Television Broadcasts Limited

FINANCIAL HIGHLIGHTS

HK$

Earnings & Dividends# Per Share

Earnings per Share Dividends# per Share 3.5

3

2.5

2

Performance Loss per share Dividends per share - Interim - Final

1.5

1

Since 2016, TVB has 0.5

Revenue from external customers

0

- Hong Kong TV broadcasting

- myTV SUPER

been transformed from a -0.5

- Big Big Channel business

-1

- Programme licensing and

2015 2016 2017 2018 2019

distribution

YEAR

traditional media to a #excludingspecialdividend

- Overseas pay TV and TVB Anywhere

- Other activities

201m9 Reavejnoue frromdEixtgerniatlaCusltopmelrsabyyer,

operating over-the-top OperatingSegment

% relating to 2018 are shown in brackets

Segment profit/(loss)* - Hong Kong TV broadcasting

services myTV SUPER HongKongTV

broadcasting

- myTV SUPER - Big Big Channel business

60% (65%)

- Programme licensing and

and TVB Anywhere, Programme

distribution - Overseas pay TV and

licensing and

TVB Anywhere

social media platform Big distribution

20% (19%)

- Other activities - Corporate support#

Big Channel Otheractivities

1% (2%)

and e-commerce

Total expenses

platform Big Big Shop. OverseaspayTV myTVSUPER

and TVB Anywhere 12% (9%)

Big Big Channel

Loss attributable to equity holders

3% (3%)

business

4% (2%)

2019 Revenue by Geographical Location

% relating to 2018 are shown in brackets

Hong Kong 72% (70%)

Total assets Total liabilities Total equity Number of issued shares

2019

2018 Change

HK$(0.67)

HK$(0.45) 48%

HK$0.30

HK$0.30

HK$0.20

HK$0.70

HK$0.50

HK$1.00

HK$'mil

HK$'mil

2,190 442 129

740

2,923 -25% 402 10% 87 47% 870 -15%

144 4

3,649

140 3% 55 -92%

4,477

(304) 40 44

412

(10) (4)

(152) 26

3,698

(295)

194 N/A 16 154% (19) N/A

414 -1%

(16 ) (17 ) (150 ) 422

-37% -74%

1% -94%

4,062 -9%

(199) 48%

31 December 2019

HK$'mil

8,595 3,006 5,589 438,000,000

31 December 2018

HK$'mil

10,256 -16% 3,949 -24% 6,307 -11%

438,000,000

Mainland China 15% (16%)

Malaysia and Singapore 7% (8%)

Ratios Current ratio Gearing

4.2 21.0%

5.9 29.1%

USA and Canada 3% (3%)

Other territories 3% (3%)

* excluding non-recurring items # comprised mainly of interest costs of TVB Notes represented the total of cost of sales, selling, distribution and transmission costs and general and administrative expenses

Celebrating its 52nd

year of operation, Television Broadcasts Limited is the

leading terrestrial TV broadcaster headquartered in Hong Kong. TVB

is also one of the largest commercial Chinese programme

producers in the world with an annual production output of over

22,000 hours of dramas and

variety programmes, in addition to documentaries and news

reports, and an archive library of

over 147,000 hours. Its

vertically integrated business model extends from content production, broadcasting to

distribution.

Television Broadcasts Limited Annual Report 2019

1

Since 2016, TVB has

been transformed from a

traditional media to a

major digital player,

operating over-the-top

services myTV SUPER and TVB Anywhere, social media platform Big Big Channel and e-commerce platform Big Big Shop.

2

Television Broadcasts Limited Annual Report 2019

p.12

Message from Vice Chairman

p.15

Group CEO Report

p.36

myTV SUPER

p.20

Hong Kong TV Broadcasting

p.40

Big Big Channel Business

p.44

International Operations

p.62

Governance

p.134

Financials

CONTENTS

OVERVIEW 4 Corporate Information 6 Milestones 8 Ratings Highlights 10 Commendations and Awards 12 Message from Vice Chairman 15 Group CEO Report 18 Business Structure

MANAGEMENT DISCUSSION AND ANALYSIS 20 Hong Kong TV Broadcasting 36 myTV SUPER 40 Big Big Channel Business 44 Programme Licensing and Distribution 47 Overseas Pay TV and TVB Anywhere 54 Financial Review

GOVERNANCE 68 Directors' Report 84 Corporate Governance Report 110 Environmental and Social Report

FINANCIALS 134 Five-Year Financial Review 135 Independent Auditor's Report 140 Audited Financial Statements

Television Broadcasts Limited Annual Report 2019

3

CORPORATE INFORMATION

CHAIRMAN EMERITUS

The late Sir Run Run SHAW GBM

BOARD OF DIRECTORS

VICE CHAIRMAN LI Ruigang

EXECUTIVE DIRECTORS Mark LEE Po On Group Chief Executive Officer Thomas HUI To

NON-EXECUTIVE DIRECTORS LI Ruigang Anthony LEE Hsien Pin CHEN Wen Chi

INDEPENDENT NON-EXECUTIVE DIRECTORS Dr. William LO Wing Yan JP Professor Caroline WANG Chia-Ling Dr. Allan ZEMAN GBM, GBS, JP Felix FONG Wo BBS, JP Belinda WONG Ching Ying

BOARD COMMITTEES

EXECUTIVE COMMITTEE Mark LEE Po On Chairman LI Ruigang Thomas HUI To

AUDIT COMMITTEE Dr. William LO Wing Yan Chairman Anthony LEE Hsien Pin Professor Caroline WANG Chia-Ling Felix FONG Wo

REMUNERATION COMMITTEE Belinda WONG Ching Ying Chairman LI Ruigang Felix FONG Wo

NOMINATION COMMITTEE Felix FONG Wo Chairman Thomas HUI To Anthony LEE Hsien Pin Dr. William LO Wing Yan Dr. Allan ZEMAN Belinda WONG Ching Ying

RISK COMMITTEE Felix FONG Wo Chairman Mark LEE Po On Dr. William LO Wing Yan Professor Caroline WANG Chia-Ling

INVESTMENT COMMITTEE Anthony LEE Hsien Pin Chairman Mark LEE Po On Thomas HUI To Adrian MAK Yau Kee Chief Financial Officer and

Company Secretary

SENIOR MANAGEMENT

Mark LEE Po On Group Chief Executive Officer Desmond CHAN Shu Hung Deputy General Manager

(Legal and International Operations)

Felix TO Chi Hak Deputy General Manager

(Programme and Production)

Adrian MAK Yau Kee Chief Financial Officer and

Company Secretary

COMPANY SECRETARY

Adrian MAK Yau Kee Email: companysecretary@.hk Fax: +852 2358 1337

REGISTERED OFFICE

TVB City, 77 Chun Choi Street Tseung Kwan O Industrial Estate Kowloon, Hong Kong

4

Television Broadcasts Limited Annual Report 2019

AUDITOR

PricewaterhouseCoopers Certified Public Accountants Registered Public Interest Entity Auditor

LEGAL ADVISERS

Freshfields Bruckhaus Deringer Mayer Brown Stephenson Harwood

PRINCIPAL BANKERS

Shanghai Commercial Bank Limited Bank of Communications Co., Ltd. Hong Kong Branch Standard Chartered Bank (Hong Kong) Limited The Hongkong and Shanghai Banking Corporation Limited Chong Hing Bank Limited UBS AG

SHARE REGISTRAR AND TRANSFER OFFICE

Computershare Hong Kong Investor Services Limited Shops 1712-1716, 17th Floor Hopewell Centre, 183 Queen's Road East Wan Chai, Hong Kong

STOCK CODES

TVB Ordinary Shares

The Stock Exchange of Hong Kong: 00511

Reuters:

0511.HK

Bloomberg:

511 HK

TVB ADR Level 1 Programme:

TVBCY

TVB Finance Guaranteed Notes

The Stock Exchange of Hong Kong: 04577

ISIN:

XS1495978329

Common Code:

149597832

AMERICAN DEPOSITARY RECEIPTS

BNY Mellon Shareowner Services P. O. Box 30170 College Station TX 77842-3170 USA

INVESTOR RELATIONS

Email: ir@.hk Fax: +852 2358 1337

WEBSITE



CORPORATE CALENDAR

FOR TELEVISION BROADCASTS LIMITED SHAREHOLDERS

FIRST BOOK CLOSE PERIOD 29 April 2020 to 27 May 2020, both dates inclusive

ANNUAL GENERAL MEETING 27 May 2020

EX-DIVIDEND DATE OF 2019 FINAL DIVIDEND 1 June 2020

SECOND BOOK CLOSE PERIOD 3 June 2020 to 5 June 2020, both dates inclusive

PAYMENT OF 2019 FINAL DIVIDEND* 16 June 2020

* Subject to Shareholders' approval at 2020 annual general meeting of the Company

FOR HOLDERS OF US$500,000,000 AGGREGATE PRINCIPAL AMOUNT OF 3.625 PERCENT GUARANTEED NOTES DUE 2021 ISSUED BY TVB FINANCE LIMITED

INTEREST PAYMENT FOR 2020 1st interest payment: 11 April 2020 2nd interest payment: 11 October 2020

MATURITY DATE 11 October 2021

Television Broadcasts Limited Annual Report 2019

5

MILESTONES

1971

Launched the rst colour production Enjoy Yourself Tonight (EYT)

1967

Obtained a Broadcasting Licence in September and commenced free-to-air broadcasting on 19 November as the

rst wireless commercial television in Hong Kong. Headquartered on Broadcast Drive, Kowloon

1988

Television Broadcasts (TVB) became the listed parent company of the Group after a group reorganisation. TVB moved to Clearwater Bay

1973

Organised the rst Miss Hong Kong Pageant which has since become an iconic annual event

1994

Obtained approval from Broadcasting Authority to establish a regional satellite television broadcast service for audiences across Asia

1993

Launched TVBS Channel (TVBS), its rst satellite TV service in Taiwan

1997

Launched the Company's rst website carrying information on the station's programmes and artistes

2012

Sir Run Run Shaw retired as Chairman and was honoured as Chairman Emeritus

Dr. Norman Leung became Executive Chairman of TVB

2008

Adopted high de nition broadcasting

2011

Young Lion Holdings, acquired a 26% shareholding in TVB from Shaw Brothers (Hong Kong)

6

Television Broadcasts Limited Annual Report 2019

2015

TVB exited Taiwan operations by way of two transactions ? two respective transactions in January 2015 and March 2016

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