Hong Kong Aerospace profits drop
September 4, 2023
By Chris Forrester
Cayman Islands-registered Hong Kong Aerospace Technology Group (HKATG), which majority owns its Aspace subsidiary and in July inaugurated a large satellite production facility, has reported a 44.4 per cent drop in gross profit and a 27.1 percent decline in revenue for the six months ending June 30th.
The satellite production facility is planning to produce 200 craft annually.
“The international environment remains complex, and pressure from contracting domestic demand, shock on supply chains and weakening expectations is still emerging,” said the company.
HKATG explained that the costs associated with the move to become a global satellite builder were responsible for the decline in profits. The company’s principal business has been producing printed circuit boards and other electronics products.
It reported revenue of RMB 236.4 million (€30m) for the six months ending June 30th, down 27.1 per cent from the same period a year ago. Gross profit, at RMB 17.3 million, was down 44.4 per cent. The operating loss for the period widened to RMB 73.2 million compared to RMB 44.5 million a year ago.
“Despite such challenges, the board is still positive on the prospect of the Aerospace Business in view of huge demand on commercial satellites from global markets, and also the growth potential after the opening of the Hong Kong satellite manufacturing centre and the Hong Kong satellite operation control and application centre,” the company added.