Caifeng on October 25th (by reporter Guo Songqiao) "China Mobile 01 Star" and "Star Core" successfully launched into orbit, a thousand sails in polar orbit 02 group of satellites successfully launched into space, the auspicious constellation 03 group of 10 satellites successfully entered the designated orbit... Against the backdrop of commercial space development, China's satellite internet has entered the industrialization stage, ushering in a period of rapid development.

The 25th China Satellite Application Conference hosted by the China Institute of Communications was held in Beijing from October 23rd to 25th, 2024. The theme of this satellite conference is 'New Quality Productivity in Satellite Application Industry.' Caifeng reporters were on-site to capture the forum and the accompanying exhibition, understanding the trend of the satellite industry's development.

National teams accelerating entry.

In recent years, China's commercial aerospace industry has received continuous policy support. The Ministry of Industry and Information Technology and other seven departments jointly issued the 'Implementation Opinions on Promoting Future Industrial Innovation Development,' proposing to focus on the development of six major directions in the future space industry, including developing manned spaceflight, lunar exploration, satellite navigation, unmanned aerial systems, advanced and efficient aircraft and other high-end equipment.

At the opening ceremony, Zhang Yanchuan, Secretary-General of the China Institute of Communications, stated that in China, low-orbit satellite communication technology, as a key focus of satellite internet development, is leading the vigorous rise of the commercial aerospace industry. Especially between August and October this year, the successful launches of the 'Thousand Sails Constellation' satellites signified that China's satellite networking has entered a new stage of normalization and intensification. On the international communication exhibition stage, domestically produced satellite phased array antennas also shone brightly, showcasing the strong capabilities of China's satellite technology.

Zhang Yanchuan also stated that the satellite application industry still faces many challenges and opportunities. At the technical level, it is necessary to enhance the overall process capabilities of satellite manufacturing, launch, operation, and recovery, break through key technological bottlenecks such as chips, terminals, and standards. At the market level, it is necessary to deeply explore the potential of satellite communications, expand application scenarios, and promote innovation in commercialization and profit models.

Conference chairman Wu Jinfeng mentioned that from 2015 to the present, the commercial aerospace industry has flourished according to market rules. The national team has accumulated strength, while private enterprises are making rapid progress. Professional talents are growing through mobility, and there is continuous iteration and innovation of satellite application products. The industry structure continues to improve amid market fluctuations, and users are gradually maturing in their trial and error selections. The capital markets are optimizing and selecting the most viable enterprises.

According to incomplete statistics from the capital markets, in the first half of this year, the financing amount in the commercial aerospace field has exceeded 12 billion RMB. With the catalysis of various policies and capital, the national team is also taking action. This year, aerospace technology groups, star network groups, China Telecom, weapons industry, China Mobile, and other enterprises have successively established spacetime information, SkyNet Technology, aerospace technology rockets, and aerospace technology commercial satellite companies.

In terms of private enterprises, many listed companies are also accelerating their involvement in commercial aerospace-related tracks.

For example, SuperJet Holdings stated on an interactive platform that the company's main focus in the commercial aerospace field is on manufacturing commercial rocket body structural components and satellite structural components, including major sections of the rocket body (shells), satellite fairings, fuel tanks, engine valves, etc. Currently, the company supplies customers with analog satellite and analog satellite bracket structural component products.

In the first half of this year, Shengbang Security announced the acquisition of a partial stake in Tianyu Yun'an. Tianyu Yun'an has accumulated multiple core technologies in satellite communication security, and has developed a complete set of satellite communication security solutions, including satellite internet mapping, satellite communication encryption, satellite communication vulnerability analysis, and security reinforcement.

Finance Association reporters learned on-site at the satellite conference that the theme of this conference report covers topics such as direct connection with mobile phones and constellation networking, the relationship between satellite internet and 5G-A/6G, small aperture phased array terminals, high-throughput satellite communication systems, self-controllable core chipsets for integrated land and space systems, satellite internet of things, small and lightweight RF integrated design, liquid crystal phased array antennas, among other topics.

Director Quan Xiaowen of Sangbang Security stated in the keynote speech that satellite Internet is not an upgrade or transformation of traditional satellite networks, but a process of reconstruction. Starting from a network perspective, he elaborated on the differences between satellite Internet and traditional satellite networks; emphasizing the stronger connectivity, anti-destruction, and coverage characteristics of satellite Internet by fully utilizing the advantages of mobile Internet and the Internet. Through a case analysis of the Starlink system, he further discussed the architecture, security framework, and development prospects of satellite Internet in the sharing session, also pointing out that this emerging technology will bring new security challenges.

Participating companies: Orders have significantly increased compared to last year, attracting attention to satellite Internet security solutions.

As a supporting event of the conference, the satellite industry exhibition was held at the same time. Caifinance reporters observed on-site that dozens of upstream and downstream satellite industry companies concentrated on showcasing new products this year.

In the construction of satellite Internet, satellites are similar to the base stations of mobile networks, while satellite terminals are similar to mobile phones, playing a role in information transmission. They are a key link in the satellite Internet industry chain and also the link with the highest proportion of output value.

Chengdu Xunyi Weitong Technology Co., Ltd. showcased equipment such as portable satellite terminals, phased array satellite terminals, and airborne lightweight satellite communication terminals.

The company's booth staff informed Caifinance reporters that compared to the same period last year, the company's product orders have significantly increased. This is due to several factors: first, driven by commercial aerospace policies; second, with the support of national Treasury funds, government orders have increased. For example, many industries are promoting the expansion of satellite remote sensing applications, including in agriculture, emergency rescue, etc.; third, the low-altitude economy is advancing, and some of our products can be used in this field.

Regarding future development, the above-mentioned staff members stated that the company's next-generation intelligent terminal products will strive to reduce production costs and provide economical, intelligent, and integrated satellite Internet terminal products and services to various market sectors and regions.

As satellite internet develops, cybersecurity issues are becoming increasingly prominent, requiring effective security measures to safeguard communication security and privacy.

The reporter from Financial Federation observed on site that as the only exhibitor at this conference with expertise in cybersecurity and satellite internet communication security products, Shengbang Security showcased multiple innovative achievements for the first time, attracting attention from many attendees.

Shengbang Security presented its latest satellite internet security solutions, as well as link-level encryption devices and advanced password management technology to help customers enjoy the convenience brought by satellite internet technology while effectively addressing security risks.

"We focus on satellite internet communication security, and we believe that the more satellites launched, the greater the demand." Shengbang Security Chairman Quan Xiaowen likened it to the analogy of roads turning into highways. The more highways there are, the more safety equipment is needed, and this is our future market.

According to Quan Xiaowen, Shengbang Security currently has some orders in the satellite internet security industry, mainly from users in the critical information infrastructure sector.

An Open Source Securities research report points out that the breakthrough in domestic satellite internet is imminent, emphasizing investment opportunities in various links of the industry chain, focusing on satellite manufacturing, satellite launch, ground equipment, and satellite operation.