Summary of EHang's Conference Call Company Overview - **Company**: EHang - **Industry**: Urban Air Mobility, e-VTOL (Electric Vertical Takeoff and Landing) Aircraft Key Financial Performance - Total revenue for Q2 2025 reached **1.472 billion RMB**, a **44%** year-over-year increase and a **4.6 times** quarter-over-quarter increase, primarily driven by strong sales of the EH216 series products [2][3][19] - Gross profit was **920.7 million RMB**, with a gross margin of **62.6%** [19] - Adjusted net income was **9.4 million RMB**, a **719.9%** increase year-over-year, reversing a loss from Q1 [2][19] - Cash and cash equivalents totaled **1.15 billion RMB** as of June 30, 2025, providing a solid financial foundation for future investments [19] Product Performance - The EH216 series saw strong market demand with over **150 new orders** and **216 units delivered** in Q2 2025 [3][4][30] - The EH216 series completed over **10,000 safe flights** in the first half of 2025, establishing a strong safety record [4][10] Strategic Developments - EHang signed a strategic cooperation agreement with the Hefei municipal government to establish a VT-35 product center, integrating R&D, manufacturing, and certification processes [2][7] - The company is collaborating with **Goshen High-Tech** for customized battery solutions and **Mint Group** for high-safety airframe development to enhance the EH216 series [6][15] Research and Regulatory Contributions - EHang established a joint research institute with Tsinghua University to develop regulatory and safety standards, contributing to CAACC Vita certification standards [2][8] - The company is actively involved in drafting technical requirements for low-altitude data security guidelines [8] Market Expansion and Partnerships - EHang expanded its strategic cooperation with China Communications Technology Group to initiate low-altitude tourism and urban air mobility projects [5][15] - The company is focusing on optimizing operations and providing support services to existing customers, adjusting its 2025 revenue guidance to approximately **500 million RMB**, reflecting moderate growth [5][14][20] International Business and Logistics - EHang's EH216S series has completed demonstration flights in **20 countries**, including Mexico and Indonesia [18] - The company achieved significant progress in logistics applications, completing the first long-distance intercity cargo flight in the Greater Bay Area [16] Future Outlook - EHang plans to launch the VT-35 model in September 2025, designed for intercity travel, and is accelerating its industrialization process [7][29] - The company is also exploring solid-state battery technology, having become the first to install solid-state batteries on e-VTOL models for actual flight testing [31][32] Customer Base and Orders - The customer base expanded to **13 Chinese enterprises**, with a notable increase in international clients, including a Japanese customer [9][30] - Approximately **90%** of sales are from domestic customers, with **10%** from overseas, indicating a growing international demand for drones [22] Conclusion EHang is positioned for growth in the urban air mobility sector, with strong financial performance, innovative product development, and strategic partnerships aimed at enhancing operational capabilities and expanding market reach. The focus on safety, regulatory compliance, and customer support underpins its long-term business strategy.