EHang Reports Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results

Core Insights - EHang Holdings Limited reported a significant increase in revenues, with a 260.9% year-over-year growth in Q4 2023 and a 165.0% increase for the fiscal year 2023, driven by higher sales of the EH216 series products [2][3][20][33] - The company achieved a gross margin of 64.7% in Q4 2023, maintaining a stable and high level despite a slight decrease from the previous year [2][3][22] - EHang generated positive operating cash flow in Q4 2023, marking a notable improvement in its financial position [2][19][32] Financial Highlights for Q4 2023 - Total revenues reached RMB 56.6 million (US$ 8.0 million), up from RMB 15.7 million in Q4 2022 and RMB 28.6 million in Q3 2023 [2][20] - Operating loss improved to RMB 75.2 million (US$ 10.6 million), an 18.4% improvement from RMB 92.2 million in Q4 2022 [2][27] - Net loss was RMB 72.5 million (US$ 10.2 million), a 34.2% improvement from RMB 110.1 million in Q4 2022 [2][29] Financial Highlights for Fiscal Year 2023 - Total revenues for the fiscal year were RMB 117.4 million (US$ 16.5 million), a 165.0% increase from RMB 44.3 million in 2022 [3][33] - Operating loss for the year was RMB 296.3 million (US$ 41.7 million), showing a 2.5% improvement from RMB 304.0 million in 2022 [3][38] - Net loss for the year was RMB 302.3 million (US$ 42.6 million), an 8.2% improvement from RMB 329.3 million in 2022 [3][39] Business Developments - EHang obtained the world's first pilotless passenger-carrying eVTOL Type Certificate and Standard Airworthiness Certificate for the EH216-S from the CAAC, enabling commercial operations in China [4][16] - The company has initiated production of the EH216-S under CAAC supervision and began deliveries in Q4 2023 [5][6] - EHang is advancing towards obtaining a Production Certificate for mass production, with onsite inspections completed by the CAAC [6] Market Expansion and Partnerships - EHang has expanded its operations to the UAE, joining the SAVI Cluster and forming a strategic partnership with Wings Logistics Hub for the purchase of 100 units of EH216 series eVTOLs [12][13] - Collaborations with local governments in cities like Shenzhen, Guangzhou, Hefei, and Wuxi are being fostered to promote eVTOL sales and operations [7][8][9] - A strategic cooperation agreement with GAC Group aims to enhance production capabilities and market expansion for EHang's UAVs [11] Future Outlook - For Q1 2024, EHang expects total revenues to be around RMB 58.0 million, representing an increase of approximately 160% year-over-year [45]