Summary of Key Points
Sichuan-based industrial drone company Tengdun Kechuang has had its IPO application for the GEM (Growth Enterprise Market) accepted, with plans to raise 3.02 billion yuan in funds. Founded by aviation veteran Nie Haitao, the company boasts strong technical capabilities (25 core technologies and multiple internationally advanced products), but it has not yet turned a profit due to high R&D investment. Although its equity is dispersed, it is favored by investors, with a valuation of over 12.2 billion yuan. Sichuan, leveraging its robust aviation foundation, policy support, and capital allocation, has established a comprehensive low-altitude economy industry cluster. Three companies have already gone public in the region, and others such as Wofei Changkong are preparing for IPOs, making it one of the most active areas for low-altitude economy development in China.
I. Tengdun Kechuang's IPO: Strong Technology but Challenges in Profitability
Tengdun Kechuang presents both highlights and challenges:
- Technical Strength: The company owns 25 core technologies, and its drones, such as the Shuangwei Scorpion and Hunjiang Dragon, are well-known in the industry. Its fixed-wing drone market share is approximately 5.79%, with some products reaching international advanced levels.
- Profitability Challenges: As a research-oriented company, Tengdun's R&D expenses have consistently exceeded 55% of its revenue (at times as high as 118.66%), making it difficult to generate profits despite rapid revenue growth.
- Equity Distribution and Control: Although 72 out of 105 shareholders are funds, Nie Haitao personally holds only 1.96% of the shares. However, through ten employee stockholding platforms and agreements with certain shareholders to vote in unison, he controls 23.57% of the voting rights, ensuring firm control over the company.
- Investor Interest: The company has raised nearly 10 rounds of funding, with a valuation exceeding 12.2 billion yuan, ranking it third among low-altitude economy unicorns in China (after DJI and Aerospace Feihong). The use of the fourth set of GEM listing criteria (which do not require profitability) indicates regulatory recognition of its growth potential.
II. The 52-Year-Old Aviation Veteran's Entrepreneurial Journey
Nie Haitao, the founder of Tengdun Kechuang, has a distinguished background in the aviation industry:
- Proven Track Record: Graduating from Nanjing University of Aeronautics in 1986, he worked at the Chengdu Aircraft Design and Research Institute (611 Institute) for 30 years, serving as deputy director and chief designer. He played a key role in the development of fighter jets like the J-10 and Xiaolong.
- Breaking Out of the Comfort Zone: At 52, he left the institutional environment to start his own business, leveraging his aviation expertise to launch the Shuangwei Scorpion series of large drones, expanding into various drone categories and establishing Tengdun as a leading player in the industrial drone sector.
III. Why Sichuan's Low-Altitude Economy is So Promising?
Sichuan's success in the low-altitude economy is not accidental:
- Strong Industrial Foundation: It boasts institutions like AVIC Chengdu Aircraft Industry (Chengfei) and the Sichuan Gas Turbine Research Institute of AECC, along with over 200 low-altitude equipment companies and 1,419 drone operation enterprises. The region has a complete industrial chain from research and development to manufacturing and operations.
- Substantial Policy Support: In 2025, 16 policies were introduced, providing annual funding of 300 million yuan for the development of high-altitude aircraft, medium-to-large drones, and eVTOL (electric vertical takeoff and landing) vehicles. The government also expanded airspace from 7,800 square kilometers in 2017 to nearly 80,000 square kilometers, with plans to cover all 21 cities and prefectures by 2026.
- Fast Capital Inflow: A special fund of 3 billion yuan has been established to attract investment, creating a synergy between policy incentives, capital, and industrial development.
IV. Sichuan's Low-Altitude Economy: A Strong Matrix of Listed Companies
The list of listed companies in Sichuan's low-altitude economy is growing:
- Currently Listed: Zongheng Shares (industrial drones), Zhongwuzhijian (Yilong series drones), Lihang Technology (aviation ground equipment).
- Upcoming Listings: Tengdun Kechuang (GEM), Wofei Changkong (aiming for the STAR Market, potentially becoming the first A-share company in the eVTOL sector).
These companies represent a mature industrial ecosystem in the low-altitude economy.
V. The GEM's Fourth Set of Listing Criteria: A Green Light for High-Growth Innovators
The fourth set of GEM listing criteria is designed to support innovative enterprises:
- Eligibility Requirements: Expected market value of at least 3 billion yuan, annual revenue of at least 200 million yuan, and a compound annual revenue growth rate of at least 30% over the past three years (without focusing on net profit).
- Importance: For tech companies like Tengdun, which invest heavily in R&D and have long profit cycles, traditional listing criteria may not be suitable. These new standards allow such firms to raise funds through IPOs and continue their research and development efforts, accelerating growth. Tengdun is the second company to use these criteria, indicating a more flexible approach from the capital market.
Conclusion
Tengdun Kechuang's IPO reflects Sichuan's robust low-altitude economy, supported by advanced technology, supportive policies, and a well-developed industrial ecosystem. As low-altitude airspace expands and applications (logistics, rescue, tourism) are implemented, more companies are expected to enter the capital market, driving further growth in Sichuan's low-altitude economy.