Core Viewpoint - Zhongke Aerospace Technology Co., Ltd. (referred to as "Zhongke Aerospace") has initiated its IPO counseling process, despite reporting a projected revenue of 243 million yuan and a net loss of 748 million yuan for 2024, highlighting the growing interest and investment in the commercial aerospace sector in China [1][3][4]. Company Overview - Zhongke Aerospace was established on December 19, 2018, with a registered capital of 360 million yuan, located in Nansha, Guangzhou. The company focuses on the development of medium to large rockets, customized space launches, suborbital scientific experiments, and space tourism [2]. - The company is incubated by the Institute of Mechanics, Chinese Academy of Sciences, and its major shareholders include Beijing Pengyi Junlian Space Technology Center (27.75%) and Beijing Zhongke Lisen Technology Co., Ltd. (26.77%) [2][3]. Financial Performance - For 2024, Zhongke Aerospace is projected to have total assets of 1.867 billion yuan, total liabilities of 971 million yuan, and a net asset value of 896 million yuan, with a net loss of 748 million yuan [3][4]. - Despite the losses, the company has seen an increase in net assets and a decrease in total liabilities due to ongoing capital injections [4]. Market Context - The commercial aerospace sector is characterized by high capital requirements and long return cycles. The recent inclusion of commercial aerospace in the "not yet profitable" green channel for IPOs by the Science and Technology Innovation Board has facilitated access to public market funding [1][6]. - In the past month, three commercial aerospace companies, including Zhongke Aerospace, have initiated IPO processes, indicating a trend of increasing interest from public market investors [1][6]. Investment Landscape - The commercial aerospace sector has attracted significant venture capital, with 15 companies in the field completing financing this year. Notable investors include various private equity firms and industry-specific funds [7][8]. - Banks are also playing a crucial role in supporting commercial aerospace companies through credit and equity investments, with institutions like China Bank and Minsheng Bank providing substantial credit lines and customized financial services [9][10].