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]