Recently, Hanqing Power (Zhuhai) Technology Co., Ltd. (hereinafter referred to as "Hanqing Power"), a strategic investee of Shenkai Co., Ltd. and a supplier of space propulsion technology and precision fluid control systems, officially announced the completion of its Series A++ financing round totaling tens of millions of yuan. This round was jointly invested by Innovation Investment and Industrial Investment Capital under Hefei Industry Investment Group, together with Luyang Science and Technology Innovation Group. The proceeds will be primarily utilized to accelerate the R&D and iteration of commercial aerospace propulsion systems, and expand testing and delivery capabilities for aerospace products.

Strategic investment deepens, industrial layout yields significant results

As a key strategic investor in Hanqing Power, Shanghai Shenkai Petroleum & Chemical Equipment Co., Ltd. (SZ.002278, hereinafter referred to as "Shenkai"), based on its strategic layout in commercial aerospace and hydrogen energy, made its initial investment in Hanqing Power in May 2024 through its wholly-owned subsidiary Shanghai Shenkai Energy Technology Co., Ltd. (hereinafter referred to as "Shenkai Energy Technology"), followed by an additional investment in August 2024 and secured a seat on Hanqing Power’s board of directors.

Founded in 2016 and led by Dr. Liu Yanjie, a senior expert in the field of aerospace propulsion, Hanqing Power is a high-tech enterprise integrating R&D, production, and testing. Dr. Liu previously served as Deputy Director of the 801 Institute under the Shanghai Academy of Spaceflight Technology, and has 30 years of R&D experience in aerospace propulsion and fluid control systems. He receives the Special Government Allowance from the State Council and has received numerous awards including the Special Prize of the National Science and Technology Progress Award, the Second Class National Invention Award, the First Prize of Defense Science and Technology Achievements, and the First Prize of Military Science and Technology Progress.

Leveraging its aerospace propulsion technology and precision fluid control capabilities, the company pursues the business strategy of "focusing on space propulsion technology while expanding domestic substitution of core components in civil markets." It provides lightweight, highly reliable, and highly integrated propulsion systems and fluid control solutions for aerospace, defense, and other civil sectors. The company has obtained ISO 16949 and GJB 9001C system certifications, and holds over 60 patents and software copyrights.

Its headquarters relocated to Shenkai Industrial Park in 2024, fostering close industrial synergy between the two sides. The successful closing of this Series A++ financing round further validates Shenkai’s precise insight into the development trends of the commercial aerospace industry and its forward-looking layout on the value of investee companies. With the financing proceeds in place, Hanqing Power will receive more ample financial support, and Shenkai’s strategic investments will unlock greater value appreciation potential.

Commercial Aerospace: Strategic Layout Brings Opportunities for Rapid Production Scale-up

Hanqing Dynamics stood out as one of the top six contestants in the 6th China Innovation and Entrepreneurship Competition. It is a domestic professional supplier of space propulsion systems and core components. Up to now, its core products including cold gas, Hall electric propulsion and chemical propulsion systems have been deployed on more than 150 in-orbit commercial satellites in China, and the company has undertaken over 20 development projects covering rockets, spacecraft, missiles and other fields.

With strategic empowerment from Shenkai, Hanqing Dynamics keeps deepening its expertise in the field of space propulsion systems. The highly integrated gas supply module for Hall electric propulsion systems developed by the company has successfully passed continuous 200-hour stable ignition simulation tests under ground vacuum conditions as well as in-orbit ignition tests. The product delivers stable performance with multiple key indicators reaching internationally advanced levels, boasting flawless operation in orbit.

With the accelerated advancement of major national satellite constellation programs including China SatNet (13,000 satellites planned), Qianfan Constellation (12,000 satellites planned) and the Wireless Innovation Institute program (193,000 satellites planned), the market for space propulsion systems demanded by commercial launch vehicles and satellites is embracing opportunities for rapid volume expansion. The aggregate market size of Hall electric propulsion, chemical propulsion and cold gas propulsion, which are essential for sub-sectors of commercial aerospace such as launch vehicles, satellites and spacecraft, is estimated to range from hundreds of billions to one trillion RMB. Hanqing Dynamics is now in the prime window for scaled mass production of space propulsion products for commercial aerospace.

Domestic substitution: collaborating with industry standard setters for hydrogen valves to expand multi-scenario application markets

In the hydrogen energy sector, Hanqing Power has mastered key technologies such as highly integrated cylinder valves and combined pressure reducing valves for heavy-duty trucks, filling multiple domestic gaps. The shipment volume of the company's core components for hydrogen heavy-duty trucks and highly integrated solid-state hydrogen storage valves for hydrogen two-wheeled vehicles ranks among the industry's top, having served nearly 150 key hydrogen energy clients in total.

In addition, the hydrogen-powered unmanned aerial vehicle (UAV) jointly developed by Hanqing Power and its partners set a new world record with a 332-minute endurance flight. The company also participates in the formulation of industry standards for hydrogen UAVs and hydrogen valves.

Against the backdrop of accelerated implementation of low-altitude economy policies, hydrogen-powered UAVs, leveraging advantages such as high energy density, long endurance, and strong environmental adaptability, are rapidly penetrating sectors including oil pipeline inspection, power grid inspection, and logistics transportation, boasting broad market prospects.

The overall scale of the hydrogen energy industry continues to rise. According to the China Hydrogen Energy Development Report (2025), China's hydrogen production capacity exceeded 50 million tons per year in 2024, with annual production and consumption volume topping 36.5 million tons, ranking first worldwide. Based on estimates from the China Business Industry Research Institute and other institutions, China's hydrogen energy industry scale will approach 700 billion yuan by 2025 and is projected to surpass 1.2 trillion yuan by 2030.

The hydrogen valve track is growing rapidly. According to the 2024 Global Market Research Report on the Overall Scale and Application Segmentation of Onboard Hydrogen Storage Cylinder Valves published by QYResearch, the domestic hydrogen valve market size is estimated to reach approximately 50 billion yuan by 2035 (CAGR: 21.5%).

Against this backdrop, Hanqing Power's hydrogen valve business is embracing the dual opportunities of domestic substitution and industrial expansion. Shenkai will continue to support Hanqing Power in expanding hydrogen energy application scenarios and advancing the large-scale development of the hydrogen energy industry.

The investors of this financing round, Hefei Industry Investment Group and Luyang Science and Technology Innovation Group, are both core investment platforms under Hefei's state-owned asset system. Hefei is a national hub for new energy and commercial aerospace industries, home to leading automakers including NIO, BYD (Hefei) and Leapmotor, as well as multiple strategic emerging industrial clusters covering quantum computing, artificial intelligence and commercial aerospace. The joint investment by the two state-owned platforms demonstrates high recognition of Hanqing Power's technical strength and commercial prospects.

The successful completion of this Series A++ financing round marks Hanqing Power's entry into a new stage of accelerated growth. It will strongly back the company's capacity construction and market expansion in commercial aerospace and hydrogen energy, and also provide solid support for Shenkai's strategic layout in these two sectors. Moving forward, Shenkai will further deepen industrial coordination with high-quality ecosystem partners such as Hanqing Power, continuously elevate its comprehensive competitiveness and industrial influence in the high-end equipment sector, and contribute to the national strategy of building a space power and the overall development of the hydrogen energy industry.

Partial content reprinted from Hanqing Dynamics’ official WeChat channel