China Spacesat Co.,Ltd. (600118.SH) opened significantly lower on April 22, hitting the daily limit down during the call auction and falling more than 8% after the market opened. The sharp decline followed the company's disclosure of its first-quarter report for 2026 the previous evening. The report showed that while the company achieved operating revenue of 609 million yuan, representing a 37.89% year-on-year increase, its profitability did not improve. The net profit attributable to shareholders was a loss of 42.6902 million yuan, with the loss widening by 77.07% compared to the same period last year.
Explaining the situation of increased revenue without increased profit, China Spacesat stated in its financial report that although more projects met revenue recognition criteria during the reporting period, leading to the growth in operating revenue, this was accompanied by increases in operating costs, period expenses, and provision for asset impairment losses compared to the same period last year. Furthermore, the amount of value-added tax credits recognized in the current period decreased year-on-year. These factors collectively resulted in a negative profit and an expanded loss compared to the previous year.
Specifically, the company's total operating costs for the first quarter reached 644 million yuan, up from 480 million yuan in the same period last year. Operating costs rose from 371 million yuan to 524 million yuan, management expenses increased from 83.2964 million yuan to 93.5025 million yuan, and credit impairment losses expanded from 7.0335 million yuan to 19.5270 million yuan. The rise in these costs and expenses eroded the profit margin gained from the revenue growth.
Looking back at the performance over the past two years, China Spacesat's profitability has consistently remained at a low level. In 2024, the net profit attributable to shareholders was 27.9140 million yuan, a significant decrease of 82.28% year-on-year. By 2025, although operating revenue grew 18.35% year-on-year to 6.103 billion yuan, the net profit attributable to shareholders was only 35.5567 million yuan, still a substantial gap compared to the levels of hundreds of millions seen in previous years.
Regarding the persistent weak performance, China Spacesat has repeatedly cited similar reasons in its annual reports and communications with investors. The company pointed out that due to industry characteristics, its customer base is relatively concentrated, and changes in the procurement pricing policies and specific procurement strategies of its main users significantly impact its operating results. Additionally, with the rapid development of the commercial aerospace sector, market participants are becoming increasingly diverse, competitive procurement has become the norm, and intense market competition coupled with business transformation adjustments have increased profit pressure.
In terms of shareholder structure, as of the end of the first quarter, China Spacesat had a total of 301,014 ordinary shareholders. Notably, compared to the end of 2025, several satellite industry-related exchange-traded funds appeared in the list of the company's top ten shareholders, indicating institutional investor interest in this sector.
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