1 Introduction to the Project

1.1 Project background

1.1.1 Product introduction

A helicopter is an aircraft that relies on engine driven rotors to generate lift, longitudinal and transverse tension, and control torque. It can take off and land vertically, hover in the air, and fly forward, backward, left, and right. Helicopters, as one of the most distinctive creations of aviation technology in the 20th century, greatly expanded the application scope of aircraft. Helicopters are typical dual-use products that can be widely used in various fields such as transportation, patrol, tourism, and medical rescue. ‌

Drones are unmanned aircraft operated by radio remote control equipment and self-contained program control devices, or autonomously operated by onboard computers completely or intermittently. Drones can be divided into military and civilian applications according to their respective fields of application. Military drones are divided into reconnaissance aircraft and target drones. Civilian drones have applications in various fields such as aerial photography, agriculture, crop protection, selfies, express transportation, disaster relief, wildlife observation, infectious disease monitoring, surveying, news reporting, power inspection, and disaster relief.

The project aims to build a helicopter and drone manufacturing aviation industry park in Zhenlai County, mainly producing two-seat ZH281 helicopters, two-seat ZH281A helicopters, and ZHU11 large unmanned helicopters (with a load capacity of over 300 kilograms).

1.1.2 Market prospect

(1) Overview of the low altitude economy industry

Low altitude economy is a comprehensive economic form that is driven by various low altitude flight activities of manned and unmanned aerial vehicles, radiating and driving the integrated development of related fields. Low altitude economy is widely reflected in the primary, secondary, and tertiary industries, playing an increasingly important role in promoting economic development, strengthening social security, and serving national defense.

From the perspective of application scenarios, low altitude economy can be divided into urban scenarios (urban air traffic) and non urban scenarios (operational flights in remote areas such as industry, agriculture, forestry, fisheries, and construction, as well as flight activities in medical rescue, disaster relief, meteorological exploration, ocean monitoring, scientific experiments, education and training, culture and sports, etc.).

The low altitude economy industry is divided into four major sectors, mainly including low altitude aircraft manufacturing (aircraft manufacturing), low altitude operation services, low altitude infrastructure construction, and low altitude flight support. Low altitude aircraft manufacturing (aircraft manufacturing) includes complete aircraft, flight control systems, power systems, onboard systems, materials, components, molds, and parts, etc; low altitude operation services include helicopter operations, low altitude standards, drone operations, low altitude logistics, low altitude operations, etc; the construction of low altitude infrastructure and low altitude flight support includes information infrastructure, low altitude planning, flight training, testing and inspection, ground support, and other aspects.

The low altitude economy has a long industrial chain and a wide radiation range. The upstream mainly consists of raw materials (including metal raw materials, special rubber and polymer materials, etc.) and core components (including batteries, motors, flight control, aircraft bodies, etc.) for building various low altitude products in the midstream; The midstream mainly includes low altitude product manufacturing, low altitude flight, low altitude support, and comprehensive services; The downstream mainly includes operations and various application scenarios (including tourism, logistics, cultural tourism, and inspection industries, etc.).

(2) The development history of China’s low altitude economy industry

① Early stage (before 2010)

At this stage, the low altitude economy is still mainly at the conceptual level. Due to technological and policy limitations, low altitude flight activities are relatively limited and mainly concentrated in specific fields such as military reconnaissance and attack. The technology of civilian unmanned aerial vehicles is not yet mature, and its market application is relatively limited.

② Concept proposal and exploration stage (2010-2020)

Concept proposal: In 2010, the term “low altitude economy” was first proposed by Zhou Qiaohong, doctoral supervisor of the University of the Chinese Academy of Sciences. In the following decade, researchers began to elaborate and explore the concept definition and industrial composition of low altitude economy from different perspectives and using different methods.

Technological breakthrough: At this stage, significant breakthroughs have been made in drone technology. With the continuous improvement of drone technology and the reduction of costs, commercial drones are gradually entering the market. The application of unmanned aerial vehicles in fields such as aerial photography, agricultural crop protection, and environmental monitoring is gradually emerging.

Policy exploration: National and local governments have also begun to explore policies for the low altitude economy. For example, some local governments have introduced regulations on drone flight management to standardize drone flight activities. At the same time, some research institutions and enterprises have begun to explore business models and profit channels for low altitude economy.

③ Policy promotion and rapid development stage (2021-2023)

Policy Promotion: In 2021, the Central Committee of the Communist Party of China and the State Council issued the Outline of the National Comprehensive Three dimensional Transportation Network Plan, which for the first time incorporated the concept of “low altitude economy” into national planning and explicitly proposed the development of low altitude economy. The introduction of this policy provides important policy support and guidance for the development of China’s low altitude economy industry. Subsequently, various types of drone companies emerged one after another, and the market began to develop rapidly. The drone industry has become a strategic emerging industry during the 14th Five-Year Plan of China, and it has become an important engine for the development of the “low altitude economy”.

Rapid market development: Driven by policies, the low altitude economy market has begun to develop rapidly. The number of drone companies has significantly increased, and the variety and quantity of drone products have also grown rapidly. The application of drones in areas such as aerial photography, logistics distribution, and public services is becoming increasingly widespread.

Technological innovation: With the continuous advancement of technology, the functionality and performance of drones are also constantly improving. For example, drones are beginning to have longer endurance, higher payload capacity, and more stable flight performance. These technological innovations provide strong technical support for the development of low altitude economy.

(3) The current situation and forecast of China’s low altitude economy market

From the current development status of the domestic low altitude economy industry, China has made significant progress in this field. At the policy level, the country has introduced a series of policy measures in recent years to support the development of the low altitude economy, including the opening of low altitude airspace and support for aircraft research and manufacturing. With the rise of low altitude economy worldwide, more and more provinces are recognizing the enormous potential of this emerging industry and using it as a new engine to promote regional economic development. In China, the development of low altitude economy has become a part of the national strategy, and local governments at all levels have responded to the call of the central government to actively explore and promote the localized development of low altitude economy.

In terms of technological applications, China’s low altitude economy industry has also shown a vigorous development trend, making significant progress in the fields of unmanned aerial vehicles, artificial intelligence, advanced communication, and materials. Especially, the civilian unmanned aerial vehicle industry has developed rapidly and is in a leading position globally. The rapid development of 5G, Beidou satellite navigation, big data, and other technologies has provided technical support for the widespread application of new low altitude infrastructure and low altitude aircraft. According to data released by the Civil Aviation Administration of China, as of the end of 2023, China has over 1.26 million drones, a year-on-year increase of about 32%. The application of drones in agriculture, logistics, aerial photography and other fields has become increasingly mature, providing strong support for the development of the industry. In addition, with the development and application of new aircraft such as electric vertical takeoff and landing vehicles (eVTOLs), the application scenarios of low altitude economy will be further expanded, injecting new vitality into the industry's development.

In terms of industrial scale, the number of low altitude economic enterprises in China has shown a continuous growth trend. At present, the low altitude economy industry chain in China has taken initial shape, including multiple links such as aircraft research and development, flight service support, and infrastructure construction, laying a solid foundation for the further development of the low altitude economy. By the end of 2023, 449 general airports and 32 flight service stations have been built and registered nationwide. China has over 440 drone routes, and technologies such as 5G-A, artificial intelligence, and satellite communication are being applied to the construction of low altitude economic infrastructure. According to data released by CCID Consulting, a subsidiary of the Ministry of Industry and Information Technology, as of February, 2024, there are over 57000 enterprises in China’s low altitude economy sector. The number of newly established enterprises in the past five years has reached nearly 21000, and the proportion of enterprises established in the past decade is close to 80%. The Research Report on the Development of China’s Low altitude Economy (2023) shows that the scale of China's low altitude economy will reach 505.95 billion yuan in 2023, with a growth rate of 33.82%. With the increasing number of low altitude flight activities, the driving effect of low altitude infrastructure investment is gradually emerging. In the next few years, China’s low altitude economy will continue to maintain a rapid growth trend. It is expected that by 2026, the scale of low altitude economy is expected to have exceeded one trillion yuan, reaching 1064.46 billion yuan. Among them, the manufacturing of low altitude aircraft and low altitude operational services contribute the most to the scale of low altitude economy, accounting for nearly 55%; the contribution brought by economic activities such as supply chain, production services, consumption, and transportation is close to 40%, while the development potential of low altitude infrastructure and flight support has not yet been fully realized.

In the future, there is hope for more breakthroughs in the management system and policies and regulations of low altitude airspace, providing more policy support for the development of low altitude economy. The further application of technologies such as 5G-A, artificial intelligence, and satellite communication will promote the upgrading and improvement of low altitude economic infrastructure, enhance the efficiency and safety of low altitude flight. With the continuous expansion of application scenarios, the demand for personalized tourism and diversified logistics is increasing, and the scale of the low altitude economy market will further expand. The low altitude economy will further promote the integrated development of the primary, secondary, and tertiary industries, especially in the fields of medical, meteorological, and agricultural applications, which will be more extensive. Under the dual promotion of national policies and market demand, the low altitude economy has broad prospects for future development. Technological innovation and market expansion will provide strong impetus for the development of the low altitude economy.

The helicopter and drone manufacturing aviation industry park constructed by the project mainly produces two-seat ZH281 helicopters, two-seat ZH281A helicopters, and ZHU11 large unmanned helicopters (with a load capacity of over 300 kilograms), with good market development prospects.

1.1.3 Technical analysis

The project establishes a research team and conducts research and innovation in the structure, materials, and processes of helicopters and drones in response to market demand. The project adopts the modern production technology and automated production lines to improve production efficiency and quality. The project introduces advanced testing instruments and equipment to achieve product quality control and improve testing accuracy.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

In December, 2017, the Ministry of Industry and Information Technology issued the Guiding Opinions on Promoting and Regulating the Development of Civil Unmanned Aerial Vehicle Manufacturing Industry to promote and regulate the development of civil unmanned aerial vehicle manufacturing industry. The guidance proposes that the scale, technological level, and enterprise strength of the civilian drone industry should continue to maintain an international leading trend, establish and improve standards, testing and certification systems, and industrial systems for civilian drones, and achieve safe, controllable, and healthy development of civilian drones.

In August, 2018, the Civil Aviation Administration of China and the National Development and Reform Commission jointly issued the Opinions on Promoting the Orderly Development of General Airports, proposing to enhance the service guarantee capabilities of existing aviation aircraft training general airports, pay attention to the integration with upstream and downstream industries such as aviation manufacturing and general aviation consumption, and develop a multi type and multi-level aircraft training system for fixed wing aircraft, rotary wing aircraft, drones, and other types.

In February, 2021, the Central Committee of the Communist Party of China and the State Council issued the Outline of the National Comprehensive Three dimensional Transportation Network Plan, which for the first time included “low altitude economy” in national planning. By 2023, more than 16 provinces across the country have included “low altitude economy” in their government work reports.

In January, 2022, the 14th Five-Year Plan for the development of civil aviation proposed to encourage the expansion of drone applications, support drone services in postal and express logistics, urban public services, emergency rescue, public health and other fields, promote the promotion and application of drones in urban, rural and remote areas, integrate into the county-level and rural three-level logistics network system, and serve the modernization of agriculture and rural areas.

In February, 2022, the Civil Aviation Administration of China issued the 14th Five-Year Plan for the Development of General Aviation, which clarified the development goals, main tasks, and key projects of China’s general aviation industry, providing a clear direction for the development of the drone industry. The development goal proposes that by 2035, the drone industry ecosystem will have been basically established. It will expand the application field of drones, guide the establishment of a market-oriented and socialized service guarantee system, and vigorously develop a low altitude new economy driven by new intelligent unmanned aerial vehicles.

In March, 2024, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance, and the Civil Aviation Administration of China jointly issued the Implementation Plan for Innovative Applications of General Aviation Equipment (2024-2030), which pointed out that by 2030, a new development model of the general aviation industry characterized by high-end, intelligent, and green features will have been basically established to support and ensure the safe and efficient operation of the “short distance transportation+electric vertical takeoff and landing” passenger transport network, the “trunk-branch-terminal” unmanned aerial vehicle distribution network, and the low altitude production operation network that meets the needs of workers and farmers. General aviation equipment will be fully integrated into various fields of people’s production and life, becoming a powerful driving force for low altitude economic growth and forming a trillion level market scale.

In 2019, the People’s Government of Jilin Province issued the Notice on the Policies to Support the Development of the General Aviation Industry (JZBF [2019] No. 1), accelerating the development of the general aviation industry, promoting deep integration between military and civilian sectors, and promoting high-quality economic development throughout the province.

The 14th Five-Year Plan for National Economic and Social Development and Long-range Objectives of Jilin Province 2035 proposes to build an industrial cluster with Changchun and Jilin as the core, develop general aircraft assembly, onboard equipment, ground equipment, and aviation simulation training equipment, establish a comprehensive aviation maintenance and support center in the north, and construct an operational pattern integrating low altitude tourism, education and training, aviation sports, and general aviation passenger and freight transportation.

(2) Resource advantages

The total area of jurisdiction in Zhenlai County is 4718.69 square kilometers. The county has a total of 187300 hectares of arable land, 404.19 hectares of garden land, 40300 hectares of forest land, 41100 hectares of grassland, 13800 hectares of urban and industrial land, 9563.47 hectares of transportation land, 95200 hectares of water bodies and water conservancy facilities, and 84200 hectares of other land. It has adequate industrial and construction land.   

Zhenlai County has abundant power resources, with a clean energy development area of 600 square kilometers. The total installed capacity of thermal power and clean energy within a radius of 100 kilometers is 3 million kilowatts, with a full load power generation of 16 billion kilowatt hours. The total electricity consumption of the society is 5 billion kilowatt hours, and the annual surplus electricity is 11 billion kilowatt hours. It is one of the first batch of clean energy demonstration cities and wind power local consumption demonstration areas in China.

(3) Location advantages

Zhenlai County is located at the junction of the three major resource provinces (regions) of Heilongjiang, Jilin, and Inner Mongolia, and is known as the “three provinces where the rooster crows”. Within a radius of 200 kilometers, it is surrounded by five prefecture level cities (Songyuan, Baicheng, Qiqihar, Daqing, Ulanhot) and five regional airports, and is only 40 kilometers away from Baicheng Airport. There are two railways and two highways intersecting within the territory, making it an important “hub-type” city at the junction of Heilongjiang Province, Jilin Province, and Inner Mongolia. It is a must pass place for Inner Mongolia and Heilongjiang to enter the country, with convenient transportation and developed logistics, and has strong advantages in radiation and driving.

(4) Talent advantages

There are several research institutes in Baicheng City, including the Academy of Agricultural Sciences, the Academy of Forestry Sciences, the Agricultural Machinery Research Institute, the Livestock Research Institute, and the Research Institute. There are 40873 professional and technical personnel, including 6898 with senior professional titles, 18409 with intermediate professional titles, and 15566 with junior professional titles.

In 2023, Baicheng City issued the 20 Measures on Strengthening and Improving the City’s Talent Work, based on regional advantages, maximizing the utilization of local talent resources, accelerating the construction of three teams of expert strategic talents, practical local talents, and technical blue collar talents, and providing strong talent guarantee for the comprehensive construction of a socialist modernized new Baicheng.

1.2 Contents and scale of project construction

1.2.1 Product scale

The project mainly produces two-seat ZH281 helicopters, two-seat ZH281A helicopters, and ZHU11 large unmanned helicopters (with a load capacity exceeding 300 kilograms). The project will reach production capacity in the year, with an annual output of 600 helicopters and drones.

1.2.2 Construction contents of the project

The project aims to construct an aviation industry park for the production and manufacturing of helicopters and drones, covering an area of 200000 square meters and a building area of 180000 square meters. The main buildings to be built include a production and research center, experimental center, office building, production workshop, warehouse, etc. Production equipment will be purchased, and supporting facilities such as water, electricity, heating, ground hardening, and greening will be constructed.

1.3 Total investment of the project and capital raising

1.3.1 Total investment of the project

The total investment of the project is 2 billion yuan, including the construction investment of 1.9 billion yuan and current funds of 100 million yuan.

1.3.2 Fund raising

Self-financing by the enterprise

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 1.5 billion yuan, its profit will be 500 million yuan, its investment payback period will be 7.0 years (after the tax, including the construction period of 3 years) and its return on investment will be 25.0%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

The project is conducive to promoting the layout of the aviation industry in Jilin Province, actively cultivating and strengthening the main body of the low altitude economy, empowering the transformation and upgrading of traditional industries with technology, accelerating the formation of China’s low altitude economy innovation ecology, and making every effort to create a model for the development of the low altitude economy, promoting the development of the low altitude economy. The construction of the project not only promotes high-quality economic development, but also creates employment opportunities, with significant economic and social benefits.

1.5 Cooperative way

Sole proprietorship or joint venture

1.6 What to be invested by the foreign party

Funds, equipment or technology

1.7 Construction site of the project

Zhenlai County, Baicheng City

1.8 Progress of the project

The project proposal has been prepared.

2 Introduction to the Partner

2.1 Basic information

Name: Zhenlai Project Development Service Center

Address: 1777 Xinxing South Street, Zhenlai Town, Zhenlai County, Baicheng City

2.2 Overview

Zhenlai County is located in the northwest of Jilin Province, at the junction of Jilin, Heilongjiang, and Inner Mongolia (regions), and is a convergence zone of the Songnen Plain and the Horqin Grassland. To the east is the Nenjiang River, facing Duerbote Mongolian Autonomous County and Zhaoyuan County in Heilongjiang Province across the river, to the west is Ulanhot City in Inner Mongolia Autonomous Region, to the north is Tailai County in Heilongjiang Province and Zhalaite Banner in Inner Mongolia Autonomous Region, and to the southwest and south are adjacent to Baicheng City, Da’an City, and Taobei District, respectively. Zhenlai County has obvious advantages in location and transportation. With Zhenlai County as the center and a radius of 500 kilometers, it can comprehensively cover industrial cities and resource rich areas in the northeast region.

In 2023, the county’s GDP reached 9.48 billion yuan, a year-on-year increase of 6.6%; fixed assets investment reached 2 billion yuan, up 23.6% year on year; the total output value of industrial enterprises above designated size reached 2.7 billion yuan, a year-on-year increase of 9%; the added value of industrial enterprises above designated size reached 780 million yuan, a year-on-year increase of 7%; the total retail sales of consumer goods reached 1.42 billion yuan, a year-on-year increase of 7%; the local level fiscal revenue reached 400 million yuan, a year-on-year increase of 20%; the per capita disposable income of urban residents increased by 8% year-on-year; the per capita disposable income of rural residents increased by 9% year-on-year.

2.3 Contact method

2.3.1 Contact method of the partner

Contact unit: Zhenlai Project Development Service Center

Contact person: Tian Tian

Tel: +86-15886168765

2.3.2 Contact method of the city (prefecture) where the project is located:

Contact unit: Baicheng Bureau of Commerce

Contact person: Xu Zengchun

Tel: +86-436-3203010 

    +86-13894682986

E-mail: bcjhj07@126.com