Guoxing Aerospace Passes HKEX Hearing, Losses Exceed 700 Million Yuan Over Three and a Half Years

As products were upgraded, the gross profit margin of the company's AI intelligent computing satellite business also improved significantly, rising to 55.4% in the first half of 2026.

After three submissions, Chengdu Guoxing Aerospace Technology Co., Ltd. (hereinafter referred to as "Guoxing Aerospace") recently passed the listing hearing of the Hong Kong Stock Exchange.

Founded in 2018, this commercial aerospace enterprise has in recent years gradually shifted its business focus from satellite data applications and related solutions to the development and sale of AI intelligent computing satellites, and plans to launch the first batch of 100 satellites under the "Star Computing Plan" within 2028 to further build a space-based computing network.

However, AI intelligent computing satellites have not yet led Guoxing Aerospace out of losses. The prospectus shows that from 2023 to 2025, the company accumulated losses of 572 million yuan, and in the first half of 2026 it continued to lose 151 million yuan.

From selling solutions to building satellites, losses exceed 700 million yuan in three and a half years

Lu Chuan, founder of Guoxing Aerospace, did not come from the traditional aerospace manufacturing field. The prospectus shows that Lu Chuan graduated with a bachelor's degree from the School of Communication and Information Engineering at the University of Electronic Science and Technology of China, has nearly 20 years of R&D experience in artificial intelligence and communication engineering, and from 2006 to 2021 held positions in multiple departments at the University of Electronic Science and Technology of China.

In Guoxing Aerospace's business path, the company began exploring the application of AI technology in the space environment from its early days and launched its first AI application satellite in December 2018, but early revenue mainly came from satellite data applications rather than satellite sales.

Data disclosed in the prospectus shows that the company currently mainly operates two major businesses: satellites and related services, and satellite-based solutions. The former covers satellite development, sales and operation management, while the latter provides solutions for digital cities, urban governance, cultural tourism and other scenarios through satellite data and related technologies.

In 2023, Guoxing Aerospace's satellite-based solutions revenue was 460 million yuan, accounting for 90.7% of total revenue; revenue from satellites and related services was only 3.22 million yuan, accounting for 0.6%.

As AI intelligent computing satellites were gradually put into commercial application, Guoxing Aerospace began to obtain more revenue from satellite development and sales. In 2024, the company's revenue from satellites and related services increased to 90.97 million yuan, accounting for 16.4% of total revenue; in 2025, with the successful launch of a constellation composed of 12 AI intelligent computing satellites, revenue from this business further increased to 257 million yuan, accounting for 36.5%.

By the first half of 2026, Guoxing Aerospace's revenue from satellites and related services reached 131 million yuan, accounting for 57.7% of total revenue, surpassing the satellite-based solutions business. Among this, AI intelligent computing satellite revenue was 125 million yuan, accounting for 55.1% of total revenue.

As products were upgraded, the gross profit margin of the AI intelligent computing satellite business also improved significantly. In 2024 and 2025, the gross profit margin of this business was 15.7% and 7.6%, respectively, and in the first half of 2026 it rose to 55.4%, while in the same period last year it was still in a state of gross loss.

Guoxing Aerospace explained that the increase in gross profit margin was mainly due to higher average selling prices brought by improved satellite performance, as well as lower material costs brought by bulk procurement and lower supply chain prices.

Although the gross profit margin of the AI intelligent computing satellite business improved significantly, Guoxing Aerospace as a whole has still not escaped losses. From 2023 to 2025, the company's revenue was 508 million yuan, 553 million yuan and 703 million yuan, respectively, and net losses were 139 million yuan, 177 million yuan and 256 million yuan, respectively, with the scale of losses continuing to expand. In the first half of 2026, the company's revenue fell 6.3% year on year to 226 million yuan, and net loss was 151 million yuan, narrower than 192 million yuan in the same period last year. Over the past three and a half years, net losses totaled more than 700 million yuan.

Guoxing Aerospace stated in the prospectus that the company is still in an early stage of development and needs to continue investing in R&D and expanding the scale of satellite development, and economies of scale have not yet been fully released. Considering factors such as R&D investment, equity incentives and operating costs of new facilities, the company expects its full-year net loss in 2026 to further increase.

Putting AI computing in the sky, plans to launch the first batch of 100 satellites in 2028

2023 was an important watershed for Guoxing Aerospace's AI satellite business and also an important year of product leapfrogging.

The prospectus shows that in May 2025, Guoxing Aerospace launched its first AI intelligent computing constellation composed of 12 AI intelligent computing satellites; in October this year, it launched the second group of 8 AI intelligent computing satellites under the Star Computing Plan, intended to verify technologies such as liquid cooling, laser communication networks and on-orbit training of AI foundation models.

Under the ongoing "Star Computing Plan," Guoxing Aerospace intends to use AI intelligent computing satellites as independent on-orbit computing nodes, interconnected through inter-satellite laser communication, and to share computing power, storage space and AI algorithms after networking, gradually establishing a space-based computing network.

According to the plan, Guoxing Aerospace plans to launch 100 satellites under the "Star Computing Plan" by 2028. The prospectus shows that the company expects to develop an additional 16 satellites in the remainder of 2026, and to develop 36 and 60 satellites in 2027 and 2028, respectively, while actual deployment progress still depends on regulatory approval, customer orders and launch arrangements.

Around the construction of future satellite constellations, Guoxing Aerospace is also laying out spectrum and orbital resources in advance. The prospectus discloses that as of October 20, 2026, the company had obtained International Telecommunication Union approval involving 3,157 satellites.

While expanding the scale of satellite deployment, Guoxing Aerospace is also strengthening its satellite R&D, manufacturing and testing capabilities. At present, the company has set up related facilities in Chengdu, Jiaxing, Taizhou and other places, and plans to build a new satellite design, R&D and testing center in Shenzhen, with an estimated total investment cost of about 543 million yuan, and plans to begin operations in 2028.

According to the prospectus, the net proceeds from Guoxing Aerospace's Hong Kong IPO are intended to be used in five directions: building the Shenzhen center, enhancing R&D capabilities, selectively carrying out strategic investments and acquisitions, repaying bank loans, and supplementing working capital.

As its space computing layout deepens, Guoxing Aerospace is also expanding cooperation with artificial intelligence companies. In June and July 2026, the company signed strategic cooperation agreements with Tencent Cloud and SenseTime respectively, cooperating on satellite AI model deployment, in-orbit verification and integrated space-ground computing infrastructure, and in July obtained an order from SenseTime to develop two AI intelligent computing satellites for the initial deployment and in-orbit verification of the constellation.

As AI intelligent computing satellites gradually become the main source of revenue, Guoxing Aerospace's business focus has shifted from satellite-based solutions to satellite development and sales. However, as the scale of satellite deployment continues to expand, whether Guoxing Aerospace can further improve its profitability still remains to be verified by subsequent operating performance.

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