(Yicai) Sept. 5 -- Shares of Piesat Information Technology surged after the Chinese aerospace firm signed a CNY2.9 billion (USD406.4 million) agreement -- nearly double the company's total revenue last year -- with Pakistan to help build a satellite constellation for better communication and Earth data.

Piesat [SHA: 688066] jumped 15.2 percent to CNY36.28 (USD5.10) today, extending its year-to-date gain to nearly 80 percent.

The Henan province-based company signed the deal yesterday during the second Pakistan-China B2B Investment Conference in Beijing, according to an announcement today.

Under the agreement, Piesat will assist Pakistan in constructing an integrated satellite system for global real-time communication and remote sensing. The first phase includes the launch and operation of 20 satellites, the construction of a satellite manufacturing facility, and the development of supporting software. Piesat will also provide technical support to help Pakistan develop independent capabilities in satellite manufacturing, operations, and applications.

Founded in 2008, Piesat specializes in remote sensing and geospatial software and also operates satellites. It got listed on Shanghai’s Nasdaq-style Star Market in 2019 and moved its headquarters from Beijing to Hebi in central China last month.

Piesat is currently developing the Nuwa constellation, which aims to become China’s largest commercial radar remote sensing satellite network with 114 satellites. To date, 13 have been launched, providing real-time data for disaster prevention, natural resource management, and environmental monitoring.

Piesat has struggled in recent years due to a weak macroeconomic environment and a decrease in domestic orders. Its net loss widened nearly fourfold to CNY1.4 billion (USD196.2 million) last year, while revenue fell 13 percent to CNY1.6 billion.

In the first half of this year, the net loss increased by 34 percent year-on-year to CNY248 million (USD34.8 million), and revenue plunged 66 percent to CNY290 million, according to its latest financial report.

Editor: Emmi Laine