1. Company Profile
China Aerospace Science and Technology Group Commercial Satellite Co., Ltd. was established on September 22, 2024, with a registered capital of 1.2 billion, its registered address is Xiongan New District, and its legal entity is Li Jun. The equity ratio is: China Aerospace Science and Technology Group Co., Ltd. (51%), Beijing Satellite Manufacturing Factory Co., Ltd. (39.5%), Shanghai Aerospace Equipment Manufacturing Factory Co., Ltd. (8.5%), China Academy of Space Technology (0.5%), Shanghai Institute of Aerospace Technology (0.5%).
2. Equity analysis
The equity ratio of commercial satellite companies is much simpler than that of commercial rocket companies. There are a total of 5 shareholders. The largest shareholder is Technology Group, accounting for 51% of the shares. The second largest shareholder is Wuyuan 529 Factory, accounting for 39.5% of the shares. The third largest shareholder is Eighth Institute 149 Factory, accounting for 8.5% of the shares. What remains is that the fifth and eighth houses each share 0.5%. In general, the shareholders of Commercial Satellite Company include three parties: the Group is the largest shareholder, accounting for 51% of the shares; the Fifth Academy is the second largest shareholder, accounting for 40% of the shares; and the Eighth Academy is the third largest shareholder, accounting for 9%. It can be seen that the commercial satellite company was established under the leadership of the Fifth Academy. This kind of equity ratio, as well as the leading unit, is also normal. Within the group, only the Fifth Academy and the Eighth Academy are engaged in satellite production. The Fifth Academy is a general satellite institute that only makes satellites, while the Eighth Academy is a comprehensive general institute that makes both rockets and satellites. Moreover, the Eighth Academy has taken the lead in establishing a commercial rocket company. The leading unit for establishing a commercial satellite company must be the Fifth Academy.
3. Possible impacts
(1) Impact on satellite operators
Let’s talk about Star Network first. The establishment of Star Network has had a huge impact on the satellite industry chain. It can be said that it has changed or will change the pattern of this industry to a certain extent. However, the relationship between Star Network and the Fifth Academy is a very interesting matter. It can be said that the Fifth Academy has the most advanced satellite development technology in our country and is the most technologically powerful supplier of satellites, while StarNet is the largest demander of satellites and the largest financier. In the final analysis, satellites are still a commodity. Star Network buys satellites, while the Fifth Academy sells satellites. According to common sense, Star Network should be stronger because it is the financier’s father after all. However, satellites are not an ordinary commodity. They are highly technology-intensive and have a short commercialization time. Although there are many commercial satellite companies on the market, they do not have the ability to compete with the Fifth Academy at this stage. After all, they have been established for too short a time and have limited technology accumulation. This breaks the public’s common understanding of this relationship. In addition, the Fifth Academy has no shortage of orders. National tasks such as the space station, cargo spacecraft, and Shenzhou spacecraft are all undertaken by the Fifth Academy. The pressure on the Fifth Academy’s national tasks is also very heavy, which makes this relationship even more delicate. Moreover, the money given to Star Network by the state is limited, and Star Network’s tasks are also different from purely national tasks. Costs need to be controlled. However, the tasks that the Fifth Academy received before were basically purely national tasks. Even if there are some commercial orders, the Fifth Academy has a particularly strong say. The emergence of Star Network has broken this monopoly of discourse power to a certain extent, but it has not completely broken it. There are still many constraints on the coordination of some things. After the establishment of commercial satellite companies, this phenomenon may have some changes. The strength of the Fifth Academy comes from the fact that the Fifth Academy can not take orders for satellite networks. The pressure on national order tasks is already heavy, and the Fifth Academy can still have room for survival without taking orders for satellite networks. However, after the commercial satellite company is established, it may divest its business from the fifth institute. From now on, the fifth institute can peacefully carry out national tasks and not make commercial orders. The commercial orders will be left to the commercial satellite company. In this case, Star Network has become a customer that commercial satellite companies must not lose, otherwise commercial satellite companies will lose the logic of surviving in this market. After all, Yuan Xin will definitely not be able to give too many orders to commercial satellite companies. I will leave this aside for now and will talk about it later. Therefore, the establishment of a commercial satellite company will have a significant impact on the supply chain system and standard construction of the satellite network, and will also have a great impact on the cost control and construction progress control of the satellite network. We will wait and see. Let’s talk about Shanghai Yuanxin next. Yuanxin’s current supply chain system is mainly based on the establishment of Shanghai Weiwei and Gesi. The relationship here is complicated and you can look at it (briefly talk about Shanghai Yuanxin Satellite Technology Co., Ltd. | the implementation entity of the Chinese version of “Starlink”), but Yuanxin is different from Starnet after all. Yuanxin’s long board is being commercialized, and its shortcomings are also being commercialized. Although Yuanxin’s self-closed loop supply chain system has a certain degree of science However, as a mature commercial enterprise, Yuanxin will definitely make certain adjustments in the later period, and will gradually contact third parties other than Shanghai Weiwei and Gerth. Before the establishment of the commercial satellite company, Yuanxin’s choice was only private satellite companies. After the establishment of the commercial satellite company, commercial satellite companies will also be an option. As for whether a cooperation can be reached in the end, this is left aside for the time being, but there is definitely one more option. There is another impact. The establishment of commercial rocket companies, commercial satellite companies, and Starnet Yilian will have a great impact on the establishment of standards. You can see this (Hot Spot Analysis | Briefly talk about the newly established commercial rocket company of the Aerospace Technology Group).
(2) Impact on the Fifth and Eighth Houses
The first is the Fifth Academy. The Fifth Academy is the leading organization of the commercial satellite company, and the main leaders must come from the Fifth Academy. The Fifth Institute has given people, but I don’t know if they will give others. After all, Commercial Satellite Company is an entity company and needs to have its own base. I don’t know where this base will be. The Fifth Academy has a flexible production line in Tianjin. I wonder if it will have some impact on commercial satellite companies. Second is Hainan, which is also a place that needs attention. After all, after the establishment of commercial satellite companies, the focus of business development will most likely be satellite networks. Next is the Eighth Academy. The Eighth Academy has received very few national tasks in recent years, and it is inevitable to move towards commercialization. But the leading unit is the Fifth Institute. It is an interesting matter what the Eighth Institute can give to the commercial satellite company, and what the Commercial Satellite Company can give to the Eighth Institute. Among the new generation launch vehicles, the leading units of the Chang 5, Chang 7, Chang 8, Chang 9, Chang 10 and Chang 11 are all the First Academy. Only the Chang 6 series and the Chang 12 series are led by the Eighth Academy. The national mission will definitely not be able to support as many people as the Eighth Academy. On the road to commercialization of the Eighth Academy, the relationship between the Eighth Academy and commercial rocket companies will be in the future. What will happen as the relationship becomes closer and closer? If the relationship between the Eighth Academy and the commercial rocket company becomes closer and closer, as my country’s only comprehensive general academy, where will the relationship between the Eighth Academy and the commercial satellite company go? What impact will this have on the development of my country’s aerospace industry? Everyone will wait and see.
