1. Overview of previous financing situations<\/p>\n
In November 2019, the first capital increase was carried out at a price of 75 yuan\/registered capital. Since the relevant data was not directly disclosed in the prospectus, a simple calculation based on the public data showed that the original valuation should be less than 100 million.<\/p>\n
In April 2021, a second round of capital increase was carried out, with the capital increase price being 113.77 yuan\/registered capital. The state-owned assets assessment and registration price at that time was 114.08 yuan\/registered capital. If 114.08 yuan\/registered capital was used as the benchmark, the post-investment valuation at that time was approximately 2.282 billion. Investment institutions: Fuzhou Shengqian, Guoke Zhengdao, Guoke Ruihua Phase III and other 6 companies.<\/p>\n
In June 2022, the third capital increase was carried out, but this time it was a share exchange capital increase, with an additional registered capital of 1.408424 million (corresponding to 82.4617% of Xi’an Aerospace’s equity). The assessed value of 100% equity of Xi’an Aerospace is 252.3136 million, corresponding to the equity value of this injection of approximately 208 million (25231.36\u00d782.4617%). The registered capital before the capital increase was 38.691642 million. The pre-investment valuation of this round is estimated to be approximately 5.714 billion, and the post-investment valuation is 5.922 billion. Investment institutions: Huzhou Zhongqing, Hainan Yuankun, Jiaxing Yuechong, and Shaanxi Qingchuang (all original shareholders of Xi’an Aerospace).<\/p>\n
In September 2022, the fourth round of capital increase was carried out, with an additional registered capital of 2.220276 million and a total capital increase consideration of 227.8 million. It is estimated that the pre-investment valuation of this round is approximately 4.114 billion and the post-investment valuation is approximately 4.343 billion. Investment institutions: Tianjin Discovery (employee stock ownership platform), Nansha Kongtian (92 million), Qingchuang Bole (32 million), Tongcheng West (30 million), Yangzhou Zhongguang (26 million), Feiyu Yingzhi (25 million).<\/p>\n
In December 2023, the fifth round of capital increase was carried out, with an additional registered capital of 2.502815 million and a total capital increase consideration of 550 million. It is estimated that the pre-investment valuation of this round is approximately 9.3 billion and the post-investment valuation is approximately 9.85 billion. Investment institutions: Guangzhou Industrial Investment (500 million), Guoke Ruihua Phase III (29.7 million), Zhongke State Control Hefei (20 million), Guoke Zhengdao (300,000).<\/p>\n
In May 2024, the sixth round of capital increase was carried out, with an additional registered capital of 2,027,715 million and a total capital increase consideration of 475 million. It is estimated that the pre-money valuation of this round is about 10.501 billion and the post-money valuation is about 10.975 billion. Investment institutions: National Industrial Investment (300 million), Shaanxi Kongtian (60 million), Jilin Haichuang (35 million), Shaanxi Sanyuan (30 million), Beijing Hengjiaruan (25 million), Beijing Hengtai Xingrong (25 million).<\/p>\n
In September 2025, the seventh round of capital increase was carried out, which was also the latest round of financing. The newly added registered capital (shares) was 89.5293 million shares (the shareholding system transformation has been completed, and the unit has been changed to a “share”). The total capital increase consideration was 2.98431 billion, the pre-investment valuation was 12 billion (clearly disclosed in the prospectus), and the post-investment valuation was 14.984 billion (clearly disclosed in the prospectus). Investment institutions: Guoke Jinke (635 million), Nanchong Linjiang (400 million), Guangzhou Yuekai (330 million), Yueyang Commercial Aviation (300 million), Guangjian No. 1 (180 million), Galaxy Guoke (130 million), Guangzhou Industrial Investment Fund (120 million), Industrial Control Investment and Development (120 million), Yongyuan Runxin (100 million), Jingguoguan (100 million), Yuexiu Jinchan (70 million), Guangjin Hard Technology (70 million), China Science and Technology Linkage (50 million), Guangzhou State-owned Assets and Innovation (50 million), Rural Revitalization Equity Investment (50 million), Guangzhou Suiyue Xing (50 million), Jiaxing Jiahao (50 million), Hongshi Tiancheng (50 million), Qingdao Huixin (31.31 million), Liansheng Chengmin (30 million), Intersection Xingzhen (30 million), Binhai Guoke (20 million), Guangdian Pingyun (10 million), Nansha Kongtian (8 million).<\/p>\n
2. What can be seen from the financial data of previous financings?<\/p>\n
(1) Valuation jumps depend entirely on \u201cmilestones\u201d<\/p>\n
The valuation of China Science and Technology Aerospace does not grow linearly, but increases by leaps and bounds after each key technological milestone is achieved. On July 27, 2022, Lijian-1 made its first flight successfully, which is the basis for all commercialization. Following the financing in September 2022, the valuation reached 4.343 billion. This is investors paying for the certainty of “successful first flight”. In 2025, the first flight of Lijian 2 was successful and the parachute recovery of Lihong 1 was successful. This transformed China Aerospace from a “solid rocket company” to a complex of “liquid rocket + recyclable + space economy”, so the Pre-IPO round valuation jumped directly to 14.98 billion. This also illustrates a practical problem. For rocket companies, focusing on the company’s technical milestones is more critical than focusing on financial statements.<\/p>\n
(2) The amount of single-round financing increased sharply<\/p>\n
From 227.8 million in September 2022, to 550 million in December 2023, to nearly 3 billion in September 2025, this reflects that the “threshold” for competition among commercial rocket companies has increased exponentially. In the early days, you could play with tens of millions, but when it came time to develop liquid rockets, recyclable technology, and build engine test benches and launch stations, you couldn’t make a splash without a few billion.<\/p>\n
3. What can be seen from the investor base of previous financings?<\/p>\n
When looking at a project, just looking at how much money has been raised and what the valuation is, that\u2019s superficial. What really determines how far a project can go is the group of people behind it. Who they are, when they come, and what their relationship is to each other is more telling than the amount of financing itself.<\/p>\n
(1) Before 2021<\/p>\n
Major investment institutions (new entrants): Pengyi Legend, Guoke Aerospace, Zhongke Lisen, Guoke Ruihua Phase III, and Zhongke Chuangxing.<\/p>\n
(2) June 2022<\/p>\n
Major investment institutions (new ones): Huzhou Zhongqing, Hainan Yuankun, Jiaxing Yuechong, and Shaanxi Qingchuang.<\/p>\n
(3) September 2022<\/p>\n
Major investment institutions (new ones): Nansha Kongtian, Qingchuang Bole, Tongcheng West, Yangzhou Zhongguang, Feiyu Yingzhi, and Tianjin Exploration.<\/p>\n
(4) December 2023<\/p>\n
Major investment institutions (newly entered): Guangzhou Industrial Investment, Zhongke State Control Hefei.<\/p>\n
(5) May 2024<\/p>\n
Major investment institutions (new ones): National Industrial Investment, Shaanxi Kongtian, Jilin Haichuang, Shaanxi Sanyuan, Beijing Hengjiarian, and Beijing Hengtai Xingrong.<\/p>\n
(6) September 2025<\/p>\n
Major investment institutions (new ones): Guoke Jinke, Nanchong Linjiang, Guangzhou Yuekai, Yueyang Commercial Aviation, Industrial Control Investment and Development, Jing Guoguan, Yuexiu Jinchan, Guangjin Hard Technology, etc.<\/p>\n
As can be seen from the above content, there are three main forces that cannot be ignored standing behind Zhongke Aerospace:<\/p>\n
1. Chinese Academy of Sciences System<\/p>\n
Institute of Mechanics (Scientific Research) \u2192 Zhongke Lisen (Asset Management) \u2192 National Science Department Capital (Guoke Ruihua, Zhongke Chuangxing) \u2192 Founding Team (Pengyi Legend, National Science and Technology Aerospace)<\/p>\n
This is the core and strongest “blood relationship”. China Aerospace originated from the Institute of Mechanics of the Chinese Academy of Sciences, and its technology comes from the Institute of Mechanics. The initial capital and management relied on the “national team” of the Chinese Academy of Sciences system. This is the foundation for the smooth launch of the early angel round of China Aerospace, and it is also a moat that cannot be replicated by purely private commercial rocket companies.<\/p>\n
2. Guangdong is a \u201clocal capital\u201d<\/p>\n
“Nansha Kongtian” in September 2022 \u2192 “Guangzhou Industrial Investment” in December 2023 \u2192 “Guangzhou Yuekai”, “Industrial Control Investment and Development” and “Yuexiu Series” in September 2025.<\/p>\n
This is the most typical “local state-owned assets relay” model. Nansha District first invested in “Nansha Sky and Sky” to bring the company headquarters and assembly base to Nansha. Then, the higher-level “Guangzhou Industrial Investment” followed up generously, showing full support at the municipal level. In the Pre-IPO round, Guangzhou-based capitals such as “Industrial Control Investment and Development” and “Yuexiu Golden Chan” continued to increase their investment. This clear combination of “investment instead of recruitment” allowed China Aerospace not only to obtain money, but also to complete the in-depth interest binding between enterprises, local governments, and local capital. Behind this is a series of resource support such as policies, land, markets, and listings.<\/p>\n
3. \u201cNational Team\u201d<\/p>\n
In May 2024, the National Industrial Investment Fund will enter the market. As the representative of the “national team”, the National Industrial Investment Corporation shoulders the responsibility of supporting national strategic industries. It rarely enters in the early stage. Once it does, it is an extremely strong signal, indicating that the company’s technology and business direction have risen to the national strategic level. This is mutually confirmed with the repeated emphasis on “undertaking major national launch missions” in the China Science and Technology Aerospace prospectus. Obtaining investment from the National Industrial Investment Corporation is equivalent to receiving the highest level of “vote of confidence.” This not only paves the way for subsequent undertaking of national projects, but also gives reassurance to all subsequent investors (especially those in the Pre-IPO round).<\/p>\n
4. Who has been following the investment?<\/p>\n
A single round of “following the trend” is unconvincing. Only “continuous following investment” across cycles is when investors use real money to write “votes of confidence” time and time again. The higher the risk of technology entrepreneurship, the more the mechanism of continuous follow-up investment can ensure that there will be someone to “cover the bottom line” when problems arise. In each round, new and old shareholders continue to increase their positions, which means that it is not the control rights that are diluted, but the risks. This also declares to the market that the core capital forces have formed a “risk community” with highly concentrated interests.<\/p>\n
From 2023 to 2024, the global commercial aerospace track has actually experienced a “cooling off period”. When most people began to have doubts about the track and chose to wait and see, the “local capital” of the Guangdong Department and the “parent capital” of the Chinese Academy of Sciences still added positions through multiple rounds of capital within the department, and appeared on the capital increase list again and again. This not only reflects its determination to isolate noise and see through short-cycle fluctuations, but also the core reason why China Aerospace’s full-cycle capital support system from technology research and development, to product launch, to the IPO stage is not broken. If the IPO is successfully issued, these long-term “patient capital” will enter the lifting period. Will they choose to exit with profits at that time, or will they continue to hold and accompany China Aerospace into the next stage of growth? The answer to this question may be the second “watershed” judgment of China Aerospace’s long-term value.<\/p>\n
5. If each round of financing does not come in, how long will the money left on the books be enough for China Aerospace to survive?<\/p>\n
(1) September 2022<\/p>\n
This round of financing was 227.8 million yuan. Before financing, the cash on the account (estimated) was about 95 million. At that time, the annualized net cash consumption was about 208 million\/year, and the average monthly cash consumption was about 17.3 million\/month. According to the cash consumption rate at that time, the cash on the account could last for about 5.5 months at most. On July 27, 2022, Lijian-1 successfully made its first flight. At that time, China Aerospace Science and Technology Corporation was in a critical window from research and development to mass production. If this round of 227.8 million does not arrive, the cash reserves on hand after the first flight will be depleted in early 2023.<\/p>\n
(2) December 2023<\/p>\n
This round of financing was RMB 550 million, and the cash on hand (estimated) before financing was about RMB 230 million. At that time, the annualized net cash consumption was about RMB 396 million\/year, and the average monthly cash consumption was about RMB 33 million\/month. According to the current cash consumption rate, the cash on hand could last for about 7 months at most. For China Aerospace, this can be said to be the weakest “safety cushion” before scale expansion. Investments in liquid rocket research and development and production capacity construction have almost doubled the cash consumption rate. Although there is still RMB 230 million on the books, the annualized cash outflow is RMB 396 million. If this round of financing is not received in time, China Aerospace will not be able to support its cash flow for half a year in 2024 and will suffer a loss.<\/p>\n
(3) May 2024<\/p>\n
This round of financing was 475 million. According to the data in the prospectus of China Aerospace, the cash on the accounts of China Aerospace had been exhausted before this round of financing, and the annualized net cash consumption at that time reached approximately 698 million per year. At this time, due to the centralized payment of major projects such as liquid rocket stations and production bases, as well as the material preparation and labor expenses caused by the expansion of launch services, China Aerospace was already in a net cash overdraft state before this round of financing was received. Moreover, by analyzing the balance sheet and cash flow statement, we can see that China Aerospace has also significantly increased short-term borrowings in 2024 (from 40 million to 260 million). Without the timely arrival of funds from the “national team” such as the National Industrial Investment Corporation, China Aerospace’s liquidity crisis would be inevitable.<\/p>\n
(4) September 2025 (Pre-IPO round)<\/p>\n
This is the last capital supply before the sprint to go public. About 2.984 billion has been raised, and the cash on hand before financing is about 220 million (estimated). However, at this time, capital expenditures and R&D investment are at historical peaks. The annualized net cash consumption has reached about 983 million per year, and the average monthly cash burn rate exceeds 80 million. If the Pre-IPO round of nearly 3 billion funds does not arrive in time, based on the cash reserves of 220 million at the time, China Science and Technology Aerospace will have to break the capital chain in less than 3 months.<\/p>\n
It can be seen from the above calculation data that, except for a safety cushion of about 7 months before this round of financing in December 2023, before other rounds of financing, China Aerospace was in a high-risk state with cash that could only support 3-6 months. Although the money for each subsequent round of financing has been received in time, it also reflects that China Aerospace’s cash flow continues to be tight during the development process, and its fault tolerance rate for the financing time window is extremely low – if any round of financing is delayed by 3-6 months, China Aerospace will face a major liquidity crisis. This can be said to be a manifestation of China Aerospace’s strong financing capabilities, but also reflects the hidden concern that China Aerospace’s business model has a relatively weak ability to resist risks. But this is definitely not a risk for China Aerospace. Other rocket companies will most likely have such problems. We will study the data of other rocket companies later and compare them.<\/p>\n","protected":false},"excerpt":{"rendered":"
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