EHang Holdings Limited Q1 2023 Operational & Financial Highlights May 31, 2023 ...

Corporate Structure and Regulatory Environment - EHang Holdings is a Cayman Islands holding company conducting operations in China through its subsidiaries, with foreign investment in commercial aviation being restricted under PRC laws[12]. - The contractual arrangements with the VIE may not be as effective as direct ownership, potentially limiting operational control[13]. - The shareholders of the VIE may have potential conflicts of interest that could materially affect the company's business and financial condition[12]. - The VIE's contractual arrangements are governed by PRC laws, which may limit the company's ability to enforce these arrangements effectively[89]. - The company may face material and adverse tax consequences if the PRC tax authorities determine that the contractual arrangements were not entered into on an arm's length basis[91]. - The legal system in the PRC is not as developed as in other jurisdictions, which could limit the company's ability to enforce its rights under the contractual arrangements[89]. - The company may have to rely on legal proceedings to resolve conflicts of interest with the VIE's shareholders, which could be expensive and time-consuming[88]. - The PRC government's oversight could lead to material adverse changes in operations and the value of the ADSs[94]. - Uncertainties in the interpretation and enforcement of PRC laws may affect the company's compliance and operational stability[96]. - The company may face challenges in obtaining necessary permits or licenses for conducting business in China under evolving regulations[98]. Financial Performance and Capital Structure - Total revenues for EHang Holdings reached RMB 180,093 thousand, with third-party revenues contributing RMB 146,905 thousand, representing a significant increase compared to previous periods[23]. - The gross profit margin was reported at 35.9%, with gross profit amounting to RMB 106,179 thousand, indicating a strong performance in cost management[23]. - Operating loss for the period was RMB 91,296 thousand, reflecting an increase in operating expenses which totaled RMB 204,051 thousand[23]. - The net loss attributable to ordinary shareholders was RMB 276, indicating challenges in achieving profitability despite revenue growth[23]. - EHang Holdings incurred net losses of RMB 92.0 million, RMB 313.9 million, and RMB 329.3 million (US$ 47.7 million) in 2020, 2021, and 2022 respectively, with net operating cash outflows of RMB 151.7 million, RMB 121.6 million, and RMB 173.5 million (US$ 25.1 million) in the same years[45]. - The company reported a net cash decrease of RMB 299,026 thousand for the year ended December 31, 2022, compared to a net cash increase of RMB 256,947 thousand in 2021[27]. - The company has not declared or paid any cash dividends in the foreseeable future due to its focus on growth and development[20]. - The company intends to reinvest any future earnings generated from PRC subsidiaries for business operations and expansion in China[107]. Research and Development - Research and development expenses were RMB 105,252 thousand, highlighting the company's commitment to innovation and new product development[23]. - The company plans to invest heavily in research and development, with a target of increasing R&D spending by 15% in the upcoming year[23]. - The company’s R&D team accounted for 55.7% of total employees as of December 31, 2022, highlighting its commitment to innovation and technology[146]. - The company’s ability to introduce new and innovative products is contingent on significant investments in research and development, which may impact profitability[48]. Market and Competitive Landscape - The company is focusing on market expansion strategies, particularly in the Asia-Pacific region, to enhance its competitive position[23]. - EHang is actively pursuing strategic partnerships and potential acquisitions to bolster its technological capabilities and market reach[23]. - The company faces significant competition in the UAV industry, with many competitors having greater financial and technical resources[46]. - The company has limited experience in managing sales to multiple countries, which introduces various costs and risks associated with international operations[49]. Regulatory Compliance and Risks - The company is subject to numerous environmental protection and work safety laws, and non-compliance could result in significant fines or penalties[60]. - The company faces potential reputational harm if its business partners fail to adhere to ethical practices, which could lead to increased costs and operational disruptions[61]. - The company is subject to the Holding Foreign Companies Accountable Act, which could lead to delisting if audit firms cannot be inspected[99]. - The company is subject to evolving privacy regulations in jurisdictions like the EU and the US, which may restrict data usage[71]. - Regulatory compliance failures could result in civil or regulatory liabilities, including fines and enforcement actions[71]. Operational Challenges - The company may face challenges in expanding production capacity due to limited experience in high-volume manufacturing of AAVs[38]. - The company may experience operational difficulties with contract manufacturers, which could affect timely deliveries[38]. - The company is vulnerable to negative publicity that could harm consumer perceptions of its brand, especially in the age of social media[56]. - The company relies on external suppliers for key components such as computer chips, batteries, and motors, which poses risks related to supply chain stability and quality control[57]. Intellectual Property and Data Security - The company holds 331 issued patents and 302 pending patent applications, but the effectiveness of its intellectual property rights protection may be limited[70]. - The enforcement of intellectual property rights in China is historically deficient, making it challenging for the company to protect its proprietary technologies[70]. - The company processes personal data from users to enhance service and comply with privacy regulations, which may impact user base expansion[71]. Future Outlook and Strategic Initiatives - Future guidance indicates a projected revenue growth of 20% for the next fiscal year, driven by new product launches and market penetration[23]. - The company aims to provide eco-friendly air mobility solutions to address urban transportation challenges caused by population growth and urbanization[135]. - The company is exploring new monetization opportunities, including recurring fees for software licenses and operational services[177]. - The company has established a wide partnership network across the UAM ecosystem, including regulators, aviation companies, and tourism sectors, to support commercial operations[147]. Shareholder Rights and Corporate Governance - The dual-class share structure may limit the ability of Class A shareholders to influence corporate matters and could discourage potential change of control transactions[93]. - Holders of ADSs have limited voting rights and may not be able to directly influence management decisions[122]. - The company’s board of directors has the authority to issue preferred shares, which could adversely affect the rights of ordinary shareholders and ADS holders[117]. - The company is classified as a foreign private issuer and is exempt from certain U.S. securities regulations, including quarterly reporting requirements[126].

EHang Holdings Ltd (NASDAQ:EH) Q4 2022 Earnings Conference Call March 22, 2023 8:00 AM ET Company Participants Anne Ji - Senior Director, Investor Relations Xin Fang - COO Richard Liu - CFO Huazhi Hu - Founder, Chairman & CEO Nick Yang - Independent Director Conference Call Participants Operator Good day, ladies and gentlemen. Thank you for standing by, and welcome to the EHang Fourth Quarter 2022 and Fiscal Year 2022 Earnings Conference Call. As a reminder, we are recording today's call. Now I will turn ov ...

EHang Holdings Limited (NASDAQ:EH) Q4 2021 Earnings Conference Call March 29, 2022 8:00 AM ET Company Participants Julia Qian - Investor Relations Huazhi Hu - Chief Executive Officer Richard Liu - Chief Financial Officer Edward Xu - Chief Strategy Officer Xin Fang - Chief Operating Officer Conference Call Participants Tim Hsiao - Morgan Stanley De Lu - Tianfeng Securities Operator Good day, ladies and gentlemen. Thank you for standing by and welcome to the EHang Fourth Quarter 2021 and Fiscal Year 2021 Earn ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...