How much did operations improve in the third quarter?

  • In the third quarter of 2026, Xi’an Xice Testing reported revenue of 110 million yuan, up 42.43% year on year and 16.21% quarter on quarter. Net income attributable to shareholders remained negative for the quarter, but the loss narrowed by 28.24% year on year.
  • Revenue in the first three quarters was 267 million yuan, up 18.32% year on year, while the net loss attributable to shareholders narrowed by 15.09% year on year. Revenue returned to growth, but the company had yet to turn a profit.
  • Gross margin for the first three quarters was 21.11%, up 14.66% year on year. Third-quarter gross margin was 15.72%, up 10.07% year on year, but below the overall level for the first three quarters.

How do testing and electrical assembly connect with commercial space demand?

  • The company holds testing qualifications in fields including military equipment, civil aircraft and aerospace. Its services cover component screening, environmental reliability and electromagnetic compatibility. Its testing capabilities and qualifications underpin its ability to serve customers in advanced equipment.
  • Xi’an Xice Testing provides services spanning components to complete satellites, covering supply chain management, scaled production, inspection and testing, and fault diagnosis and remediation. The company says it has 16 core production lines and electrical assembly and testing capacity exceeding 2 billion yuan.
  • According to the company, its one-stop service can reduce costs for commercial space customers by approximately 30% and shorten delivery cycles by approximately 50%, with a first-time delivery acceptance rate of 100%. A proposed private placement in October 2026 envisages further development of a commercial space quality assurance service platform and expansion into satellite and rocket testing and reusable rocket testing and evaluation.

Where does the joint venture extend the business?

  • In March 2026, Xi’an Xice Testing, Triangle Defense, Ruitou Energy and Shaanxi Aerospace Institute jointly initiated the establishment of Western Aerospace Technology (Shaanxi) Co., Ltd. The joint venture has registered capital of 500 million yuan; Xi’an Xice Testing contributed 140 million yuan for a 28% stake.
  • The joint venture is positioned as an in-orbit satellite delivery service provider. It plans to package satellite design and manufacturing, launch into orbit, in-orbit testing and handover to users to address fragmentation in the industry chain and low procurement efficiency.