On August 31, 2024, China UAV released its 2024 semi annual report. The report shows that the company focuses on providing comprehensive solutions for large-scale fixed wing long endurance unmanned aerial vehicle systems that are systematic, multi scenario, and have a full lifespan. It mainly engages in the design, research and development, production, manufacturing, sales, and service of unmanned aerial vehicle systems. During the reporting period, China's unmanned aerial vehicles achieved a revenue of 272.0141 million yuan and total assets of 7508.142 million yuan at the end of the period, a year-on-year increase of 1.98%.
It is worth mentioning that during the reporting period, the company actively implemented the "Work Plan for Improving Quality, Increasing Efficiency, and Emphasizing Returns". According to the relevant announcement, China UAV has completed the implementation of the 2023 annual equity distribution in the first half of the year, with a distribution ratio of 39.49% of the company's net profit for the year. The company continues to share its development achievements with investors through a high proportion of cash dividends, with a cumulative cash dividend of 357 million yuan since its listing two years ago, demonstrating the company's confidence in long-term development.
Enhanced policy support to drive enterprises to expand their global influence
With strong support from national policies, China's unmanned aerial vehicles are facing unprecedented development opportunities. The drone industry, as a high-tech industry and strategic emerging industry encouraged by the country, has received extensive support at the policy level. In particular, in the fourth quarter of 2023, the central government will issue an additional 1 trillion yuan of treasury bond to support post disaster reconstruction and improve disaster prevention, mitigation and relief capabilities. This measure shows that the country attaches great importance to UAVs in the field of emergency rescue, and further expands the emergency rescue market for civilian UAVs.
At the same time, the country is vigorously promoting the development of a low altitude economy led by the drone industry. The 2023 Central Economic Work Conference has clearly set the goal of building strategic emerging industries such as low altitude economy, and for the first time, "low altitude economy" will be included in the government work report as a growth engine for emerging industries at the 2024 National People's Congress and Chinese People's Political Consultative Conference. Local governments have also introduced policies to support the development of the drone industry, providing strong support for its sustained growth.
In terms of technical capabilities, China UAV has been dedicated to the research and development, production, and application of unmanned aerial vehicle systems since its establishment. As a high-tech enterprise and a single champion in the manufacturing industry, the company has continuously increased its research and development investment, accumulated rich experience, and significantly improved its market competitiveness and customer satisfaction.
In terms of product structure, the company has always focused on the development of the high-end drone industry and continuously expanded its product range. The company has developed new products based on market demand, further enriching the existing product platform and meeting the customized needs of different customers, laying a solid foundation for the company's expansion in the global market.
In terms of brand influence, the company has always adhered to the strategy of "serving both domestic and foreign markets with one type of equipment" and successfully created the "Yilong" brand. In the global market for integrated unmanned aerial vehicles, the Wing Loong series of drones is steadily developing, with an increasing number of international users and a gradual expansion of brand influence. In the domestic market, the Yilong-2 unmanned aerial vehicle system has been widely used in emergency rescue, weather modification, meteorological detection and other fields, and has established closer cooperation with relevant units.
Multi domain and all-round capability enhancement, assisting in global market expansion
Not only that, the company took multiple measures during the reporting period to enhance its overall competitiveness, comprehensively improving in various fields such as market development, research and development, production, after-sales service, flight services, customer training, and industry promotion.
Specifically, the company's pterosaur series drones have gained widespread recognition in multiple countries and achieved significant breakthroughs in the domestic market. Especially in the fields of meteorological detection, shadow operation, disaster investigation, etc., the company continuously strengthens its ability to quickly respond to customer needs, laying a solid foundation for the development of specific market users.
In terms of research and development capabilities, the company has established an efficient R&D system with a team led by national leaders and achieved technological breakthroughs in multiple fields. The company promotes rapid iteration and validation of unmanned aerial vehicle systems through agile research and development models, continuously advancing the series development of pterosaur unmanned aerial vehicles and reaching international advanced levels. The construction of the unmanned aerial vehicle innovation platform in Sichuan Province also provides strong support for the improvement of the company's technological innovation capabilities.
In terms of production and delivery, the company has established a complete production line and supply chain system to ensure the production capacity of large-scale drones. At the same time, the company has established a nationwide network of test flight bases with strong flight service capabilities, ensuring the smooth progress of various scientific research and test flight tasks.
In addition, in terms of after-sales service and customer training, the company follows a professional and systematic service concept, fully undertakes after-sales service work, and provides continuous service guarantee throughout the entire life cycle. In addition, the company has established a "menu based" training system to meet the diverse training needs of customers and continuously improve their practical application and maintenance capabilities.
China UAV has also promoted the industrial application of key drone products and facilitated the coordinated development of the entire industry chain by establishing the first drone industry innovation center in Sichuan Province. The company has formed a stable cooperative relationship with suppliers to jointly enhance core capabilities and support the innovation and development of the industry.
According to market research firm Grand View Research, the global drone market is expected to reach approximately $30.4 billion in 2023 and is projected to reach $58.7 billion by 2030, with an average annual growth rate of 10.3%. Under this market opportunity, the company will continue to gather high-quality resources in the drone industry, focus on product innovation, final assembly integration, and customer service, strengthen the technical advantages and leading capabilities of high-end aviation equipment integrators, and steadily promote the company's business development.
