"A-Share Focus" Piesat falls over 12% due to violations in drone procurement, banned from participating in military procurement for 3 years
Piesat has been suspended from participating in military procurement qualifications for three years due to violations in drone procurement, causing its stock price to plummet by 12.49%. The announcement did not disclose the specific details of the violations, and the suspension period will affect the company's bidding in specialized fields, which is expected to have a negative impact on its operating performance. In recent years, Piesat has faced declining performance and a debt crisis, with operating revenue in the first three quarters of 2025 down 70.06% year-on-year, net profit losses expanding to 366 million yuan, total liabilities reaching 3.615 billion yuan, and a debt-to-asset ratio as high as 80.05%
According to a report from the Economic Information Agency on the 6th, Piesat (Shanghai: 688066) announced last night (5th) regarding the receipt of a notice from the military procurement network. Due to suspected violations during Piesat's participation in the procurement activities for portable drone series projects, the Army Logistics Procurement and Asset Management Bureau decided to suspend Piesat's eligibility to participate in military material engineering service procurement activities for three years (from July 6, 2024, to July 6, 2027) based on relevant regulations for military suppliers. However, the specific details of the violations were not disclosed in the announcement.
The announcement mentioned that during the prohibition period, other enterprises controlled or managed by Piesat's legal representative Wang Yuxiang are prohibited from participating in the aforementioned military procurement activities, and authorized representative Li Jing is prohibited from representing other suppliers in participating in the aforementioned military procurement activities.
Piesat's stock price plummeted, currently down 12.49%, trading at 25.5 yuan (RMB).
The announcement indicated that the suspension of procurement eligibility directly affects Piesat's acquisition of reserve projects in specialized fields, and during the suspension period, the company will be unable to participate in relevant bidding, which is expected to have a negative impact on production operations and business performance.
It is worth noting that as a leading enterprise in the domestic satellite internet sector, Piesat has recently been mired in a dual crisis of declining performance and debt. In the first three quarters of 2025, it achieved operating revenue of 403 million yuan, a year-on-year decrease of 70.06%; the net profit attributable to the parent company was a loss of 366 million yuan, compared to a loss of 222 million yuan in the same period last year, with losses expanding year-on-year. As of the end of the third quarter of 2025, Piesat's total liabilities amounted to 3.615 billion yuan, with a debt-to-asset ratio as high as 80.05%. (jq)
