EHang Holdings Limited Q2 FY2025 earnings call

CEO Huazhi Hu noted the strong Q2 performance with 68 units delivered, RMB147 million revenue, and over 150 new orders. The EH216S has over 40 operation sites in China and completed over 10,000 safe flights in 2025, with two operators starting trial commercial human-carrying flights. On the supply chain, the company deepened R&D with upstream partners for propulsion and airframe systems, teaming up with Goshen, Hitec, etc., for battery solutions and with Mint Group for airframe systems. For product R&D, the VT35 is progressing well in flight tests and set to debut in September, and there's a collaboration with the Hefei government to establish a VT35 product hub. COO Zhao Wang mentioned Q2 deliveries converted from Q1 backlog, customer base expansion including domestic and international clients. Focus on emergency rescue applications with the EH216 showcased for high-rise firefighting. Operators in Guangzhou and Hefei completed over 700 flights safely, with enhanced commercial service capabilities like ticketing system testing. There's market expansion with partnerships, logistic applications with the VT20 series achieving long-range cargo flight, and manufacturing base expansion planned in China and abroad with international progress via demo flights in multiple countries and partnerships.

In 2025Q2, EHang Holdings Limited successfully delivered 68 units of the EH216 series, generating total revenues of RMB147 million, which is a 44.2% year-over-year growth and a 4.6 times rebound from the previous quarter. The order book in this quarter reflected strong momentum with new orders of over 150 units for the EH216 series. Breaking down the orders, 90% are from domestic customers and 10% are from overseas customers. The EH216S has over 40 dedicated operation sites across China, and in 2025, it completed over 10,000 safe flights without any incidents.

The company adjusted the 2025 full-year revenue guidance to approximately RMB500 million. The focus shifted to providing support services to existing customers for safe commercial operations, moderating the order delivery pace, and it's confident in achieving the adjusted revenue target based on the current order backlog.

Forward-looking statements involve inherent risks and uncertainties where actual results may materially differ from expectations. Risks include regulatory uncertainties, market competition, and challenges in scaling commercial operations.

Q: Tim Yao from Morgan Stanley asked about the reason for the revenue guidance adjustment and OC progress.

A: Zhao Wang stated the adjustment is due to focusing on supporting existing clients for safe operations, not lack of demand. Operators in Guangzhou and Hefei are in the second phase of passenger trial operations, and the company provides technical support for clients' OC applications.

Q: Yong Lin from Bank of America asked about the order backlog breakdown.

A: Conor Chia-hung Yang said 90% of Q2 orders are domestic and 10% are overseas, and there's growing overseas demand.

Q: Fiona Liang from Bank of America asked about the VT20 model.

A: Zhao Wang said VT20 logistic aircraft in Zhuhai don't need airworthiness certification yet, and large models in refinement will pursue certification.

Q: Alan Lau from Jefferies asked about revenue growth and overseas progress.

A: Conor Chia-hung Yang said it's confident in faster growth next year, with Thailand and UAE sandbox tests ongoing for commercial operations.

Q: Rongyan Zhou from Citi asked about the production base expansion.

A: Conor Chia-hung Yang said the Yunfu production base expansion to 1,000 units annual capacity will continue, and CapEx remains unchanged.

Q: Laura Lee from Deutsche Bank asked about the business model and VT35 support.

A: Zhao Wang said the business model is producer plus operation service provider, and the Hefei government's RMB500 million support for VT35 includes orders, investments, and supply chain support.

Q: Yu Chen from Guangfa Securities asked about order breakdown and solid-state battery.

A: Conor Chia-hung Yang said Q2 68 units: 12 domestic, 1 Japan; 150 orders: 90% domestic, 10% overseas. Zhao Wang mentioned solid-state battery R&D progress, including flight time increase and airworthiness application