Changguang Satellite terminates its IPO on the Shanghai Stock Exchange Sci-Tech Innovation Board, as a commercial remote sensing satellite company for the entire industry chain.

On December 4th, Changguang Satellite Technology Co., Ltd. (referred to as "Changguang Satellite") had its IPO review status on the Shanghai Stock Exchange's Sci-Tech Innovation Board changed to "terminated." This was due to Changguang Satellite and its sponsor withdrawing their application for listing. According to relevant provisions in the Shanghai Stock Exchange Stock Issuance and Listing Review Rules Article 63, the exchange terminated the review of its listing application. According to the prospectus, the company focuses on the commercial aerospace field and is the first company in China to integrate satellite research and development, manufacturing, operation management, and remote sensing information services into a complete industry chain for commercial remote sensing satellites. After years of research and technological accumulation, the company independently operates the world's largest sub-meter commercial remote sensing satellite constellation - "Jilin-1," providing customers with high-resolution, high-sensitivity, high-spectral, wide-area coverage satellite remote sensing data, as well as spatial information services based on satellite remote sensing data. Additionally, leveraging core technology in satellite platforms and space optical payloads, the company can provide customized satellite manufacturing and related services, including satellite assembly and components, testing services, payload services, and naming services. The company relies on independent research and continuous innovation to achieve technological breakthroughs in high-performance, low-cost satellite development, constellation operation and mission planning, fast production of remote sensing images, and intelligent interpretation of remote sensing data. They have core technologies in integrated satellite design and manufacturing, advanced electro-optical imaging, large-scale constellation intelligent operation, automated production of remote sensing images, and intelligent interpretation of massive remote sensing big data. However, it is worth noting that currently, the downstream users of satellite remote sensing data are mainly concentrated in Chinese state-owned enterprises and their subsidiaries, government agencies and institutions, higher education institutions and research institutes, military units, etc. While the services for general enterprise users are rapidly expanding, the application for mass users is still in the early stages of exploration. The gradual expansion of application scenarios at all levels will drive rapid industry growth, and the rapid industry growth will further attract social capital, leading to economies of scale. However, challenges such as hindrance in the expansion of application scenarios at all levels, slow technological development, and lower-than-expected inflow of social capital still exist. The cooling of industry enthusiasm, outflow of capital, and other negative impacts may lead to risks of the industry market development falling short of expectations. During the reporting period, the company's net profit attributable to the parent company's common shareholders was a loss of 391 million yuan, 391 million yuan, 220 million yuan, and 206 million yuan respectively. As of the end of the reporting period, the company has not yet turned a profit and has accumulated unrecovered losses. The main reasons are that the company is committed to building the "Jilin-1" satellite constellation, which requires significant satellite depreciation costs and high research and development investment each year. Additionally, the process from building the "Jilin-1" satellite constellation to forming a comprehensive service capability takes time. Compared to the commercial aerospace field abroad, China's commercial aerospace started relatively late, and the development of the commercial remote sensing satellite industry needs a nurturing process, causing the company's sales to be relatively small in the early stages and unable to cover expenses such as satellite depreciation, research and development costs, and personnel costs. In terms of finances, in 2019, 2020, 2021, and the first half of 2022, the company invested approximately 172 million yuan, 187 million yuan, 116 million yuan, and 60.86 million yuan in research and development respectively. During the same period, the operating revenue was approximately 84.56 million yuan, 104 million yuan, 312 million yuan, and 35.51 million yuan respectively.