CICT Mobile Communication Technology Co.,Ltd. has drawn market attention following the release of a private placement plan to raise up to 7 billion yuan. The funds are intended for advanced fields such as integrated space-air-ground communication and 6G. However, the company has postponed its three major 5G-related projects from its initial public offering until the end of 2026. It has been noted that the prototype list for the space-air-ground related research project and the product list for the related industrialization project show significant overlap in the latest private placement proposal.
Since its listing in 2022, CICT Mobile has continued to report losses and has never paid dividends. Meanwhile, its third-largest shareholder has executed three separate reduction plans over the past year, cashing out a total of over 1 billion yuan.
At the end of April, CICT Mobile announced a plan for a private placement of A-shares in 2026. The proposal indicates the company aims to raise no more than 7 billion yuan, with net proceeds after deducting issuance costs allocated as follows: 1) an integrated space-air-ground mobile communication industrialization project, with total investment of 2 billion yuan and 1.5 billion yuan from the offering; 2) an integrated space-air-ground mobile communication research project, with total investment of 2.85 billion yuan and 1.85 billion yuan from the offering; 3) a 6G research project, with total investment of 2.85 billion yuan and 1.85 billion yuan from the offering; and 4) 1.8 billion yuan to supplement working capital.
CICT Mobile went public on the STAR Market in September 2022, raising approximately 4.137 billion yuan. After deducting issuance expenses, net proceeds were about 4.011 billion yuan, allocated to four projects: 1) 5G wireless system product upgrade and technology evolution R&D; 2) 5G industry private network and smart application R&D; 3) 5G integrated antenna and new indoor distribution equipment R&D; and 4) working capital supplementation. In June 2025, the company extended the deadlines for the three 5G-related projects to December 31, 2026.
The private placement plan shows the industrialization project mainly includes products such as satellite basebands, satellite phased array antennas, integrated payloads, and specialized terminals. The research project will develop prototypes for satellite internet products including high-performance satellite base stations, distributed core networks, multi-band satellite phased array antennas, integrated payloads, and specialized terminals. It is evident that the prototype list for the research project overlaps significantly with the product list for the industrialization project. Questions arise as to whether the industrialization project's products have already been developed, if they are ready for mass production, and how they differ from the research project's prototypes. The reasons for the collective delay of the IPO-funded projects remain unclear. Attempts to contact CICT Mobile's securities department by phone were unsuccessful, and emailed inquiries sent to the department had not received a response by the time of publication.
CICT Mobile is a mobile communication enterprise focused on global technological frontiers and independent innovation. Leveraging proprietary core technologies in mobile communications, the company centers on integrated space-air-ground network equipment to provide leading technologies, products, services, and solutions to global communication operators and industrial clients, aiming to generate revenue and profit. Additionally, the company licenses its intellectual property assets to terminal manufacturers, internet firms, and automakers to earn patent royalties.
Since listing, CICT Mobile has consistently reported losses. Data shows that from 2022 to 2025, the company's operating revenue was approximately 6.919 billion yuan, 7.848 billion yuan, 6.491 billion yuan, and 6.145 billion yuan, respectively, with net losses of approximately 674 million yuan, 357 million yuan, 279 million yuan, and 270 million yuan. However, compared to pre-listing figures, the losses have narrowed significantly; in 2020 and 2021, the company lost 1.752 billion yuan and 1.184 billion yuan, respectively. In the first quarter of this year, CICT Mobile remained in the red, reporting a loss of about 128 million yuan.
Due to persistent losses, CICT Mobile has not distributed any dividends since going public. Nevertheless, the company's balance sheet remains robust. As of March 31, 2026, the company held cash and cash equivalents of approximately 3.607 billion yuan and financial assets at fair value through profit or loss of about 311 million yuan, while short-term and long-term borrowings stood at approximately 764 million yuan and 220 million yuan, respectively.
CICT Mobile faces risks associated with high customer concentration. As a specialized provider of comprehensive mobile communication network deployment solutions in China, the company's clientele is primarily concentrated among communication operators. From 2023 to 2025, revenue from the top five customers accounted for 75.25%, 68.19%, and 67.71% of total operating revenue, respectively, with a significant portion coming from the largest customer. During the same period, sales to the largest customer represented 43.07%, 40.04%, and 39.95% of total operating revenue.
Bolstered by popular concepts such as commercial aerospace and 6G, CICT Mobile's stock performance has been strong over the past year. On a split-adjusted basis, the share price fell to a low of 4.76 yuan in April 2025 before peaking at 22.16 yuan in January 2026. At its highest point, the stock had surged approximately 3.66 times from the low a year prior. As of May 6, 2026, CICT Mobile closed at 20.38 yuan, with a market capitalization of about 69.67 billion yuan and a price-to-book ratio of 11.87.
During this period, China Development Bank Manufacturing Transformation and Upgrading Fund, one of the company's major shareholders, completed three separate share reduction plans, cashing out a total of approximately 1.011 billion yuan.
According to company announcements, from February 24 to May 23, 2025, the fund sold 30 million shares via centralized bidding, representing 0.88% of total shares, at prices between 5.90 yuan and 6.37 yuan, realizing about 183 million yuan. From September 26 to November 10, 2025, it sold 34.1875 million shares, or 1% of total shares, at prices between 6.50 yuan and 7.30 yuan, cashing out around 233 million yuan. Finally, from January 28 to April 27, 2026, it sold another 34.1875 million shares, also 1% of total shares, at prices between 13.35 yuan and 19.86 yuan, realizing approximately 595 million yuan.
Following these reductions, the fund's stake in CICT Mobile decreased from 9.07% to 6.19%, though it remains the third-largest shareholder.
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