A New Journey Of China'S "Integration Of Heaven And Earth": From Space Segment Operation To Integrated Information Service

China's capital market is more touching the vast sky.

In June 28, 2019, the Limited by Share Ltd of China Wei Tong Group (hereinafter referred to as "China Guardian", stock code: 601698) was listed on the main board of the Shanghai Stock Exchange. China's only basic telecom operator with independent control of commercial communication broadcasting satellite resources officially landed in the capital market.

By the end of January 8, 2020, China Satcom had closed 12.20 yuan / share, up 348.5% from the issue price.

Sun Jing, general manager of China Wei Tong, admitted to the twenty-first Century economic report reporter that after listing, he added more responsibilities to investors. At present, the recognition of the market has also strengthened the confidence of China Wei Tong in its reform and transformation and development.

A new journey of "heaven and earth integration"

Satellite communications have come to every aspect of our lives from the broadcast of National Day parade and Beijing Olympic Games, to the rich radio and television channels, and to the satellite internet access services such as civil aircraft, ocean cargo and cargo carriers.

China Satcom is the core professional subsidiary of China Aerospace Science and Technology Group Limited (hereinafter referred to as "Aerospace Science and Technology Group") engaged in satellite operation service industry. Through investment, construction and operation of radio and satellite broadcasting and ancillary ground monitoring and monitoring system, it provides users with services such as broadcasting, television, communications, video and data transmission.

In November 2001, the establishment of China Wei Tong was founded. At that time, it was named China Satellite Communications Corporation. It was one of the six basic telecom operators in China. According to the request of the state to deepen the reform of telecommunications system, in 2009, China Satcom incorporated the basic telecommunications business into China Telecom, the main body of China Satcom and the operation of satellite space segment merged into the aerospace science and technology group, and became the two class unit of Aerospace Science and technology group. In March 2018, the Ministry of industry and information technology issued the first class of basic telecommunications business license to China satellite communications, and approved China Satcom to operate satellite mobile communication business and satellite fixed communication business nationwide.

As the only telecom operator with independent control of commercial radio broadcasting satellite resources in China, China Satcom operates 15 communications broadcasting satellites, covering all parts of China, Australia, Southeast Asia, South Asia, the Middle East, Europe, Africa and other regions, and ranks sixth in the global fixed satellite service providers.

Nowadays, China's satellite communications is moving from the space section to accelerate the integration of the integrated information service of the satellite and the earth.

In April 2017, China Satcom successfully launched China's first high-throughput broadband satellite Zhongxing 16, and built a platform for business integration. It has the ability to provide satellite internet access services to mass consumers and civil airliners, ocean cargo carriers, etc.

The total capacity of Zhongxing 16 is 20Gbps. Based on the Ka band, the domestic basic communication operators can provide the airborne satellite communication capability of downlink 120Mbps and uplink 12Mbps, and the communication capability is greatly improved.

"Before the high-throughput traditional satellite communication is basically 2G up to 3G level, that is, the ability to call, send text messages and other exchanges to solve the" Tong "problem, but" quantity "did not go up, the speed did not come up, traffic and flow rate can not meet real-time online needs. Theoretically or technically speaking, high throughput can achieve 100-150 trillion downlink, uplink should be able to achieve more than 10 trillion, high throughput should be able to catch up with the level of 4G. Sun Jing explained.

It also makes many new application scenarios of satellite communication possible, such as providing satellite internet access services to mass consumers and civil airliners, ocean cargo carriers, etc. Based on this, China Wei Tong has also been developing products that are facing individual consumers. "From the perspective of high throughput, the technology is generally supported by universal services. Since technology and capability support universal services, the scope of application will also be wider and wider. This is also a mainstream idea for the entire satellite communication operators. " Sun Jing said.

In March 2018, China Satcom gained the first class basic telecommunications business license. Following the technical support of Zhongxing 16 to achieve high-throughput satellite communications, the qualification of the licences for the operation of satellite mobile communication business and satellite fixed communication business in the whole country has been implemented. The use of high-speed broadband Internet access services in aircraft and oceangoing vessels is expected to enrich gradually.

Capital assistance

In June 28, 2019, China Wei Tong successfully landed on the main board of the Shanghai Stock Exchange and became the first two unit of aerospace technology group to be listed on A shares as a whole.

"Listing has opened a window for China satellite communications. There are new ways and means to show itself, so that more people can understand China satellite communications, understand satellite communications, understand the satellite Internet, understand the comprehensive information services we advocate, and the channels are more open and wider. On the other hand, we also have more ways to promote the development of the company. Listing provides a very good opportunity for the development of the company. " Sun Jing said.

As a listed company engaged in communication satellite operation by Aerospace Science and technology group, China Satcom is also committed to the innovation of upstream manufacturing side through the innovation of the operation side.

From an innovative point of view, our innovation is based on the manufacturing industry. We are not doing technological innovation and product innovation. We are doing business model innovation, business mode innovation, institutional and institutional innovation. We need to open new markets through these innovations, discover new demands, and extract these requirements from the requirements, indicators and roadmap of guiding technological innovation and product innovation. Then through the channels of listed companies, we can get faster and better resources to complete innovation, and stimulate this industry. Sun Jing said.

As an important member of asset securitization of central enterprises, China Wei Tong also began to face the language perspective of capital market, such as related party transactions.

Prospectus shows that China Wei Tong related procurement accounted for a larger proportion of total purchases. In 2016-2018 years, the amount of procurement to the aerospace science and technology group subordinate units was 1 billion 405 million yuan, 1 billion 400 million yuan and 844 million yuan respectively, accounting for 60.58%, 53.78% and 60.73% of total purchases respectively.

This is also derived from the industry background of satellite communication in China.

According to the prospectus, currently, the main research subjects of China's geosynchronous orbiting satellites and rocket manufacturing capabilities and commercially available applications are mainly in the space system, mainly based on the China Space Technology Research Institute and the China launch vehicle technology research institute. In China, the China Academy of space technology is the only research body that has the capability of developing the geosynchronous orbit communication satellite and its commercialized application. China Institute of launch vehicle technology is the only supplier of rocket that has the capacity of the earth synchronous orbit commercial communication satellite. At the same time, for the national strategic requirements, China Wei Tong mainly purchases assets and services related to satellite from the space system.

Sun Jing said frankly that this is conducive to the development of China's satellite communications industry. "China Wei Tong has a large manufacturing industry chain behind it. It has R & D and manufacturing of rockets, satellite R & D, basic system research and development, and terminal development. China is a developing country and needs to rely on operators to drive the technological progress and capability improvement of manufacturers. As operators, this is our responsibility. As a state-owned enterprise, this is our national mission. "

At present, China satellite communications is accelerating the development of integrated information services. "The business model we serve is far from enough. Most people do not yet understand the satellite application and do not understand the integrated information services of satellites. We need to let more people know about satellites and communicate with satellites. This market is a big market, or a market that needs to be developed and needs to be developed. People do not have the responsibility to develop the market. Operators and manufacturers have the responsibility to rely on technological progress and constantly develop new market models and service modes. Only when we develop the market, can people use better things to meet the demand of the supply side. Sun Jing said.