1. Company Profile
Shanghai Yuanxin Satellite Technology Co., Ltd. was established in March 2018 with a registered capital of 2,137,917,542 yuan. It was initiated and established by Shanghai Lianhe Investment Co., Ltd. The legal representative of the company is Qin Jian, chairman of Shanghai United Investment. In August 2023, Yuanxin Satellite submitted an application for 1,296 low-Earth orbit slots to the ITU. In the future, Yuanxin Satellite will build and operate a commercial global low-orbit broadband satellite constellation composed of 15,000 satellites to provide global users with low-orbit satellite Internet services and industry solutions with large bandwidth, low latency, high quality, high security, and global coverage.
2. Ownership structure and shareholder introduction
(1) Shareholder information
serial number
Shareholder name
Shareholding ratio
Amount of capital subscribed (10,000 yuan)
ultimate beneficial shares
1
Shanghai Lianhe Investment Co., Ltd.
42.5728%
91017.1252
49.9214%
2
Shanghai Information Investment Co., Ltd.
20.5808%
44000
20.5819%
3
CDB Manufacturing Transformation and Upgrading Fund (Limited Partnership)
11.9194%
25482.626
11.9194%
4
Beijing Dahua Hongtai Investment Co., Ltd.
5.8802%
12571.4286
5.8802%
5
Shanghai Yuanwang Consulting Management Partnership (Limited Partnership)
4.4102%
9428.5714
4.4102%
6
Shanghai Yuantian Consulting Management Partnership (Limited Partnership)
4.4102%
9428.5714
4.4102%
7
Shanghai Microsatellite Engineering Center
3.2139%
6871.1532
3.2139%
8
Anji Xingyuan Venture Capital Partnership (Limited Partnership)
1.2476%
2667.1815
1.2476%
9
Tongxiang Yunrun Venture Capital Partnership (Limited Partnership)
0.7946%
1698.8417
0.7946%
10
China Science and Technology Holdings (Hefei) High-tech Equity Investment Fund Partnership (Limited Partnership)
0.596%
1274.1313
0.596%
11
Qingdao Xinding Ge Hengyi Venture Capital Partnership (Limited Partnership)
0.5233%
1118.6873
0.5233%
12
Hangzhou Jinyan Zhongtuo Hangtian Equity Investment Partnership (Limited Partnership)
0.5205%
1112.7413
0.5205%
13
Quanzhou Zhenghe Gongcheng Equity Investment Partnership (Limited Partnership)
0.3973%
849.4209
0.3973%
14
Shanghai Lingang Guotai Junan Technology Frontier Industry Private Equity Fund Partnership (Limited Partnership)
0.3973%
849.4209
0.3973%
15
Beijing Zhongke Chuangxing Hard Technology SME Venture Capital Partnership (Limited Partnership)
0.3973%
849.4209
0.3973%
16
AsiaInfo Technology (Chengdu) Co., Ltd.
0.3973%
849.4209
0.3973%
17
Suzhou Shenqilina Green Equity Investment Partnership (Limited Partnership)
0.3973%
849.4209
0.3973%
18
CCTV Media Industry Investment Fund (Limited Partnership)
0.3973%
849.4209
0.3973%
19
Zhuji Shengshang Equity Investment Partnership (Limited Partnership)
0.3973%
849.4209
0.3973%
20
Qingdao Xinding Ge Heng Er Venture Capital Partnership (Limited Partnership)
0.3508%
750.0386
0.3508%
21
Shanghai State-owned Enterprise Reform and Development Phase III Private Equity Investment Fund Partnership (Limited Partnership)
0.1987%
424.7104
0.1987%
(2) Financing situation
Since its establishment, Yuanxin Satellite has experienced three rounds of financing.
time
rounds
Amount
investors
March 2018
angel wheel
not disclosed
Shanghai Information Investment Co., Ltd.
February 2020
Pre-A round
not disclosed
Shanghai Lianhe Investment, Shanghai Microsatellite Engineering Center
February 2024
Series A
6.7 billion
China Development Bank Manufacturing Transformation and Upgrading Fund (leading investment), Shanghai Lianhe Investment, Guoke Capital, Guosheng Capital, SAIC Hengxu Capital, CCTV Media Fund, Guotai Junan, Zhongke Chuangxing, AsiaInfo Security, Xinding Capital, Gaoyuan Capital, Meilan Lake Investment, Jinyan Asset Management, Zhenghe Island Investment
(3) Equity structure and shareholder analysis
1. Shanghai State-owned Assets Management continues to provide financial empowerment. The actual controlling party of the founding shareholder (Shanghai Lianhe Investment) and the angel investor (Shanghai Xin Investment) is the Shanghai State-owned Assets Supervision and Administration Commission. Five of the 14 investors in the A round of financing have Shanghai state-owned assets background (Shanghai Lianhe Investment, Guosheng Capital, SAIC Hengxu Capital, CCTV Media Fund, Guotai Junan Venture Capital).
2. Industrial leaders provide industrial resource empowerment. Shanghai Microsatellite Engineering Center holds 3.2139% of the shares. As one of the overall units of China’s microsatellites, it provides satellite research and development technical support. AsiaInfo Security holds 0.3973% of the shares and has received orders from Yuanxin Satellite. It will provide network security empowerment based on the development needs of Yuanxin Satellite at different networking stages.
3. Introduction to the core team
(1) Chairman–Qin Jian
Born in 1967, he has served successively as the mayor of Songjiang District in Shanghai, chairman of Shanghai Information Investment Co., Ltd., and party secretary and chairman of Shanghai Lianhe Investment Co., Ltd. He has rich experience in party, government and enterprise work.
(1) General Manager–Shen Bo
He once served as a member of the Party Committee and Vice President of Shanghai Information Investment Co., Ltd. and has more than 20 years of experience as a senior executive of large enterprises in the information industry.
(3) Chief Technology Officer–Li Guotong
He once served as the commander-in-chief of the Beidou Navigation Major Special Satellite System and the assistant to the president of the Microsatellite Innovation Institute of the Chinese Academy of Sciences. Currently, he is the chief technology officer of Shanghai Yuanxin, who is fully responsible for formulating the company’s overall technology strategy, organizing technology research and development, and leading the overall system design and project implementation.
(4) Chief Financial Officer–Cai Wenqi
He once served as a member of the Party Committee and Vice President of Shanghai Guosheng Real Estate, and has extensive experience as a financial and legal person in charge and senior management of large enterprise groups. Currently, he is the chief financial officer of Shanghai Yuanxin and is fully responsible for the company’s financial strategic management, company legal and compliance affairs management.
4. Overseas investment
(1) Shanghai Gesi Aerospace Technology Co., Ltd.
Yuanxin Satellite holds a 31.5997% stake in Shanghai Gesi Aerospace Technology Co., Ltd. Shanghai Zhongke Chenxin Satellite Technology Co., Ltd. holds 34.8028% of Gerth Aerospace and is the nominal largest shareholder. The shareholders of Zhongke Chenxin are Shanghai Lianhe Investment (accounting for 50.52% of the shares) and Shanghai Microsatellite Engineering Center (accounting for 49.48% of the shares). Equity penetration shows that Shanghai United Investment holds a total of 38.31% of the equity of Gerth Aerospace through Zhongke Chenxing and Yuanxin Satellite, making it the actual largest shareholder of Gerth Aerospace. Yuanxin Satellite positions Gerth Aerospace as a satellite ODM manufacturer, mainly undertaking the design, manufacturing and core component research and development of mass-produced satellites. On the morning of December 27, 2023, the Gerth Aerospace Satellite Digital Factory was put into production. After the factory is put into operation, it can produce one satellite in about 1.5 days, and it is expected to produce 300 satellites throughout the year.
(2) Bazhou Yuanxin Satellite Technology Co., Ltd.
Bazhou Yuanxin Satellite Technology Co., Ltd. was established on April 28, 2021, with a registered cost of 150 million yuan, and is located in the Bayingol Mongolian Autonomous Prefecture, Xinjiang Uygur Autonomous Region. Yuanxin Satellite holds 100% equity of Bazhou Yuanxin. Bazhou Yuanxin is mainly responsible for the construction, operation and maintenance of Xinjiang Customs Station.
(3) Jiamusi Yuanxin Satellite Technology Co., Ltd.
Jiamusi Yuanxin Satellite Technology Co., Ltd. was established on March 28, 2024, with a registered cost of 240 million yuan and is located in Jiamusi City, Heilongjiang Province. Yuanxin Satellite holds 100% equity of Jiamusi Yuanxin. Jiamusi Yuanxin is mainly responsible for the construction, operation and maintenance of Heilongjiang Customs Station.
(4) Yuanwei Multimedia Satellite Communications (Shanghai) Co., Ltd.
Yuanwei Multimedia Satellite Communications (Shanghai) Co., Ltd. was established on October 25, 2017, jointly funded by Dahua Hongtai and Shanghai Micro Satellite. On February 28, 2020, Yuanwei Communications completed the industrial and commercial change, and the shareholder was changed to Yuanxin Satellite. Currently, Yuanxin Satellite holds 100% equity of Yuanwei Communications. Yuanwei Communications is mainly engaged in international and commercial satellite communication operations. The company signed a satellite operation agency agreement with KLEO.
5. Introduction to main business
By building and operating the “G60” satellite constellation, Yuanxin Satellite provides global users with low-orbit satellite Internet services and industry solutions with large bandwidth, low latency, high quality, high security and global coverage.
(1) Business planning
The “G60” satellite constellation includes three generations of satellite systems, adopting a full-band, multi-layer and multi-orbit constellation design. The first phase: from 2023 to the end of 2025, complete the launch mission of 648 GEN1 satellites to achieve regional network coverage; the second phase: from 2026 to the end of 2027, complete the launch mission of 648 GEN2 satellites to achieve global network coverage; from 2028 to the end of 2030, complete the launch mission of a total of 15,000 satellites, providing direct mobile phone connection multi-service integration services.
(2) Business progress
On November 17, 2019, the first two test satellites of Yuanxin Satellite (Alfa A/B) were successfully launched from the Jiuquan Satellite Launch Center and successfully entered the predetermined orbit.
On August 5, 2021, the second batch of two test satellites of Yuanxin Satellite (Beta A/B satellites) were successfully launched at the Taiyuan Satellite Launch Center, and the link indicators, laser communication, electric propulsion and other contents were verified in orbit.
On August 5, 2024, the first batch of Yuanxin satellite networking satellites was launched at the Taiyuan Satellite Launch Center.
6. Difficulties Encountered
(1) Lack of high-thrust rockets
At present, Yuanxin has relatively few choices regarding launch vehicles. Yuan Xin’s first-generation network satellite was launched using Chang Liujia, but the launch of Yuan Xin’s second network satellite has been postponed due to the problem of “space debris” at Chang Liujia. In addition to Chang Liujia, Chang Ba and Chang Twelve are also Yuanxin’s choices. Due to the impact of typhoon in Wenchang, the first flight of Chang Twelve was postponed again. As Changba also needs to ensure the star network mission, the number of rockets that can be allocated to Yuan Xin will not be very large. For private rocket companies, Tianbing Technology was the most likely to undertake the launch mission. However, Tianlong Technology’s first flight was affected by problems with the test bed. However, Blue Arrow Aerospace and Interstellar Glory do not have liquid rockets that can be used to undertake launch missions in the short term. For Eastern Space and China Aerospace, although there are solid rockets that can undertake missions, their capacity is limited. The lack of high-thrust rockets is a big dilemma that Yuan Xin faces in completing the networking task.
(2) Shortage of launch station resources
Our country currently has four land-based military-controlled launch sites. In addition, China’s only commercial space launch site is under construction in Hainan, and there is a sea launch port in Haiyang, Shandong, which is managed by the Taiyuan Launch Center. The Hainan Commercial Space Launch Site originally planned to establish regular launch capabilities by the end of 2024, but the first flight has not yet been completed. Although the Oriental Spaceport has developed launch capabilities, they are only solid rockets and there is no case of liquid rocket launches. Therefore, my country’s launch station resources are relatively tight. As the number of satellites launched by Yuanxin Satellite increases, the dilemma of insufficient station resources will become more and more obvious. In addition, although some rocket companies represented by Tianbing Technology have been approved to build dedicated launch stations in Jiuquan, this can alleviate some of the pressure on the tight stations. However, at the Jiuquan construction site, the development of reusable rockets will be restricted, mainly due to the problem of rocket landing areas. If it is close to residential areas, there may be safety hazards. If it is far away from residential areas, the transportation of the recovered rockets will be a very difficult problem, because there are generally no good roads far away from residential areas. Transporting recovered rockets to technical areas involves road construction issues, which virtually increases launch costs.
