The low-altitude economy is most afraid of two things: one is that they only talk about the scene and don't see orders; the other is that they only see prototypes and no production schedules. An announcement from Dragon Wing Aviation Technology (00918) on the evening of November 9 happened to be on these two pain points.
The Zhitong Finance App learned that Dragon Wing has recently signed a sales framework agreement with Shanghai Dexin Aviation Technology to supply 15, 18, 20, and 22-inch multi-specification FPV drone systems over the next two years, with an estimated total of 20,000 units, with a total framework value of about RMB 131.5 billion.
According to the average price estimate, a single set is about 6,575 yuan — this is not a high-passenger unit price logic for heavy-duty fire fighting machines, but a new narrative of the number of industrial-grade standards — marks the company's drone business, officially moving from a customized project model to a new stage of standardized batch mass production.
For a long time, Dragon Wing Airlines' drone business has centered on customized government and enterprise projects, focusing on segmented tracks such as high-altitude fire fighting, emergency rescue, and industrial surveying and mapping. Technical barriers are solid and product reliability is outstanding, but due to the characteristics of customized production, there are industry pain points where orders are scattered, delivery cycles are long, and revenue fluctuations are high, making large-scale profitability difficult to release.
The significance of this framework agreement is not the amount itself, but that the product has been abstracted into a reusable SKU: multi-size coverage, two-year flexible supply, and batch procurement. It means that Dragon Wing is upgrading drones from “customized solution attachments” to “industrial hardware that can be scheduled, stocked, and repurchased.”
For the manufacturing side, the amount of framework brings visibility to production plans, dilution of the supply chain, and increased yield; for the commercial side, it is moving from “waiting for tenders” to “entry channels.” This is a sign that low-altitude economy companies have actually crossed the commercialization threshold.
The significance behind the emergence of Shanghai Dexin Wing as a buyer is interesting.
Although this framework agreement is not a final procurement commitment, the buyer is willing to lock in an estimated volume of 20,000 units for two years, indicating that a stable demand pool has emerged downstream — possibly industry integration, operation and maintenance training, security inspections, cultural tourism racing, or regional low-altitude operation platforms.
For Longyi, this is a “0 to 1” credit endorsement: run through a framework customer first, then replicate the same template to fire integrators, low-altitude service providers, local state-owned platforms, and even overseas channels.
Combining the company's previous actions at training centers and manufacturing bases in Jining and Tonghua, Longyi's industrial chain position is being reshaped — fire fighting is a sharp knife, and standard product shipments are the chassis.
From an industry perspective, this cooperation has strong market demonstration and replication value.
At a time when domestic low-altitude consumption, drone racing, youth aviation training, and cross-border civil trade are growing rapidly, this benchmarking cooperation will form a good brand endorsement, help the company quickly develop more channel and trade customers, and promote the continuous expansion of the standardized drone business — this is also expected to drive the company's capital market valuation and pricing.
In terms of performance analysis, the company's total revenue for the 2026 fiscal year (ending March 2026) was approximately HK$104.5 million, of which the drone business was HK$34.1 million, an increase of 27% over the previous year, and the division's gross margin was about 52%.
If $131.5 million were confirmed over two years, the annualized amount would be about $65.75 million (equivalent to about HK$70 million), which is close to double the annual revenue of the current drone business. Even if only 30% to 50% is confirmed according to the pace of delivery, it can significantly increase the revenue and gross profit of the drone sector next year.
However, it must be emphasized that the framework agreement ≠ confirmed revenue, and there is a possibility that batch procurement will be delayed, average price will decline, and gross margin will be pressured. It is good for “revenue visualization” in the short term, and only at the “inflection point of profit” in the medium term.
The low-altitude economy enters the second half of 2026, and the logic is changing: the policy dividend period depends on “who can fly”, and the commercial implementation period depends on “who can deliver”.
Therefore, the value of the Longyi framework agreement is not a paper valuation of 131.5 million, but rather that it translates “technical ability” into “supply chain language.” When drone companies start talking about production schedules, repurchases, and channels, the industry really flew from the demonstration site to the market.
Over the next few quarters, delivery data will be more honest than conceptual.