1
Highlights
Consolidated Results –Continued Growth
• Turnover increased by 21% to HK$775 million.
• EBITDA increased by 57% to HK$176 million.
• Net loss improved by 68% to HK$40 million.
• “Triple Play” strategy implementation on plan.
Pay TV Service –Renewed Growth
• Subscribers grew by 14% to over 480,000. ARPU
rose by 6% to HK$254 and turnover increased by
18% to HK$744 million.
• EBITDA margin gained by 9 points to 30% and
EBITDA increased by 63% to HK$220 million to
reflect significant operating leverage.
• Net profit achieved for the first time.
• First mover advantage and market leadership
position enhanced by Euro 2000 and exclusive
multi-year carriage agreements for HBO, CINEMAX
and AXN.
• Viewership share climbed to a new high of 30%.
Internet & MultimediaServices – New Growth
• Broadband Service launched in late March. Early
mover advantage enables infrastructure rollout and
subscriber penetration to rank among the fastest in
the world.
• Broadband Service now available to 700,000
homes. It will reach 1 million by end 2000 and
over 1.7 million homes by end 2001 for over 95%
market coverage.
• Midyear target of 20,000 regular and installed
broadband subscribers achieved after June when
normal supply of cable modems resumed
worldwide.
• 163,000 dial-up subscribers accounting for close to
10% of total dial-up traffic in the market.
i-Cable Interim Report 2000Highlights
i-CABLE Communications Limited is
Hong Kong's only fully integrated
communications company that owns
and operates the territory's second
largest advanced broadband
distribution network; creates
multimedia contents; and offers
television and Internet services
concurrently.
i-CABLE's vision is to provide
"Unlimited Access to Unlimited
Content." Its goal is to become
Hong Kong's leading provider of
integrated multimedia services that
include video, data and voice.
0
100
200
300
400
500
600
700
800
1H99 1H00
HK$ million
Group turnover increased by 21%
1
Highlights
Consolidated Results –Continued Growth
• Turnover increased by 21% to HK$775 million.
• EBITDA increased by 57% to HK$176 million.
• Net loss improved by 68% to HK$40 million.
• “Triple Play” strategy implementation on plan.
Pay TV Service –Renewed Growth
• Subscribers grew by 14% to over 480,000. ARPU
rose by 6% to HK$254 and turnover increased by
18% to HK$744 million.
• EBITDA margin gained by 9 points to 30% and
EBITDA increased by 63% to HK$220 million to
reflect significant operating leverage.
• Net profit achieved for the first time.
• First mover advantage and market leadership
position enhanced by Euro 2000 and exclusive
multi-year carriage agreements for HBO, CINEMAX
and AXN.
• Viewership share climbed to a new high of 30%.
Internet & MultimediaServices – New Growth
• Broadband Service launched in late March. Early
mover advantage enables infrastructure rollout and
subscriber penetration to rank among the fastest in
the world.
• Broadband Service now available to 700,000
homes. It will reach 1 million by end 2000 and
over 1.7 million homes by end 2001 for over 95%
market coverage.
• Midyear target of 20,000 regular and installed
broadband subscribers achieved after June when
normal supply of cable modems resumed
worldwide.
• 163,000 dial-up subscribers accounting for close to
10% of total dial-up traffic in the market.
i-Cable Interim Report 2000Highlights
i-CABLE Communications Limited is
Hong Kong's only fully integrated
communications company that owns
and operates the territory's second
largest advanced broadband
distribution network; creates
multimedia contents; and offers
television and Internet services
concurrently.
i-CABLE's vision is to provide
"Unlimited Access to Unlimited
Content." Its goal is to become
Hong Kong's leading provider of
integrated multimedia services that
include video, data and voice.
0
100
200
300
400
500
600
700
800
1H99 1H00
HK$ million
Group turnover increased by 21%
i-Cable Interim Report 2000Group Results
The unaudited Group loss attributable to
Shareholders for the six months ended June 30,
2000 amounted to HK$40 million, an improvement
of 68% from the HK$126 million reported for the
corresponding period last year (after re-statement
due to change in accounting policy as mentioned in
Note 2 below). Loss per share was HK$0.02
compared to HK$0.08 for the previous year.
Turnover for the Group increased by 21% to HK$775
million, as compared with HK$643 million recorded
for the same period in 1999. TV related revenues
increased by 18% to HK$744 million primarily as a
result of the solid growth in subscriber base and
improved yield from subscribers achieved during the
period, while Internet and multimedia related
revenues increased by 160% to HK$31 million.
Earnings before interest, taxes, depreciation and
amortisation (after amortisation of programming
library but excluding network rental income and
expenses) or EBITDA increased by 57% from HK$112
million to HK$176 million. The EBITDA margin
increased from 17% to 23%.
Capital expenditures for the period under review
amounted to HK$192 million, as compared to
HK$167 million for the same period in 1999. The
increase was mainly due to expenditures incurred in
relation to the rollout of the cable modem service.
The net amount of cash and cash equivalents on
hand as of June 30, 2000 was HK$1,462 million.
3
i-Cable Interim Report 2000Group Results
Six months ended June 30: 2000 1999 restated
HK$’000 HK$’000Turnover 774,597 642,575
Operating expenses Programming costs (277,975) (259,438)Network and other operating expenses (152,519) (117,248)Selling, general and administrative expenses (168,292) (153,964)Depreciation and amortisation (227,528) (228,507)
(826,314) (759,157)(51,717) (116,582)
Network rental income — 136,323Network rental expense — (76,504)Operating loss (51,717) (56,763)Interest income 48,647 —Non-operating (expenses) / income (929) 55Finance expense (36,004) (69,520)Loss before taxation (40,003) (126,228)Taxation - credit (Note 3) — 186Loss attributable to shareholders (40,003) (126,042)
Basic and diluted loss per share (Note 4) HK$(0.02) HK$(0.08)
Interim DividendThe Board has decided that no interim dividend be paid in respect of the financial year ending December 31, 2000.
Group ResultsNotes:
(1) The Company was incorporated on May 21, 1999
and on November 1, 1999 the Company became
the holding company of the Group pursuant to a
group reorganisation. Details of the Group’s
reorganisation are set out in the Company’s
prospectus dated November 12, 1999. The
Group resulting from the reorganisation is
regarded as a continuing entity and accordingly,
the consolidated results of the Group have been
prepared on the basis that the Company was the
holding company of the Group for both periods
presented, rather than from November 1, 1999.
(2) Change in accounting policy
In prior periods, deferred expenses, including pre-
operating expenses, pre-maturity expenses and
other deferred expenses, were deferred according
to defined bases and amortised on a straight line
basis over the term or remaining term of the initial
subscription television broadcasting licence which
expires on May 31, 2005. With effect from January
1, 2000, the Group adopted an accounting policy
of recognising all such costs as an expense in the
period they are incurred in order to comply with
Interpretation 9 “Accounting for pre-operating
costs” issued by the Hong Kong Society of
Accountants. The new accounting policy has been
adopted retrospectively. In adjusting prior periods’
figures, the deficit balance of revenue reserve as at
January 1, 1999 was restated and increased by
HK$963,004,000 representing write-off to the prior
periods’ consolidated profit and loss account the
unamortised balance of deferred expenses as at
December 31, 1998.
Upon adoption of Interpretation 9 and restating the
prior periods’ results and reserves, the Group’s loss
attributable to shareholders for the six months ended
June 30, 2000 has decreased by HK$75,139,000
(1999: HK$75,139,000) as a result of no more
amortisation of deferred expenses after its write-off.
Taxation in the consolidated results represents:
Six months ended June 30: 2000 1999HK$’000 HK$’000
Hong Kong Profits Tax (3,413) (2,319)Underprovision in respect of prior periods — (4)Deferred tax credit 3,413 2,509Net taxation credit — 186
The provision for Hong Kong Profits Tax is calculated separately on the taxable profit of each entity within the
Group at 16% (1999: 16%) per annum.
(4) Basic and diluted loss per share
The calculation of basic loss per share is based on
the net loss of HK$40,003,000 (1999:
HK$126,042,000) and the weighted average of
2,014,000,000 (1999: 1,600,000,000) ordinary
shares outstanding. The 1,600,000,000 ordinary
shares outstanding as a result of the Group’s
reorganisation on November 1, 1999 are
included in the calculation of the weighted
average number of shares as if those shares were
outstanding since January 1, 1999.
The issue of potential ordinary shares in
connection with the Company’s convertible bonds
would not give rise to an increase in loss per
share and therefore had no dilutive effect on the
calculation of diluted loss per share.
(3) TaxationSummary of Unaudited Consolidated Results
i-Cable Interim Report 2000Group Results
The unaudited Group loss attributable to
Shareholders for the six months ended June 30,
2000 amounted to HK$40 million, an improvement
of 68% from the HK$126 million reported for the
corresponding period last year (after re-statement
due to change in accounting policy as mentioned in
Note 2 below). Loss per share was HK$0.02
compared to HK$0.08 for the previous year.
Turnover for the Group increased by 21% to HK$775
million, as compared with HK$643 million recorded
for the same period in 1999. TV related revenues
increased by 18% to HK$744 million primarily as a
result of the solid growth in subscriber base and
improved yield from subscribers achieved during the
period, while Internet and multimedia related
revenues increased by 160% to HK$31 million.
Earnings before interest, taxes, depreciation and
amortisation (after amortisation of programming
library but excluding network rental income and
expenses) or EBITDA increased by 57% from HK$112
million to HK$176 million. The EBITDA margin
increased from 17% to 23%.
Capital expenditures for the period under review
amounted to HK$192 million, as compared to
HK$167 million for the same period in 1999. The
increase was mainly due to expenditures incurred in
relation to the rollout of the cable modem service.
The net amount of cash and cash equivalents on
hand as of June 30, 2000 was HK$1,462 million.
3
i-Cable Interim Report 2000Group Results
Six months ended June 30: 2000 1999 restated
HK$’000 HK$’000Turnover 774,597 642,575
Operating expenses Programming costs (277,975) (259,438)Network and other operating expenses (152,519) (117,248)Selling, general and administrative expenses (168,292) (153,964)Depreciation and amortisation (227,528) (228,507)
(826,314) (759,157)(51,717) (116,582)
Network rental income — 136,323Network rental expense — (76,504)Operating loss (51,717) (56,763)Interest income 48,647 —Non-operating (expenses) / income (929) 55Finance expense (36,004) (69,520)Loss before taxation (40,003) (126,228)Taxation - credit (Note 3) — 186Loss attributable to shareholders (40,003) (126,042)
Basic and diluted loss per share (Note 4) HK$(0.02) HK$(0.08)
Interim DividendThe Board has decided that no interim dividend be paid in respect of the financial year ending December 31, 2000.
Group ResultsNotes:
(1) The Company was incorporated on May 21, 1999
and on November 1, 1999 the Company became
the holding company of the Group pursuant to a
group reorganisation. Details of the Group’s
reorganisation are set out in the Company’s
prospectus dated November 12, 1999. The
Group resulting from the reorganisation is
regarded as a continuing entity and accordingly,
the consolidated results of the Group have been
prepared on the basis that the Company was the
holding company of the Group for both periods
presented, rather than from November 1, 1999.
(2) Change in accounting policy
In prior periods, deferred expenses, including pre-
operating expenses, pre-maturity expenses and
other deferred expenses, were deferred according
to defined bases and amortised on a straight line
basis over the term or remaining term of the initial
subscription television broadcasting licence which
expires on May 31, 2005. With effect from January
1, 2000, the Group adopted an accounting policy
of recognising all such costs as an expense in the
period they are incurred in order to comply with
Interpretation 9 “Accounting for pre-operating
costs” issued by the Hong Kong Society of
Accountants. The new accounting policy has been
adopted retrospectively. In adjusting prior periods’
figures, the deficit balance of revenue reserve as at
January 1, 1999 was restated and increased by
HK$963,004,000 representing write-off to the prior
periods’ consolidated profit and loss account the
unamortised balance of deferred expenses as at
December 31, 1998.
Upon adoption of Interpretation 9 and restating the
prior periods’ results and reserves, the Group’s loss
attributable to shareholders for the six months ended
June 30, 2000 has decreased by HK$75,139,000
(1999: HK$75,139,000) as a result of no more
amortisation of deferred expenses after its write-off.
Taxation in the consolidated results represents:
Six months ended June 30: 2000 1999HK$’000 HK$’000
Hong Kong Profits Tax (3,413) (2,319)Underprovision in respect of prior periods — (4)Deferred tax credit 3,413 2,509Net taxation credit — 186
The provision for Hong Kong Profits Tax is calculated separately on the taxable profit of each entity within the
Group at 16% (1999: 16%) per annum.
(4) Basic and diluted loss per share
The calculation of basic loss per share is based on
the net loss of HK$40,003,000 (1999:
HK$126,042,000) and the weighted average of
2,014,000,000 (1999: 1,600,000,000) ordinary
shares outstanding. The 1,600,000,000 ordinary
shares outstanding as a result of the Group’s
reorganisation on November 1, 1999 are
included in the calculation of the weighted
average number of shares as if those shares were
outstanding since January 1, 1999.
The issue of potential ordinary shares in
connection with the Company’s convertible bonds
would not give rise to an increase in loss per
share and therefore had no dilutive effect on the
calculation of diluted loss per share.
(3) TaxationSummary of Unaudited Consolidated Results
Another important step was taken during the period
under review towards achieving the Group’s “Triple
Play” strategy with the launch of a cable modem-
based Broadband Service.
Given its first or early mover advantage, years of
experience competing in this market and sound
financial position, the Group is best placed in the
more open competitive environment for Pay
Television and Internet services.
Pay Television Service –Renewed GrowthThe renewed growth momentum since the second
half of 1999 continued well into 2000, spurred on by
the economic recovery. That resulted in 67% more
subscribers being added during the 6-month period
under review compared to the same period a year
ago. The installed subscriber base exceeded
480,000 as at June 30, 2000. Average monthly yield
per subscriber rose to HK$254 and monthly churn
declined to 1.4%.
With revenue being 18% higher than a year ago,
and operating expenses rising by only 6% because of
significant operating leverage, EBITDA margin
improved from 21% to 30%. EBITDA grew by 63% to
HK$220 million and net profit was achieved for this
core business for the first time.
During the period, the Group’s Pay Television Service
continued to build market penetration and subscriber
loyalty as the No. 1 Station for News, Movies and
Sports. Viewership share in subscriber homes
climbed to a new high of 30% and advertising
revenue grew by 90 per cent over the same period
in 1999.
The conclusion of Euro 2000 was immediately
followed by the also popular World Cup 2002
i-Cable Interim Report 2000Business Review
Business Review
Another important step was taken during the period
under review towards achieving the Group’s “Triple
Play” strategy with the launch of a cable modem-
based Broadband Service.
Given its first or early mover advantage, years of
experience competing in this market and sound
financial position, the Group is best placed in the
more open competitive environment for Pay
Television and Internet services.
Pay Television Service –Renewed GrowthThe renewed growth momentum since the second
half of 1999 continued well into 2000, spurred on by
the economic recovery. That resulted in 67% more
subscribers being added during the 6-month period
under review compared to the same period a year
ago. The installed subscriber base exceeded
480,000 as at June 30, 2000. Average monthly yield
per subscriber rose to HK$254 and monthly churn
declined to 1.4%.
With revenue being 18% higher than a year ago,
and operating expenses rising by only 6% because of
significant operating leverage, EBITDA margin
improved from 21% to 30%. EBITDA grew by 63% to
HK$220 million and net profit was achieved for this
core business for the first time.
During the period, the Group’s Pay Television Service
continued to build market penetration and subscriber
loyalty as the No. 1 Station for News, Movies and
Sports. Viewership share in subscriber homes
climbed to a new high of 30% and advertising
revenue grew by 90 per cent over the same period
in 1999.
The conclusion of Euro 2000 was immediately
followed by the also popular World Cup 2002
i-Cable Interim Report 2000Business Review
Business Review
Qualifying Rounds. Exclusive multi-year carriage
agreements were concluded with major regional
channels HBO, CINEMAX and AXN ahead of new
competition.
Internet & MultimediaServices – New GrowthFollowing the award of a Fixed Telecommunications
Network Services (FTNS) licence in January, the
Group formally launched its cable modem-based
Broadband Service in March.
Encouraging results have already been achieved
since launch. With infrastructure being rolled out at
the average rate of 80,000 homes per month, this
service was already available to about 550,000
homes in over 2,700 buildings at the end of June,
making it not only the fastest rollout of cable modem
service in Hong Kong, but also one of the fastest in
the world as well.
Initial marketing activities target existing Pay Television
subscribers who have a higher possession rate of
personal computers and Internet accounts at home
than the general population in Hong Kong. This has
proven to be an excellent marketing strategy for a
variety of reasons with over one in ten subscriber
homes marketed adding broadband to their
subscription so far.
The midyear target of 20,000 regular installed
broadband subscribers was achieved in July when
normal supply of cable modems resumed worldwide
after June to meet demand. As at June 30, there
were 12,000 installed subscribers.
In the meantime, dial-up subscription continued to
grow to 163,000 at the end of June net of
conversions to broadband service. Together, they
represent close to 10% of total dial-up Internet traffic
volume in the market.
The leveraging of the Group’s market position in
television content for broadband application is
underway. A news website – www.i-cablenews.com
– has been launched as the world’s first Cantonese
24-hour video online news channel with a video
news on demand service as well. Similarly, a sports
website – www.i-cablesports.com – will also be
launched shortly.
Network Infrastructure –Built for More GrowthThe Group continued its fibre trunk conversion
programme during the period under review and
rolled out its Broadband Service at a rapid speed at
the same time. At the end of June, more than 60
per cent of the homes (over 1.1 million) in Hong
Kong were already connected to the Group’s HFC
(hybrid fibre coaxial) network. The conversion
programme is expected to be substantially completed
by the end of 2001 when only 2% of total homes
passed in Hong Kong will not be covered by this
two-way broadband infrastructure.
7
i-Cable Interim Report 2000Business Review
Qualifying Rounds. Exclusive multi-year carriage
agreements were concluded with major regional
channels HBO, CINEMAX and AXN ahead of new
competition.
Internet & MultimediaServices – New GrowthFollowing the award of a Fixed Telecommunications
Network Services (FTNS) licence in January, the
Group formally launched its cable modem-based
Broadband Service in March.
Encouraging results have already been achieved
since launch. With infrastructure being rolled out at
the average rate of 80,000 homes per month, this
service was already available to about 550,000
homes in over 2,700 buildings at the end of June,
making it not only the fastest rollout of cable modem
service in Hong Kong, but also one of the fastest in
the world as well.
Initial marketing activities target existing Pay Television
subscribers who have a higher possession rate of
personal computers and Internet accounts at home
than the general population in Hong Kong. This has
proven to be an excellent marketing strategy for a
variety of reasons with over one in ten subscriber
homes marketed adding broadband to their
subscription so far.
The midyear target of 20,000 regular installed
broadband subscribers was achieved in July when
normal supply of cable modems resumed worldwide
after June to meet demand. As at June 30, there
were 12,000 installed subscribers.
In the meantime, dial-up subscription continued to
grow to 163,000 at the end of June net of
conversions to broadband service. Together, they
represent close to 10% of total dial-up Internet traffic
volume in the market.
The leveraging of the Group’s market position in
television content for broadband application is
underway. A news website – www.i-cablenews.com
– has been launched as the world’s first Cantonese
24-hour video online news channel with a video
news on demand service as well. Similarly, a sports
website – www.i-cablesports.com – will also be
launched shortly.
Network Infrastructure –Built for More GrowthThe Group continued its fibre trunk conversion
programme during the period under review and
rolled out its Broadband Service at a rapid speed at
the same time. At the end of June, more than 60
per cent of the homes (over 1.1 million) in Hong
Kong were already connected to the Group’s HFC
(hybrid fibre coaxial) network. The conversion
programme is expected to be substantially completed
by the end of 2001 when only 2% of total homes
passed in Hong Kong will not be covered by this
two-way broadband infrastructure.
7
i-Cable Interim Report 2000Business Review
Service to rapidly catch up with the former monopoly
and to leave the new operators behind.
The Group has adopted the well proven and most
competitive cable modem technology and delivers
the service over reliable wireline transmission
network. The Group is confident that with the rapid
roll-out and take up rate of its broadband service, it
will become a major player in the Hong Kong
broadband service market.
Other Opportunities
The Group is actively seeking new opportunities for
new revenue streams. Good progress has been
made to develop an IP telephony service with a field
test scheduled for the last quarter of this year. The
Group is also investigating the opportunity for third-
general mobile services when the Government invite
application for licences.
Preparation for the business to business portal site the
Group invested to develop for the Greater China
Region together with six other Hong Kong and
China conglomerates and Commerce One of the US
has been completed. The site - Asia2B - was officially
launched in late July.
Continued growth is expected as the Group
continues to exploit its first or early mover advantage
to succeed in competition. Investments made in past
years will prove to be valuable and insightful with
new revenues generated based on incremental
investments. That will position the Group well and
differentiate it from its competitors.
Compliance with Code of Best PracticeNone of the Directors of the Company is aware of any information which would reasonably indicate that the
Company was not in compliance with the Code of Best Practice, as set out in Appendix 14 of the Rules
Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, at any time during the six
months ended June 30, 2000.
Directors’ Interests in SharesAt June 30, 2000, Directors of the Company had the following beneficial interests in the securities of the
Company and its associated corporations (within the meaning of the Securities (Disclosure of Interests)
Ordinance (the "SDI Ordinance")) :-
No. of Ordinary Shares Nature of InterestThe Company
Mr. Stephen T.H. Ng 750,000 Personal interestMr. John T. Hung 20,000 Personal interest
The Wharf (Holdings) Limited
Mr. Gonzaga W.J. Li 686,549 Personal interestMr. Stephen T.H. Ng 230,057 Personal interest
Harbour Centre Development Limited
Mr. F.K. Hu 50,000 Corporate interest
Outlook - Continued GrowthPay Television Service
In July, the Hong Kong Government decided in
principle to award five new Pay Television Service
licences. The new operators are expected to launch
their services within the next year. One of the new
licensees, a subsidiary of the dominant terrestrial
television broadcaster in Hong Kong, is barred from
starting service for 18 months from licence award
and restrictive “firewall” conditions will be written
into its licence to separate its operations from the
parent company.
The Group is confident that its leading position in the
provision of Pay Television Service in Hong Kong will
be maintained as it has enjoyed significant first mover
advantage with a loyal and solid customer base.
Competition is not alien to the Group. The Group
will continue to enhance its proprietary channels and
programmes as well as its local content in order to
move ahead of its competitors.
Internet & Multimedia Services
Broadband services are taking the Hong Kong market
by storm. The combined market penetration in the
residential sector for all operators will probably
exceed 10% by the end of this year.
Insightful investment in the physical infrastructure in
past years has given the Group a tremendous cost
and speed advantage in launching its Broadband
9
i-Cable Interim Report 2000
Hong Kong IslandCauseway BayJardines Lockout Sai Ying PunTai HangShau Kei WanCentralMid LevelsQuarry BayWanchaiSai Wan Ho Happy ValleyNorth PointSheung WanBraemar Hill
KowloonChoi HungDiamond HillKwun TongNgau Chi WanTai Kok TsuiYau TongKowloon CityLok FuWang Tau HomChoi WanHo Man Tin Lam TinNgau Tau KokTze Wan ShanBeacon HillKowloon TongShek Kip MeiChuk YuenKowloon Bay
MongkokSau Mau PingYau Ma TeiCheung Sha WanLai Chi KokTung TauYau Yat Tsuen
New TerritoriesMa On Shan Tai Wai Tuen MunTsing Lung TauTsuen WanTing Kau
Sham TsengTin Shui WaiTseung Kwan OTsing YiSiu Lek YuenTung Chung
i-Cable Interim Report 2000Business Review
Cable broadband service now in most parts of Hong Kong
Service to rapidly catch up with the former monopoly
and to leave the new operators behind.
The Group has adopted the well proven and most
competitive cable modem technology and delivers
the service over reliable wireline transmission
network. The Group is confident that with the rapid
roll-out and take up rate of its broadband service, it
will become a major player in the Hong Kong
broadband service market.
Other Opportunities
The Group is actively seeking new opportunities for
new revenue streams. Good progress has been
made to develop an IP telephony service with a field
test scheduled for the last quarter of this year. The
Group is also investigating the opportunity for third-
general mobile services when the Government invite
application for licences.
Preparation for the business to business portal site the
Group invested to develop for the Greater China
Region together with six other Hong Kong and
China conglomerates and Commerce One of the US
has been completed. The site - Asia2B - was officially
launched in late July.
Continued growth is expected as the Group
continues to exploit its first or early mover advantage
to succeed in competition. Investments made in past
years will prove to be valuable and insightful with
new revenues generated based on incremental
investments. That will position the Group well and
differentiate it from its competitors.
Compliance with Code of Best PracticeNone of the Directors of the Company is aware of any information which would reasonably indicate that the
Company was not in compliance with the Code of Best Practice, as set out in Appendix 14 of the Rules
Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, at any time during the six
months ended June 30, 2000.
Directors’ Interests in SharesAt June 30, 2000, Directors of the Company had the following beneficial interests in the securities of the
Company and its associated corporations (within the meaning of the Securities (Disclosure of Interests)
Ordinance (the "SDI Ordinance")) :-
No. of Ordinary Shares Nature of InterestThe Company
Mr. Stephen T.H. Ng 750,000 Personal interestMr. John T. Hung 20,000 Personal interest
The Wharf (Holdings) Limited
Mr. Gonzaga W.J. Li 686,549 Personal interestMr. Stephen T.H. Ng 230,057 Personal interest
Harbour Centre Development Limited
Mr. F.K. Hu 50,000 Corporate interest
Outlook - Continued GrowthPay Television Service
In July, the Hong Kong Government decided in
principle to award five new Pay Television Service
licences. The new operators are expected to launch
their services within the next year. One of the new
licensees, a subsidiary of the dominant terrestrial
television broadcaster in Hong Kong, is barred from
starting service for 18 months from licence award
and restrictive “firewall” conditions will be written
into its licence to separate its operations from the
parent company.
The Group is confident that its leading position in the
provision of Pay Television Service in Hong Kong will
be maintained as it has enjoyed significant first mover
advantage with a loyal and solid customer base.
Competition is not alien to the Group. The Group
will continue to enhance its proprietary channels and
programmes as well as its local content in order to
move ahead of its competitors.
Internet & Multimedia Services
Broadband services are taking the Hong Kong market
by storm. The combined market penetration in the
residential sector for all operators will probably
exceed 10% by the end of this year.
Insightful investment in the physical infrastructure in
past years has given the Group a tremendous cost
and speed advantage in launching its Broadband
9
i-Cable Interim Report 2000
Hong Kong IslandCauseway BayJardines Lockout Sai Ying PunTai HangShau Kei WanCentralMid LevelsQuarry BayWanchaiSai Wan Ho Happy ValleyNorth PointSheung WanBraemar Hill
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Sham TsengTin Shui WaiTseung Kwan OTsing YiSiu Lek YuenTung Chung
i-Cable Interim Report 2000Business Review
Cable broadband service now in most parts of Hong Kong
Note: The 50,000 shares regarding ‘Corporate
Interest’ in which Mr. F.K. Hu was taken to be
interested as stated above was the interest held by a
corporation in general meetings of which Mr. Hu was
either entitled to exercise (or was taken under the SDI
Ordinance to be able to exercise) or control the
exercise of one-third or more of the voting power.
As at June 30, 2000, Mr. Stephen T.H. Ng had
personal interests in options to subscribe for
1,500,000 ordinary shares of the Company granted
under the Company’s Share Option Scheme on
February 8, 2000 at a total consideration of HK$10.
The option rights are exercisable during the period
from April 1, 2001 to December 31, 2009 at a
subscribtion price of HK$10.49 per share.
Save as disclosed above:
(i) there were no interests held as at June 30, 2000
by any Directors and Chief Executive of the
Company in securities of the Company and its
associated corporations (within the meaning of
the SDI Ordinance), and
(ii) during the financial period, there existed no rights
to subscribe for equity or debt securities of the
Company which held by any Directors or Chief
Executive of the Company or any of their spouses
or children under 18 years of age nor had there
been any exercises of any such rights by any of
them,
as recorded in the register kept by the Company
under section 29 of the SDI Ordinance.
SubstantialShareholders'Interests
Given below are the names of all parties which were,
directly or indirectly, interested in 10 per cent or more
of the nominal value of the share capital of the
Company and the respective relevant numbers of
shares in which they were, and/or were deemed to
be, interested as at June 30, 2000 as recorded in the
register kept by the Company under section 16(1) of
the SDI Ordinance:-
No. ofNames Ordinary Shares
(i) Wharf Communications Investments Limited 1,600,000,000
(ii) The Wharf (Holdings) Limited 1,600,034,575(iii) WF Investment Partners Limited 1,602,672,774(iv) Wheelock and Company Limited 1,603,095,200(v) Bermuda Trust (Guernsey) Limited 1,603,095,200
Note: For the avoidance of doubts and double
counting, it should be noted that duplication occurs
in respect of all of the above-stated shareholdings to
the extent that the shareholdings stated against party
(i) above are entirely duplicated or included in the
shareholdings stated against party (ii) above, with the
same duplication of the shareholdings in respect of
(ii) in (iii), (iii) in (iv) and (iv) in (v); all of the above
named parties were deemed to be interested in the
relevant shareholdings under the SDI Ordinance as at
June 30, 2000.
Purchase, Sale orRedemption ofShares
Neither the Company nor any of its subsidiaries has
purchased, sold or redeemed any of the Company’s
listed securities during the period under review.
By Order of the Board
Wilson W.S. Chan
Secretary
Hong Kong, August 28, 2000
10 11
i-Cable Interim Report 2000
Note: The 50,000 shares regarding ‘Corporate
Interest’ in which Mr. F.K. Hu was taken to be
interested as stated above was the interest held by a
corporation in general meetings of which Mr. Hu was
either entitled to exercise (or was taken under the SDI
Ordinance to be able to exercise) or control the
exercise of one-third or more of the voting power.
As at June 30, 2000, Mr. Stephen T.H. Ng had
personal interests in options to subscribe for
1,500,000 ordinary shares of the Company granted
under the Company’s Share Option Scheme on
February 8, 2000 at a total consideration of HK$10.
The option rights are exercisable during the period
from April 1, 2001 to December 31, 2009 at a
subscribtion price of HK$10.49 per share.
Save as disclosed above:
(i) there were no interests held as at June 30, 2000
by any Directors and Chief Executive of the
Company in securities of the Company and its
associated corporations (within the meaning of
the SDI Ordinance), and
(ii) during the financial period, there existed no rights
to subscribe for equity or debt securities of the
Company which held by any Directors or Chief
Executive of the Company or any of their spouses
or children under 18 years of age nor had there
been any exercises of any such rights by any of
them,
as recorded in the register kept by the Company
under section 29 of the SDI Ordinance.
SubstantialShareholders'Interests
Given below are the names of all parties which were,
directly or indirectly, interested in 10 per cent or more
of the nominal value of the share capital of the
Company and the respective relevant numbers of
shares in which they were, and/or were deemed to
be, interested as at June 30, 2000 as recorded in the
register kept by the Company under section 16(1) of
the SDI Ordinance:-
No. ofNames Ordinary Shares
(i) Wharf Communications Investments Limited 1,600,000,000
(ii) The Wharf (Holdings) Limited 1,600,034,575(iii) WF Investment Partners Limited 1,602,672,774(iv) Wheelock and Company Limited 1,603,095,200(v) Bermuda Trust (Guernsey) Limited 1,603,095,200
Note: For the avoidance of doubts and double
counting, it should be noted that duplication occurs
in respect of all of the above-stated shareholdings to
the extent that the shareholdings stated against party
(i) above are entirely duplicated or included in the
shareholdings stated against party (ii) above, with the
same duplication of the shareholdings in respect of
(ii) in (iii), (iii) in (iv) and (iv) in (v); all of the above
named parties were deemed to be interested in the
relevant shareholdings under the SDI Ordinance as at
June 30, 2000.
Purchase, Sale orRedemption ofShares
Neither the Company nor any of its subsidiaries has
purchased, sold or redeemed any of the Company’s
listed securities during the period under review.
By Order of the Board
Wilson W.S. Chan
Secretary
Hong Kong, August 28, 2000
10 11
i-Cable Interim Report 2000