Core Insights - The conference on transportation technology and industrial innovation highlighted the growing importance of Urban Air Mobility (UAM) and the launch of the "One Network Unified Flight Low-altitude Smart Inspection Service Platform" [1][2] Group 1: Industry Trends - The rapid urbanization and development of low-altitude economy are creating new demands for urban transportation systems, making UAM a social hotspot [1] - The challenges facing UAM include ensuring safety, addressing the scarcity of practical safety vehicles, and developing reliable aerial regulatory platforms [1] - Opportunities for UAM are emerging as the industry moves towards commercialization, particularly in cities like Shenzhen that are leading pilot projects [1] Group 2: Platform Features - The "One Network Unified Flight Low-altitude Smart Inspection Service Platform" is built on the TransPaaS platform, integrating multimodal large models and AI algorithms to create a robust low-altitude data security system [2] - The platform covers eight key urban management areas, aiming for intelligent and refined governance through full business coverage and cross-department collaboration [2] - Key technological innovations include a 26G millimeter-wave private network for high-speed data transmission, AI algorithm orchestration tools, and a 3D digital twin base for low-altitude inspections [2][3] Group 3: Strategic Value - The platform represents a comprehensive capability in the low-altitude economy, supporting the safe, efficient, and collaborative operation of urban low-altitude environments [3] - It facilitates the standardized management of various types of drones, enhancing operational efficiency and safety in urban air traffic [3] - The strategic value of the platform lies in its ability to promote the commercialization and sustainable development of the urban air traffic industry [3]

Financial Performance - In Q1 2025, the company reported total revenue of RMB 26.1 million, a 58% decrease compared to RMB 61.7 million in Q1 2024 [2] - Operating loss was RMB 89.9 million, compared to an operating loss of RMB 65.8 million in Q1 2024 [2] - Net loss amounted to RMB 78.4 million, compared to a net loss of RMB 63.4 million in Q1 2024 [2] - Gross margin improved to 62.4%, up 0.5 percentage points year-over-year and 1.7 percentage points from Q4 2024 [2] - The company sold and delivered 11 units of the EH216 series unmanned aerial vehicles [2] Regulatory Milestones - The company received the first operational qualification certificates (OC) for the EH216-S from the Civil Aviation Administration of China (CAAC), allowing commercial operations [3] - The EH216-S operators can conduct commercial passenger flights in designated bases within China [3] Product Development - The new long-range composite wing unmanned aerial vehicle, VT35, has entered the type certification application process with CAAC [3] - The first VT35 prototype has been produced for airworthiness verification and is undergoing flight tests [3] - The VT35 is expected to be launched in Q3 2025, expanding the company's product offerings [5] Production Capacity Expansion - The company has initiated the expansion of its Yunfu production base, increasing the factory area to 48,000 square meters and plans to boost annual production capacity to 1,000 units by the end of the year [4] - A strategic partnership has been established to build an advanced eVTOL production base in Hefei, integrating automation and standardization to meet market demand [4] International Market Expansion - The EH216-S successfully completed flight demonstrations in Spain and Mexico, expanding the company's global footprint to 19 countries [4]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were RMB 26.1 million, a decrease compared to Q1 2024 and Q4 2024, primarily driven by decreased sales volume of EH216 series products [31][32] - Gross profit was RMB 16.3 million in Q1, with a gross margin improvement to 62.4% compared to 61.9% in Q1 2024 and 60.7% in Q4 2024, indicating strong marketing competitiveness and pricing power [32][33] - Adjusted net loss was RMB 31.1 million in Q1, reflecting a decline in deliveries, but the company expects financial performance to improve as deliveries recover [34][35] Business Line Data and Key Metrics Changes - In Q1 2025, the company delivered 11 units of the EH216S, with low delivery volume attributed to seasonal slowdown, internal budgeting processes, and customers delaying orders until after the OC was granted [14][15] - The company is expanding its Yunfu production base, which has doubled in size and will support an annual production capacity of up to 1,000 units once fully operational [15][16] Market Data and Key Metrics Changes - Following the issuance of operating certificates (OC), consumer inquiries and order volumes have significantly increased, with expectations for a strong rebound in Q2 [17][18] - Major orders from provinces such as Jilin, Jiangxi, Guizhou, Hainan, Anhui, and Guangdong are moving forward and will begin converting into deliveries starting in Q2 [18][39] Company Strategy and Development Direction - The company aims to evolve from manufacturing autonomous aerial vehicles into a comprehensive urban air mobility platform operator, focusing on safety and a phased approach to commercialization [6][7] - The company is actively building partnerships and expanding into logistics and emergency rescue applications, with ongoing projects in various regions [24][25][26] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth momentum, maintaining the full-year revenue guidance of RMB 900 million for 2025 despite Q1 performance decline [35][39] - The company is focused on continuous innovation and maintaining technological leadership, with significant investments in R&D and a strong pipeline of new products [12][13][33] Other Important Information - The company holds over 700 issued and pending patent assets worldwide, with nearly half of its team dedicated to R&D [12] - The company has established strategic partnerships to develop next-generation manufacturing bases and enhance its operational capabilities [22][23] Q&A Session Summary Question: Outlook on significant growth in sales and deliveries - Management noted that Q1 performance declined due to seasonal impacts and customer budget finalization, but improvements in Q2 delivery volumes and sales are expected [37][38] Question: Timeline for EH216 owners to obtain OC certificates - Management indicated that the issuance of OC clarifies regulatory standards, which should reduce application timelines for future operators [40][41] Question: Competition and product differentiation - Management emphasized that urban air mobility and intercity transport serve different markets, with the EH216S offering a compact footprint and lower costs compared to competitors [43][44][45] Question: Delivery growth expectations - Management confirmed strong sales growth in Q2 and expects significant revenue increases in the second half of the year as deliveries ramp up [73][75] Question: Production capacity updates - Management provided updates on the expansion of the Yunfu facility, which is expected to reach an annual production capacity of 1,000 units by the end of the year [80][81] Question: Perception of NDRC's recent statements - Management reiterated the importance of safety and a phased approach to operations, aligning with NDRC's guidance on developing the low altitude economy [85][86]

Core Viewpoint - The company is committed to advancing the TC certification process for specific eVTOL models by 2025, aiming to bring products to market quickly [1] Group 1: Product Development - The company has established a multi-scenario product travel matrix that includes "fixed-wing + vertical take-off and landing aircraft + drones" [1] - The company plans to focus on the TC certification process for the DART model, the all-electric general aviation aircraft eDA40, and certain eVTOL models in 2025 [1] Group 2: eVTOL Market Strategy - The urban air mobility solution relies on two piloted two-seat models: Volocopter 2X and VoloCity [1] - The Volocopter 2X is expected to complete TC certification between 2025 and 2026, with efforts to secure commercial orders [1] - The VoloCity model is designed to meet stricter EASA aviation standards and is currently advancing its TC certification process with EASA [1]