Core Viewpoint - EHang Holdings Limited has received an Experimental Flight Authorization Certificate for its EH216-S pilotless eVTOL aircraft from Brazil's National Civil Aviation Agency, enabling test flights in Brazil to showcase its advanced flight technology and management systems [1][6]. Group 1: Certification and Regulatory Developments - EHang's EH216-S has obtained the first Type Certificate, Production Certificate, and Standard Certificate of Airworthiness in the global eVTOL industry from the Civil Aviation Administration of China, confirming compliance with relevant regulations for commercial operations [2]. - Brazil and China have signed cooperation agreements to enhance civil aviation partnerships, focusing on safety, efficiency, and sustainability in airworthiness certification processes [3]. - Discussions are ongoing between ANAC and CAAC regarding the regulatory model for the EH216-S in Brazil, aiming to understand applicable frameworks for this new technology [4]. Group 2: Collaboration and Future Plans - EHang is collaborating with various civil aviation authorities globally to promote airworthiness certification for the EH216-S, sharing technology and expertise for safe pilotless eVTOL operations [2]. - EHang plans to conduct comprehensive test flights in Brazil in partnership with local operator Gohobby, working closely with ANAC and Brazil's Airspace Control Department to advance UAM research and development [1][5]. - The company aims to develop and deploy safe UAM solutions with the EH216-S, ensuring accessibility for all [6].

Core Viewpoint - EHang Holdings Limited has strongly refuted recent unfounded rumors regarding an investigation involving its CEO, emphasizing that these allegations are false and have negatively impacted the company's stock price [1]. Group 1: Company Response - EHang categorically denies any involvement in activities that could harm its reputation or standing with regulatory bodies, asserting that the management team has no personal connections to the alleged investigation [1]. - The company maintains the highest standards of transparency and compliance in its operations to meet legal and ethical obligations in both China and the U.S. [2]. - EHang urges investors to rely on official communications for accurate information and reserves the right to take legal action against those spreading false information [2]. Group 2: Company Mission and Achievements - EHang is a leading urban air mobility technology platform focused on developing and commercializing autonomous aerial vehicle technology [2]. - The company provides unmanned aerial vehicle systems and solutions across various industries, including passenger transportation, logistics, 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 passenger-carrying pilotless eVTOL aircraft from the Civil Aviation Administration of China [3].

Investment Rating - The investment rating for the company is "Buy" and it is maintained [3][8]. Core Insights - The company reported Q2 revenue of 100 million yuan, a year-on-year increase of 920%, exceeding the previous guidance of 90 million yuan. The adjusted net profit turned positive at 1.2 million yuan, with a gross margin of 62.4%, up by 2.2 percentage points year-on-year. Operating cash flow has been positive for three consecutive quarters [1]. - The company is expected to obtain the Operational Certificate (OC) within the year, with continuous order expansion. In April, the company received the production license for the EH216-S model, allowing for mass production at its facility in Guangdong. Orders from various clients, including government and tourism operators, have significantly increased [1][2]. - For Q3 2024, the company anticipates revenue of 123 million yuan, representing a year-on-year growth of 330% and a quarter-on-quarter increase of 21% [1]. Summary by Sections Q2 Performance Overview - Revenue reached 100 million yuan, up 920% year-on-year, surpassing guidance of 90 million yuan. Adjusted net profit was 1.2 million yuan, marking a return to profitability. Gross margin stood at 62.4%, an increase of 2.2 percentage points year-on-year. Positive operating cash flow for three consecutive quarters [1]. Domestic Business - The company is on track to obtain the OC and is expanding orders. In April, it received the EH216-S production license, enabling mass production. Significant orders were secured from various clients, including a 50-unit order from Shanxi tourism and a 30-unit order from the government of Wencheng County, Zhejiang [1][2]. International Business - The company is expanding into the Middle East market, collaborating with Multi Level Group and the Abu Dhabi Investment Office. Successful test flights of the EH216-S were conducted in Abu Dhabi and Saudi Arabia [1]. Q3 2024 Guidance - The company expects Q3 revenue of 123 million yuan, a 330% year-on-year increase and a 21% quarter-on-quarter increase [1].

Core Insights - EHang reported a nine-fold increase in unit sales of its EH-216 aircraft in Q2 2024, with a 920% increase in revenue and continued positive cash flow, indicating strong growth potential [2][18] - The eVTOL market is expected to gain momentum by 2025, with competitors like Joby and Archer anticipating FAA certification, which could lead to increased interest and investment in the sector [3][18] - EHang is currently the only eVTOL company to achieve type certification, with significant domestic orders and a growing manufacturing capacity, positioning it favorably in the market [5][7][18] Company Overview - EHang is a Chinese company focused on manufacturing autonomous eVTOL aircraft, primarily generating over 90% of its revenue from domestic operations [5] - The EH-216 aircraft is unique in its price and use case, selling for under $500,000, significantly lower than competitors [6] - EHang has faced skepticism from short sellers regarding its order book and manufacturing capabilities, but recent developments have validated its operational progress [5][6] Current Market Position - EHang received its mass production license in April 2024 and has expanded its manufacturing capabilities, with plans to increase production capacity to 1,800 aircraft annually [7][8] - The company has secured over 1,100 orders from Chinese customers in H1 2024, with expectations for continued order growth [7][9] - EHang's partnerships with local governments and airlines, along with infrastructure investments in vertiports, support its market expansion [9][10] Future Growth Potential - EHang is targeting aerial tourism as its primary use case, with plans for additional aircraft models like the VT-30, which is designed for intercity transportation [10][19] - The company anticipates triple-digit revenue growth over the next three to five years, driven by a large domestic market and minimal competition [9][19] - EHang's financial health is strong, with a solid cash position and positive cash flow projected for 2024 and 2025, reducing reliance on external financing [11][19] Valuation Insights - A mathematical model suggests a fair value for EHang shares above $30, indicating a potential upside of over 100% based on continued revenue growth and operational efficiency [16][19] - The current share price of $14.77 reflects a significant increase following the Q2 earnings report, highlighting investor interest [16][19] - EHang's valuation is influenced by currency exchange risks and geopolitical factors, given its operations are primarily in China [16][19]

Investment Rating - The report maintains a "Buy" rating for EHang Holdings (EH O) with a target price of $22, corresponding to a 35x 2026e P/E [1] Core Views - EHang achieved a significant turnaround in Q2 2024, with revenue of RMB 102 million, surpassing the guidance of RMB 90 million, representing a 920% YoY and 65% QoQ growth [1] - The company delivered 49 EH216-S units in Q2, a 9x YoY increase and a record high, with gross margin improving to 62 4% [1] - EHang expects Q3 2024 revenue to reach RMB 123 million, a 330% YoY increase, with triple-digit growth expected in the coming quarters [1] - The company has over 1,000 pre-orders for EH216-S, with domestic orders exceeding 1,100 units since Q4 2023 [1] - EHang's OC application has been accepted by the CAAC, with the first OC expected to be approved within 2024, paving the way for commercial applications [1] - The company plans to increase its annual production capacity to over 1,000 units by 2025, supported by factory expansions and automation improvements [1] Financial Performance - EHang's Q2 2024 non-GAAP net income was RMB 1 25 million, achieving profitability two quarters ahead of expectations [1] - The company's cash and cash equivalents stood at RMB 990 million as of Q2 2024, with no further ATM issuances planned for 2024 [1] - EHang's revenue is projected to grow from RMB 428 million in 2024 to RMB 1 31 billion in 2026, with non-GAAP net income turning positive in 2025 [1][12] Operational Highlights - EHang has established operational bases in key locations such as Shenzhen, Hefei, Guangzhou, and Zhuhai, with plans to expand low-altitude tourism applications [1] - The company has signed strategic partnerships, including a memorandum with China Southern Airlines General Aviation, to establish demonstration sites for EH216-S operations [1] - EHang is collaborating with GAC Group and other partners to expand production capacity and enhance key component development, particularly in battery technology [1] Market Position and Growth Potential - EHang is positioned as a leader in the urban air mobility (UAM) sector, with significant growth potential driven by increasing demand for eVTOL solutions [1] - The company's strong order backlog and expanding production capacity support its growth trajectory, with delivery volumes expected to increase significantly in the coming years [1][12]

peepo Introduction EHang Holdings Limited (NASDAQ:EH) is a Chinese start-up focused on developing and manufacturing passenger-carrying eVTOL aircraft. The company's key product is the EH216, a two-seat pilotless multicopter designed for intracity air mobility. The EH216 is also the only eVTOL model in China that has received all certifications for commercial operation. I initiated coverage on EHang in April with a positive view of its first-mover advantage in China's eVTOL market. However, the stock has cor ...

Core Insights - EHang Holdings experienced a significant stock price increase of over 16% following the announcement of a surprise net income in its latest quarter [1] - The company reported a remarkable 920% year-over-year revenue growth in Q2, reaching over 102 million yuan ($14 million) [2] - EHang's adjusted net profit for the second quarter was 1.2 million yuan ($168,330), contrasting with a substantial net loss of nearly 52 million yuan ($7.3 million) in Q2 2023 [2] Revenue Performance - EHang's Q2 revenue soared to more than 102 million yuan ($14 million), significantly exceeding analyst expectations of 92 million yuan ($12.9 million) [2] - The company achieved a non-GAAP net profit of 1.2 million yuan ($168,330), while analysts had predicted an adjusted loss of 0.84 yuan ($0.12) [2] Growth Drivers - The substantial revenue increase was driven by high order volumes from Chinese clients and the awarding of three production certificates from the aviation industry regulator, leading to increased demand [2] - EHang anticipates continued triple-digit growth, projecting third-quarter revenue of approximately 123 million yuan ($17.3 million), which would represent a roughly 330% increase year-over-year [3]

EHang Holdings Limited (NASDAQ:EH) Q2 2024 Earnings Conference Call August 22, 2024 8:00 AM ET Company Participants Anne Ji - Senior Director, Investor Relations Huazhi Hu - Founder, Chairman & Chief Executive Officer Zhao Wang - Co-Chief Operating Officer Conor Yang - Chief Financial Officer & Director of the Board Conference Call Participants Laura Lee - Deutsche Bank Ting Song - Goldman Sachs Cindy Wang - Morgan Stanley Yu Chen - Haitong Securities Operator Good day, ladies and gentlemen. Thank you for s ...

Exhibit 99.1 EHang Reports Second Quarter 2024 Unaudited Financial Results Guangzhou, China, August 22, 2024 — EHang Holdings Limited ("EHang" or the "Company") (Nasdaq: EH), the world's leading Urban Air Mobility ("UAM") technology platform company, today announced its unaudited financial results for the second quarter ended June 30, 2024. Financial and Operational Highlights for the Second Quarter 2024 1 • Quarterly Revenues Up 919.6% YoY, Highest Growth Rate in Company History • Achieved Quarterly Adjust ...

Core Insights - EHang Holdings Limited reported a record revenue of RMB102.0 million (US$14.0 million) for Q2 2024, marking a 919.6% increase year-over-year and a 65.3% increase quarter-over-quarter, driven by the sales of EH216 series products [2][18][31] - The company achieved an adjusted net income of RMB1.2 million (US$0.2 million) in Q2 2024, a significant improvement from adjusted net losses in the same quarter of the previous year and the first quarter of 2024 [2][28] - EHang maintained positive operating cash flow for the third consecutive quarter and raised US$76.2 million through an at-the-market equity offering, enhancing its liquidity position [2][17] Financial Highlights - Total revenues reached RMB102.0 million (US$14.0 million), a 919.6% increase from RMB10.0 million in Q2 2023 and a 65.3% increase from RMB61.7 million in Q1 2024 [2][18] - Gross profit was RMB63.7 million (US$8.7 million), up 957.3% year-over-year, with a gross margin of 62.4%, reflecting a 2.2 percentage points increase from the previous year [20] - Operating loss was RMB77.4 million (US$10.7 million), a slight increase from RMB75.3 million in Q2 2023, while adjusted operating loss improved by 90.9% year-over-year to RMB4.7 million (US$0.6 million) [25][26] Operational Highlights - EHang delivered 49 units of the EH216 series in Q2 2024, the highest quarterly delivery volume in the company's history, compared to 5 units in Q2 2023 [2][18] - The company secured a production certificate for the EH216-S from the Civil Aviation Administration of China (CAAC), allowing for steady production ramp-up [3][4] - EHang has formed strategic partnerships with various entities, including China Southern Airlines for collaborative eVTOL operations and GBT for developing ultra-fast charging battery solutions [9][13] Business Developments - EHang signed significant purchase agreements, including a RMB113 million (US$15.5 million) order for 50 units of EH216-S in Shanxi and a plan for an additional 450 units [5] - The company is expanding its market presence in the Middle East, having completed its first passenger-carrying autonomous eVTOL flight in Abu Dhabi and Mecca [11][12] - EHang's applications for pilotless eVTOL Air Operator Certificates have been accepted by CAAC, paving the way for commercial operations [8]