EHang Holdings Ltd. Q1 FY2025 earnings call

Regulatory and Product Milestones

• EHang General Aviation and Heyi Aviation received first Air Operator Certificates for human-carrying pilotless aerial vehicles, entering commercial flight operations phase.
• Next-generation VT35 eVTOL completed final assembly, undergoing full-scale flight testing, with CAAC accepting type certification application.

Operational Highlights

• Delivered 11 units of EH216-S in Q1, revenue RMB26.1 million; Q1 performance affected by seasonal factors, budget approvals, and OC anticipation.
• Expanded and upgraded Yunfu production base, with plans for Hefei and Weihai facilities to support annual 1,000-unit production.
• Two operators granted OCs, starting phased commercial operations; consumer inquiries and orders picking up post-OC.
• Developed infrastructure like vertiports, collaboration with CCIT, and international demos in Spain, Mexico; established UAM centers in various cities.

R&D and Partnerships

• Over 700 patents, R&D team focus; partnership with Tsinghua Alumni Association and University of Zaragoza for innovation ecosystem and safety lab.

Financials

• Total revenues RMB26.1 million, gross profit RMB16.3 million, gross margin 62.4%; operating expenses down QoQ due to cost control, but adjusted net loss RMB31.1 million; maintained full-year revenue guidance of RMB900 million.

In the first quarter, EHang delivered 11 units of its EH216-S, generating revenues of RMB26.1 million. This segment contributed 100% of the total revenue for the quarter.

• Maintained full-year revenue guidance of RMB900 million for 2025.
• Anticipated significant growth in sales and deliveries starting from Q2, with large orders from multiple provinces converting into contracts and deliveries in phased batches from Q2.

Q: Full year revenue guidance of RMB900 million unchanged. Could you give an outlook on which quarter we could see significant growth in sales and deliveries?

A: Q1 performance declined due to seasonal impact, budget finalization, and OC anticipation; but after OC, Q2 delivery volumes and sales improved, with large orders from multiple provinces converting into contracts and deliveries starting from Q2.

Q: On average, how long will it take for an EH216-S owner to get the certificate and how many more operators may get approval this year?

A: EHang General Aviation and Hefei Heyi are first operators; OC issuance clarifies regulations, reducing application timeline for future operators; many customers' operating companies are in application process.

Q: How should EHang stay competitive going forward beyond multi-copter design?

A: Urban Air Mobility markets differ; EH216-S has compact footprint, lower cost, autonomous flight eliminates pilot costs; ongoing tech development like more efficient motors and VT35's progress strengthens competitiveness.

Q: When to expect sales growth and order guidance as of May?

A: Q1 sales impacted by factors, but Q2 orders and clients picked up; maintain full-year RMB900 million guidance; large orders progressing, will disclose when finalized.

Q: Time line for inaugural ceremonies and progress on OC applications from other clients?

A: Guangzhou and Hefei operators in trial operations serving internal and invited passengers; safety paramount; customers with substantial fleets actively preparing OC applications, e.g., Wenchang customer submitted application accepted for review.

Q: Daily revenue, passenger flow, and progress on lift and cruise product airworthiness certification and overseas market expansion?

A: Certified operators in trial operations accumulating data; VT35 assembly complete, undergoing flight testing, CAAC accepted type certification; international demos in Spain, Mexico; plan to launch commercial operations in Thailand with partner's route and site assessments.