Core Viewpoint - The low-altitude economy in China is rapidly developing and has been recognized as a strategic emerging industry, with significant government support and technological advancements driving its growth [1][2]. Group 1: Industry Development - The low-altitude economy is categorized into three main segments: aircraft manufacturing, infrastructure and support, and operational services [2]. - The Civil Aviation Administration of China issued the first operational certificates for manned civil unmanned aerial vehicles in March 2023, marking the transition of general aviation from pilot programs to commercialization [2]. - Chongqing announced plans to become a "low-altitude economy innovation development city," with 32 airspace blocks and 39 temporary landing points approved [2]. Group 2: Future Prospects - A strategic cooperation agreement was signed between Bank of China, China Minmetals Corporation, and Volant, with plans to purchase 100 VE25 eVTOL aircraft and a credit line of at least 1 billion yuan [3]. - The 2025 Fourth Low-altitude Economy Development Conference is scheduled for September 5-7 in Wuhu, promoting technological exchanges and high-quality development in the low-altitude economy [3]. - The expected growth rates for the net profit of the General Aviation Industry Index from 2025 to 2027 are 75.34%, 56.11%, and 19.60%, indicating 2025 as a pivotal year for performance [3]. Group 3: Investment Opportunities - The General Aviation ETF Huabao (159231) saw a 10% increase in price within its first week of listing, providing good returns for investors [3]. - The ETF experienced a 2.13% decline on May 9, 2025, marking its first adjustment since listing, suggesting potential buying opportunities for investors as the low-altitude economy is still in its early stages [3].

Investment Rating - The report maintains an "Outperform" rating for the low-altitude economy industry [1] Core Insights - The low-altitude economy sector has gained significant attention from the national level, with various policies and initiatives being introduced to support its development [6][23][24] - The low-altitude economy index increased by 5.33% during the reporting period, outperforming major indices such as the Shanghai Composite and CSI 300 [6][16] - Key players in the eVTOL market are receiving substantial orders, indicating strong market demand and growth potential [6][26][28] Summary by Sections Market Review - The low-altitude economy index rose by 5.33%, outperforming the Shanghai Composite by 3.90 percentage points and the CSI 300 by 3.77 percentage points [6][16] - The National General Aviation Index increased by 5.95%, also outperforming major indices [6] Policy Dynamics - The Ministry of Industry and Information Technology released guidelines for the standardization of new automotive technologies, including flying cars [23] - Financial regulatory authorities are pushing for the development of insurance products for low-altitude flying vehicles [23] - Local governments are implementing measures to stimulate the low-altitude economy, including financial incentives and infrastructure development [24][25] Industry Developments - Xiaopeng's "Land Aircraft Carrier" received approval for its production license, marking a significant milestone in the domestic flying car market [26] - Fengfei Aviation secured a strategic partnership with CITIC and a 100-unit order for eVTOL aircraft, indicating strong market interest [28] - Wofei Changkong signed a financial agreement with China Construction Bank for a total of 6 billion RMB, the highest financing lease credit in the eVTOL sector [32] - The first intelligent customs clearance model for low-altitude transport was launched in Guangzhou, enhancing logistics efficiency [34] - A 1 billion RMB investment fund for low-altitude industry development was established in Hunan, focusing on various sectors within the low-altitude economy [38] - The AS700 manned airship successfully completed its first flight, showcasing significant advancements in energy efficiency and operational cost reduction [40]