China’s Oriental Red Satellite Co., Ltd. (China Satellite) is expected to transition from profit to loss in the first half of this year, with a loss of 41.2 million yuan compared to the same period last year.
In the “2025 Interim Performance Forecast” released by China Satellite on July 11, it was stated that a loss is expected in the first half of 2025 compared to the same period last year. The company expects a net loss attributable to shareholders of between -41.2 million yuan and -21.2 million yuan for the first half of the year; and a non-net profit attributable to shareholders of between -47.3 million yuan and -25.3 million yuan. In the same period last year, China Satellite had a net profit attributable to shareholders of 8.5 million yuan and a non-net profit attributable to shareholders of 2.31 million yuan.
The semi-annual report explained that the reason for the loss in the first half of the year was due to a year-on-year decrease in confirmed income, with the delivery of related product increments mainly consisting of low-margin commercial aerospace products and the business performance of several subsidiaries that had not significantly improved.
According to the “Daily Economic News” disclosed on July 10, as of the end of 2024, China Satellite had a total of 10 wholly-owned or holding subsidiaries. There were 7 subsidiaries that affected China Satellite’s net profit by more than 10% in 2024, with three of them experiencing losses that year, totaling more than 157 million yuan.
The three loss-making companies are Aerospace Shenzhou Intelligent System Technology Co., Ltd., Beijing Xingdihengtong Information Technology Co., Ltd., and Shenzhen Aerospace Oriental Red Satellite Co., Ltd.
Public information shows that China Oriental Red Satellite Co., Ltd. is a high-tech aerospace enterprise specialized in small satellite research and satellite applications. It is a comprehensive aerospace company controlled by the China Spacesat Co., Ltd. (the Fifth Research Institute of China Aerospace Science and Technology Corporation), with the actual controlling shareholder being the China Aerospace Science and Technology Corporation.