China Spacesat gets $18m govt support

BEIJING - China Spacesat Co Ltd, the nation's key developer of small satellites, said on Saturday that it will obtain 116 million yuan ($18.3 million) in government financial support.

Four projects, run by the company or its subsidiaries, have been declared as support targets of a national fund developed to foster the country's strategic emerging industries, according to a statement filed by China Spacesat to the Shanghai Stock Exchange.

One project, the establishment of a logistics transport intelligent sensing and positioning system based on the country's Beidou satellite navigation system, will receive nearly half of the 116-million-yuan sum.

The fund will help increase the company's research and development capabilities in satellite applications and boost its competitiveness and profitability, the statement said.

The company reaped 113.9 million yuan in profits in the first half of 2012, a year-on-year increase of 15.2 percent, due to steady business expansion as China vowed to step up its technology-intensive emerging industries in the 2011-2015 period.

Its share prices plunged 6.25 percent to 10.2 yuan on Friday at the Shanghai Stock Exchange amid the overall sluggish atmosphere of the bourse.