China’s satellite program is expected to turn losses into profits in the first half of the year, with revenue and profit increasing in the satellite R&D business.

China Oriental Red Satellite Co., Ltd., the satellite operations entity in China, has reversed the loss situation from the same period last year.

On July 12, China Oriental Red Satellite Co., Ltd. released a half-year performance forecast, expecting that in the first half of 2026, the net profit attributable to the owners of the parent company will be RMB 30.50 million to RMB 36.50 million. Compared with a loss of RMB 30.49.15 million in the same period last year, it will turn loss into profit.

The company attributes the improvement in profitability to accelerated progress in its satellite R&D and manufacturing business. In the first half of the year, compared with the same period last year, the contract performance milestone nodes that met the acceptance conditions increased, driving a simultaneous rise in related revenue and profit. At the same time, the satellite application business has maintained steady development.

Core financial data

According to the company’s announcement, it is expected that in the first half of 2026, the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses will be RMB 26.70 million to RMB 32.00 million.

In the same period last year, this indicator recorded a loss of RMB 35.84.03 million. The total profit in the same period last year was a loss of RMB 40.73.51 million, and earnings per share were -0.03 yuan.

In other words, this performance improvement spans a range of more than RMB 60 million, and the turnaround to profit is significant.

However, the company notes that the above forecast figures are preliminary estimates made by the finance department and have not yet been audited by certified public accountants; the specific financial figures shall be based on the officially disclosed half-year report.

Business strategy and transformation direction

The company stated that in 2026, it will take “pursuing development and promoting transformation” as the main line, coordinating aerospace manufacturing and satellite applications across both domestic and international markets, and advancing market expansion and cost control in parallel.

Specific measures include:

• Strengthening cost control and fine-grained management to address changes in the industry environment;
• Focusing on directions such as integrated communications, navigation, and remote sensing applications, and further advancing system reconfiguration and capability reshaping;
• Accelerating the implementation of key projects and the delivery of tasks, and continuously optimizing products and services;
• Actively opening up new tracks in areas such as aerospace manufacturing and satellite applications, and promoting business transformation.

Analysts believe that the above layout shows that management is not only focused on short-term performance recovery, but is also actively pursuing a medium- to long-term structural transformation. In particular, its investment in the direction of integrated communications, navigation, and remote sensing aligns with the current development trend in China’s commercial space and satellite application markets.

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