On December 5, the Shanghai Stock Exchange Daily reported (Reporter Huang Xiumei) that nearly two years after the IPO application was accepted, changguang satellite technology co.,ltd (hereinafter referred to as "changguang satellite") and its sponsor haitong sec recently withdrew the issuance and listing application, and the Shanghai Stock Exchange also terminated its review of the issuance and listing on December 4.

The prospectus shows that changguang satellite was established on December 1, 2014, and is a full industry chain commercial remote sensing satellite enterprise integrating satellite research and development, manufacturing, operation management, and remote sensing information services.

Its IPO application was accepted on December 23, 2022, the first round of inquiry reply was announced on May 17, 2023, and financial data was updated twice. For this IPO, changguang satellite plans to raise 2.683 billion yuan, of which 1 billion yuan is intended to repay bank loans.

In terms of equity structure, the state-owned capital under the jilin Provincial Industrial Investment Management Group, including fangyuan assets, changchun optical research institute, and changchun new investment, holds 11.1692%, 11.1642%, and 0.2900% of the company's shares respectively; among well-known investment institutions, shenzhen venture capital holds 2.1748%, and geovis technology co.,ltd holds 0.5800%.

Documents disclosed by changguang satellite in June this year show that as of now, relying on self-developed technology, the company's "jilin-1" satellite constellation has 108 remote sensing satellites in orbit, covering various optical remote sensing satellites such as video, high resolution, wide band, infrared, and multi-spectral, making it the largest sub-meter level commercial remote sensing satellite constellation in the world.

At the same time, the company, based on its core technical accumulation in satellite platforms and space optics effective payloads, can provide customers with customized satellite manufacturing and related services, including complete satellite and component manufacturing, testing and trial services, integration services, and naming services.

The reporter noticed that based on the financial information disclosed in the various application documents of changguang satellite, the company has been in a state of unprofitability during the reporting period, and the cumulative undistributed losses are relatively large.

From 2019 to the first half of 2022, Changguang Satellite achieved revenues of 84.56 million yuan, 0.144 billion yuan, 0.312 billion yuan, and 35.52 million yuan respectively; the non-recurring net income was -0.401 billion yuan, -0.419 billion yuan, -0.251 billion yuan, and -0.216 billion yuan respectively.

The financial update submitted by the company later shows that for the fiscal years 2022 and 2023, the company achieved revenues of 0.602 billion yuan and 0.585 billion yuan respectively. From the perspective of revenue alone, Changguang Satellite's revenue in 2023 showed a slight decline.

In terms of other financial indicators, from 2019 to the first half of 2022, Changguang Satellite achieved a comprehensive gross margin of -83.85%, -69.68%, -9.75%, and -278.32% at the end of each period, with a negative gross margin that fluctuated significantly.

During the same period, the total sales expenses, management expenses, and financial expenses accounted for 172.13%, 144.88%, 26.00%, and 154.16% of the revenue at the end of each period respectively; research and development expenses accounted for 203.47%, 179.31%, 37.09%, and 171.36% of the revenue at the end of each period.

During the three and a half years mentioned above, Changguang Satellite's cumulative non-recurring net income loss was 1.208 billion yuan, and the cumulative cash flow from operating activities (cfo) was -0.299 billion yuan.

Therefore, the stock exchange also focused on the company's ongoing operational capability during the audit inquiry.

Regarding the reasons for the losses, Changguang Satellite stated that it is mainly due to the substantial funds invested in the research, production, and operation of remote sensing satellites, the high depreciation and direct costs of satellites, and the currently insufficient scale of its business.

According to the reporter from Star Daily, in recent years, the commercial satellite sector has been a popular topic of market interest, but looking at the operating performance of listed companies in the satellite internet sector on the Star board, the current state of this field does not appear to be very optimistic.

Among them, the aerospace macrography, which holds the country's first commercial hybrid radar remote sensing satellite constellation, "Nuwa Constellation," has been in a state of loss since the third quarter of 2023; geovis technology co.,ltd, a leader in the R&D and industrialization of digital earth products, has seen its revenue and net income attributable to the parent company grow quarterly this year, but its gross margin has slightly declined, from 48.06% in the first quarter to 46.86% in the third quarter.

It is worth mentioning that Changguang Satellite is also the second company incubated by Changchun Institute of Optics and Fine Mechanics that aims to pursue an IPO on the star.

Among them, the first company under the Changchun Institute of Optics and Fine Mechanics, Changguang Huaxin, was listed on the star in April 2022; the third company, Changguang Chenxin, had its IPO application accepted on June 30, 2023, and its listing review process was suspended after the first round of inquiry responses due to the updating of financial materials.