“Science and Technology Innovation Board Daily”, May 20 (Edited by Song Ziqiao) As for the low-altitude economy, more provinces and cities are participating, and places that have been laid out for a long time have been strengthened once again.

According to a report in the “Rule of Law Daily” today, Guangdong Province and Guangzhou City are currently actively planning to seize strategic opportunities for rapid development of the low-altitude economy, lead and drive the development of new quality productivity, and continue to release policy dividends for the low-altitude economy. To compete for the “trillion-dollar blue ocean” of the low-altitude economy, Guangzhou has promoted the issuance of documents such as the “Guangzhou Low-Altitude Economic Development Implementation Plan” and “2024 Work Plan for the All-Space Unmanned System”, and has already begun legislative work on the “Low-altitude Economic Development Regulations”.

According to the report, at present, Guangzhou has more than 300 low-altitude economy-related enterprises, including Ehang Intelligence and Xiaopeng Huitian, and 69 core enterprises, involving low-altitude industrial chains such as integrated testing, core components and key materials, component manufacturing, satellite navigation communications, and industrial-grade applications. Among them, Xiaopeng Huitian's flying car is expected to be mass-produced and delivered by the end of 2025; GAC Group's flying vehicle “GOVE” completed its first flight in the world on “GAC Science Day” in 2023; Jifei Technology has already operated 110,000 agricultural drones with an operating area of 1.45 billion mu.

In addition, Guangzhou played a series of combo punches to seize the low-altitude economy, connect with the Civil Aviation Administration of China on the Guangzhou Aircraft Certification Sub-Center to settle in Huangpu District, speed up preparations for a low-altitude industry venture capital fund of 10 billion yuan, plan the construction of a Greater Bay Area unmanned systems industry incubation base in Nansha District, plan the construction of a 5-square-kilometer low-altitude economic industrial park in Knowledge City, and make every effort to promote the construction of Guangzhou Class A flight service station...

On the same day, Zhangzhou in Fujian Province held a series of events for the development of the low-altitude economy industry and released “Certain Measures to Promote High-Quality Development of the Low-Altitude Economy Industry in Zhangzhou City”, which provided financial support in three areas: promoting ecological cultivation of the low-altitude economy industry, encouraging the application of low-altitude flight scenarios, and improving the supporting environment of the low-altitude economy industry to promote the high-quality development of the low-altitude economy in Zhangzhou. At the same time, a total of 28 strategic framework cooperation agreements were signed at the event site, and the unveiling ceremony of the Fujian Laboratory of the Zhangzhou Low Altitude Economic Research Institute (preparation) and China Aviation Jincheng Low Altitude Industry Research Center was held.

The low-altitude economy seminar held in Jingzhou, Hubei Province revealed that Jingzhou will focus on five directions, including low-altitude manufacturing bases, low-altitude infrastructure, low-altitude tourism scenarios, low-altitude logistics systems, and low-altitude urban transportation, to accelerate the layout and development of the low-altitude economy, and strive to gradually establish a low-altitude economy industrial chain system by 2027, bringing together 10 leading enterprises and 200 related enterprises, with a total output value of 30 billion yuan.

▍ Local provinces and cities are scrambling to release regulations and policies for the “First City with Low Altitude Economy”

The low-altitude economy is a typical emerging industry. It is a typical example of new quality productivity. It is also an important direction for cultivating new momentum for development. It has the characteristics of innovation leadership, green and low carbon, and integration of numbers and reality.

In terms of industrial layout, local provinces and cities such as Shenzhen, Guangzhou, Hainan, Zhuhai, Hefei, Chongqing, Chengdu, Nanjing, Suzhou, and Hunan are at the forefront, vying to become the “first low-altitude economy city.” China Merchants Securities sorted out the statements on the low-altitude economy in local government work reports and found that Hunan, Guangdong, Sichuan, and Anhui mentioned the low-altitude economy the most in their government work reports, and Guangdong was the most detailed in terms of description. In terms of support, Shenzhen is the strongest in terms of support.

Prior to Guangzhou, Shenzhen promulgated the country's first low-altitude economy legislation, the “Shenzhen Special Economic Zone Low Altitude Economy Industry Promotion Regulations” (“Regulations”) on January 3. The “Regulations” will be implemented on February 1, 2024.

At the time, Lin Zhengmao, deputy chairman of the Legislative Affairs Committee of the Shenzhen Municipal People's Congress and deputy director of the Legal Working Committee of the Standing Committee, explained why legislation was needed. “In recent years, large-scale effects on Shenzhen's low-altitude economy and industry have gradually emerged, but there are still problems such as institutional barriers and insufficient flight service capabilities. It is necessary to pass legislation to clarify coordination mechanisms for low-altitude economic development within the scope of local jurisdiction. This is of great significance in building an important growth pole for future economic development and promoting high-quality economic and social development in Shenzhen.”

“To solve the problems facing the development of the low-altitude economy industry, on the one hand, it is necessary to authorize and support relevant national departments. On the other hand, it is also necessary to pass special economic zone legislation to regulate the collaborative management of airspace and infrastructure construction for low-altitude flights to provide legal guarantees for industrial development.” A relevant person in charge of the Shenzhen Municipal People's Congress Standing Committee said in an interview with Xinhua News Agency.

In addition, policy documents related to the low-altitude economy have recently been issued in many places: on May 15, the Beijing Municipal People's Government issued the “Beijing Action Plan to Promote High-Quality Development of Low-altitude Economy Industries (2024-2027) (Draft for Comments)”; on May 13, the Nanjing Municipal People's Government issued the “Nanjing Implementation Plan to Promote High-Quality Development of the Low-altitude Economy (2024-2026)”; on May 8, the Zhejiang Provincial Department of Finance publicly solicited “Certain Policies and Measures to Support High-Level Construction of Strong Civil Aviation Provinces to Build Highland Factors for Low-altitude Economic Development (Draft for Comments)” Notice.

Huaxi Securities said that Beijing, Nanjing, etc. have made the latest plans on the low-altitude economy and industrial ecology, and the golden period for policy implementation is approaching. China Merchants Securities believes that the current low-altitude economic development is in the phase of resonance between policy introduction and industry implementation.

▍ Three main lines of infrastructure have surfaced

According to the data, during the period of intensive publication of local policies (from the beginning of May to now), the highest increases were related local stocks favorable to the implementation of favorable policies, as well as low-altitude economic infrastructure construction companies related to design consulting and security countermeasures.

Take Beijing as an example. According to statistics from Dongwu Securities, along with the disclosure of the region's low-altitude economic development plan, the low-altitude economy companies in Beijing rose higher from May 13 to May 17. Four of the top 5 companies were Beijing companies. Xinchen Technology, which ranked number one, has always been “obscure” during the previous wave of low-altitude economy, and rose more than 37% two days after the release of Beijing-related policies.

By industry, 40% of companies are design consulting companies, including R&D (ranked second in terms of growth), Shanshui Bide, Suzhou Planning, Beijing Investment Development, etc., accounting for a higher share than companies such as air traffic control systems and complete machinery.

Furthermore, new key points in the policy have also been taken into account. It is proposed in Beijing's low-altitude economy related policies that it is necessary to set a national benchmark for low-altitude security countermeasures. This was the first major mention in the regional low-altitude policy. Individual stocks of China and Low Altitude Defense Company Voice had the highest increase (ranking third in terms of increase).

Dongwu Securities said that in the future, as the number of low-altitude airspace aircraft increases, the difficulty of airspace management will increase dramatically, and it is particularly important to lay out security countermeasures in advance in low-altitude planning.

Open Source Securities said that from a policy perspective, it is expected that all regions will complete industry seminars — action plans — implementation of specific measures in May. It is recommended to focus on local infrastructure design general contracting companies and core industrial chain companies, benefiting targets: Wanfeng Aowei (Zhejiang), Huasheng Group (Nanjing), Suzhou Jiaotong (Guangzhou), Zongshen Power (Chongqing), Shenzhen Transport (Shenzhen), Yingliu Co., Ltd. (Anhui), Hainan Expressway (Hainan);

From an industrial perspective, the implementation of the policy is expected to form a singular moment for industrial development. It is expected that industrial development will gradually advance from low-altitude infrastructure bidding — opening up logistics and tourism scenarios — opening up the C-side scenario. It is recommended to focus on core air traffic control products, logistics, and tourism operation-related companies.

Huachuang Securities proposed focusing on infrastructure and supporting guarantees. The agency said that building a leading low-altitude management and safety system is a top priority. It is recommended to focus on Xinchen Technology and Haite Hi-Tech, in addition to information from leading companies in the field of air traffic control. Other relevant targets include: Beidou/Navigation: Zhongke Star Map, etc.; radar: Narui Radar, Sichuang Electronics, Guorui Technology, etc.; low-altitude planning: Shenzhen-City Transit, Soviet Communications, Huahe Group, etc.; low-altitude security: Tianhe Defense; inspection: radio and television measurement, etc.

According to the “Science and Technology Innovation Board Daily”, these listed companies are actively participating in low-altitude economic infrastructure construction:

1) Design consulting: Wanfeng Aowei, Shenzhen Jiaotong, Suzhou Jiaotong, Huashi Group, CCCC Design, General Design Institute, C&D Synthesis, Zhejiang Jiaotong, Zongshen Power, Yingliu Co., Ltd., Hainan Expressway, Zhongheng Design, Leo Planning, Shenzhen Ruijie, Institute of Construction, Beijing Investment Development, Suzhou Planning, Landscape and Water, Research and Development Institute, etc.;

2) Security countermeasures: Voice Communications Co., Ltd., Anbang Security, Fenghuo Electronics, Lianchuang Optoelectronics, Huali Chuangtong, Daotong Technology, Zhongke Star Map, Narui Radar, Sichuang Electronics, Guorui Technology, Tianhe Defense, radio and television measurement, etc.;

3) Air traffic control: Rice Information, Shenzhen Transit, Sichuan Jiuzhou, Xinchen Technology, Sichuan Zhisheng, Hengtuo Open Source, etc.