EHang, a popular company with Stock Market investors, has released its Q4, 2022 financial results this week, reports a press release. An added bonus is the eagerly awaited news that EHang’s Type Certification is now over 90 percent complete.
Below are the Financial and Operational Highlights
: Total revenues were RMB15.7 million (USD2.3 million), representing a growth of 90.7 percent compared to RMB8.2 million in the third quarter of 2022.
: Gross margin was 66.1 percent, representing a continued high gross margin level with a slight increase of 0.2 percentage points compared to 65.9 percent in the third quarter of 2022.
: Operating loss was RMB92.2 million (USD13.4 million), compared with RMB73.7 million in the third quarter of 2022.
: Adjusted operating loss1 (non-GAAP) was RMB61.3 million (USD8.9 million), compared with RMB52.9 million in the third quarter of 2022.
: Net loss was RMB110.1 million (USD16.0 million), compared with RMB76.5 million in the third quarter of 2022.
: Adjusted net loss2 (non-GAAP) was RMB59.4 million (USD8.6 million), compared with RMB55.1 million in the third quarter of 2022.
: Cash, cash equivalents, restricted cash and short-term investments balances were RMB249.3 million (USD36.1 million) as of December 31, 2022.
: Sales and deliveries of EH216 series AAVs3 were 6 units, compared with 4 units in the third quarter of 2022.
So, what is the takeaway? The company, overall, is showing some growth compared to Q3, but not by much, while losses, overall, are showing some decline. Sales don’t exactly rock the boat with 6 units compared to 4 in Q3. The good news is 2022, overall, has been a better year than 2021, although sales, rather disappointingly, are down from 21 units (2022), compared with 30 units (2021).
Below are the Financial and Operational Highlights for 2022
: Total revenues were RMB44.3 million (USD6.4 million), compared with RMB56.8 million in 2021.
: Gross margin was 65.9 percent, representing an increase of 2.5 percentage points from 63.4 percent in 2021.
: Operating loss was RMB304.0 million (USD44.1 million), a 5.2 percent decrease from RMB320.5 million in 2021.
: Adjusted operating loss (non-GAAP) was RMB207.1 million (USD30.0 million), compared with RMB199.4 million in 2021.
: Net loss was RMB329.3 million (USD47.7 million), compared with RMB313.9 million in 2021.
: Adjusted net loss (non-GAAP) was RMB206.2 million (USD29.9 million), compared with RMB192.8 million in 2021.
: Cash, cash equivalents, restricted cash and short-term investments balances were RMB249.3 million (USD36.1 million) as of December 31, 2022, compared with RMB312.1 million as of December 31, 2021.
: Sales and deliveries of the EH216 series AAVs were 21 units in 2022, compared with 30 units in 2021.
After all the initial hype that EHang attracted after floating on the Nasdaq in late 2019 and the subsequent soaring of its share price, those who follow the company know what happened next: Wolfpack Research. EHang has still not recovered from the damning financial report.
Some might say, the company has gone backwards, not forwards, not helped by being China-based, at a time when the West is showing increasing disapproval towards the country, alongside the different certification standard set by CAAC compared to the FAA or EASA.
Add a year-long ‘cry wolf’ from EHang over promises of impending Type Certification, many investors must be pulling their hair out as investment value continues to uncomfortably reside at a 70 percent or more loss in their portfolio. Do we even believe that Type Certification is now over 90 percent complete, for what exactly does this mean? is the last 10 percent proving to be a barricade that EHang is finding difficult to clamber over?
Yet, we know that the completed Type Certification approval is the key for every eVTOL and drone delivery company around the world. Once attained it is full steam ahead and finally, we have “a proper company”. As EHang points out in its highlights, “Post-TC Order Pipeline of EH216‑S Exceeded 100 Units in China and Growing.”
As EHang investors know so well, keeping the faith, holding on to the dream, and quietly praying remains the norm… for now, at least.
For those who wish to read the financial results in great depth, please click on the link below.
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