July 26, 2021

Changguang Satellite Company finalizes fundraising amid the growing Chinese space sector

Changguang Satellite, which specializes in remote sensing, has raised $375 million to facilitate the development of its Earth-imaging satellite constellation. The company is a product of the Fine Mechanics and Physics under the Chinese Academy of Sciences and Changchun Institute of Optics. It recorded the first 2.46 billion yuan last month. 

This cash outshines any other amount that other Chinese commercial satellite operators have raised. Some of the critical note companies that had raised the highest amount in fundraising include Qianxun Spatial Intelligence Inc., Expace, iSpace, and Landscape, which offer deployment services. Additionally, the sum surpasses that raised by the US Company called Planet, which deals in similar activities. 

The investors who facilitated this raise are outlined in China’s Caixin portal. To mention but a few, they include Matrix Partners China, Haitong Innovation Capital Management, Shenzhen Capital Group, and an AI firm called iFlyTek. The amount raised will ensure the construction of the 138-satellite Jilin-1 constellation for advanced remote sensing operations. The first phase will involve a batch of 60 satellites that give half an hour details from any part of Earth according to CGST. The firm is looking forward to developing a constellation that will have a reduced revisit constellation time of a third of the planned statistic. The CGST has developed and deployed 28 satellites by now, and it is preparing to develop advanced radar and high-speed satellites. Two years ago, the company retrieved a video file displaying the deployment of an OneSpace OS-X1 rocket. A similar satellite courtesy of Bilibili vanished in space amid the deployment of the Kuaizhou-11 flight mid this year. 

The funding marks one year of capital generation, which has been graced with different partnerships among space companies and local governments. These partners stated that they would support the expansion of space operations. The Chinese leadership decided to authorize the entry of private capital into the space industry six years ago. Since then, the industry has witnessed various changes. For instance, the transfer of technology has been possible due to integrating a relationship between the military and civilians.

Moreover, this strategy has enhanced the affordability of space resources, minimized the expenses incurred by companies, and developed new supply chains linking these two groups of people. This year, the Chinese space industry has welcomed investments from the local government and space companies’ partnerships. Finally, the Jiuquan Satellite Launch Center close to Gobi Desert is expanding its operations with the development of a launch complex through the facility’s partnership with Landscape and iSpace. These two companies intend to utilize the launch complex for their upcoming missions next year.