Importance Score: 72 / 100 🔴
HELSINKI — A pioneering satellite maker for China’s Thousand Sails (Qianfan) satellite network secured over 1 billion yuan in Series A+ financing.
Shanghai Gesi Aerospace Technology, operating under the name Genesat, declared the successful fundraising of more than 1 billion yuan (approx. $137 million USD) on December 30. Major investors include China’s National Manufacturing Transformation and Upgrading Fund, China Development Bank Science and Technology Innovation, Guosheng Capital, SIMIC Capital, and Shanghai FTZ Fund.
The Funding and Its Implications
The company has not specified the exact allocation of the funds. Potential uses include:
- Advancements in research and development
- Expansion of manufacturing facilities
- Product innovation
- Market expansion
Genesat’s Mission
Genesat’s core objective is to develop and construct satellites for the Thousand Sails low Earth orbit (LEO) communications constellation. Established in 2022, Genesat is a joint venture between the Chinese Academy of Sciences’ Innovation Academy for Microsatellites (IAMCAS) and Shanghai Spacecom Satellite Technology, also known as Spacesail.
Spacesail’s Ambitions
Spacesail is endeavoring to build a constellation of 14,000 satellites, aiming to have around 600 satellites in orbit by the close of 2025. The project seeks to deliver global connectivity, thereby challenging competitors like SpaceX’s Starlink and other Western satellite communication providers.
In February 2024, Spacesail procured 6.7 billion yuan (approx. $943 million USD) in Series A funding. Previously, Spacesail was the Chinese partner in the former KLEO Connect Chinese-European joint venture constellation project.
Current Progress
As of now, Spacesail has 56 satellites in orbit, thanks to the launch of three groups of 18 satellites on Long March 6A rockets in 2024. The second batch, launched in October and developed by Genesat launched in October. The first flat-panel satellites for the Thousand Sails constellation were completed in December 2023.
A Long March 8 rocket is slated to launch the next batch of satellites from the new Hainan commercial spaceport soon.
In 2023, the Shanghai government initiated the Shanghai Action Plan to Promote Commercial Aerospace Development. This initiative aims to create a space information industry hub, targeting an annual output of 50 commercial rockets and 600 commercial satellites by 2025.
Government Support and Market Dynamics
China continues to back commercial space ventures substantially. In December, the strategic National Manufacturing Transformation and Upgrading Fund allotted $123 million to Landspace, a rising Chinese commercial launch startup.
Furthermore, the national Guowang megaconstellation, targeted to comprise 13,000 satellites, launched its first satellites on December 16. These four missions and the mentioned efforts form part of China’s record 68 launch attempts in 2024, deploying over 260 satellites into orbit
This activity signals a significant spike in Chinese space operations for 2025.