Financial Performance & Outlook - Vertical Aerospace reported cash and cash equivalents of £69 million (approximately $90 million) as of March 31, 2025, following a January 2025 raise of £74 million (approximately $90 million) in gross proceeds, compared to £23 million (approximately $28 million) in FY 2024 [65] - The company experienced a non-cash P&L finance credit of £396 million due to convertible loan notes revaluation, with the valuation decreasing from £524 million at a share price of $12.58 on December 31, 2024, to £122 million at a share price of $3.36 on March 31, 2025 [66] - Vertical Aerospace is fully funded through 2025, demonstrating industry-leading capital efficiency [65] Operational Milestones & Progress - Vertical Aerospace is progressing with its 2025 piloted prototype flight test campaign, serving as a mini-certification process [20] - The company has defined operational milestones for 2025 and beyond, including flying full-scale piloted transition and wingborne flights, building and flying a third full-scale VX4 prototype, and initiating long-range parts purchasing [22, 23, 24] - Vertical Aerospace aims to achieve a manufacturing run-rate of over 200 units per annum, moving towards a 40% gross margin as production scales, and targeting zero accidents [16] Strategic Partnerships & Technology - Vertical Aerospace and Honeywell expanded their partnership, with a projected contract value of $1 billion over the next decade [30] - Honeywell's Anthem Integrated Flight Deck will be integrated into the VX4, promoting safer and more connected operations [30] - Vertical Aerospace is developing proprietary battery technology with a dedicated Vertical Energy Center spanning 15,000 sq ft and employing approximately 50 aviation battery engineers [50] Future Opportunities - Vertical Aerospace is exploring hybrid propulsion platforms for defense applications, potentially enabling a range of 1,000+ miles with a 500kg to 1,100kg payload [48] - The company anticipates a long-term revenue mix of approximately 50/50 between aircraft and battery sales [49]

Financial Data and Key Metrics Changes - The company reported an 11% revenue growth excluding Canada, with a year-over-year improvement in adjusted EBITDA of $2.3 million [7][9] - Adjusted EBITDA for the passenger segment improved by $2.7 million year-over-year, reaching $6.3 million as of Q1 2025, up from $3.6 million in Q4 2024 [9][16] - Medical revenue remained roughly flat year-over-year at $35.9 million, with significant variability in monthly growth trends [17][20] Business Line Data and Key Metrics Changes - Passenger segment revenue grew by 42% year-over-year excluding Canada, marking the first adjusted EBITDA profitable quarter since going public [7][9] - Short distance revenue increased by 28.1% year-over-year, primarily driven by growth in Europe [16] - Jet and Other revenue increased by 60% year-over-year due to higher flight volume and revenue per flight [16] Market Data and Key Metrics Changes - The European market showed strong revenue growth attributed to restructuring efforts, which improved operational efficiency and customer experience [8][16] - The medical business is expected to benefit from strong underlying transplant volume growth, with industry transplant volume rising 7% year-over-year [24] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, evaluating investments in aircraft and medical acquisitions to strengthen its competitive position [14][45] - The transition from helicopters to eVTOL is seen as a key strategic direction, with expectations for deployment in late 2025 to early 2026 [62] - The company aims to enhance profitability through cost rationalization initiatives and restructuring efforts, particularly in the passenger segment [10][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic uncertainty but expressed confidence in the resilience of their higher-end consumer base and ongoing demand in leisure markets [12][32] - The company expects continued revenue growth in the medical segment, with double-digit growth anticipated for the year [24][25] - Management noted that maintenance downtime is expected to moderate in the second half of 2025, leading to improved adjusted EBITDA margins [20][25] Other Important Information - The company ended the quarter with no debt and $120 million in cash and short-term investments, providing flexibility for strategic investments [23] - The company has implemented a withhold to cover method for taxes on employee stock-based compensation, effectively reducing outstanding shares [22] Q&A Session Summary Question: Themes for the year regarding passenger and medical segments - Management highlighted improved profitability in the passenger segment and the impact of maintenance on medical revenue, with expectations for better performance in the second half of the year [28][30] Question: Revenue contribution from Europe and sustainability of growth - Management confirmed approximately $6 million of revenue from Europe in Q1, attributing growth to restructuring and improved service [44] Question: Capital allocation priorities - The company is focused on tactical and strategic medical acquisitions, organic growth initiatives, and has a buyback authorization in place [45][46] Question: Bookings trends and impact of recent issues - Management noted that bookings for summer appear better than last year, but emphasized the on-demand nature of their service [50][53] Question: Repositioning aircraft strategy - Management explained that repositioning will always be part of the business, with a low to mid single-digit revenue headwind expected [71][72] Question: Impact of economic conditions on aircraft acquisitions - Management stated that there is no impact on their aircraft acquisition strategy, with plans to add a low single-digit number of aircraft over the next year or two [75][76]

Group 1: Investor Relations Activities - The company held an earnings briefing on May 8, 2025, from 15:00 to 16:00 [3] - Participants included the chairman, vice chairman, CFO, board secretary, and sponsor representative [3] - Various channels for investor communication include earnings briefings, online roadshows, site visits, and responding to investor inquiries [4] Group 2: Market and Product Insights - Solid-state batteries are identified as a key future direction due to their high energy density and safety, with applications in electric vehicles, energy storage, and consumer electronics [5] - The company is one of the early participants in solid-state battery production equipment development and has received customer orders [5] - The company plans to expand its international presence, focusing on Europe, North America, and Southeast Asia to enhance its competitive edge [6] Group 3: Financial Performance and Strategy - The decline in Q1 2025 performance is attributed to reduced equipment acceptance, leading to lower revenue recognition [7] - The company is actively working to improve customer service and efficiency to recover from the downturn [7] - The company reported a positive trend in operating cash flow and a sufficient backlog of orders for Q1 2025 compared to Q1 2024 [8] Group 4: Future Plans and Developments - The company will participate in the CIBF2025 International Battery Exhibition from May 15-17, 2025, showcasing dry electrode and solid-state battery equipment [9][10] - The company is open to mergers and acquisitions to enhance its market position and achieve stable growth [13] - Future strategic goals include maintaining domestic market leadership in lithium battery production equipment while exploring new fields for growth [15]

Summary of Low Altitude Economy Commercialization Conference Call Industry Overview - The conference call focuses on the low altitude economy, particularly the commercialization of eVTOL (electric Vertical Take-Off and Landing) aircraft and related applications in various sectors such as tourism, logistics, and agriculture [1][2]. Key Points and Arguments - **Order Volume and Sales**: - EVGO has received approximately 4,000 orders since its first flight in November 2024 [1][2]. - EHang's EH216 series has delivered 216 units in 2024, with over 1,000 intention orders from clients including Taiyuan Xishan Cultural Tourism and Wencheng County Transportation Development Group [1][2]. - CITIC Jinzhong intends to purchase 100 EVGO aircraft [1][2]. - **Application Scenarios**: - The low altitude economy is expected to first take off in the cultural tourism sector, while logistics and agricultural applications are already relatively mature [1][2]. - Short-term applications for manned flights will occur in closed airspace and low-density tourist areas, with long-term goals aimed at urban transportation [1][2]. - **Production Capacity Expansion**: - XPeng Heavens and EHang are actively expanding production capacity, with XPeng aiming for mass production of flying cars by 2026 and EHang targeting a capacity of 1,000 units by 2025 [1][4]. - Meituan's drone service has opened 53 routes and completed over 450,000 deliveries since 2017 [1][4]. - **Market Growth Forecast**: - The eVTOL industry is projected to see significant commercialization and mass production between 2026 and 2027, with several companies like Fengfei Aviation and Volant expected to complete certification and market introduction [1][5]. Challenges and Difficulties - **Airspace Management**: - Complex airspace approval processes involving multiple stakeholders (military, civil aviation, local governments) hinder efficiency [6]. - **Market Development**: - Insufficient application scenarios and low public acceptance regarding safety and reliability pose challenges [6]. - **Infrastructure Development**: - A lack of existing general aviation airports and supporting facilities limits operational range and efficiency [7]. Investment Opportunities - **Manufacturing and Technology**: - Companies like Zongheng Co. and Wan Feng Aowei are highlighted as potential investment targets in the manufacturing of industrial drones and lightweight aircraft [3][9]. - **Power Systems**: - Beneficiaries in the power systems segment include Yingboer, Wolong Electric Drive, and Zongshen Power, with significant contributions to the low altitude economy [10]. - **Avionics and Flight Control Systems**: - Zongheng Communication and Zhonghe Technology are key players in the avionics and flight control systems sector, focusing on solutions for urban industrial drones and manned aircraft [11]. Leading Companies and Solutions - **Zongheng Co.**: - Offers a comprehensive range of industrial drones, including vertical take-off fixed-wing drones and multi-rotor drones, continuously upgrading its unmanned systems [9]. - **Wan Feng Aowei**: - Engaged in lightweight automotive and general aviation aircraft manufacturing, with its electric aircraft EDA40 entering the certification phase [9]. Future Research Activities - **Guotai Junan Machinery**: - Plans to conduct research on the low altitude economy industry chain in the coming weeks, inviting industry professionals to participate in discussions [12].

Core Viewpoint - The eVTOL (electric Vertical Take-Off and Landing) industry is experiencing significant growth, with major companies forming strategic partnerships and securing large orders, indicating a shift towards commercial applications in urban air mobility [1][3][4]. Group 1: Strategic Partnerships and Orders - Shanghai Volant Aviation Technology Co., Ltd. has signed strategic cooperation agreements with Bank of China Financial Leasing Co., Ltd. and Bank of China branches, planning to purchase 100 VE25 eVTOL aircraft and providing a credit line of no less than 1 billion yuan [1]. - Peak Aviation has also announced a strategic partnership with CITIC Helicopter and CITIC Financial Leasing, including an intention to purchase 100 large eVTOL aircraft [1]. - The VE25-100 eVTOL aircraft has received nearly 1,000 intention orders, with total order value reaching the hundred billion yuan level [3]. Group 2: Industry Insights and Economic Impact - The low-altitude economy is recognized as a strategic emerging industry in China, with significant investment and long return cycles, making financial leasing partnerships essential for eVTOL operators to manage costs [4]. - The eVTOL aircraft is designed with a composite wing structure, capable of carrying one pilot and five passengers, with a cruising speed of 235 km/h and a range of 200 to 400 km [3]. - The low-altitude economy is expected to redefine urban transportation, with eVTOLs primarily serving as urban air taxis, projected to become widespread in major cities by 2030 [7]. Group 3: Future Projections - By 2030, it is anticipated that eVTOLs will be integrated into urban transportation systems, with potential for 100,000 eVTOLs to operate as air taxis or be used in households [7]. - The report indicates that the drone industry is rapidly evolving, with applications expanding into various sectors, including logistics, emergency response, and urban management [7][8].

近日，国内首家增程式倾转旋翼 eVTOL货运无人机制造商「蓝霄航空」宣布完成天使++轮融资 ， 本轮由初心资本领投，老股东联想之星、戈壁创投超额 跟投，澜松资本担任长期独家财务顾问。 至此，蓝霄在半年内完成天使轮、天使 +轮及天使++轮三轮融资，累计融资额达近亿元。这家成立仅半年的企 业，以"军品研发体系+汽车供应链"的颠覆性模式，创下国内低空经济领域早期项目融资速度和金额新纪录，成为2025年低空经济赛道超级现象级企业。 动力系统局限：纯电 eVTOL航程普遍低于150公里，难以覆盖城际物流需求（平均运输距离800公里）； LX-1 效果图 1 行业拐点：低空经济爆发前的窗口期 在中央空管委正式批复《国家低空经济示范区建设方案》、六大试点城市启动低空改革试点的政策背景下，中国低空经济正从概念验证迈向规模化商业应 用。摩根士丹利预测， 2040年全球eVTOL市场规模将突破1.3万亿美元，其中货运场景占比超60%。然而，当前行业面临三大核心瓶颈： 适航认证风险：载人 eVTOL需满足FAA/EASA/CAAC最严苛适航标准，取证周期长达5-8年； 成本控制难题：主流机型吨公里成本高昂，是传统货运直升机的 3倍 ...

Core Viewpoint - The company has successfully turned a profit in Q1 2025, achieving operating revenue of 715 million yuan and a net profit of 12.82 million yuan amidst intensified industry competition, driven by effective strategic adjustments and enhanced operational efficiency [2] Financial Performance - In Q1, the company's operating cash flow turned positive, reaching 118 million yuan, attributed to systematic optimization in cost control and capital operations [3] - The company reduced sales and management expenses by 22.37% and 41.17% year-on-year, respectively, through a comprehensive cost monitoring system [3] - The high conversion rate of 99.71% for convertible bonds has led to a decrease in the debt-to-asset ratio, alleviating financial burdens [3] R&D and Business Development - The gross profit margin significantly increased by 17.46% year-on-year and 27.1 percentage points quarter-on-quarter, reaching 34.84%, due to a revamped R&D strategy focusing on high-potential areas while maintaining a 12.26% R&D expense ratio [4] - The company has achieved breakthroughs in lithium battery equipment, securing bulk orders for its advantageous models in both power and consumer lithium batteries [4] - The company has established a solid-state battery laboratory and developed core equipment prototypes, positioning itself for future market opportunities [4][5] Competitive Positioning - The company has formed a differentiated competitive edge by collaborating with leading domestic automakers to establish the first production line for sulfide solid-state batteries [5] - With the anticipated timeline for solid-state battery commercialization approaching, the company is well-positioned to leverage its dual advantages in equipment and processes [5] Global Expansion and Innovation - The company has developed a "3+2+2" global manufacturing network, enhancing its capabilities in precision processing and assembly [6][7] - The emergence of trillion-dollar markets such as intelligent robots and eVTOLs presents new opportunities for the company's technology applications [7] Strategic Focus - In 2025, the company will concentrate on lithium battery equipment and smart factory solutions, increasing investments in solid-state batteries, perovskite, mobile robots, and AI computing equipment [8] - The company aims to optimize its organizational structure and cost structure to enhance operational efficiency and market competitiveness [8]

Financial Performance - In 2024, the company achieved a revenue of 162.64 billion CNY, a year-on-year increase of 0.35% [1] - The net profit attributable to shareholders for 2024 was 6.53 billion CNY, a decline of 10.14% compared to the previous year [1] - In Q1 2025, the company reported a revenue of 35.67 billion CNY, reflecting a growth of 0.75% [1] - The net profit for Q1 2025 was 2.75 billion CNY, showing a significant increase of 21.3% year-on-year [2] Business Segments - The automotive metal parts lightweighting segment generated a revenue of 134.50 billion CNY, with a slight increase of 0.09% [2] - The general aviation aircraft manufacturing segment achieved a revenue of 28.14 billion CNY, growing by 1.62% [2] - The sales of aluminum alloy wheels reached 22.34 million sets, marking a year-on-year growth of 17.27% [2] Strategic Initiatives - The company is focusing on optimizing product structure and deepening cooperation in the new energy sector [1] - Following the acquisition of Volocopter's core assets, the company aims to integrate resources and enhance its eVTOL business [3] - The company plans to develop a multi-scenario product travel matrix, including fixed-wing, vertical take-off and landing aircraft, and drones [3] eVTOL Product Development - The company is developing urban air mobility solutions with the Volocopter 2X and VoloCity models, targeting certification by 2025-2026 [5] - The intercity air mobility solutions will utilize VoloRegion and VoloConnect models, designed for high endurance and speed [5] - The drone solutions, based on eVTOL technology, can carry up to 200 kg over a range of 40 km, targeting logistics in hard-to-reach areas [5] Global Market Strategy - The company has established manufacturing bases in Canada, Mexico, and the USA to mitigate tariff impacts, with less than 4% of sales to the US market affected by tariffs [6] - The company is enhancing its market share in the Asia-Pacific region, particularly among mid-to-high-end customers [6] - The strategy includes leveraging opportunities in the new energy vehicle market to integrate into core customer supply chains [6]

Core Viewpoint - The company Zero Gravity is focusing on commercializing low-altitude flight training and tourism, moving away from the "flying car" concept that dominates the industry. It has developed a product matrix consisting of electric fixed-wing, multi-rotor, and tilt-rotor aircraft, aiming to generate cash flow and self-sustainability through these markets [2][4]. Summary by Sections Product Development - Zero Gravity has established a product matrix that includes the RX1E-A electric fixed-wing aircraft, which has received airworthiness certification for commercial operations, and the ZG-ONE eVTOL targeting the tourism market with affordable pricing [2][4][10]. - The RX1E-A features a cruising speed of 120 km/h and a range of 280 km, with a maintenance cost significantly lower than traditional fuel-powered aircraft, making it an ideal training aircraft [13][15]. Market Focus - The company is targeting the low-altitude tourism and flight training markets, which are characterized by low frequency, high added value, high safety requirements, and high experience demand, making them closer to market realization [4][8]. - The global pilot training market is projected to grow from $8.5 billion in 2023 to $20.8 billion by 2033, with a compound annual growth rate of 9.36% [7]. Pricing Strategy - Zero Gravity aims to reduce training costs by 50% and offer aerial sightseeing experiences at prices around hundreds of yuan, making it more accessible compared to traditional helicopter tours priced at 2000-3000 yuan [9][5]. Strategic Partnerships - The company has formed strategic partnerships to explore low-altitude tourism and flight training, leveraging existing tourist destinations to enhance the customer experience [18][20]. Future Outlook - Zero Gravity is also exploring intercity air transportation, with plans to establish a network in the Southwest region of China, capitalizing on the diverse terrain and supportive policies in Chongqing [22][23]. - The tilt-rotor aircraft ZG-T6 is being developed for future urban air mobility, with expectations for significant advancements in regulations and infrastructure by 2028, potentially transforming air transportation into a common public service [26].

Group 1: Company Performance - In 2024, the company reported a total revenue of 11.855 billion yuan, with a net profit attributable to shareholders of 286 million yuan, showing a narrowing decline compared to previous quarters [1] - The fourth quarter of 2024 saw a year-on-year net profit growth of 41.28%, indicating a significant improvement in financial performance [1] - For Q1 2025, the company achieved a revenue of 3.098 billion yuan and a net profit of 365 million yuan, representing a quarter-on-quarter growth of 12.94% and 213.29% respectively [1] Group 2: Industry Trends - The domestic new energy industry has been under pressure since 2023, but the operating rates of downstream lithium battery manufacturers have gradually increased since the second half of 2024, indicating a recovery in the industry [2] - The global lithium battery intelligent equipment market is projected to grow from 59.3 billion yuan in 2024 to 235.9 billion yuan by 2029, with a compound annual growth rate of 31.8% [2] Group 3: Order Growth and Global Strategy - The company's contract liabilities with CATL increased from 384 million yuan at the beginning of the year to 1.157 billion yuan at the end, indicating a more than twofold increase in orders from CATL [3] - The company reported a 26.31% year-on-year growth in overseas business revenue, reaching 2.831 billion yuan, with overseas revenue accounting for 23.88% of total revenue [3] Group 4: New Technologies and Standards - The Ministry of Industry and Information Technology released new safety standards for electric vehicle batteries, which are expected to accelerate the industrialization of solid-state and sodium-ion batteries [5] - The company has developed innovative solutions in composite electrolyte technology and AI quality inspection, positioning itself well for the upcoming market changes [5] Group 5: Emerging Industries - The rise of new industries such as eVTOL and humanoid robots is expected to broaden the application scenarios for new battery technologies, providing additional growth opportunities for the battery industry [6]