Investment Rating - The report maintains a "Buy" rating for the company with a target price of $20, corresponding to a 20x P/S for 2025 [4][6]. Core Insights - The company has lowered its full-year revenue guidance for 2025 from 900 million RMB to approximately 500 million RMB, reflecting a year-on-year growth of about 10% [1]. - In Q2 2025, the company delivered 68 units of the EH216 series aircraft, a significant increase compared to previous quarters, with a total of 79 units delivered in the first half of the year [1]. - The company achieved a revenue of 147 million RMB in Q2, representing a 44% year-on-year increase, with a gross margin of 62.6% [1]. - The company has received over 150 new orders for the EH216 series in Q2, with 90% of these being domestic orders [3]. - The company is actively pursuing the commercial launch of the EH216-S for passenger operations within the year and plans to unveil the VT35 model in September [2]. Financial Summary - The company expects revenues of 500 million RMB in 2025, with projections of 750 million RMB in 2026 and 1.34 billion RMB in 2027 [4]. - Non-GAAP net profit is projected to be 5 million RMB in 2025, increasing to 54 million RMB in 2026 and 167 million RMB in 2027 [4]. - The company has a capital expenditure guidance of approximately $40 million for 2025, with capacity expansion goals remaining unchanged [1]. Operational Developments - The company has obtained all necessary certifications for eVTOL manufacturing and is conducting trial operations for passenger drones [2]. - Strategic partnerships have been established with battery manufacturers to address battery life and charging issues, including the development of solid-state batteries [3].

Core Insights - A UAE company, Autocraft, signed a procurement agreement with Chinese company Shide Technology for 350 units of E20 eVTOL, amounting to $1 billion, marking the largest single eVTOL order from China to date [1][2] - The E20 eVTOL is designed for urban air mobility, featuring a wingspan of 12 meters, a range of 200 kilometers, and a maximum speed of 320 kilometers per hour, capable of carrying one pilot and four passengers [1] - The collaboration aims to leverage Autocraft's local market advantages and Shide Technology's expertise in eVTOL development to facilitate pilot deployments and commercial applications in the Middle East and North Africa [1][2] Summary by Sections - **Procurement Agreement**: Autocraft's $1 billion order for 350 E20 eVTOLs is set to be delivered after obtaining the necessary certifications from the Civil Aviation Administration of China [1] - **E20 eVTOL Specifications**: The E20 model is characterized by its vertical takeoff and landing capabilities, reduced carbon emissions, and low noise levels, making it suitable for various applications such as low-altitude tourism and urban commuting [1] - **Technical Collaboration**: On the signing day, Shide Technology's team engaged in technical discussions with representatives from the UAE Civil Aviation Authority regarding airworthiness certification and operational management, laying a solid foundation for the E20's commercial use in the UAE [2] - **Strategic Importance**: The $1 billion order is seen as a critical breakthrough for Shide Technology's international expansion, with plans to promote Chinese low-altitude technology in more regions [2]