Core Insights - EHang Intelligent's subsidiary, Guangdong EHang General Aviation Co., Ltd., and its joint venture Hefei HeYi Aviation Co., Ltd., have received the first batch of operational qualifications for manned civil unmanned aerial vehicles (UAVs) from the Civil Aviation Administration of China, marking the beginning of the low-altitude flying "manned era" [1][2] - The electric vertical takeoff and landing (eVTOL) industry is witnessing a surge in interest from battery manufacturers, who are seen as key players in driving the commercialization of eVTOLs [1][2] - Despite advancements, the current battery performance still falls short of market demands, posing challenges for the expansion of eVTOL applications [1][10] Industry Developments - EHang Intelligent has completed the necessary certifications to initiate commercial low-altitude services, allowing consumers to purchase tickets for experiences such as low-altitude tours and urban sightseeing in cities like Guangzhou and Hefei [2] - Other companies, such as XPeng Heitech, are also accelerating their industrialization processes, with plans for mass production of their flying cars by 2026 [2] - The eVTOL industry is evolving into a new industrial chain, with various companies vying for a share of the market [2] Battery Technology and Market Dynamics - The value of the "three electrics" (motor, battery, and avionics) constitutes approximately 70% of the total value of eVTOLs, with battery costs accounting for about 20% of the overall costs [3] - Compared to electric vehicles, eVTOLs exhibit lower sensitivity to battery prices, allowing for greater innovation potential and profitability for battery manufacturers [3] - Major battery manufacturers are focusing on developing solid-state and semi-solid-state batteries, with companies like CATL and Guoxuan High-Tech actively collaborating on eVTOL battery projects [4][12] Performance Requirements - The eVTOL industry demands high-performance batteries characterized by high safety, high energy density, high discharge rates, and fast charging capabilities, collectively referred to as "three highs and one fast" [5][6] - Current eVTOL battery energy densities range from 270Wh/kg to 320Wh/kg, with a need for further advancements to meet the demands of longer-range and more frequent urban air mobility applications [11][12] Future Outlook - The industry anticipates a transition towards semi-solid-state batteries by 2025 and solid-state batteries by 2030, which are expected to significantly enhance the flight range of eVTOLs [12] - EHang Intelligent has successfully conducted the first flight test of an eVTOL with a solid-state battery, achieving a flight duration increase of 60% to 90% [12] - The development of charging infrastructure, including ultra-fast charging solutions, is critical for the operational efficiency and profitability of eVTOL services [12][13]

Company Performance - EHang Holdings Limited Unsponsored ADR (EH) has shown a year-to-date performance increase of approximately 3%, outperforming the average gain of 1.2% in the Aerospace group [4] - The Zacks Rank for EHang is currently 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Industry Context - EHang belongs to the Aerospace - Defense Equipment industry, which consists of 27 companies and currently ranks 37 in the Zacks Industry Rank [6] - The Aerospace - Defense Equipment industry has experienced an average decline of 2.9% this year, highlighting EHang's relative strength within this sector [6] Analyst Sentiment - Over the past 90 days, the consensus estimate for EHang's full-year earnings has increased by 27.3%, reflecting improved analyst sentiment [3] - Spirit Aerosystems (SPR), another stock in the Aerospace sector, has also shown strong performance with a year-to-date increase of 2.4% and a significant EPS estimate increase of 870.3% over the past three months [4][5] Future Outlook - Investors are encouraged to monitor EHang Holdings Limited and Spirit Aerosystems for potential continued strong performance in the Aerospace sector [7]

南方财经全媒体记者丁莉 广州报道 4月24日，广东省工业和信息化厅一季度新闻发布会重点介绍了生物医药、先进装备发展情况。南方财 经全媒体记者获悉，一季度广东下达3886万元省级首台（套）重大技术装备专项资金，重点支持智能机 器人、新能源汽车等领域。 广东省工信厅消费品工业处三级调研员方乐羽表示，接下来，广东省将同省卫生健康委、医保局、药监 局研究建立常态化发布已获批创新药械产品目录工作机制，制定实施支持创新药械应用的政策，加快创 新药械研发、产业化和入院应用。 在先进装备领域，产业集聚态势强劲，产品培育成效显著，制造研发、设计和制造能力持续增强，新产 品新技术不断取得突破。 此外，广东将把医疗机构制剂作为生物医药产业研发创新的重要突破口，支持广州开展医疗机构制剂产 业改革创新试点，研究推进医疗机构制剂统一生产、统一质控、统一配送，促进院企协作推动更多医疗 机构制剂加快向新药转化，并持续组织开展"百企百院粤医行"系列活动，为医疗机构与生物医药企业搭 建沟通对接平台，促进临床需求与产业发展深度融合。 广东省工信厅装备工业处副处长夏鹏表示，截至第一季度，广东在机械行业已培育4个具有竞争力的国 家级中小企业特色集群和 ...

Investment Rating - The industry rating is optimistic, indicating a positive outlook for the eVTOL sector in the coming months [53]. Core Insights - The eVTOL industry is rapidly developing due to intensive low-altitude policies and has significant future potential, particularly in the electric motor segment [8][26]. - eVTOL systems offer advantages in safety, environmental sustainability, and efficiency compared to traditional transportation methods [16][17][18]. - The market for eVTOL electric motors is projected to reach a substantial value, with a significant portion of the costs attributed to the power and energy systems [29][26]. Summary by Sections 1. Rapid Development of the eVTOL Industry - The eVTOL industry is experiencing swift growth driven by supportive government policies and technological advancements [8]. - The value contribution of eVTOL motors is high, indicating a large potential market space in the future [26]. 2. Diverse eVTOL Configurations and Power Solutions - eVTOL designs vary widely, with different manufacturers adopting unique propulsion systems, leading to diverse performance characteristics [30]. - The core barriers include high power density requirements for eVTOL motors and lengthy product development cycles [30][43]. 3. Technological Trends - The acceleration of power density improvements in eVTOL motors is driving advancements in materials and manufacturing processes [43]. - Innovations in high-performance magnetic and conductive materials are essential for enhancing motor efficiency and performance [44][45]. 4. Market Potential - The mid-term market potential for eVTOL motors is estimated at 107.9 billion yuan from 2025 to 2030, with power systems and energy systems accounting for 50% of costs [29]. - The operational costs of eVTOL are expected to drop significantly, potentially reaching one-fifth of helicopter costs, enhancing their competitiveness [23][24]. 5. Key Players and Configurations - Various eVTOL configurations include multi-rotor, lift and cruise, tilt-rotor, and tilt-duct types, each with distinct advantages and applications [30][31]. - The report highlights specific models and their respective configurations, showcasing the diversity in design and functionality [35][37].

Industry Overview - The low-altitude economy supply chain in China has formed a comprehensive development pattern characterized by "upstream independent breakthroughs, midstream collaborative tackling, and downstream standard leadership" with eVTOL and drone manufacturing at its core [2][19] - The domestic market for eVTOL is projected to have a potential demand of 24000 units for tourism and 85000 units for commuting, leading to a total market size exceeding 250 billion [2][45][46] - The eVTOL power system is a critical component of the low-altitude economy, accounting for approximately 40% of the total cost structure of eVTOLs [2][48] Technological Trends - eVTOL technology is diversifying with three main configurations: multirotor, compound wing, and tilt-rotor, each offering unique advantages for different applications [34][35] - The shift towards electric propulsion systems is evident, with a focus on high energy density and low emissions, making them the preferred choice for future urban air mobility [54][55] Market Dynamics - The global low-altitude economy market is expected to grow from approximately 2.08 trillion yuan in 2023 to 2.32 trillion yuan in 2024, indicating significant growth potential [23] - In China, the low-altitude economy market is projected to reach 859.2 billion yuan by 2025, with a compound annual growth rate of 33.8% [23][27] Company Insights - EHang Intelligent (EH.O) has become the first company in China to obtain all four necessary certifications for eVTOL, indicating a significant step towards commercialization [6][51] - Companies like EHang and others are actively collaborating with electric motor manufacturers to enhance their eVTOL offerings, with substantial orders already in place [52] Policy Support - The development of the low-altitude economy has been elevated to a national strategy, with various government departments providing comprehensive support through policies aimed at infrastructure, regulations, and industry standards [14][17] - By 2025, over 30 provinces and cities in China are expected to include low-altitude economy initiatives in their government work reports, promoting infrastructure development and industry standards [14][18]

低空经济系列 车中旭霞 行业深度 《 低空 空经济行业专题系列二：eVTOL动力系统的市场空间、技术趋势和产业链机遇 》——202 50417 《 eVTOL行业专题：低空经济的先导产业，飞行汽车商业化渐近》——20240516 行业点评 《 低空经济点评：亿航智能运营合格证落地，低空经济从试点迈向商业化运营阶段》——20250331 公司深度 《亿航智能（EH.O）-低空经济领先企业，集齐适航三证，商业化落地有望加速》 ——2024-08-11 《 万丰奥威（002085.SZ）-汽车轻量化为基，通航飞机打开低空经济成长空间》——20240928 公司点评 《亿航智能（EH.O）- 单四季度收入同比增长190%，商业化落地运营可期》 ——20250324 《亿航智能（EH.O）-单三季度收入同比增长348%，在手订单充裕》 ——20241123 《 万丰奥威（002085.SZ）-三季报点评：单三季度营收环比增长4%，通航飞机打开低空经济成长空间》——20241112 核心观点 低空经济产业链格局初显，国内市场规模潜力巨大 我国低空经济供应链已形成"上游自主突破、中游协同攻关、下游标准引领"的全链条发展格局 ...

Investment Rating - The report maintains an "Overweight" investment rating for the low-altitude economy sector [3]. Core Insights - The issuance of the Operations Certificate (OC) to EHang and Hefei Hewei Aviation marks a significant milestone in the commercialization of low-altitude services, establishing EHang as the first company globally to achieve complete commercial operation qualifications for unmanned eVTOL aircraft [1][19][29]. - Hefei is positioning itself as a "Sky City" by attracting key players in the low-altitude economy, including the establishment of the East China headquarters for Fengfei Aviation, which will enhance the local industrial ecosystem [2][30][34]. - The low-altitude economy is supported by strong capital market performance, with significant investment activity in the sector, indicating a robust long-term growth potential despite short-term market fluctuations [5][37]. Summary by Sections 1. Key Events and Announcements - EHang and Hefei Hewei Aviation received the first Operations Certificates for manned unmanned aerial vehicles in China, enabling the start of commercial operations in low-altitude services [1][19]. - Hefei signed a cooperation agreement with Fengfei Aviation to establish its East China headquarters, which will focus on various aspects of low-altitude operations [2][30]. 2. Capital Market Performance - In March 2025, the low-altitude economy sector experienced a decline of 1.63%, underperforming compared to the military industry index, which rose by 2.20% [37]. - The overall market showed a mixed performance, with notable gains in specific companies like Xirui and losses in others like Shencheng [38]. 3. Low-Altitude Industry Chain Key Enterprises - The report identifies key segments within the low-altitude economy, including low-altitude air traffic management, low-altitude aircraft systems, and low-altitude manufacturing, highlighting various enterprises involved in these areas [6][35].

Investment Background & Sector Focus - The company has a strong focus on technology-driven sectors, particularly in AI, industrial automation, and green energy infrastructure [1] - It has evaluated over 100 funds and executed more than 30 private equity projects, including direct investments in AI startups and renewable energy ventures [1] Writing Topics & Investing Approach - The company plans to publish research on valuation deep dives, private equity trends, policy-driven opportunities, and quantitative strategies [1] - The investing approach combines fundamental analysis with operational due diligence, emphasizing management quality and scalability [1] Track Record - The company has guided the allocation of over $500 million in investment projects, achieving top quartile rankings in DPI and TPVI [1] - It has established a profitable student apartment enterprise with an annual profit of $200,000, showcasing operational risk management skills [1] Motivation for Writing - The company aims to democratize institutional-grade analysis for retail investors, particularly in undercovered Asian markets [1] - Articles will emphasize transparency, backed by granular data, historical precedents, and stress-tested scenarios [1]

Core Insights - EHang Holdings Limited filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the U.S. SEC on April 15, 2025 [1] - The annual report includes audited consolidated financial statements and is available on the company's investor relations website and the SEC's website [2] Company Overview - EHang is recognized as the world's leading urban air mobility (UAM) technology platform company, focusing on safe, autonomous, and eco-friendly air mobility [3] - The company provides unmanned aerial vehicle (UAV) systems and solutions across various sectors, including air mobility, smart city management, and aerial media [3] - EHang's EH216-S has received the world's first type certificate, production certificate, and standard airworthiness certificate for pilotless human-carrying electric vertical takeoff and landing (eVTOL) aircraft from the Civil Aviation Administration of China (CAAC) [3] - In 2025, operators of the EH216-S eVTOL have been granted the first batch of Air Operator Certificates for civil human-carrying pilotless aerial vehicles by the CAAC [3] - EHang aims to integrate autonomous flight into everyday life, delivering the benefits of urban air mobility to smart cities and communities globally [3]

Financial Performance - Total revenues for the year ended December 31, 2023, reached RMB 450,037 thousand, a significant increase from RMB 117,426 thousand in 2022, representing a growth of approximately 282%[41] - Gross profit for the year was RMB 165,366 thousand, compared to RMB 75,311 thousand in 2022, indicating a year-over-year increase of about 120%[41] - Operating loss for the year was RMB 296,359 thousand, which is a slight improvement from the operating loss of RMB 303,950 thousand in 2022, reflecting a reduction of approximately 2%[41] - Research and development expenses totaled RMB 182,880 thousand for the year, up from RMB 135,082 thousand in 2022, marking an increase of around 35%[41] - Total operating expenses for the year were RMB 481,319 thousand, compared to RMB 339,263 thousand in 2022, which is an increase of approximately 42%[41] - The company reported a share of losses from subsidiaries amounting to RMB 290,987 thousand, compared to RMB 504,731 thousand in the previous year, indicating a decrease of about 42%[41] - Interest and investment income for the year was RMB 9,707 thousand, a notable increase from RMB 4,669 thousand in 2022, representing a growth of approximately 108%[41] - The company incurred interest expenses of RMB 3,125 thousand, which is a slight increase from RMB 2,145 thousand in 2022, reflecting a rise of about 45%[41] - The income tax expenses for the year were RMB 281 thousand, compared to RMB 79 thousand in 2022, indicating an increase of approximately 255%[41] - For the year ended December 31, 2023, the net loss attributable to ordinary shareholders was RMB 328,221 thousand, compared to RMB 291,178 thousand in 2022, indicating an increase in loss of approximately 12.7%[42] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 598,645 thousand, a significant increase from RMB 971,262 thousand in 2022[43] - Cash and cash equivalents were reported at RMB 228,250 thousand for 2023, compared to RMB 180,573 thousand in 2022, reflecting a growth of approximately 26.4%[43] - The company reported accounts receivable of RMB 34,786 thousand in 2023, up from RMB 58,180 thousand in 2022, showing a decrease of about 40.2%[43] - Total liabilities stood at RMB 384,426 thousand as of December 31, 2023, compared to RMB 628,684 thousand in 2022, representing a reduction of approximately 38.9%[43] - The company’s inventories increased to RMB 59,488 thousand in 2023 from RMB 75,687 thousand in 2022, indicating a decrease of about 21.4%[43] - Short-term investments were reported at RMB 57,494 thousand in 2023, a significant increase from RMB 513,683 thousand in 2022, reflecting a change of approximately -88.8%[43] - The company’s total shareholders' equity was RMB 214,219 thousand in 2023, compared to RMB 955,814 thousand in 2022, indicating a decrease of approximately 77.7%[43] Cash Flow - For the year ended December 31, 2023, net cash used in operating activities was RMB 173,458 thousand, a significant increase from RMB 140,108 thousand in 2022, indicating a worsening cash flow situation[44] - Cash flows from investing activities showed a net outflow of RMB 132,323 thousand in 2023, compared to RMB 58,898 thousand in 2022, reflecting increased capital contributions and investments[44] - In financing activities, net cash provided was RMB 316,139 thousand in 2023, a substantial increase from RMB 58,983 thousand in 2022, indicating stronger financing efforts[44] - The total cash, cash equivalents, and restricted cash at the end of 2023 amounted to RMB 180,573 thousand, a decrease from RMB 362 thousand at the end of 2022[44] Regulatory and Compliance Risks - If the PCAOB cannot inspect or fully investigate auditors in China, EHang Holdings could be identified as a Commission-Identified Issuer, leading to trading prohibitions under the HFCAA[30] - The VIE's hypothetical pre-tax earnings are subject to a statutory tax rate of 25%, which could impact the amount available for distribution as dividends[38] - The VIE could face double taxation if it makes non-deductible transfers to the WFOE, reducing the amount available for distribution from approximately 71.25% to about 53% of pre-tax income[39] - There are substantial uncertainties regarding the interpretation and application of PRC laws affecting the rights of EHang Holdings concerning its contractual arrangements with the VIE[28] - The company is subject to extensive legal and regulatory requirements that may impact its operational capabilities[56] - The company may face challenges in obtaining necessary permits or licenses for conducting business in China, affecting future operations[205] - The approval from the CSRC may be required for future offshore offerings, with uncertainties regarding the timing and ability to complete such filings[208] - The company could face delisting under the HFCAA if the PCAOB cannot inspect auditors in China, significantly impacting trading and capital raising[209] Operational Challenges - The company faced challenges in timely product deliveries due to limited production capacity, which may impact future growth[51] - The commercial use of eVTOL aircraft remains subject to uncertain regulatory approvals, potentially restricting business growth[51] - The company has limited experience in high-volume manufacturing, which may affect its ability to meet production demands[62] - Production difficulties, such as capacity constraints and mechanical failures, could adversely affect the company's business and financial condition[102] - The company is vulnerable to natural disasters and other calamities that could disrupt operations and affect data recovery[104] Customer Concentration Risks - The largest customer accounted for 26% of revenues in 2024, indicating substantial customer concentration risks[66] - In 2022, 2023, and 2024, the largest customer represented 21%, 24%, and 26% of revenues, respectively, highlighting dependency on a few key clients[66] - The company reported a significant increase in accounts receivable, indicating potential customer concentration risks[51] Strategic and Market Risks - The company operates in a competitive UAV industry, facing challenges from both UAV companies and traditional transportation service providers[82] - The company may face significant costs and expenses as a result of being a public company, which could impact its financial condition[79] - The company may enter into new strategic relationships to penetrate targeted markets, but failure to develop these relationships could hinder sales growth[77] - The company expects international sales to increase in the future as international expansion is one of its core strategies[97] Intellectual Property and Data Security - The company relies on a combination of patent, copyright, trademark, and trade secret laws to protect its intellectual property rights, but enforcement in China may be less effective than in developed countries[134] - The company may face significant costs and negative publicity from potential claims of intellectual property infringement, which could divert resources and management attention[131] - The Cyber Data Security Regulation mandates that network data processors handling personal information of over 10 million users must comply with specific data security management requirements[139] - The Administrative Provisions on Algorithm Recommendation require service providers to allow users to easily disable algorithm recommendation services and to regularly review their algorithms[140] Shareholder and Governance Issues - The company's dual-class share structure allows Mr. Huazhi Hu to control approximately 78.8% of the voting power despite owning only 27.1% of the total issued share capital as of March 31, 2025[193] - The company's dual-class structure makes it ineligible for inclusion in major indices like the Russell 2000 and S&P 500, which may depress valuations and trading volume[196] - The founder's control may adversely affect the market price of Class A common shares due to limited shareholder influence[195] Future Outlook - The company anticipates a decrease in net losses in future periods as it continues to expand its business and operations[79] - The revenue structure is expected to evolve, with an increase in the relative revenue contribution from air mobility solutions and a decrease from aerial media solutions[76]