The industry chain of the low-altitude economy is extremely complex and lengthy, bringing new growth opportunities for related component manufacturers and supporting manufacturers. However, to what extent it can empower the performance of supporting manufacturers, and bring what new opportunities to manufacturers, is one of the topics of current market concern.

Aviation industry supporting manufacturers layout in the low-altitude economy.

How is the market pattern of supporting manufacturers in the low-altitude economy? Where are the competitive points? Vice President Zhao Leino of Beijing Andawell Science & Technology (300719.SZ) told Caijing Network reporters, "There are two dimensions: the first is the original supporting manufacturers within the aviation industry chain, this type follows the logic of the original supply of aircraft parts, and communicates with the main manufacturers; the second is the automotive industry peers, also exploring the field of low-altitude economy, with different directions."

Beijing Andawell Science & Technology belongs to the first type of enterprise, providing system and equipment-level research and development, production, testing, verification, solutions, and ongoing services to customers in defense and civil aviation fields. Currently, the company's main business includes aircraft equipment development, aviation maintenance, development of measurement, control and support equipment, research and development of smart devices, and industrial software development.

Zhao Leino told reporters that the advantage of the first type of manufacturers lies in their understanding of airworthiness regulations and having airworthiness certification experience. As for supporting manufacturers extending from the automotive industry to the low-altitude economy field, the advantage lies in low-price competition, with a different way of amortizing fixed costs compared to supporting manufacturers within the aviation industry chain.

Therefore, as the former, Beijing Andawell Science & Technology faces one of the main competitions in the future, which is automotive supporting manufacturers good at price competition, and they may push down the prices of airborne products by an order of magnitude.

Interestingly, Beijing Andawell Science & Technology recently launched the Product R&D Management Information System SIPDM. "This year, many emerging main manufacturers have appeared in the market, they are relatively advanced in product technology, but weak in airworthiness certification experience. The concept of the SIPDM product is to quickly empower research and development enterprises to enhance their airworthiness certification capabilities." he stated.

It is learned from multiple sources by Caixin journalists that currently, there are a large number of aircraft applying for airworthiness certification, but the certification resources are very limited, requiring a large amount of manpower and time investment. Airworthiness certification requires products to meet corresponding safety and performance standards in various aspects such as design, manufacturing, and testing. Therefore, quick certification means that the aircraft manufacturer can gain a competitive edge in the market deployment.

Limited production quantity of eVTOL affects investment payback period.

At the current stage, beijing andawell science& technology focuses mainly on research and development investment, but is also evaluating investment returns. Zhao Leiluo stated, based on existing mature products, we choose to extend our investment, update and iterate on products to quickly adapt to the needs of low-altitude main aircraft manufacturers. At the same time, there will also be some new installation demands. Overall, the company's products are still in the investment phase. In the long run, this is of great significance to the overall capabilities of the company and its contribution to the entire industry.

The limited quantity of batch production, especially in the low-altitude economic products, is the reason for being unable to enter the payback period quickly. He believes, "Including civil aviation products in the low-altitude economy, the characteristics are small batches, multiple varieties, especially compared to consumer products such as cars, there is a difference of three to four orders of magnitude. Therefore, main aircraft manufacturers and some supporting manufacturers who invest a lot of effort, funds, and testing costs find it difficult to recoup their research and development investment in a short time."

"According to the current level of policy support, I think it will develop very quickly, but the exact return for the enterprise is still uncertain."

Looking ahead, beijing andawell science& technology will focus on R&D management systems and onboard products. Regarding R&D management systems, Zhao Leiluo stated, "Internally, this is an opportunity for digital transformation, and externally, it aligns with current market demand." In the field of onboard products, beijing andawell science& technology not only provides support for the low-altitude economic sector but also serves as a supplier for Commercial Aircraft Corporation of China (COMAC). "The localization of the after-sales market for domestic aircraft, European and American aircraft is also a key focus for the company."

In addition, Caixin journalists have noticed that beijing andawell science& technology is also laying out in the carbon fiber business, and currently has the relevant research and development technology and process capabilities. The company stated that in the field of carbon fiber business, in addition to ensuring the supply of the company's own composite structural components, it has received component manufacturing orders in the aerospace, aviation, drone, and shipbuilding industries.

Previously, beijing andawell science& technology revealed on the investor communication platform that its wholly-owned subsidiary, Tianjin Naisi Te Rui Technology Co., Ltd., is mainly engaged in the research and manufacturing of carbon fiber composite structural components, and the products produced with related processes and technical production can be applied to low-altitude economic related aircraft.