China Satellite is expected to turn profitable in the first half of the year, with increased revenue and profit from satellite development business.

```

The Chinese satellite operator, China Dongfanghong Satellite Co., Ltd., has reversed the loss situation seen in the same period last year.

On July 12, China Dongfanghong Satellite Co., Ltd. released its interim performance forecast, estimating that the net profit attributable to the parent company owners for the first half of 2026 will be between 30.5 million and 36.5 million yuan, compared with a loss of 30.49 million yuan in the same period last year, thus turning losses into gains.

The company attributes its improved profitability to the accelerated advancement of its satellite development business. In the first half of the year, the number of contract fulfillment milestones reaching acceptance conditions increased compared to the same period last year, which led to simultaneous increases in related revenue and profits. Meanwhile, the satellite application business maintained stable development.

Key Financial Data

According to the company's announcement, the estimated net profit attributable to the parent company owners, after deducting non-recurring gains and losses, will be between 26.7 million and 32 million yuan for the first half of 2026.

In the same period last year, this indicator showed a loss of 35.84 million yuan. The total profit for the same period last year was a loss of 40.74 million yuan, and earnings per share was -0.03 yuan.

In other words, the extent of performance improvement this time has crossed a range of more than 60 million yuan, marking a significant shift to profitability.

However, the company notes that the above forecast data are preliminary estimates calculated by the finance department and have not yet been audited by certified public accountants. The specific financial data are subject to the official interim report.

Business Strategy and Transformation Direction

The company stated that in 2026, it will take "pursuing development, promoting transformation" as its main theme, coordinating aerospace manufacturing and satellite applications in both domestic and international markets, and advancing market expansion and cost control synchronously.

Specific measures include:

Enhancing cost control and refined management to cope with industry environment changes;Focusing on integrated applications of communication, navigation and remote sensing, and deeply advancing system reconstruction and capacity reinvention;Accelerating the landing of key projects and task deliveries, continuously optimizing products and services;Actively opening up new tracks in aerospace manufacturing and satellite application fields to promote business transformation.

Analysts believe that this layout shows that management is not only focused on short-term performance recovery, but is also actively seeking mid- to long-term structural transformation, especially in investments in integrated communication, navigation, and remote sensing, which aligns with the current development trends of the domestic commercial aerospace and satellite applications market.

Risk Warning and DisclaimerThe market has risks, and investment should be cautious. This article does not constitute individual investment advice, nor does it take into account the specific investment goals, financial situation, or needs of any individual user. Users should consider whether any opinions, views, or conclusions herein are suitable for their particular situation. Investments made accordingly are at the user's own risk. ```