Core Insights - Sichuan Hite High-tech Co., Ltd. hosted an on-site investor meeting with eight institutions, including Linrui Fund and Puhang Asset, to discuss the company's performance, core advantages, and market opportunities [1][2]. Group 1: Performance and Business Model - The company reported strong performance in Q2, driven by the extension of its R&D and manufacturing businesses, with products achieving a mature and mass delivery stage. The results in the aerospace engine component manufacturing have been significant and are now being applied in model maintenance, indicating the resilience of the business model and new growth momentum [3]. Group 2: Core Advantages in the Aerospace Industry - Technological innovation is the core competitive advantage of Sichuan Hite High-tech. The company possesses core technologies, a talented team, and research infrastructure across various fields, including aerospace engines, electronics, and machinery. It has developed over 40 projects in pre-research, research, and mass production, creating a virtuous cycle of innovation [4]. Group 3: Opportunities in the Yangtze River Delta Aircraft Industry Cluster - The company is actively expanding its multi-client maintenance market and developing capabilities for the maintenance and product development of domestic large aircraft and new aircraft models. It has acquired technical service capabilities for multiple systems in domestic commercial aircraft, gradually forming a comprehensive support capability at the aircraft system level [5]. Group 4: Low-altitude Economy Development - The company successfully developed and delivered the first domestic eVTOL simulator and is actively participating in the formulation of low-altitude industry standards, including co-authoring relevant white papers and developing group standards for new low-altitude aircraft operator licenses and training needs [6]. Group 5: "Belt and Road" Overseas Market Planning - The company is using Singapore as a "bridgehead" to expand into Southeast Asian markets and aims to increase its market share in overseas simulator sales, large-scale repairs in Southeast Asia, and overseas sales of aviation materials, while collaborating with partners to establish a presence in the European and "Belt and Road" simulator and training markets [7].

Group 1: Company Performance and Growth - The company's second-quarter performance demonstrates resilience in its business model and new growth momentum, with significant increases in delivery volume and business revenue due to ongoing R&D and manufacturing capabilities [1][2] - The company has established a virtuous cycle of "pre-research, in-research, and mass production" across over 40 projects derived from seven core areas, enhancing its competitive edge in the aviation industry [2] Group 2: Strategic Opportunities - The construction of the Yangtze River Delta large aircraft industry cluster presents a major strategic opportunity, with the company actively expanding its maintenance market and product development capabilities for domestic large aircraft [2][3] - The company has successfully developed and delivered the first domestic eVTOL simulator and is involved in setting industry standards, positioning itself as a core builder of the "low-altitude simulation ecosystem" [3][4] Group 3: International Expansion - The company is leveraging the "Belt and Road" initiative to systematically explore overseas markets, focusing on Southeast Asia and aiming to expand its market share in simulator sales and aircraft maintenance [4]

Group 1 - The core viewpoint of the news is that Lin Yuan Investment has conducted research on a listed company, Hai Te Gao Xin, which is expected to achieve significant revenue and profit growth by mid-2025 [1] - Hai Te Gao Xin aims to reach an operating income of 705.05 million yuan, representing a year-on-year increase of 14.08%, and a net profit of 63.70 million yuan, with a year-on-year growth of 35.31% [1] - The company has established a "three-in-one + industrial investment" strategy, focusing on areas such as engine control and rescue, and has successfully delivered products to address supply chain localization issues [1] Group 2 - Hai Te Gao Xin is the first third-party modification company globally for the EFW21 aircraft model, possessing the capability to convert nine narrow-body aircraft [1] - The company completed a strategic investment in "Ao Shi Technology" in July 2025, aiming to enter the low-altitude economy, and has delivered its first eVTOL simulator [1] - Hai Te Gao Xin is also developing a 600 kW drone engine control system, which has been delivered in small batches [1]

Business Development and Supply Chain Response - Sichuan Hitec High-tech Co., Ltd. reported a strong performance in its half-year report for 2025, achieving operating revenue of 705.05 million yuan, a year-on-year increase of 14.08%, and a net profit attributable to shareholders of 63.70 million yuan, up 35.31% year-on-year [1] - The company has developed a strategy that aligns with national goals for becoming an aviation power, focusing on high-end core equipment manufacturing and aviation design [2] Aviation Logistics Layout - The company has established a unique position in the aviation logistics sector, being the first global third-party modification company for the Airbus EFW A321 passenger-to-freighter project and the only domestic company capable of modifying both B737NG and A321 series aircraft [3] - The company has nine narrow-body aircraft lines in Tianjin for comprehensive inspections, major repairs, and passenger-to-freighter modifications, supporting the rapid development of aviation logistics [3] Drone and Low-altitude Field Strategic Layout - In July, the company completed a strategic investment in "Aosi Technology," a leading industrial drone company in Sichuan, indicating confidence in the low-altitude economy [4] - The company has successfully developed and delivered the first domestic eVTOL simulator and participated in the formulation of multiple low-altitude industry standards [4] - The company has also developed the first 600-kilowatt turboshaft drone engine control system in China and completed technical validation for a drone rescue system [4]

Group 1: Financial Performance - The company achieved a revenue of 70,505.32 million yuan in the first half of 2025, representing a year-on-year growth of 14.08% [1] - The net profit attributable to shareholders reached 6,370.41 million yuan, with a year-on-year increase of 35.31% [1] Group 2: Business Strategy and Development - The company has established a "three-in-one + industrial investment" development strategy, aligning its business with national goals in aviation and technological independence [2] - Significant advancements in product development include the successful evaluation and delivery of various systems such as drone engine electronic control systems and commercial aircraft oxygen systems [2] Group 3: Logistics and Market Position - The company is the first third-party modification company globally for the Airbus EFW A321 passenger-to-freighter project and the only one in China capable of modifying both B737NG and A321 aircraft [2] - An estimated 2,991 new freighters and passenger-to-freighter conversions are expected to be delivered over the next 20 years, with 2,041 passenger aircraft projected to enter the cargo market by 2041 [2] Group 4: Investment and Innovation in Low-altitude Economy - The company completed a strategic investment in "Aosi Technology," focusing on the future of the low-altitude economy and leveraging its technological advantages [3] - The company has developed the first domestic eVTOL simulator and is involved in multiple low-altitude industry standard formulations [3] - Successful development of the first 600 kW turboshaft drone engine control system, with initial deliveries to customers underway [3]

Core Insights - The low-altitude economy in 2024 is expected to be driven by strong policy support, while 2023 has seen significant commercial momentum [1] - EVTOL manufacturers are advancing commercial operations in parallel with airworthiness certification, rather than waiting for certification to be completed [1][4] - 2025 is projected to be the commercial launch year for China's low-altitude economy, with several manufacturers expected to receive confirmed orders [1] Group 1: Commercialization and Orders - EHang has obtained the world's first operational qualification certificate for unmanned aerial vehicles, marking a significant step towards commercial operations [1] - Major EVTOL manufacturers, including Volant, Time Technology, and Pinnacle Aviation, have publicly announced multiple procurement orders this year [1][2] - Pinnacle Aviation has announced four procurement orders this year, with buyers including financial leasing companies and local governments [2] Group 2: Production and Supply Chain - EVTOL manufacturers are ramping up production facilities, with XPeng's flying car manufacturing base expected to be completed by Q3 2025 [2][5] - Financial leasing companies are playing a crucial role in supporting the aviation industry's development by providing funding and participating in market expansion [3][4] - XPeng's flying car manufacturing base has reached 70% completion, with plans for mass production and delivery by 2026 [5][6] Group 3: Battery Technology and Innovation - Battery manufacturers are increasingly focusing on the EVTOL market, with companies like EVE Energy and CATL providing next-generation lithium batteries for XPeng's flying cars [6] - The energy density of aviation batteries is a critical factor for the commercial viability of EVTOLs, with safety and high discharge rates being key requirements [6][7] - New battery technologies, such as semi-solid batteries, are being developed to meet the demands of the EVTOL industry [6][7] Group 4: Emerging Market Opportunities - The development of the low-altitude economy is creating new market opportunities, including EVTOL simulators, which combine features of traditional aircraft simulators with electric aviation [8][9] - Companies are beginning to explore and deliver EVTOL simulation solutions, indicating a growing interest in training and operational readiness for the EVTOL sector [9]

Investment Rating - The industry investment rating is "Positive" [6] Core Viewpoints - The low-altitude economy is experiencing significant support from both central and local government policies, with a focus on funding and scene development to accelerate commercialization [3][19] - The recent issuance of 200 billion yuan in special bonds for equipment updates is expected to benefit low-altitude equipment, including consumer drones and eVTOLs [24] - The low-altitude economy is transitioning from conceptualization to commercialization, with various companies showcasing eVTOL products at the Shanghai Auto Show [19][31] Summary by Sections 1. Weekly Sector Review - The average change in A-share related to the low-altitude economy from April 21 to April 25 was +3.6%, driven by improved risk appetite due to easing tariff expectations [4][11] - Top gainers included Xincheng Technology (+37.2%), Wanfu Ovi (+14.7%), and Guangyang Co. (+13.1%) [11][13] 2. Industry Dynamics - Meituan's self-developed drone received the first nationwide low-altitude logistics operation certificate [22] - The establishment of the Guangzhou Low-altitude Economy Development Company with a registered capital of 300 million yuan aims to support the industry [25] - The first low-altitude economic fund in Sichuan province has been registered, focusing on eVTOL manufacturing [34] 3. Individual Company Updates - Xincheng Technology is developing a low-altitude comprehensive management service platform [36] - Xinnengda has partnered with Aerospace Feipeng to enhance drone performance with high-performance batteries [37] - Jinfeng Co. is collaborating with Tsinghua University to develop a ducted fan propulsion system for flying cars and industrial drones [38] - Yinheng has delivered a prototype electric propulsion system for EHang's new model [41] - Jifeng Technology's controlling shareholder has changed to the actual controller of Shenzhen United Aircraft Technology Co., which specializes in drone development [43]