“EHang AAV Sales Soar with Record Q2 Revenue, Strong Growth Ahead” 

EHang investors breathed a sigh of relief last week, when the com­pa­ny released its Q2, 2024 finan­cial results. Final­ly, there is strong sub­stance and not spec­u­la­to­ry froth to its recent share price rise. 

The night­mare of Feb­ru­ary 2021 when the price began nose­div­ing from a high of USD124 to a low of USD4, twen­ty one months lat­er, is well and tru­ly over. The times when unscrupu­lous and mali­cious stock mar­ket short­ers fed the media with unsub­stan­ti­at­ed claims of impro­pri­eties includ­ing EHang’s pre­orders, refer­ring to them as “fake sales” and “a hol­low order book”, are well and tru­ly over. 

The com­pa­ny has sur­vived the slings and arrows thrown at it, while sto­ical­ly remain­ing on the Amer­i­can NASDAQ, even when some sug­gest­ed the com­pa­ny should delist and return to the Chi­nese Stock Mar­ket. It is a time for investors to cel­e­brate. The good times beck­on.

The Q2 earn­ings show a nine-fold year-on-year increase or 919.6 per­cent, in both deliv­ery vol­ume and rev­enue, the high­est growth rate in the company’s his­to­ry, while EHang achieved a mile­stone of becom­ing the sole design­er, devel­op­er and man­u­fac­tur­er in the world to hold three cer­ti­fi­ca­tions for an autonomous eVTOL air­craft.

With a record deliv­ery of 49 units of the com­pa­ny’s 216‑S and rev­enue reach­ing USD14 mil­lion, the com­pa­ny is also wit­ness­ing a surge in pre-orders, indi­cat­ing robust mar­ket demand.

Key High­lights Include:-

: EHang report­ed a nine-fold increase in deliv­ery vol­ume and rev­enue year-on-year.

: The com­pa­ny obtained pro­duc­tion cer­ti­fi­ca­tion for the EHang 216‑S, a mile­stone achieve­ment in the eVTOL indus­try, allow­ing for a steady pro­duc­tion ramp-up.

: Over 1,100 units in bulk pre-orders have been received, includ­ing a secured USD15.5 mil­lion order for 50 Units of EH216‑S and pur­chase plan for addi­tion­al 450 units in Shanxi, North Chi­na.

: EHang formed a MOU part­ner­ship with Chi­na South­ern Air­lines (CSA) in June for col­lab­o­ra­tive eVTOL oper­a­tions. This col­lab­o­ra­tion is to include flight oper­a­tions and com­pre­hen­sive sup­port to joint­ly cul­ti­vate inno­v­a­tive solu­tions for low-alti­tude econ­o­my. 

The two com­pa­nies aim to estab­lish EH216‑S oper­a­tion demon­stra­tion sites for low-alti­tude tourism at the Zhuhai Jiuzhou Air­port and the Zhuhai Chime­l­ong Ocean King­dom, along­side oth­er pop­u­lar tourist des­ti­na­tions in Zhuhai, with a plan to launch reg­u­lar low-alti­tude flight ser­vices and expe­ri­en­tial activ­i­ties.

: In April EHang signed a tri­lat­er­al agree­ment with Mul­ti Lev­el Group (MLG), a lead­ing fin­tech com­pa­ny in the Mid­dle East and North Africa region, and the Abu Dhabi Invest­ment Office (ADIO) to dri­ve for­ward autonomous eVTOL devel­op­ment in the UAE and beyond.

: In the same month, EHang formed a part­ner­ship with Guangzhou Greater Bay Tech­nol­o­gy (GBT) to Joint­ly Devel­op the World’s first ultra-fast/eX­treme Fast Charg­ing Bat­tery Solu­tions for its eVTOLs. 

The col­lab­o­ra­tion is to cre­ate eVTOL pow­er cells, bat­ter­ies, packs, charg­ing piles and ener­gy stor­age sys­tems that meet the air­wor­thi­ness stan­dards of the CAAC as well as the 4H stan­dards (i.e., high ener­gy den­si­ty, high cycle life, high instan­ta­neous charge-dis­charge rate, and high safe­ty), while fur­ther devel­op­ing fast-charg­ing piles, sta­tions and oth­er infra­struc­tures to estab­lish an ecosys­tem for future com­mer­cial oper­a­tions. 

EHang 216‑S, ‑L and ‑F AAVs “Com­plete UAE Demon­stra­tion Flights in Abu Dhabi”

: In May, EHang suc­cess­ful­ly com­plet­ed the first EH216‑S pas­sen­ger-car­ry­ing autonomous eVTOL flight in Abu Dhabi as well as debut flights with its EH216‑F high-rise fire­fight­ing mod­el and the EH216‑L aer­i­al logis­tics mod­el, fol­low­ing an ini­tial deliv­ery of 5 units to Wings Logis­tics Hub.

: A month lat­er, a 216‑S com­plet­ed the first autonomous air taxi flight in Mec­ca, Sau­di Ara­bia. 

: Back in Chi­na, EHang con­duct­ed a debut flight of the EH216‑S and deliv­ered the first batch to Xis­han Tourism for low-alti­tude tourism ser­vices.

: A Sales and Oper­a­tions Cor­po­ra­tion agree­ment was signed with KC Smart Mobil­i­ty to pur­chase 30 EH216‑S air­craft as well as a pur­chase plan for 270 addi­tion­al craft by the end of 2026.

Out­look

: EHang antic­i­pates third-quar­ter rev­enue of USD17.2 mil­lion and is con­fi­dent in main­tain­ing a pos­i­tive cash flow and adjust­ed net income dur­ing the fol­low­ing years.

: The com­pa­ny is pur­su­ing reg­u­la­to­ry approvals and cer­ti­fi­ca­tions for com­mer­cial oper­a­tions in over­seas mar­kets.

: EHang plans to improve automa­tion at its Yun­fu fac­to­ry and con­struct a new assem­bly plant in Hefei, aim­ing to add 1,000 units to annu­al pro­duc­tion next year.

: EHang’s gross mar­gin remains high at 62.4 per­cent, with expec­ta­tions to main­tain strength post-com­mer­cial oper­a­tions.

: The com­pa­ny has a pric­ing advan­tage over heli­copters and ben­e­fits from local gov­ern­ment sub­si­dies for eVTOL oper­a­tions.

: R&D spend­ing is pro­ject­ed to be 45 per­cent to 50 pre­cent of total OpEx, focus­ing on opti­mis­ing cur­rent mod­els and devel­op­ing new tech­nolo­gies.

Mean­while, EHang exec­u­tives have dis­cussed plans for com­mer­cial oper­a­tions in inter­na­tion­al mar­kets, includ­ing efforts to secure local reg­u­la­to­ry approvals in UAE, Brazil, Indone­sia and Thai­land.

EHang Col­lab­o­rates with KC Smart Mobil­i­ty “to Advance Autonomous Air­craft Sales and Oper­a­tions in Hong Kong and Macau, to Pur­chase 30 EH216‑S eVTOLs”  

With the con­struc­tion of new head­quar­ters and facil­i­ties to sup­port oper­a­tions, EHang is poised to cre­ate an expan­sive aer­i­al sight­see­ing and trans­porta­tion net­work. The com­pa­ny’s focus on R&D, cou­pled with its ambi­tious pro­duc­tion and rev­enue goals, under­scores its com­mit­ment to dri­ving growth and devel­op­ment in the eVTOL sec­tor.

The finan­cial web­site, investing.com, writes, “EHang has demon­strat­ed a remark­able finan­cial per­for­mance with a stag­ger­ing 158.45 per­cent rev­enue growth over the last twelve months. The com­pa­ny’s gross prof­it mar­gin stands at an impres­sive 63.27 per­cent, reflect­ing its abil­i­ty to main­tain prof­itabil­i­ty amid scal­ing oper­a­tions.”

It con­tin­ues, “Investors have been respond­ing pos­i­tive­ly to EHang’s recent devel­op­ments, as evi­denced by a sig­nif­i­cant 22.95 per­cent return over the last week. The com­pa­ny’s mar­ket cap­i­tal­i­sa­tion is cur­rent­ly val­ued at USD918.91 mil­lion, and while the P/E ratio is neg­a­tive at ‑20.59, indi­cat­ing that the com­pa­ny is not cur­rent­ly prof­itable, the strong sales growth antic­i­pat­ed by ana­lysts sug­gests a poten­tial for future prof­itabil­i­ty.”

The site high­lights that EHang holds more cash than debt on its bal­ance sheet, pro­vid­ing a sol­id finan­cial foun­da­tion for con­tin­ued growth. Addi­tion­al­ly, the com­pa­ny’s liq­uid assets exceed short-term oblig­a­tions, ensur­ing finan­cial sta­bil­i­ty in the near term.

Huazhi Hu, EHang’s Founder, Chair­man and CEO, was under­stand­ably excit­ed by the Q2 results.  He enthused, “We are here to report anoth­er quar­ter of robust growth in both oper­a­tional and finan­cial met­rics. The obtain­ment of three cer­ti­fi­ca­tions for the EH216‑S enables us to expe­dite our pro­duc­tion and deliv­er­ies, which, togeth­er with enhanced gov­ern­ment ini­tia­tives for advanc­ing the low-alti­tude econ­o­my, have led to a sub­stan­tial increase in demands and orders from var­i­ous domes­tic and inter­na­tion­al cus­tomers that include gov­ern­ments and tourism oper­a­tors.”

Huazhi Hu at EHang’s NASDAQ Launch in Jan­u­ary 2020 (Cred­it: EHang)

He con­tin­ued, “As a result, we deliv­ered a record 49 units of EH216‑S dur­ing the quar­ter, dri­ving excep­tion­al rev­enue growth as well as inked hun­dreds-of-units pur­chase orders and pre-orders for EH216‑S in Chi­na. More­over, our glob­al expan­sion is also gain­ing momen­tum with the exten­sion of our part­ner­ship net­work in the Mid­dle East and the suc­cess­ful debut flights of our pilot­less eVTOLs in the UAE and Sau­di Ara­bia in the sec­ond quar­ter.”

Hu added, “Our near future com­mer­cial oper­a­tions of EH216‑S will ush­er in a new phase of growth includ­ing new mod­els like our lift-and-cruise eVTOL designed for inter-city mobil­i­ty.” 

For more infor­ma­tion

www.ehang.com

(Images: EHang)

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