Economic Observer reporter Zhang Rui

With the successive disclosure of semi annual reports by relevant companies, the current landscape of the low altitude economy track is becoming increasingly clear.

As of August 28th, the 2026 semi annual reports released by listed companies in the low altitude economy field, such as China Unmanned Aerial Vehicle (688297. SH), Aerospace Rainbow (002389. SZ), Zongheng Shares (688070. SH), and Yihang Intelligence (NASDAQ: EH), show that on the one hand, military trade and civilian markets are parallel, and industrial drones (currently mostly used in geographic surveying, low altitude inspection, emergency management and other scenarios) have become an important growth engine for the industrialization of the low altitude economy, entering a period of rapid development; On the other hand, the commercialization process of eVTOL (electric vertical takeoff and landing aircraft), which is mainly focused on the "manned" scenario, is not as expected.

Large scale industrial drones

According to the 2026 semi annual reports released by drone manufacturers, Aerospace Rainbow, and Zongheng Shares, during the reporting period, these three companies achieved operating revenues of approximately 1.634 billion yuan, 891 million yuan, and 177 million yuan, respectively, with year-on-year growth of approximately 272.48%, 9.87%, and 31.22%, respectively; In terms of net profit attributable to shareholders of listed companies during the same period, China UAV achieved a year-on-year increase of about 72.87%, Aerospace Rainbow achieved a turnaround from losses to profits, and Zongheng Shares reduced losses by about 30%.

In addition, Jifeng Technology (300022. SZ), which has transformed from traditional agricultural machinery to "low altitude economy+agricultural machinery", also achieved a turnaround from losses to profits in the first half of this year. The company's 2026 semi annual report shows that its low altitude business achieved a revenue of approximately 135 million yuan, a year-on-year increase of approximately 66%.

Both China UAV and Aerospace Rainbow stated in their semi annual reports that the military trade market is the "ballast stone" for the company's performance, while the civilian market space shows a trend of "continuous expansion".

In the report, Aerospace Rainbow further analyzed that currently, driven by the dual needs of national defense intelligence construction and practical training, China's military drone market is showing a development characteristic of steady expansion in scale, independent and controllable industrial chain, and gradually improving system. At the same time, the market's demand for large-scale long endurance monitoring and combat integrated platforms, as well as low-cost, multifunctional, and high payload unmanned aerial vehicles, is becoming increasingly prominent, and related equipment procurement is expected to enter a new stage of accelerated order landing.

In the civilian and low altitude economic fields, the Aerospace Rainbow also sends a positive signal: the application scenarios of medium and large unmanned aerial vehicle systems are continuously expanding, playing an irreplaceable role in surveying, logistics, inspection, emergency rescue and other fields compared to manned and small unmanned aerial vehicles. The drone industry is currently in a critical stage of strategic opportunities, technological breakthroughs, and market expansion. Its development prospects are broad, and the industrial ecosystem will gradually mature and prosper, "said Aerospace Rainbow in the report.

On August 26th, a management representative of a drone company specializing in "smart city inspection business" told reporters that the company's revenue forecast for this year is "a year-on-year growth of 30% to 40%". He also stated that the company is gradually upgrading from a traditional drone equipment manufacturer to a business model of "product manufacturing+operational services".

Zongheng Corporation also stated in its 2026 semi annual report that it will accelerate the deepening penetration of low altitude AI digital solutions with "unmanned system+Zongheng cloud+AI" as the core, in areas such as low altitude counties, smart government, and emergency management, and promote the company's strategic transformation from an "equipment supplier" to a "leader in smart low altitude scenarios".

Since the beginning of this year, several experts in the low altitude economy industry have told reporters from the Economic Observer that although there are still many imperfections in the reform of airspace management and basic infrastructure construction in the current low altitude economy, the industry still maintains good expectations for the market prospects.

EVTOL commercialization temporarily slows down

Compared with the growth trend of industrial drones, the star company in the eVTOL field - Yihang Intelligence's 2026 semi annual report reflects the challenges of low altitude economy in the landing of "manned" scenarios.

According to financial data from Yihang Intelligence, in the first half of 2026, the company achieved a revenue of approximately 104 million yuan, with a net profit attributable to the parent company of a loss of 254 million yuan, an increase of approximately 40% compared to the same period last year.

On the evening of August 25th, Hu Huazhi, founder, chairman, and CEO of Yihang Intelligent, stated in a conference call that due to recent safety incidents, China has taken a more cautious regulatory stance in the field of low altitude safety, which has brought short-term uncertainty to the company's commercialization process. In view of this constantly changing environment, we have decided to withdraw the previously released revenue guidance of 600 million RMB for 2026, "the management of Yihang Intelligence clearly stated in the aforementioned conference call.

An aviation expert told the Economic Observer reporter that "cargo first, then passenger" is the principle of low altitude economic development, and regulatory authorities have always been cautious in their attitude towards low altitude safety. He also believes that the landing of low altitude "manned" scenarios should not be rushed, as the commercialization progress is highly uncertain.

In the face of the current situation, Hu Huazhi mentioned the company's diversification strategy and cost reduction and efficiency improvement work in the above-mentioned meeting. He stated that Yihang's "manned mainline remains unchanged" and is currently promoting the research and development of logistics and firefighting products, as well as scenario verification. In the future, these products will meet market demands such as forest firefighting, port logistics, and emergency support.

The effects of these works will gradually be reflected in the second half of the year, "said Hu Huazhi.

Intensifying competition in overseas markets

Against the backdrop of different development situations faced by industrial drones and eVTOLs, the overseas market is seen by the industry as a common breakthrough point for the low altitude economy, but international competition is also further intensifying.

In early August, a report released by the China Chamber of Commerce for Import and Export of Machinery and Electrical Products showed that China's drone exports have continued to experience a "high prosperity" since the beginning of this year. According to Chinese customs statistics, the cumulative export of drones in China reached 1.633 billion US dollars in the first half of the year, a year-on-year increase of 27.6%; The export volume reached 2.425 million units, a year-on-year increase of 25.9%, of which the export value has achieved year-on-year growth for 21 consecutive months.

Yihang Intelligence stated in its 2026 semi annual report that compared to the domestic market, the company's overseas market has progressed smoothly this year. For example, in the Thai market, the company is expected to obtain a commercial operation certificate this year, which will be an important breakthrough in its overseas commercialization process; The company's core product EH216 series has flown in 23 countries worldwide, completing nearly 100000 safe flights to date.

In terms of military drones, international geopolitical factors are continuously driving demand for overseas military trade. In the 2026 semi annual report, China's unmanned aerial vehicles also pointed out that global geopolitical risks are rising, and the demand for military procurement in various countries is increasing.

China's equipment, with its advantages of high reliability and cost-effectiveness, meets the procurement needs of many countries, and the domestic equipment military trade market, including company products, has ushered in a good opportunity, "said Zhong UAV in the report.

In addition, while overseas markets are unleashing growth opportunities, challenges are also increasing.

The competition in the international drone market has further intensified. "The China Chamber of Commerce for Import and Export of Mechanical and Electrical Products stated in the above report that since 2022, the proportion of developed markets in Europe and America in China's drone exports has continued to decline, with the United States falling from its previous largest export market to tenth place, and its export proportion has narrowed to 3.0%; In the first half of this year, China's exports of drones to the United States and the European Union decreased by 54.1% and 28.5% year-on-year, respectively.

(Author Zhang Rui)