,674,290	7,107,023
LIABILITIES
Non-current liabilities
Bank borrowings	10	3,252,379	1,929,333
Deferred income tax liabilities	426,884	397,035
Deferred revenue	80,314	93,914
Other amounts received in advance	1,377	1,377
Total non-current liabilities	3,760,954	2,421,659
Current liabilities
Bank borrowings	10	495,740	254,039
Construction payables	51,397	101,693
Other payables and accrued expenses	103,928	109,932
Deferred revenue	162,343	193,399
Current income tax liabilities	270,786	358,180
Total current liabilities	1,084,194	1,017,243
Total liabilities	4,845,148	3,438,902
Total equity and liabilities	7,519,438	10,545,925
Net (current liabilities)/current assets	(487,019)	2,788,944
Total assets less current liabilities	6,435,244	9,528,682

Notes:

1. Basis of preparation

   
   

   The consolidated financial statements of the Company and its subsidiaries (together, the "Group") have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRS") and have been prepared under the historical cost convention.

   
   

   The preparation of financial statements in conformity with HKFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies.

   
   

   As at 31 December 2015, the Group's current liabilities exceeded its current assets by approximately HK$487,019,000 (2014: net current assets of HK$2,788,944,000). Included in the current liabilities were deferred revenue of HK$162,343,000 which represents non-refundable customer prepayments and will gradually reduce over the next twelve months through provision of transponder capacity services. The Group's net current liabilities less deferred revenue was HK$324,676,000. The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within the level of resources generated from its operations, together with the available banking facilities. Based on these forecasts and projections, the directors have a reasonable expectation that the Group will have adequate resources to continue its operations and to meet its financial obligations as and when they fall due in the next twelve months from the date of these consolidated financial statements. The Group therefore continues to adopt the going concern basis in preparing its consolidated financial statements.

   
   

   Changes in accounting policies and disclosures

   
   

2. New and amended standards adopted by the Group

   
   

   The following amendments to standards have been adopted by the Group for the first time for the financial year beginning 1 January 2015:

   
   

   HKFRSs (Amendments)	Improvements to HKFRSs 2012
   HKFRSs (Amendments)	Improvements to HKFRSs 2013
   HKAS 19 (Amendment)	Defined Benefit Plans: Employee Contributions

   
   

   The adoption of these new and amended standards did not result in substantial changes to the accounting policies and consolidated financial statements of the Group in the current year.

   
   

3. New Hong Kong Companies Ordinance (Cap. 622)

   
   

   In addition, the requirements of Part 9 "Accounts and Audit" of the new Hong Kong Companies Ordinance (Cap. 622) came into operation during the financial year. As a result, there are changes to presentation and disclosures of certain information in the consolidated financial statements.

   
   

4. New standards and interpretations not yet adopted by the Group




The following standards and amendments to existing standards have been issued, but are not effective for the financial year beginning 1 January 2015 and have not been early adopted:




HKFRSs (Amendments)	Improvements to HKFRSs 20141
HKAS 1 (Amendment)	Presentation of Financial Statements1
HKAS 16 and HKAS 38 (Amendment)	Classification of Acceptable Methods of Depreciation and Amortisation1
HKAS 16 and HKAS 41 (Amendment)	Agriculture: Bearer Plants1

1. Basis of preparation (Continued)




Changes in accounting policies and disclosures (Continued)




(c) New standards and interpretations not yet adopted by the Group (Continued)




HKAS 27 (Amendment)	Equity Method in Separate Financial Statements1
HKFRS 10, HKFRS 12 and HKAS 28 (Amendment)	Investment entities1
HKFRS 10 and HKAS 28 (Amendment)	Sale or Contribution of Assets between an Investor and its Associate or Joint Venture3
HKFRS 11 (Amendment)	Accounting for Acquisitions of Interests in Joint Operations1
HKFRS14	Regulatory Deferral Accounts1
HKFRS15	Revenue from Contracts with Customers2
HKFRS 9	Financial Instruments2

1 Effective for the Group for annual periods beginning on or after 1 January 2016

2 Effective for the Group for annual periods beginning on or after 1 January 2018

3 Effective date to be determined




The Group is in the process of making an assessment of the impact of these new and amended standards upon initial application and is not yet in a position to state whether these new and amended standards will have any significant impact on the Group's result of operations and financial position.




2. Revenue and segment information
(a) Revenue:
The Group's revenue is analysed as follows:
2015	2014
HK$'000	HK$'000
Income from provision of satellite transponder capacity
- recurring (Note)	1,257,433	1,297,323
- non-recurring	-	7,488
Sales of satellite transponder capacity	13,585	22,495
Other revenues	39,973	37,652
1,310,991	1,364,958




Note:




For the year ended 31 December 2015, a total amount of HK$25,508,000 (2014: HK$55,018,000) was recorded as the additional revenue received or receivable from certain customers following the enactment of the Finance Act in India in 2012, which imposes tax on the Group for revenue that could be considered as Indian sourced subject to Indian Court's final decision.