With the acceleration of the mass production process of flying cars, Guangdong Huitian Aerospace Technology Co., Ltd. (hereinafter referred to as "Xiaopeng Huitian") frequently issued fixed-point notices to suppliers.

On the evening of March 20, Funeng Technology (688567) announced that the company recently received a fixed-point development notice from Xiaopeng Huitian. Xpeng Huitian decided to choose the company as the supplier of high-voltage power batteries, high-voltage connectors and low-voltage connectors for its next-generation prototypes.

Two days ago, on March 18, EVE, another A-share lithium battery listed company, also announced that it had received a designated point from Xiaopeng Huitian, and the products to be supplied were low-voltage lithium batteries for the next generation of prototypes.

Funeng Technology said that this fixed-point is an important achievement of the company's layout in the low-altitude economic field for many years, which will help consolidate its dominant position in related fields and inject new impetus into future growth. However, the fixed-point is not a supply agreement, and from the project fixed-point to the successful mass production, it needs to go through many links such as product quality testing and customer assessment, and whether it can finally obtain customer orders is uncertain, and the impact on the company's operating performance this year is uncertain.

According to public information, the product strategy of Xpeng Huitian flying car is divided into "three steps": the first step is to launch a split flying car "land aircraft carrier", focusing on the flight experience of limited scenes; The second step is to develop high-speed and long-range tiltrotor eVTOL to improve practicability and coverage. Finally, the integrated flying car of land and air will be realized, and the 3D three-dimensional transportation of the city will be constructed, so that the flying car will become a part of daily travel. In November last year, Xpeng Huitian's split flying car "Land Aircraft Carrier" completed the world's first public manned flight, and has received more than 3,000 advance reservations, and plans to start mass production and delivery in 2026.

Funeng Technology has been in the field of low-altitude economy for a long time, and related products have achieved mass production. For a long time, the company has focused on the pouch battery route, which has the performance advantages of high energy density, light weight and high rate, and can well match the needs of low-altitude economic scenarios such as eVTOL, drones, and flying cars.

As early as 2017, Funeng Technology has completed the development of the key technology system of eVTOL batteries; In 2020, samples were supplied to eVTOL customers for the first time and certification was completed; In 2023, the company will mass produce and deliver to the leading low-altitude aircraft customers in the United States, becoming the world's first power battery company to deliver eVTOL products to end customers. In recent years, the company has also successively obtained the designation of domestic customers such as Shanghai Shishi and zero gravity, and has carried out strategic cooperation with Geely Wofei, and actively connected with other domestic leading low-altitude economic customers to meet relevant needs and accelerate the speed of mass production and delivery.

In the view of Funeng Technology, from the perspective of market expectations, the low-altitude economic field is expected to usher in a large-scale volume in foreign markets in three years; The domestic market is currently developing rapidly, and in view of the fact that domestic customers have many special application scenarios and a high degree of acceptance of new energy, it is expected that the market size is expected to expand rapidly in two years, among which transportation applications are expected to advance faster, and the development speed of manned scenarios may be relatively slow.

It is worth mentioning that Funeng Technology is currently promoting the change of ownership of Guangzhou state-owned assets, and the latter's entry is expected to bring more resources to the company, including but not limited to the low-altitude economic field.

According to the change of control plan, Guangdong Hengjian Industrial Control New Energy Industry Equity Investment Fund Partnership (Limited Partnership), a subsidiary of Guangzhou State-owned Assets, intends to acquire 5% of the company's shares held by Farasis Energy, the controlling shareholder of Funeng Technology, and Ganzhou InQuartik, the controlling shareholder of Funeng Technology, and sign a concerted action agreement with Guangzhou Industrial Investment Holding Group Co., Ltd. (hereinafter referred to as "Guangzhou Industrial Control"), which is also controlled by Guangzhou State-owned Assets, and YU, the actual controller of Farasis Energy and Funeng Technology WANG and Keith D. Kepler issued a letter of undertaking not to seek control and abstain from voting.

After the completion of the transaction, the controlling shareholder of Funeng Technology will be changed to Guangzhou Industrial Control, and the actual controller will be changed to Guangzhou Municipal People's Government. At present, some of the above-mentioned transactions have been completed, and other matters are in the process of being progressed normally.

Funeng Technology said that Guangzhou Industrial Control will empower listed companies in multiple ways after becoming the owner. In terms of customer collaboration with car companies, it will help Funeng Technology strengthen its cooperation with Guangzhou Automobile Group and explore cooperation opportunities with other OEMs such as Xiaopeng Motors. In the field of low-altitude economy, Guangzhou Industrial Control will promote the integration of Funeng Technology into the layout of Guangzhou's low-altitude economic development, and strengthen cooperation with Xiaopeng, EHang Intelligence and other enterprises; In the financing link, the state-owned assets will reduce the company's financing costs and ensure the safety of the supply chain.

According to the performance report, affected by product price adjustment and strategic tilt to overseas customers, Funeng Technology's operating income in 2024 will be 11.742 billion yuan, a year-on-year decrease of 28.56%; The net profit was a loss of 321 million yuan, a significant year-on-year decrease. The company said that the narrowing of the loss margin was mainly due to the increase in gross profit, the decrease in expenses, the reduction in asset impairment and the reduction in investment losses.