Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were RMB 147.2 million, representing a 44% year-over-year increase and a significant sequential increase of 4.6 times compared to Q1 2025, primarily driven by increased sales volume of EH216 series products [7][35] - Gross profit for Q2 was RMB 92 million, with a gross margin of 62.6%, remaining stable compared to 62.4% in both Q2 2024 and Q1 2025, indicating sustained market competitiveness [35][36] - Adjusted net income was RMB 9.4 million, a 19.9% increase from RMB 1.2 million in 2024, marking a turnaround from an adjusted net loss of RMB 31.1 million in Q1 2025 [37][38] Business Line Data and Key Metrics Changes - The company successfully delivered 68 units of the EH216 series, with new orders exceeding 150 units for the EH216 series in Q2, reflecting strong market interest [7][20] - The EH216 S completed over 10,000 safe flights without incidents, underscoring its safety and reliability, which is crucial for scaling up commercial operations [8][21] Market Data and Key Metrics Changes - The company reported that 90% of new orders were from domestic clients, while 10% were from overseas customers, indicating a growing demand for pilotless vehicles in international markets [52][80] - The company has expanded its global presence, completing demo flights in 20 countries, including Mexico, Indonesia, and the Dominican Republic [30] Company Strategy and Development Direction - The company is focusing on establishing a proven scalable business model for pilotless eVTOL operations, emphasizing safety, regulatory compliance, and innovation as cornerstones for leadership in the market [18][34] - A strategic partnership with the Hefei municipal government aims to establish a VT35 series product hub, integrating R&D, manufacturing, and operations [13][76] - The company is pursuing a dual-engine revenue model combining vehicle manufacturing and operational services to support long-term sustainable growth [39][40] Management Comments on Operating Environment and Future Outlook - Management emphasized that the adjustment in revenue guidance is not due to weak demand but a commitment to safety and a more prudent development strategy [45][46] - The company is confident in achieving a full-year revenue target of RMB 500 million based on current order backlog [45] Other Important Information - The company has established partnerships with leading academic institutions and top-tier ecosystem allies to advance critical technologies and enhance operational capabilities [14][28] - The company is actively pursuing airworthiness certification for new models and solid-state battery technology, which has shown significant results in extending flight durations [84] Q&A Session Summary Question: Reasons behind revenue guidance cuts - Management clarified that the adjustment is due to a strategic shift towards supporting existing clients in establishing regular operations, prioritizing safety over rapid expansion [45] Question: Update on operating certificates (OC) for clients - Management provided an update on the phased operational approach of the two operators who obtained OCs, highlighting their focus on optimizing processes and services [47][48] Question: Breakdown of order backlog - Management indicated that 90% of the 150 new orders are from domestic clients, with a growing trend of demand from overseas markets [52][54] Question: Plans for VT20 model airworthiness certification - Management confirmed that the VT20 series logistic aircraft does not require airworthiness certification, while larger models are progressing towards certification [56] Question: Future revenue growth expectations - Management expressed confidence in achieving significant revenue growth next year, supported by ongoing projects and commercial operations [61] Question: Production capacity expansion plans - Management confirmed that the production base expansion plan remains unchanged, with an annual capacity target of 1,000 units [68][69] Question: Business model as a UAV service provider - Management outlined the company's role as both an eVTOL producer and an operational service provider, focusing on sustainable long-term commercial operations [73][74]

Core Viewpoint EHang Holdings Limited reported significant growth in its financial performance for the second quarter of 2025, driven by increased sales of its EH216 series eVTOL aircraft, while also expanding its operational capabilities and partnerships in the Urban Air Mobility sector. Financial Highlights - Total revenues reached RMB147.2 million (US$20.5 million), marking a 44.2% increase year-over-year and a 464.0% increase quarter-over-quarter [10][9] - Gross margin maintained at 62.6%, consistent with previous quarters [12] - Operating loss was RMB78.1 million (US$10.9 million), slightly up from RMB77.4 million in Q2 2024 but down 13.1% from RMB89.9 million in Q1 2025 [16] - Net loss was RMB81.0 million (US$11.3 million), a 13.1% increase from RMB71.6 million in Q2 2024 and a slight increase of 3.3% from RMB78.4 million in Q1 2025 [18] - Adjusted net income was RMB9.4 million (US$1.3 million), a significant turnaround from a loss of RMB31.1 million in the previous quarter [29] Operational Highlights - Delivered 68 units of EH216 series eVTOL aircraft in Q2 2025, up from 49 units in Q2 2024 and 11 units in Q1 2025 [4] - Established over 40 operational sites for the EH216-S, completing over 10,000 safe flights with zero accidents [8] - Received new orders for over 150 units of EH216 series in Q2 2025, indicating strong market demand [4] Strategic Developments - Strengthened liquidity position with US$23.8 million raised from an at-the-market equity offering [4] - Launched EH216-S trial commercial operations in Guangzhou and Hefei, with over 700 flights logged [7] - Formed strategic partnerships with Gotion High-Tech and Minth Group to enhance technology and supply chain capabilities [8] Business Outlook - The company revised its 2025 revenue guidance to approximately RMB500 million, focusing on expanding commercial eVTOL operations [32]

Financial Data and Key Metrics Changes - In Q4 2024, EHang delivered 78 units of the EH216 series, generating revenues of RMB164 million, a 239.1% year-over-year increase [12] - For the full year 2024, total deliveries reached 216 units with revenues of RMB456 million, marking a 288.5% year-over-year increase [12] - The company achieved positive adjusted net income and positive operating cash flow for the first time in its history [12] - Q4 gross margin was 60.7%, slightly down from 64.7% in Q4 2023, while the full-year gross margin was 61.4%, down from 64.1% in 2023 [45] - Adjusted operating income for Q4 was RMB27.9 million, a significant improvement from an adjusted operating loss of RMB24.9 million in Q4 2023 [48] Business Line Data and Key Metrics Changes - The EH216-S autonomous eVTOL received significant orders, including a 30-unit order from Shandong province and another 30-unit order from Zhejiang province [27] - The company is focusing on enhancing production efficiency and scaling production capabilities to meet growing demand [28] Market Data and Key Metrics Changes - EHang has established over 20 eVTOL operational demonstration sites and e-ports across 16 cities in China [15] - The company is expanding its presence in international markets, conducting flights in countries like Thailand, Japan, Spain, and Mexico [39] Company Strategy and Development Direction - EHang aims to launch operational demonstration projects in key cities to allow public experience of eVTOL flights [16] - The company is committed to advancing AI technology integration within its operations and products [18] - EHang plans to develop a complete lifecycle value system for customers, including hardware, services, and operations [85] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for eVTOL products and operational services, expecting total revenue for 2025 to reach RMB900 million, a 97% increase year-over-year [42] - The company is focused on safety and regulatory compliance as it prepares for commercial operations [32] Other Important Information - EHang has partnered with various universities and government departments to advance digital technologies in the low-altitude aviation industry [20] - The company is developing next-generation high-energy solid-state lithium batteries and has achieved significant progress in testing [21] Q&A Session Summary Question: Production capacity expansion for Hefei facility - Management confirmed that the Yunfu Phase 2 will reach an annual capacity of 1,000 units by the end of 2025, with specialized focuses for different production lines [55][56] Question: Timeline for OC application and GAAP profitability - Management expects to receive OC approval soon and anticipates achieving GAAP profitability in 2026, with a CapEx guidance of approximately $14 million for 2025 [66] Question: Gross margin outlook and financing plans - Management targets a gross margin around 60% and plans to seek additional financing to support market expansion and new product development [72] Question: Air taxi operation timeline - Management indicated that air taxi services will be established in domestic tourism areas first, with infrastructure development being a key factor [77] Question: Update on overseas market and revenue diversification - Management reported strong domestic demand with intention orders exceeding 1,000 units and emphasized a dual strategy of operations and sales to diversify revenue streams [90][85]