At this year's National People's Congress, the low-altitude economy was once again written into the government's work report:

Carrying out large-scale application demonstration actions of new technologies and products and new scenarios, and promoting the safe and healthy development of commercial spaceflight, low-altitude economy and other emerging industries.

The wave of low-altitude economy is gradually sweeping across the country under the guidance of policies and driven by capital, attracting the attention of many localities, as well as urban investment companies.

It can be seen that this wave is not only popular in first-tier cities, but also penetrates into second- and third-tier cities and even fourth- and fifth-tier cities. Everywhere hopes to occupy a place in the blue sea of low-altitude economy.

01 City Investment Corporation into the low-altitude economy

From the top design, low-altitude economy has risen to a national strategy.

Specifically, local policies mainly involve support and subsidies for infrastructure construction (e.g., navigable airports, take-off and landing platforms), downstream application scenario expansion (opening of logistics and manned flight routes), industry chain cultivation and industrialization, and the landing of enterprise investment projects.

All over the country, from provincial-level administrative regions to key cities, to districts and counties with a forward-looking vision, special working groups on low-altitude economy have been set up to promote low-altitude economy-related work, from industrial development and positioning, functional layout, airspace management reform, infrastructure construction, technological innovation, and application scenario expansion.

In addition to first-tier cities such as Beijing, Shanghai and Guangzhou, there are also many second- and third-tier cities and regions with the following capacity to enter the game, and despite the relatively weak industrial base and economic strength, the enthusiasm for the low-altitude economy has not weakened.

There is no lack of urban investment companies.

Last September, more than 25 urban investment companies in 13 provinces and cities across the country quickly set up subsidiaries in the fields of operation, industrial investment, flight services and transportation technology.

At the end of the year, the National Development and Reform Commission (NDRC) officially launched the "Department of Low Altitude Economic Development," marking a new stage in the development of the low-altitude economy.

Entering 2025, the construction of infrastructure and service facilities for low-altitude economy is in full swing. Shanghai, Hunan, Guangdong, Zhejiang, Inner Mongolia and other places, have set up a low-altitude economy industry development company.

Compared with other types of enterprises, urban investment companies involved in low-altitude economy have several unique advantages:

①Land resources integration ability

Urban investment companies have a close relationship with the government, and can give priority to obtaining infrastructure such as land, factory buildings, warehouses, and transportation equipment, as well as upstream and downstream resources of the industrial chain, such as construction companies and industrial enterprises. With these resources, it can coordinate the planning of infrastructure such as general-purpose airports and drone landing sites.

②Capability of financing

On the one hand, the government backing of urban investment enterprises, it is easier to obtain low-interest loans and financing; on the other hand, the diversification of financing channels, not only from the bank to obtain large-scale credit support, but also through the issuance of municipal bonds, special bonds and other ways to raise funds to support the project landing.

③Regional Influence

Urban investment enterprises have high influence in local urban construction, which is conducive to attracting customers, partners and investment, and also efficiently coordinates complex issues such as airspace approval and community communication.

02What are the specific paths

One is infrastructure operation and ecological construction.

Construction of new low-altitude infrastructure, planning for regional UAV general-purpose airports, take-off and landing points, charging piles, a network of meteorological monitoring stations, and an airspace management platform.

For example, Hefei has taken the Luogang urban air traffic hub port as the core, planned five "15-minute low-altitude intermodal transportation lines" and more than 30 gridded take-off and landing points, and constructed a low-altitude commuting network covering tourist attractions, business districts, and industrial parks, so as to realize that the core area can be reached within 15 minutes.

Relying on the low altitude economy industrial park in Panlong District, Kunming City Investment will join hands with Yihang Intelligence, Xun Ant Technology and other enterprises from the second half of 2024 to realize 32 drone logistics routes and 28 inspection/emergency scenarios within half a year, driving the scale of low altitude economy-related industries to exceed 1 billion yuan and forming an industrial ecosystem of "drones+logistics+city governance+training". "The company has also developed a new industrial ecosystem, which is a new type of industrial ecosystem.

The second is the industrial fund and capital operation.

In order to crack the funding problem, urban investment companies can set up industrial funds, issue green bonds and other financial instruments.

For example, Hunan Low Altitude Economy Group has set up a special industry fund of 2 billion yuan, using the mode of "state capital to lead + social capital to follow up", focusing on investment in aviation new materials, air traffic control technology and other core areas, has successfully incubated a number of valuation of more than 500 million yuan of unmanned aerial vehicles core parts and components of the enterprise.

The model of "urban investment + technology enterprise + operation company" can also be constructed: urban investment is responsible for infrastructure and capital, technology enterprises provide technical solutions, and operation companies develop the market.

The cooperation between Shenzhen Yantian City Investment and Meituan and Fengyi Technology has verified the feasibility of this model.

Third, innovative application scenarios and models.

Application scenarios can be developed in a gradual manner based on local characteristics.

Specifically, short-term focus on logistics and distribution, emergency rescue and other mature scenarios, medium-term expansion of urban air transportation (UAM), and long-term layout of low-altitude digital twins and other cutting-edge areas. It is recommended to set up a 3-year action plan and allocate resources in phases.

For example, in terms of logistics and distribution, Shenzhen and Zhuhai have joined hands to open the "air cab" route, which takes only 20 minutes each way, and is controlled by the Guangzhou Urban Investment-led construction of the air traffic command system, which realizes the docking of the flying car and the urban traffic.

For second- and third-tier cities and the following level of competence, want to use the urban investment company in the low-altitude economy trillion market to stand firm, need to combine the industrial base and location development advantages, according to local conditions into the investment work, to avoid blindly follow the trend.

03 Finding the right direction is the key

There are two types of development style compelling: scene investment, characteristics of the track investment. Separately applicable to different levels of places, providing guidelines for the landing of low-altitude economy.

First, let's take a look at the scene investment, which is mainly applicable to second-tier or provincial capital cities.

The focus of investment in these cities can be placed on three aspects.

One is the regional distribution centers of logistics giants, such as the provincial drone logistics hubs of companies such as SF and Jingdong;

The second is the leading companies in the field of emergency equipment, such as the introduction of drones, long endurance inspection equipment manufacturers;

The third is the navigation operation service providers, which are committed to fostering the localization of low altitude sightseeing, flight training and other operators.

Can implement order front commitment strategy, take Ezhou as an example, they signed a 3-year emergency material delivery framework agreement with Zhongke Lingdang, integrating the demand for forest fire prevention, medical material airdrop, etc., to form an annual average of 12-15 million yuan of stable orders;

Superimposed on the capacity reserves of Central China's Emergency Material Assembly and Distribution Center, relying on the 1-hour aviation circle of the Huahu Airport, to build a The normalized scenario of "logistics in normal times + emergency response in times of disaster" is constructed by relying on the 1-hour aviation circle of Huahu Airport.

In 2024, the production base of Zhongke Lingdang in central China landed, driving the output value of the UAV industry chain in Ezhou to surge by 120% year-on-year.

Revisit the featured track investment, which applies to third- and fourth-tier cities and counties.

The focus of investment promotion in such cities can be focused on two types of enterprises:

One is the regional service center of agricultural drone service providers, such as DJI Agriculture, Extreme Flying Technology and other enterprises; the other is the special drone manufacturer, which focuses on firefighting, inspection, and other vertical segments of the specialization of new enterprises.

In investment practice, the whole county can be implemented to promote the model, for example, Fuyang, Anhui Province, the city coordinated, covering 85% of the administrative villages to implement drone plant protection operations, completed 5.12 million acres of operating area in three years;

Through the opening up of farmland data and agronomic station resources, to successfully attract JIUFI Technology to set up an operation center in northern Anhui Province to achieve the single aircraft daily operating capacity jumped to 800 acres.

Anji County, Zhejiang Province, for example, has adopted the strategy of "resource replacement industry" to take the 120-meter high normalized test flight airspace of bamboo forest area and forestry pest data as the bargaining chip, and reached a strategic cooperation agreement with Yihang Intelligence in 2023: the enterprise invested in the construction of bamboo altimetry and pest identification of special drones production bases.

In 2024, 300 bamboo area inspection drones will be delivered, occupying 65% of the national bamboo forest market, and driving 80 million yuan of new orders from local sensor companies.

Therefore, the second and third tier and the following energy level cities should grasp their own characteristics, through the scene of investment and the characteristics of the track investment two-pronged, in the low-altitude economy market to open up new horizons.

Low-altitude economy is a new industry spawned by technological innovation, and a good opportunity to reshape the value of urban space.

City investment companies can not only realize the transformation from "land developers" to "sky service providers" by engaging in the low-altitude economy, but also inject new productivity into urban development.

When the drones are flying in the sky, it is the starting point for CIC to redraw the blueprint of the city's future.