th Satellite Television Holdings Limited PHOENIX鳳凰衛視控股有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) 股份代號 Stock Code : 02008 年度報告 ANNUAL REPORT 2016 Mission Statement Pursuing the vision of being the “Chinese connection”, both among Chinese communities and between Chinese communities and the rest of the world, Phoenix seeks to provide Chinese everywhere with a continuous stream of Chinese-language programming, ranging from entertainment, talk shows and Asian and Western movies through to balanced, accurate and up-to-the-minute news and information about political and economic developments around the globe. By performing these functions, Phoenix fullls its mission of bringing China closer to the world and the world closer to China. 公司使命 全力向着成為各華人群體之間，以及華人群體與世界各地之間的 「華語聯繫」的願景發展，鳳凰分享無間的華語節目，包括娛樂、 評論節目、亞洲及西方影片、平衡準確的即時新聞，以及全球政治及 經濟發展的資訊。 通過演繹這些角色，鳳凰不單令世界逐漸走向中國，同時亦令中國逐 漸走向世界。 Contents Mission Statement 1 5 2016 Annual Highlights Chairman’s Statement 7 12 A Global Media Organisation Global Outlook 18 20 A Global Team The Chinese Gateway 28 30 Corporate Information Management Discussion and Analysis 31 38 Directors and Senior Management Profile Corporate Governance Report 44 60 Environmental, Social and Governance Report Report of Directors 69 105 Independent Auditor’s Report Consolidated Financial Statements 113 121 Notes to the Consolidated Financial Statements Financial Summary 232 Phoenix Satellite Television Holdings Limited 05 2016 Annual Highlights 15 31 MARCH MARCH On the 20th anniversary of the establishment of Phoenix TV held an event to celebrate its 20th Phoenix Satellite Television Company Limited anniversary at the company headquarters in Hong (“Phoenix TV”), the Secretary-General of the Kong. The Vice Chairman of the Tenth to Twelfth United Nations, Mr. Ban Ki Moon, met the National Committee of the Chinese People’s Chairman and Chief Executive Officer of the Political Consultative Conference, People’s Company, Mr. Liu Changle J.P., and fully Republic of China, Mr. Tung Chee Hwa, the Chief confirmed the successful development of Executive of the Hong Kong Special Phoenix TV over the past 20 years, and Administrative Region, Mr. Leung Chun-ying, and expressed the hope that Phoenix TV would the Director of the Central People’s continue to strengthen communication and Government’s Liaison Office in Hong Kong, Mr. understanding between different elements of the Zhang Xiaoming, all attended this event, which global population, and make a greater contribution was hosted by two Phoenix TV presenters, Miss to mutual understanding. The Under-Secretary- Avon Hsieh and Mr. Tiger Hu. The event was General of the UN Department of Economic and broadcasted on all of Phoenix TV’s channels Social Affairs, Mr. Wu Hongbo, and the Under- around the world. Secretary-General of the Department of Public Information, Ms. Cristina Gallach, accompanied Mr. Ban Ki Moon when he met Chairman Liu. 12 10 MAY JUNE Cambridge University publicly recognized the success on the international media stage of Ms. Theresa Fu Xiaotian, a graduate of the university who has been a Phoenix TV reporter for many years, by naming a garden on the university campus after her. Ms. Theresa Fu now hosts the Phoenix TV held the “Phoenix International Day Phoenix program “Talk with World Leaders”, of Friendship” at the Phoenix International Media which provides a platform for prominent Centre in Beijing, with the theme of “bringing the international political leaders and cultural figures voice of the Chinese people to the world”. The to communicate with the Chinese audience. event was attended by over a hundred diplomatic representatives from embassies and international organisations based in Beijing. Annual Report 2016 06 2016 Annual Highlights 26 29 SEPTEMBER OCTOBER The World Brand Laboratory and the World Executive Group held the eleventh Asia’s 500 Most Influential Brands announcement event in Hong Kong on 26 September, and for the eleventh time Phoenix TV was named as one of the most influential brands in Asia, and was ranked two places higher than last year, and once again was included as one of the four most The Hong Kong SAR Government held a presentation influential television media brands in Asia. Mr. Yeung ceremony on 29 October at the Government House, Ka Keung, the Executive Vice President and Chief and the Chairman and Chief Executive Officer of the Financial Officer of Phoenix TV, attended the event Company, Mr. Liu Changle J.P. was awarded the Gold and received the award. Bauhinia Star for outstanding achievements in the area of broadcasting and multi-media. Mr. Liu Changle J.P. was also the first mainlander who became a Hong Kong resident in the 1990s to be awarded the Silver and the Gold Bauhinia Stars. 17 20 NOVEMBER NOVEMBER Mr. Liu Changle J.P., the Chairman and Chief At the 44th International Emmy Awards the Chairman Executive Officer of the Company, attended the World of the Emmy’s World Television Programmes, Mr. Liu Chinese Economic Summit in Malacca and together Changle J.P., Chairman and Chief Executive Officer of with former Taiwan President Ma Ying-jeou presented the Company, presented awards to all organisations the former Prime Minister of Australia, Mr. Kevin and individuals who were awarded prizes. This was Rudd, with the Patron’s Benevolence Award for his the eleventh year in which Mr. Liu Changle J.P. has contribution to the development of economic relations served as the President of the International Emmys between Asia and the West. Former Indonesian Television event. President Susilo Bambang Yudhoyono also gave a speech endorsing Mr. Rudd’s contribution to Asia’s economic development. Phoenix Satellite Television Holdings Limited 07 Chairman’s Statement While the profit made by the Group’s television business continued to suffer from the slowdown in the Chinese economy, the Group is expanding into other areas and the fair value gain made by the Group’s new media investments represented an increase in profit attributable to owners of the Company of 108.9% over the previous year. Annual Report 2016 08 Chairman’s Statement Financial Summary Results The revenue of Phoenix Satellite Television Holdings Revenue for the year ended 31 December Limited (the “Company”) and its subsidiaries (the 2016 was approximately HK$3,798,273,000, “Group” or “Phoenix”) for the year ended 31 which represented a decrease of 9.6% over December 2016 was approximately HK$3,798,273,000 the previous year. (year ended 31 December 2015: HK$4,200,895,000), which represented a 9.6% decrease over the previous Profit attributable to owners of the Company year. The slowdown of the Chinese economy and was approximately HK$230,515,000, which depreciation of the Renminbi (“RMB”) have had a negative effect on Phoenix’s overall revenue. The represented an increase of 108.9% over the operating costs have decreased by 6.9% to previous year. approximately HK$3,617,143,000 (year ended 31 The board of directors (the “Board” or December 2015: HK$3,886,425,000). “Directors”) of the Company recommended The operating profit of the Group for the year ended 31 a final dividend of 1 Hong Kong cent per December 2016 was approximately HK$181,130,000 ordinary share of the Company (“Share(s)”). (year ended 31 December 2015: HK$314,470,000), which represented a decrease of 42.4% compared to the previous year. Fair value gain on derivative financial instruments related to subsequent measurement of new media’s investment in Particle Inc. for the year ended 31 December 2016 was approximately HK$182,050,000 (year ended 31 December 2015: loss of HK$44,696,000). Fair value gain of approximately HK$21,127,000 (year ended 31 December 2015: HK$98,939,000) was recognized for the investment properties in Beijing and London. The net exchange loss of the Group for the year ended 31 December 2016 was approximately HK$55,812,000 (year ended 31 December 2015: HK$57,213,000) mainly resulting from the depreciation of the RMB. Phoenix Satellite Television Holdings Limited 09 Chairman’s Statement The profit attributable to owners of the Company was approximately HK$230,515,000 (year ended 31 December 2015: HK$110,349,000), which represented an increase of 108.9% compared to the previous year. New media’s investment in Particle Inc. had resulted in a substantial revaluation gain in the current year which boosted our profit at group level. The chart below summarises the performance of the Group for the year ended 31 December 2016 and the year ended 31 December 2015 respectively. Year ended 31 December 2016 2015 HK$’000 HK$’000 Television broadcasting 1,430,947 1,598,095 New media 1,629,661 1,920,708 Outdoor media 610,295 571,521 Real estate 27,606 14,650 Other businesses 99,764 95,921 Group’s total revenue 3,798,273 4,200,895 Operating costs (3,617,143) (3,886,425) Operating profit 181,130 314,470 Fair value gain on investment properties 21,127 98,939 Net gain on new media investment Fair value gain/(loss) on derivative financial instruments 182,050 (44,696) Interest income 101,611 51,249 Gain on disposal of an associate – 4,795 Exchange loss, net (55,812) (57,213) Reversal of provision/(provision) for impairment of amounts due from joint ventures 1,224 (39,285) Gain on deemed disposal of a subsidiary 49,344 – Other income, net 17,001 991 Profit before share of results of joint ventures and associates, income tax and non-controlling interests 497,675 329,250 Share of results of joint ventures and associates (17,852) (37,543) Income tax expense (81,809) (139,876) Profit for the year 398,014 151,831 Non-controlling interests (167,499) (41,482) Profit attributable to owners of the Company 230,515 110,349 Basic earnings per share, Hong Kong cents 4.61 2.21 Annual Report 2016 10 Chairman’s Statement Business Overview and Prospects The slowing of the Chinese economy over the last year has caused serious challenges for the media business at large, including Phoenix.