Investing in SpaceX: Is this A-share listed company going to build a rocket with Musk?

On November 16, Leo, an A-share listed company, issued an announcement stating that Leo Investment, a wholly-owned subsidiary of the company, signed the “Agreement of Limited Partnership of Tomales Bay Capital Anduril III, L. P. “. Leo Investments will invest in Tomales Bay Capital Anduril III, L. P. (referred to as “TBCA”, “Partnership”) to contribute US$50 million.

It is worth noting that the investment target of the partnership is Space Exploration Technologies Corp. (“SpaceX”). SpaceX is a world-leading space technology company engaged in rocket launches, satellite communications (Starlink), space transportation and other space exploration businesses. The company was founded in 2002 by American entrepreneur Elon Musk.

(From the screenshot of the announcement of Leo Shares)

Leo shares stated in the announcement that this investment will not have a significant impact on the company’s financial status and operating results in the short term. In response to the existing risks, the company stated that the target project of this investment will be affected by various factors such as macroeconomics, industry cycle, operation and management during the operation process, and may face the risk of investment returns not meeting expectations or losses. If the above-mentioned risks occur, the investment will fail or be lost, which will affect the company’s investment income in this transaction. The company will strictly follow the relevant regulations and disclose the progress of the matter in a timely manner. Investors are advised to pay attention to investment risks. The company will pay close attention to the operation of the partnership in combination with the market economic environment. The company will use the experience and resources of professionals to reduce uncertainty in the investment process and reduce the risk of investment failure or loss by sharing risks with co-investors. , to safeguard the interests of the company and all shareholders.

As we all know, SpaceX is a world-leading space technology company engaged in rocket launches, satellite communications, space transportation and other space exploration businesses. As a unicorn company, SpaceX’s business mainly involves three major parts: commercial air transportation, commercial manned spaceflight, and Starlink. Although it has not yet been listed, its valuation has reached hundreds of billions of dollars. SpaceX’s most eye-catching thing is “space travel.” In September 2021, SpaceX carried out its first all-civilian mission, sending 4 ordinary people into space and traveling in space for 3 days.

According to public information, Leo’s original business is traditional manufacturing, mainly engaged in the research and development, manufacturing and sales of pumps, garden machinery, cleaning and plant protection machinery. In 2014, the company entered the digital marketing business field through the successful acquisition of Manku Advertising, Shanghai Argon Krypton and Amber Communication. At present, the company’s main business is digital marketing, pump machinery manufacturing and investment.