The company announced today that it achieved 47 Mln RMB of net profit, an increase of 90% compared with the same period last year. Each share achieved a profit of 0.21 RMB, including about 0.10 RMB from the satellite’s research and production, and its application business.

The company’s achievement in the first half of the year shows that the main business has increased as much as 77%, mainly due to progress with Dongfanghong small satellite which is experiencing strong growth.

Because of the different satellite models in research and production at different technology levels, the gross profit rate in the first half of 2007 decreased by 6%, compared with the same period last year. However, it is in line with that of the whole of 2006. It is estimated that the gross profit rate for 2007 will remain about 10%.

The sales from tourism assets provided a profit of about 27 Mln RMB, accounting for over half of the company’s net profit.

The company is optimistic about the future of its small satellite and application business. The company enjoys a virtual monopoly position with its research and production of China’s small satellite and is in a leading position with its satellite application. The government is the main client of the company.