Investment Rating - The report maintains a "Recommendation" rating for the low-altitude economy sector, indicating an expectation of growth exceeding the benchmark index by more than 5% in the next 3-6 months [50]. Core Insights - The "14th Five-Year Plan" outlines a clear direction for the development of the low-altitude economy, emphasizing the importance of low-altitude equipment and infrastructure [4][10]. - The report highlights that 2026 may mark a year of accelerated construction in the low-altitude economy, focusing on four application scenarios, two new infrastructures, and five industrial chain segments to identify investment opportunities [10][12]. - Key companies recommended for investment include market leaders with clear competitive advantages such as WanFeng AoWei, ZongShen Power, and YiHang Intelligent, along with smaller market cap stocks like FuLin YunYe and ZongHeng Co [12][33]. Industry Overview - The low-altitude economy has been included in government work reports for three consecutive years and is recognized as one of the emerging pillar industries [4]. - The report notes that the low-altitude economy is expected to see significant legislative support and infrastructure development, including the establishment of 200 vocational training bases focused on this sector [5][9]. Company Performance - YiHang Intelligent reported a revenue of 510 million yuan for 2025, a year-on-year increase of 11.7%, with a significant Q4 revenue growth of 48.4% [13][15]. - The company achieved a non-GAAP profit for the second consecutive year, with an adjusted net profit of 29.4 million yuan in 2025 [15][21]. - YiHang Intelligent is set to launch commercial operations for its EH216-S model in March 2026, marking a significant milestone in the low-altitude economy's commercial landscape [21][22]. Market Index Performance - The Huachuang Transportation Low Altitude 60 Index decreased by 4.5% in the week ending March 13, 2026, while the annual performance remained flat [23][24]. - Comparatively, the CSI 300 Index increased by 0.8% over the same period, indicating a relative underperformance of the low-altitude sector [26]. Investment Recommendations - The report suggests focusing on various segments of the low-altitude economy, including manufacturers, supply chains, low-altitude digitalization, and operational aspects [32][33]. - Specific companies to watch include WanFeng AoWei for its dual focus on general aviation and eVTOL, and ZongShen Power for its strong growth in traditional and emerging sectors [33][34].

Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing its offerings in this area [1] Group 1 - The company publishes thousands of quarterly earnings calls each quarter, showcasing its extensive coverage and growth in the transcript market [1] - There is an ongoing effort to expand coverage, suggesting a strategic initiative to capture more market share and improve service offerings [1]

Group 1 - Zhaoyi Innovation (03986) saw an intraday increase of 1.72% amid rising shipping risks in the Hormuz Strait affecting the supply chain of key raw materials like helium [1] - Rongchang Bio (09995) rose over 3.6% after its RC288 injection application was accepted by NMPA, showing excellent anti-tumor activity and safety in preclinical studies [1] - Swire Properties (01972) increased by over 2.2% following the release of its 2025 full-year results, reporting revenue of HKD 16.041 billion, a year-on-year increase of 11%, and a basic earnings per share of HKD 1.49 [1] Group 2 - Health 160 (02656) surged over 10%, reaching a new high of HKD 140.5, with a nearly doubled stock price since March 9, despite a previous drop of about 30% on February 11 [2] - Gaming stocks collectively rose, with notable increases in companies like Boyaa Interactive (00434) up 4.44% and Tencent (00700) up 1.1%, following Apple's announcement of a commission rate adjustment for the App Store in mainland China [2] - Qidian Guofeng (01280) experienced a significant rise of over 26% after announcing a sales contract for AI servers with an independent third party [2] Group 3 - Hong Kong bank stocks fell again, with Standard Chartered (02888) down 4.67% and HSBC Holdings (00005) down 3.8%, amid ongoing tensions in the Middle East affecting transactions involving Asian balance sheets [3] - Cement stocks saw a general increase, with China National Building Material (03323) up 2.62%, as construction activity picked up post-Lantern Festival, leading to a steady recovery in cement market demand [3] - Domestic property stocks rebounded, with CIFI Holdings (00884) up 2.9% and Sunac China (01918) up 5.45%, as recent data indicated a 3.3% year-on-year decline in second-hand housing listings in Shenzhen [4] Group 4 - Yao Cai Securities (01428) saw a significant rise of over 39% after extending the acquisition offer deadline with Ant Group to March 25, 2026 [4] - PayPay (PAYP.US), a digital wallet operator backed by SoftBank, debuted on the US stock market with a 13.5% increase, achieving a market cap of nearly USD 12 billion [5] - Chinese electric vehicle companies NIO (NIO.US) and Xpeng Motors (XPEV.US) saw stock increases of 1.46% and 3.58%, respectively, amid discussions of potential collaborations with European automotive giant Stellantis [5] Group 5 - Storage stocks collectively declined, with SanDisk (SNDK.US) down 5.59% and Micron Technology (MU.US) down 3.19%, following negative sentiment from short-seller Citron Capital [6] - Optical communication stocks fell, with Applied Optoelectronics (AAOI.US) down 16.39%, despite securing a bulk order for a new data center transceiver [6] - Agricultural input stocks continued to rise, with CF Industries Holdings (CF.US) up 13.21%, driven by supply chain disruptions in the Middle East affecting fertilizer transportation [7] Group 6 - Oil stocks rose sharply, with Battalion Oil (BATL.US) up 15.48% as international oil prices surged, with WTI crude rising over 8% to USD 94.66 [8] - EHang Intelligent (EH.US) reported total revenue of RMB 509.5 million (approximately USD 72.9 million) for the fiscal year 2025, marking an 11.7% year-on-year increase, despite a net loss of RMB 231 million [8]

Core Insights - EHang is set to begin public ticket sales for its EH216S aircraft in March, with initial operations using 6 to 10 aircraft and an early-bird ticket price of CNY 299 per person [1][2][3] Commercial Operations - The commercial operation of the EH216S is nearing launch after nearly a year of internal trials, with ticketed flight services planned for EHang Future City and Luogang Park [3] - EHang delivered a record 221 eVTOL aircraft in the full year, including 215 units of the EH216 series and 6 units of the VT35 series [4] Financial Performance - EHang reported fourth-quarter revenue of CNY 243.8 million, a 48.4% year-over-year increase, and full-year revenue of CNY 509.5 million, up 11.7% year-over-year [13] - The company achieved its first quarterly GAAP profit in Q4 with a net income of CNY 10.5 million and has maintained non-GAAP profitability for the second consecutive year [16] Manufacturing and Expansion - EHang's manufacturing capacity is expanding, with the Yunfu production facility's phase two completed, targeting an annual capacity of 1,000 units [7] - The company is also progressing with the VT-35 program, aiming for type certification in China within the next two years [8] International Operations - EHang is working towards obtaining the first commercial operation license for pilotless passenger eVTOL aircraft in Thailand, with operations potentially starting in the second quarter of 2026 [12][13] - The company anticipates that overseas revenue could rise to a double-digit percentage of total revenue if international commercialization progresses as planned [17] Cost Management - EHang's operating expenses increased less than expected in 2025, and for 2026, the company expects operating expense growth to be lower than revenue growth [18]

Financial Data and Key Metrics Changes - In Q4 2025, revenues reached CNY 243.8 million, an increase of 48.4% year-over-year and 163.6% sequentially [32] - For the full year, total revenues were CNY 509.5 million, representing an 11.7% increase year-over-year, surpassing annual guidance [33] - Gross margin in Q4 was 62.1%, up from 60.7% in Q4 2024 and 60.8% in Q3 2025 [33] - The company achieved its first-ever quarterly GAAP profitability with net income of CNY 10.5 million in Q4 [36] Business Line Data and Key Metrics Changes - The company delivered 221 units of eVTOL aircraft in 2025, including 215 units of the EH216 series and 6 units of the VT-35 series [21] - In Q4, 95 units of the EH216 series and 5 units of the VT-35 series were delivered, generating CNY 240 million in revenues [21] Market Data and Key Metrics Changes - The company is expanding its presence in key cities in China, including Hefei and Guizhou, and has established partnerships to support local low-altitude economy applications [22] - The Thailand AAM Sandbox Initiative is a key focus for international expansion, with plans to operate up to 100 eVTOL aircraft across 20 sandbox areas by the end of 2026 [27] Company Strategy and Development Direction - EHang is evolving from an aircraft manufacturer to a comprehensive provider of integrated advanced air mobility solutions [7] - The company aims to launch routine commercial operations of human-carrying VTOL aircraft and expand its non-passenger business, including logistics and firefighting applications [10][11] - EHang's core strategies for 2026 include disciplined execution, strengthening operational ecosystems, and global expansion [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macro environment in 2026, anticipating improved policy support for the low-altitude economy as it becomes a strategic pillar industry [50] - The company targets CNY 600 million in annual revenues for 2026, representing an 18% year-over-year increase [38] Other Important Information - The company has established a comprehensive operational solution for commercial flights, including training programs for ground operating crews [25] - EHang's flagship product, the EH216-S, is set to begin commercial flight services, marking a significant milestone in urban air mobility [6] Q&A Session Summary Question: Progress on the license for ground operating crew - Management confirmed that training materials have been submitted to the CAAC, with the first class expected to begin in the first half of the year [41][42] Question: Expected timing of revenue contribution from Thailand projects - Revenue contribution is expected to start in Q2 2026, with potential for dozens of units sold throughout the year [45] Question: Current policy changes in the domestic low-altitude industries - Management noted that the 15th Five-Year Plan has enhanced resource allocation and policy support for the low-altitude economy [50][51] Question: Overseas markets sales guidance - Overseas revenue is expected to increase significantly in 2026, potentially reaching double-digit percentages of overall revenue [52] Question: Assumptions underpinning the CNY 600 million revenue guidance - The company plans to diversify revenue through various models, including non-passenger applications and international markets [54][61]

Financial Data and Key Metrics Changes - In Q4 2025, revenues reached CNY 243.8 million, up 48.4% year-over-year and 163.6% sequentially [32] - For the full year, total revenues were CNY 509.5 million, representing an 11.7% increase year-over-year, surpassing annual guidance [33] - Gross margin in Q4 was 62.1%, improving from 60.7% in Q4 2024 and 60.8% in Q3 2025 [33] - The company achieved its first-ever quarterly GAAP profitability with net income of CNY 10.5 million in Q4 [36] Business Line Data and Key Metrics Changes - The company delivered 221 units of eVTOL aircraft in 2025, including 215 units of the EH216 series and 6 units of the VT35 series [21] - In Q4, 95 units of the EH216 series and 5 units of the VT35 series were delivered, generating RMB 240 million in revenues [21] Market Data and Key Metrics Changes - The company is expanding its presence in key cities in China, including Hefei and Guizhou, with significant partnerships established [21][22] - The commercial operation of the EH216S is set to launch in March 2026, marking the world's first ticketed commercial service for pilotless human-carrying eVTOL [24] Company Strategy and Development Direction - EHang aims to evolve from an aircraft manufacturer to a comprehensive provider of integrated advanced air mobility solutions [7] - The company plans to focus on commercial operations, operational ecosystem development, and global expansion in 2026 [8][10] - EHang is targeting CNY 600 million in annual revenues for 2026, representing an 18% year-over-year increase [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macro environment in 2026, expecting improved policy support for the low-altitude economy [50] - The company is committed to a strategy of safety first and disciplined execution, focusing on building foundational capabilities for sustainable growth [30] Other Important Information - The company has established a comprehensive operational system for commercial flights, including training programs for ground operating crew [25][29] - EHang's non-passenger business, including logistics and firefighting applications, is progressing steadily and expected to contribute to revenue growth [61] Q&A Session Summary Question: Progress on the license for ground operating crew - Management confirmed that training materials have been submitted for approval, with the first class expected to begin in the first half of the year [41][42] Question: Expected timing of revenue contribution from Thailand projects - Revenue contribution is expected to start in Q2 2026, with potential for dozens of units sold throughout the year [45] Question: Current policy changes in the domestic low-altitude industries - Management noted that the 15th Five-Year Plan has elevated the low-altitude economy, leading to enhanced resource allocation and policy support [50][51] Question: Overseas markets sales guidance - Overseas revenue is expected to increase significantly in 2026, potentially moving into double-digit percentages of overall revenue [52] Question: Assumptions underpinning the CNY 600 million revenue guidance - The company plans to diversify revenue through various models, including non-passenger applications and operational services [54][61]

Financial Data and Key Metrics Changes - In Q4 2025, revenues reached CNY 243.8 million, up 48.4% year-over-year and 163.6% sequentially [28] - For the full year, total revenues were CNY 509.5 million, representing an 11.7% increase year-over-year, surpassing annual guidance [29] - Gross margin in Q4 was 62.1%, improving from 60.7% in Q4 2024 and 60.8% in Q3 2025 [29] - The company achieved its first-ever quarterly GAAP profitability with net income of CNY 10.5 million in Q4 [31] Business Line Data and Key Metrics Changes - Quarterly eVTOL sales volume reached 100 units for the first time, with 95 units of EH216 series and 5 units of VT35 delivered in Q4 [3][17] - For the full year, the company delivered 221 units of eVTOL aircraft, setting a new record [4] Market Data and Key Metrics Changes - The company is expanding its presence in key cities in China, including Hefei and Guizhou, and is establishing partnerships to support local low-altitude economy applications [17][20] - The Thailand AAM Sandbox Initiative is a key focus for international expansion, with plans to operate up to 100 eVTOL aircraft across 20 sandbox areas by the end of 2026 [23] Company Strategy and Development Direction - EHang is evolving from an aircraft manufacturer to a comprehensive provider of integrated advanced air mobility solutions [5] - The company aims to launch routine and scaled commercial operations of human-carrying VTOL aircraft, focusing on safety and user experience [7] - EHang's core strategies for 2026 include advancing commercialization, operational ecosystem development, and global expansion [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macro environment in 2026, expecting improved policy support for the low-altitude economy [46] - The company is targeting CNY 600 million in annual revenues for 2026, representing an 18% year-over-year increase [33] Other Important Information - The company has established a comprehensive operational solution covering vertiport planning, routes design, and ground crew training [21] - EHang's flagship product, the EH216S, is entering commercial operation, marking the world's first commercial service of a pilotless human-carrying VTOL aircraft [4][5] Q&A Session Summary Question: Progress on the license for ground operating crew - Management confirmed that training materials have been submitted to the CAAC for approval, with the first class expected to begin in the first half of the year [37][38] Question: Expected timing of revenue contribution from Thailand projects - Management indicated that commercial operations in Thailand are expected to start in Q2 2026, with potential for dozens of units delivered throughout the year [42] Question: Current policy changes in the domestic low-altitude industries - Management noted that the 15th Five-Year Plan has elevated the low-altitude economy to a strategic pillar industry, leading to enhanced resource allocation and policy support [46][47] Question: Overseas markets sales guidance - Management expects overseas revenue to increase significantly in 2026, potentially moving into double-digit percentages of overall revenue [49] Question: Assumptions underpinning the CNY 600 million revenue guidance - Management highlighted diversification in revenue streams, including non-passenger segments and operational service revenue from commercial operations [51][60]

EHang Holdings Limited Q4 2025 and FY 2025 Operational & Financial Highlights March 12, 2026 www.ehang.com 1 1 Disclaimer This presentation includes forward-looking statements, which are based on current expectations and forecast about future events. These statements can be recognized by the use of words such as "expect," "plan," "will," "estimate," "project," "intend," or words of similar meaning. These forward-looking statements are made only and are based on estimates and information available to the Com ...

Core Insights - EHang Holdings Limited reported record revenues for both the fourth quarter and fiscal year 2025, with a year-over-year increase of 48.4% in Q4 and 11.7% for the full year, driven by strong sales of eVTOL aircraft [4][40] - The company achieved its first GAAP profitable quarter in Q4 2025, with a net income of RMB10.5 million (US$1.5 million), marking a significant turnaround from previous losses [4][26] - EHang is set to launch commercial operations of its EH216-S eVTOL in March 2026, expanding its operational footprint in China and internationally [6][13] Operational and Financial Highlights for Q4 2025 - EHang delivered a record 100 eVTOL units in Q4 2025, including 95 units of the EH216 series and five units of the VT35, compared to 78 units in Q4 2024 [5] - Total revenues for Q4 2025 reached RMB243.8 million (US$34.9 million), up from RMB164.3 million in Q4 2024, with a gross margin of 62.1% [5][22] - The operating loss improved significantly to RMB6.6 million (US$0.9 million) from RMB56.0 million in Q4 2024 [25] Operational and Financial Highlights for Fiscal Year 2025 - EHang achieved total revenues of RMB509.5 million (US$72.9 million) for the fiscal year 2025, an increase from RMB456.2 million in 2024 [40] - The gross profit for the year was RMB315.9 million (US$45.2 million), with a gross margin of 62.0%, reflecting a slight increase from 61.4% in 2024 [42][43] - The operating loss for the year was RMB266.3 million (US$38.1 million), compared to RMB254.1 million in 2024 [45] Business Developments and Future Outlook - EHang is preparing to launch EH216-S commercial operations in China, with ticketed aerial sightseeing services expected to begin in March 2026 [6][7] - The company is advancing its VT35 model, which completed its first public demonstration flight in December 2025, and is currently undergoing type certification [9][10] - EHang's global expansion includes ongoing trials in Thailand and successful operations in Qatar and Japan, indicating a strategic push into international markets [13][18] Management Remarks - The CEO highlighted 2025 as a pivotal year for EHang, emphasizing the transition from an aircraft manufacturer to a provider of integrated advanced air mobility solutions [16] - The company plans to focus on disciplined execution in 2026, aiming to enhance commercial operations and expand its market presence [17]

EHang (EH) Conference Call Summary Company Overview - **Company**: EHang - **Industry**: eVTOL (Electric Vertical Takeoff and Landing) Aircraft Key Points 1. eVTOL Deployment in Scenic Areas - EHang is focusing on deploying eVTOLs in scenic areas as the earliest application - The company supports clients' deployment through expertise in eVTOL regulations and by dispatching professional operators to customer sites - Management believes eVTOLs have advantages over helicopters, including autonomous flying, lower noise, and more eco-friendly propulsion systems [2][4] 2. Diversified Application Scenarios - Long-term target applications for eVTOLs include airport shuttles and air taxis, which aim to connect airports and hotels, alleviating traffic congestion - eVTOLs can also be utilized in logistics and emergency services to enhance overall efficiency - EHang plans to collaborate closely with local governments and clients to promote the commercialization of eVTOLs across various application scenarios [3][4] 3. Revenue Source Diversification - EHang is focusing on commercial operations of eVTOLs in both China and international markets - As eVTOL shipments increase, the company expects to diversify its revenue sources, including air mobility operations, eVTOL management systems, and after-sales services [4][8] 4. Financial Projections and Valuation - EHang is rated as a "Buy" with a 12-month target price of **US$22.80**, indicating an upside potential of **101.1%** from the current price of **US$11.34** - Revenue projections for the next few years are as follows: - 2026: **RMB 456.2 million** - 2027: **RMB 482.6 million** - 2028: **RMB 972.1 million** - 2029: **RMB 1,516.9 million** - EBITDA is projected to improve from a loss of **RMB 270.3 million** in 2026 to a profit of **RMB 323.0 million** by 2029 [10][8] 5. Key Risks - Potential risks include: - Slower-than-expected regulatory progress regarding airworthiness of AAVs in China - Weaker customer adoption of passenger-grade AAVs and aerial transportation - Delays in fulfilling AAV pre-orders - Slower expansion of sightseeing and operational services - Increased competition in the AAV market, which could negatively impact earnings estimates [9][4] 6. Management's Positive Outlook - EHang's management is optimistic about the company's focus on eVTOL commercialization and its strong design and manufacturing capabilities - The company is well-positioned to expand into air mobility operations and related services as the market for eVTOLs grows [1][4] Conclusion EHang is strategically positioning itself in the eVTOL market with a focus on diverse applications and revenue sources. The company's positive outlook, combined with its innovative capabilities, presents a compelling investment opportunity, albeit with certain regulatory and market risks to consider.