Genew Technologies (688418.SH) disclosed a 1.069 billion yuan private placement plan, targeting integrated space-ground systems, and laying out its strategy for satellite internet and full optical networks.

On August 7, 2026, Genew Technologies (688418.SH) disclosed the "Prospectus for Issuing A Shares to Specific Objects (Draft)", proposing to issue A shares to no more than 35 specific entities to raise a total of no more than 1.069 billion yuan. The application for this private placement has already received a notice of acceptance from the Shanghai Stock Exchange regarding the refinancing application. According to the prospectus (draft), all funds raised will be invested in two major core industrialization projects after deducting related issuance costs. Of the total, 709 million yuan will be allocated to the research and development and industrialization project for satellite internet communication products, with a construction cycle of three years, focusing on technological breakthroughs and large-scale production of satellite ground core networks, onboard core networks, and satellite intelligent terminal devices; the remaining 360 million yuan will be used for the research and development and industrialization project of optical network systems, focusing on the implementation of the 50G PON system and the 400G/800G OTN optical transmission systems equipped with AI intelligent operation and maintenance capabilities. This private placement supports the company's clear medium- and long-term strategic planning: to enhance the integration of space and ground business through the satellite internet project, fortifying core technologies and the foundation of domestic production, while strengthening its competitive advantage in the field of satellite core networks; leveraging the all-optical network project to drive network efficiency upgrades through AI intelligent operation and maintenance, aligning with telecom operators' needs for cost reduction and efficiency improvement as well as intelligent computing network construction; and further optimizing its capital structure to enhance operational risk resistance and consolidate its industry position. The investment layout aligns closely with the national industrial policy orientation. In July of this year, the Ministry of Industry and Information Technology, the Cyberspace Administration of China, the National Development and Reform Commission, and the National Data Bureau jointly issued the "Guiding Opinions on Promoting High-Quality Development of Internet Infrastructure". For the first time, satellite internet was included in the national-level top-level planning and positioned as an essential internet infrastructure resource; the 14th Five-Year Plan also lists satellite internet, 6G, and emergency communications as key major engineering projects. Supported by policies, the domestic construction of low-orbit satellite networks is accelerating, with the China Star Network GW constellation and Shanghai Yuancheng Qianfan constellation speeding up deployment. On a global scale, data from the Satellite Industry Association (SIA) indicates that the global satellite communication service market size will reach 34 billion US dollars by 2025, with sustained demand for industry equipment upgrades and infrastructure construction. From the perspective of industry competition, the satellite core network is one of the segments with the highest barriers in the communications field. Relevant equipment is crucial for national communications security and requires a telecommunications equipment network entry license from the Ministry of Industry and Information Technology, along with the capability for large-scale aerospace project delivery. During the reporting period, only three manufacturers, Huawei, ZTE Corporation, and Genew Technologies, could completely deliver integrated ground core network, signal control stations, and onboard core network solutions. Genew Technologies is the exclusive supplier of the ground core network for the Tiantong-1 satellite communication system, with onboard core network technology having completed on-orbit verification and deeply involved in the construction of national-level low-orbit satellite internet projects in China. In the field of all-optical networks, domestic telecom operators' networks are transitioning from dual-gigabit to 10-gigabit upgrades, and by the end of 2024, the total number of 10G PON ports in China is expected to reach 28.2 million, with ongoing replacement and upgrade of 50G PON and 400G/800G OTN continuously opening up incremental markets. As the main subject of this private placement, Genew Technologies possesses significant advantages in technology research and development and reserves. In recent years, R&D expenses have average accounted for about 20% of operating income. As of December 31, 2025, the company has 665 R&D personnel, accounting for 53.54% of the total number of employees; it holds a total of 368 authorized patents, including 335 invention patents and 519 software copyrights, providing ample R&D accumulation to support the company in keeping pace with technological iterations in satellite communication and high-end optical transmission fields. Industry analysts indicate that with satellite internet rising to the national top-level planning resources level in 2026, Genew Technologies' application for this private placement has been accepted by the Shanghai Stock Exchange, but it still requires review and approval by the Shanghai Stock Exchange and the China Securities Regulatory Commission before implementation. If the subsequent review and registration process proceeds smoothly, the capital raised will support the company in strengthening R&D and manufacturing for onboard and ground core networks as well as satellite terminals, advancing its transformation from a traditional ground communication equipment supplier to a comprehensive solution provider for integrated space-ground operations. Relying on this capital planning, the company is expected to continue seizing opportunities for industrial upgrades in integrated space and ground communication and high-speed all-optical networks, steadily promoting the optimization of its business structure and medium- and long-term strategic layout.