The performance of the A-share low-altitude economy sector in the first quarter of 2026 revealed a significant divergence. Among the index constituents, 45 companies reported revenue growth, while 25 experienced a decline, indicating that nearly half of the sector is seeing a split in revenue performance. The competition on the profit front is even more intense, with only 36 companies achieving growth in net profit attributable to shareholders, while 34 saw a decrease, almost matching the number of profitable firms. This reflects the current survival landscape of the low-altitude economy sector: despite sustained interest in the industry, more than half of the companies are still struggling with performance pains due to high R&D costs, uneven paces of commercialization, and mismatched order delivery cycles. The Matthew Effect within the sector is quietly intensifying.
The upstream and downstream segments of the industrial chain also show different development trends. Airframe manufacturers are in the final sprint before commercialization, with performance generally under pressure. Component suppliers exhibit more varied results, though the contribution from low-altitude business remains relatively weak. Among them, Hunan Boyun New Materials Co.,Ltd. (002297.SZ) led the sector with revenue growth of 125.94% and net profit growth of 13,362.43%. However, the company stated that this was primarily due to increased revenue and improved gross margins at its subsidiary Boyun Dongfang. It noted that if prices of key raw materials for hard alloys remain stable, the current high gross margin level for hard alloy products cannot be sustained long-term based on existing inventory and average monthly sales.
Currently, within the A-share low-altitude economy sector, airframe manufacturers are primarily industrial drone companies and traditional general aircraft manufacturers. Most eVTOL companies are still in the pre-IPO stage with significant fundraising and listing guidance efforts. Among eVTOL and general aircraft manufacturers, Citic Offshore Helicopter Co.,Ltd. (000099.SZ) saw slight revenue and profit growth, Sunward Intelligent Equipment Co.,Ltd. (002097.SZ) reported modest revenue growth, while Zhejiang Wanfeng Auto Wheel Co.,Ltd. (002085.SZ) and Avicopter Plc (600038.SH) experienced declines in both revenue and net profit. Avicopter Plc attributed its significant net profit drop mainly to adjustments in tax incentives for VAT additional deductions and a year-on-year decrease in government subsidies received in the first quarter. Zhejiang Wanfeng Auto Wheel Co.,Ltd. noted a reduction of 186 million yuan in net cash paid by subsidiaries and other operating units compared to the same period last year, primarily due to acquisition payments made in the prior year for assets related to Volocopter GmbH and the Binzhou aircraft project.
Among industrial drone companies, Avic (Chengdu) Uas Co.,Ltd. (688297.SH), Chengdu Jouav Automation Tech Co.,Ltd. (688070.SH), and Aerospace Ch Uav Co.,Ltd. (002389.SZ) all saw growth in both revenue and net profit. Avic (Chengdu) Uas Co.,Ltd. reported a revenue increase of 143.59%, stating that the number of product deliveries had risen compared to the same period last year, leading to a significant revenue jump. Aerospace Ch Uav Co.,Ltd. saw an 18.48% revenue increase but a substantial 427.31% surge in net profit, which it clarified was not due to product deliveries but mainly from fair value gains on newly added financial assets held for trading. Overall, first-quarter reports indicate that airframe manufacturers are generally facing short-term performance pressure, with growth momentum not yet fully unleashed, remaining in a phase where "orders lead, and performance follows."
Midstream and upstream companies, represented by firms in carbon fiber, avionics and flight control systems, power batteries, and communication, navigation, and surveillance systems, typically have substantial traditional business bases. Currently, the contribution of low-altitude economy business to their actual revenue and net profit remains relatively small. However, compared to airframe manufacturers, component suppliers in the mid-upstream segment can react more quickly to rising demand, resulting in more divergent performance, with companies holding core technologies beginning to stand out.
Among power system companies, Nanchang Sanrui Intelligence Technology Co.,Ltd. (301696.SZ) and Zhuhai Enpower Electric Co.,Ltd. (300681.SZ) both achieved revenue and net profit growth in the first quarter. Aecc Aviation Power Co.,Ltd. (600893.SH) saw revenue growth without a corresponding profit increase, while Chongqing Zonsen Power Machinery Co.,Ltd. (001696.SZ) and Wolong Electric Group Co.,Ltd. (600580.SH) experienced slight revenue declines. Zhuhai Enpower Electric Co.,Ltd. attributed its significant revenue and profit growth to increased product sales. The company recently revealed in investor relations activities that it has secured multiple project designations from leading domestic and international companies in the low-altitude economy sector, including EHang, Volocopter, Gaoyu, and Ewatt.
In the lightweight materials segment, Weihai Guangwei Composites Co.,Ltd. (300699.SZ) reported revenue growth without profit growth. Zhongfu Shenying Carbon Fiber Co.,Ltd. (688295.SH) saw a substantial revenue increase of 41.09% and returned to profitability, whereas Avic Aviation High-Technology Co.,Ltd. (600862.SH) experienced declines in both revenue and profit. Zhongfu Shenying Carbon Fiber Co.,Ltd. stated that its revenue growth was mainly due to active expansion into downstream application areas leading to increased sales volume. The company also recently disclosed that it has achieved scaled volume in high-growth downstream fields like commercial aerospace and the low-altitude economy.
Among communication, navigation, and surveillance system companies, Beijing Bdstar Navigation Co.,Ltd. (002151.SZ) saw significant growth in both revenue and net profit. However, Shanghai Huace Navigation Technology Ltd (300627.SZ), Guangzhou Haige Communications Group Incorporated Company (002465.SZ), and China Satellite Communications Co.,Ltd. (601698.SH) all reported revenue growth without corresponding profit increases. In the battery system sector, Eve Energy Co.,Ltd. (300014.SZ) achieved growth in both revenue and profit, while Farasis Energy(Gan Zhou)Co.,Ltd. (688567.SH) saw revenue decline but narrowed its losses. Overall, the first-quarter performance growth of component companies benefited more from cyclical recoveries in their core businesses or seasonal effects in the new energy vehicle sector, with the low-altitude economy merely playing an incremental role.
Notably, some component companies are accelerating their expansion into the airframe manufacturing segment of the low-altitude economy. For example, Guangzhou Haige Communications Group Incorporated Company has not only built a low-altitude intelligent network based on its series of communication, navigation, and surveillance terminal equipment but has also directly entered drone manufacturing. Its controlled subsidiary, Xi'an Chida Aircraft, successfully conducted the maiden flight of the flexibly configured heavy-duty drone "Jiutian" on December 11, 2025.
Despite the short-term performance not being fully realized, expansion enthusiasm within the industrial chain has been ignited. Data from the National Bureau of Statistics showed that in the first quarter of 2026, investment in high-tech manufacturing increased by 5.2% year-on-year, with investment in aerospace equipment manufacturing growing by 19%. "Emerging industries represented by the low-altitude economy and future industries like embodied AI and 6G are accelerating their layout, gradually becoming new engines for investment growth," stated Mao Shengyong, Deputy Commissioner of the National Bureau of Statistics.
The first quarter of 2026 saw an explosive period for local government deployments in the low-altitude economy, with intense regional competition characterized by "competing for funds, rushing infrastructure, and vying for application scenarios." Particularly in the Yangtze River Delta, investments and layouts in the low-altitude economy sector blossomed across multiple areas, focusing mainly on three dimensions: industrial park construction, application scenario implementation, and financial capital empowerment.
In terms of cluster development, the "Huzhou City Low-Altitude Economy High-Quality Development Implementation Plan (2025-2027)" aims to achieve an industrial scale exceeding 30 billion yuan by 2027, construct over 100 various takeoff and landing sites, and create more than 50 application scenarios. Regarding capital support, Shanghai's Pudong New District, at its "First Spring Meeting," clarified it would enhance support from a future industry fund totaling 20 billion yuan and listed the research and development of low-altitude aircraft airframes and core components as a primary investment direction.
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