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 the same period of 2024 and 60.7% in Q4 2024, indicating strong marketing competitiveness and pricing power [32] - 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][36] Business Line Data and Key Metrics Changes - In Q1 2025, the company delivered 11 units of the EH216S, with the low delivery volume attributed to seasonal slowdown, internal budgeting processes of clients, and deferred orders due to the upcoming OC certification [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 [16] Market Data and Key Metrics Changes - Following the issuance of operating certificates (OCs), consumer inquiries and order volumes have significantly increased, with expectations for a strong rebound in Q2 [18][19] - Major orders from provinces such as Jilin, Jiangxi, Guizhou, Hainan, Anhui, and Guangdong are expected to convert into deliveries starting in Q2 [19] Company Strategy and Development Direction - The company aims to evolve from manufacturing autonomous aerial vehicles into a comprehensive urban air mobility platform operator, providing a one-stop solution covering aircraft hardware, software, operational services, and standard systems [6] - The company is focused on a phased approach to commercialization, starting with low-risk scenarios like sightseeing flights before expanding into more complex urban air mobility services [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth momentum over the next few quarters, maintaining the annual revenue guidance of RMB 900 million for 2025 [36][39] - The company is committed to safety and is implementing enhanced standards to ensure safe and compliant flight operations as it transitions to commercial operations [19][20] Other Important Information - The company has over 700 issued and pending patent assets worldwide, with nearly half of its team dedicated to R&D, positioning it as a global leader in autonomous flight systems [12] - The company is actively expanding its business into logistics and emergency rescue applications, with specialized UAVs already developed for these use cases [25][26] Q&A Session Summary Question: Outlook on significant growth in sales and deliveries - Management noted that Q1 performance declined due to seasonal impacts and deferred orders, but improvements in Q2 delivery volumes and sales are expected, with large orders converting into contracts [38] Question: Timeline for EH216 owners to obtain OC certificates - Management indicated that the issuance of OCs clarifies regulatory standards, which should reduce application timelines for future operators [41] Question: Competition and staying competitive - Management highlighted that urban air mobility and intercity air transport serve different markets, with the EH216S offering a compact footprint and lower costs compared to competitors [45][46] Question: Updates on production capacity and SG&A expenses - Management confirmed that the Yunfu facility's production capacity will increase to 1,000 units by the end of the year, and they will maintain stringent control on SG&A expense growth [81][83]

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]

Financial Data and Key Metrics Changes - In Q4 2024, the company delivered 78 units of the EH216 series, generating revenues of RMB 164 million, representing a year-over-year increase of 239.1% [6] - For the full year 2024, total deliveries reached 216 units, with total revenue of RMB 456 million, marking a year-over-year increase of 288.5% [6][27] - The company achieved positive adjusted net income for the first time, with an annual adjusted net income of RMB 43.1 million, a significant improvement from an adjusted net loss of RMB 139 million in 2023 [30] - The gross margin for Q4 was 60.7%, slightly down from 64.7% in Q4 2023, while the annual gross margin for 2024 was 61.4%, down from 64.1% in 2023 [27][28] Business Line Data and Key Metrics Changes - The EH216S autonomous eVito received significant orders, including 30 units from Shandong province and 30 units from Zhejiang province, contributing to the record deliveries in Q4 [16] - The company is focusing on enhancing production efficiency and scaling production capabilities to meet growing order demands [16][17] Market Data and Key Metrics Changes - The low altitude economy was highlighted as a strategic emerging industry in China's government work report, with local governments in over 50 cities introducing development plans for the sector [7][8] - The company has established over 20 operational demonstration sites across 16 cities in China, indicating strong market penetration [9] Company Strategy and Development Direction - The company aims to launch operational demonstration projects in key cities to allow the public to experience eVito flights firsthand [10] - The focus for 2025 includes expanding urban air mobility (UAM) operations and developing a comprehensive low altitude economy flight service system [21][22] - The company is committed to advancing technological innovation and operational demonstration of pilotless vehicles, aiming to lead the transformation of urban air mobility [15] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for eVito products and operational services, projecting total revenue for 2025 to reach RMB 900 million, representing a 97% year-over-year increase [24][32] - The company is actively pursuing international market expansion, with flight demonstrations conducted in multiple countries, including Thailand, Japan, and Spain [23][55] Other Important Information - The company has achieved its first-ever annual positive operating cash flow of approximately RMB 160 million in 2024, demonstrating sustainable cash generation capabilities [31] - The company plans to invest in scaling production capacity and developing new models for emergency response and logistics [42][47] Q&A Session Summary Question: What is the added production capacity for the Hefei production facility by the end of 2025 and 2026? - The company plans to complete the capacity expansion for Yunfu Phase II this year, reaching a total annual capacity of 1,000 units [34][35] Question: What is the timeline for the IOC application and milestones expected? - The CAAC has completed inspections for two applicants, and the company is awaiting final regulatory approval, which will enable commercial operations [39][40] Question: When will the company achieve GAAP profitability? - The company expects to achieve quarterly GAAP profitability in the second half of 2024, with full-year GAAP profitability anticipated in 2026 [42] Question: What is the outlook for gross margin and financing plans in 2025? - The targeted gross margin is around 60%, with plans to diversify product offerings to support this goal [45][46] Question: What is the progress on the next generation lithium batteries and the VT35 product? - The company is pursuing fast charging and solid-state battery developments, aiming for mass production by the end of the year [67]