Young aeronautics enthusiasts aim to create first private rocket company

The sky's limit for three young founders of China's first private rocket company.

According to 21-year-old cofounder Hu Zhenyu, the company is celebrating its first order and is in the midst of negotiating an initial investment of 3 million yuan ($480,300), media reported Sunday.

The company is aiming to produce a research rocket capable of reaching 50 kilometers higher than conventional rockets - for 1 million yuan less than current prices.

"There is only one state-owned enterprise which provides sounding rocket services and it costs 3 million yuan for one launch," said Hu.

Research rockets are used to carry instruments to perform scientific experiments in sub-orbital flight.

Current research rockets can reach up to 1,500 kilometers above the Earth.

"Tens of millions in profits are just the tip of the iceberg for [big companies], but that is very substantial for a small company," he added.

Hu successfully launched the first college student-made research rocket in the deserts of the Inner Mongolia Autonomous Region in 2013.