AI and Commercial Aerospace as Dual Growth Drivers with Distinctive Technological Strengths

Adaspace is the first stock in Hong Kong to combine exposure to both AI and commercial aerospace. Its business spans the entire value chain of satellite development, management and utilization. The Company ranks first among all private commercial aerospace companies in China in terms of the cumulative number of AI satellites successfully launched, with 35 satellites developed by the Company successfully launched, including 29 AI satellites. Three global firsts distinguish its technological capabilities: the first on-orbit deployment in space and technical validation of the Qwen3 large language model; the first on-orbit deployment in space of the UI-TARS multimodal large model; and the first instance of a ground-based robot invoking space-based computing power, which also passed all 19 tests conducted by the China Academy of Information and Communications Technology. Its seventh-generation AI payloads are expected to deliver computing power of no less than 10 POPS. The Company's satellite design process takes approximately three weeks, while satellite R&D and production take around four months. This rapid pace of engineering iteration supports its continued technological leadership.

From launching China's first AI application satellite in December 2018, to developing and launching China's first AI large model computing satellite in September 2024, and then completing the networking of the world's first AI computing satellite constellation comprising 12 AI computing satellites in May 2025, Adaspace has made the transition from a start-up to a listed company in eight years. Its Main Board listing opens up access to ongoing financing and provides global investors with a publicly traded vehicle for direct exposure to space-based computing infrastructure.

With its offer price set at HK$24.90, the Company attracted significant market attention on its first day of trading. Its fundamentals provided support for the offer price. Financial data show that the Company generated revenue of RMB703 million in 2025, representing a year-on-year increase of 27.0%. Revenue from AI computing satellites reached RMB225 million, with its share of total revenue rising to 32.0%. In the six months ended June 30, 2026, the gross profit margin for AI computing satellites recovered to 55.4%, while the overall gross profit margin increased to 39.3%. Net cash generated from operating activities amounted to approximately RMB61 million, confirming a turning point in operating cash flow. As of October 2026, the Company had secured customer orders for 114 AI satellites pending delivery, with a total contract value of approximately RMB3,475 million, providing strong revenue visibility.

The International Offering attracted strong subscription demand from institutional investors, and the implications of this outcome merit closer examination. Hong Kong's IPO market has become increasingly polarized over the past two years, with investors growing more cautious about companies offering compelling narratives without demonstrated performance. Against this backdrop, active participation from both institutional and retail investors indicates that the market has placed meaningful weight on the Company's revenue growth trajectory, order backlog and technological positioning. Following the listing, the Company will benefit from continued funding and the support of its capital markets platform to further accelerate the Star-Compute Project.

Proceeds Focused on the Star-Compute Project with Constellation Deployment and Commercialization as Medium- to Long-Term Priorities

The intended use of proceeds clearly reflects the Company's core focus on space-based computing. The Company intends to use the proceeds for AI computing satellite constellation networking under the Star-Compute Project and R&D in space-based computing. This includes the construction of the Shenzhen Center, enhancing AI computing satellite development and R&D capabilities, selectively pursuing strategic investment and acquisition opportunities to strengthen the satellite-based solutions ecosystem, repaying bank borrowings and supplementing working capital.

The allocation of proceeds reflects three strategic priorities at the Company's current stage of development. The first is to expand capacity: the construction of the Shenzhen Center and enhanced satellite development capabilities will support large-scale constellation deployment. The second is to strengthen the ecosystem through investments and acquisitions that enhance satellite-based solutions. The third is to strengthen its financial position by repaying bank borrowings and supplementing working capital, providing a buffer for investment over long development cycles. With the proceeds in place, the Company is expected to accelerate the development of its space-based computing network comprising 2,800 AI computing satellites. It also plans to launch another 14 satellites in the fourth quarter of 2026, setting out a clear schedule for constellation deployment.

A Capital Markets Platform to Unlock Valuation Potential

From a capital markets perspective, the listing also creates scope to unlock the Company's valuation potential. As Hong Kong's first "space AI" stock, the Company offers a scarce investment opportunity in the previously unrepresented "AI + commercial aerospace" segment, providing global investors with direct access to space-based computing infrastructure. At the industry level, revenue generated by private commercial aerospace companies with satellite-related businesses in China is expected to increase from approximately RMB34.0 billion in 2025 to approximately RMB264.1 billion in 2030, representing a compound annual growth rate of 50.7%. This industry growth trajectory provides an underlying basis for the Company's long-term valuation.

The market also expects that, as the Company's market capitalization and trading liquidity gradually stabilize following the listing, it may be included in the Hang Seng Composite Index and become eligible for Southbound Trading under Stock Connect in subsequent index reviews, provided it meets the relevant inclusion criteria. Southbound capital flows could then further enhance trading liquidity and price discovery. Nevertheless, space-based computing remains at an early stage of commercialization, and progress in constellation networking, order delivery and on-orbit validation will take time to materialize. From launching China's first AI application satellite in 2018 to listing on the Hong Kong Stock Exchange today, a new era of space-based computing is gradually unfolding in Hong Kong's capital markets.