EHang “Enjoys Rise in Earnings/Sales” During Q4, 2023: Future Looks Brighter

EHang recent­ly released its Q4 Finan­cials, 2023. The results are good news for the com­pa­ny and its investors, reports a press release.

Finan­cial and Oper­a­tional High­lights for Q4, 2023

Total Rev­enues: RMB117.4 mil­lion (USD16.5 mil­lion), rep­re­sent­ing a sub­stan­tial increase of 165 per­cent from RMB44.3 mil­lion in 2022.

Gross Mar­gin: 64.7 per­cent rep­re­sent­ing a con­sis­tent­ly high gross mar­gin lev­el on par with 64.6 per­cent in Q3.

Oper­at­ing Loss: RMB296.3 mil­lion (USD41.7 mil­lion), rep­re­sent­ing a 2.5 per­cent improve­ment from RMB304.0 mil­lion in 2022.

Net loss: RMB302.3 mil­lion (USD42.6 mil­lion), rep­re­sent­ing an 8.2 per­cent improve­ment from RMB329.3 mil­lion in 2022.

Sales and deliv­er­ies: 52 units of the EH216 AAV were sold in 2023, a sig­nif­i­cant increase com­pared with 21 units in 2022.

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Busi­ness High­lights and Recent Devel­op­ments Dur­ing Q4, 2023

: Gained World’s First Pilot­less Pas­sen­ger-Car­ry­ing eVTOL Type Cer­tifi­cate and Stan­dard Air­wor­thi­ness Cer­tifi­cate for EH216‑S from the CAAC. These cer­ti­fi­ca­tions demon­strate the AAV full com­pli­ance with safe­ty stan­dards and air­wor­thi­ness require­ments set by the CAAC. EHang now holds offi­cial approval for pas­sen­ger-car­ry­ing com­mer­cial oper­a­tions in Chi­na.

: Com­pa­ny began deliv­er­ies of cer­ti­fied air­craft to cus­tomers dur­ing Q4.

: The low-alti­tude econ­o­my (LAE) is now posi­tioned as one of the nation­al strate­gic emerg­ing indus­tries in Chi­na. Close to 20 provinces across the coun­try have pri­ori­tised LAE in 2024, lead­ing to imple­men­ta­tion of favourable poli­cies and reg­u­la­tions; attrac­tive fund­ing and sub­si­dies; infra­struc­ture sup­port and suit­able sites for eVTOL oper­a­tions; paving the way for estab­lish­ing a sus­tain­able low-alti­tude ecosys­tem. 

: To expe­dite EHang’s eVTOL sales and deliv­er­ies and to pre­pare for UAM com­mer­cial oper­a­tions, col­lab­o­ra­tions between the pub­lic and pri­vate sec­tors are being fos­tered in pio­neer­ing cities such as Shen­zhen, Guangzhou, Hefei, and Wuxi in Chi­na.

: In Guangzhou, the first cer­ti­fied EH216‑S with AC issued by the CAAC was deliv­ered to a cus­tomer in Guangzhou in Decem­ber 2023, who then con­duct­ed pas­sen­ger-car­ry­ing flights at Jiu­long Lake Park. More oper­a­tion sites and flight routes for aer­i­al sight­see­ing and logis­tics are planned for Guangzhou.

: In Hefei, EHang entered into a strate­gic coop­er­a­tion agree­ment with the Hefei Munic­i­pal Gov­ern­ment in Octo­ber 2023 for joint devel­op­ment of a LAE econ­o­my ecosys­tem, which includes a tar­get amount of USD100 mil­lion in extend­ed sup­port. EHang has deliv­ered 15 units of EH216‑S to Hefei in Q4, 2023. The AAV com­plet­ed pas­sen­ger-car­ry­ing flights in Luo­gang Cen­tral Park, which is posi­tioned to be a lead­ing UAM super-aero-hub by the Hefei Munic­i­pal Gov­ern­ment.

EHang 216‑S Fly­ing Over Hefei

: In Wuxi, EHang coop­er­at­ed with the local gov­ern­ment for UAM in March, 2024, and received inten­tion­al pur­chase orders for 100 units of EH216‑S. The local gov­ern­ment is to pro­vide com­pre­hen­sive sup­port for EHang’s eVTOL future oper­a­tions in Wuxi for var­i­ous use cas­es includ­ing pas­sen­ger trans­porta­tion, aer­i­al sight­see­ing, fire­fight­ing and emer­gency.

: EHang has expand­ed to UAE and joined SAVI Clus­ter and Reached Strate­gic Part­ner­ship as well as sales agree­ment with Wings Logis­tics Hub (WLH) for 100 Units with ini­tial deliv­er­ies set to com­mence in Q1 of this year. 

: Con­tin­u­ous Devel­op­ment in Europe includes UAM Cen­tre in Spain and Part­ner­ship with Tele­fóni­ca Tech. Last Novem­ber, a Cen­tre was locat­ed inside Spain’s Lleida–Alguaire Inter­na­tion­al Air­port. This is specif­i­cal­ly for unmanned eVTOL air­craft and is Europe’s first-of-its-kind, set­ting a world­wide bench­mark for the effec­tive inte­gra­tion of such oper­a­tions with air­port infra­struc­ture, air traf­fic man­age­ment sys­tems, oper­a­tional pro­ce­dures and oth­er infor­ma­tion tech­nolo­gies.

: In Feb­ru­ary, EHang entered into a strate­gic alliance with Tele­fóni­ca Tech, a sub­sidiary of world-lead­ing telecom­mu­ni­ca­tions ser­vice provider Tele­fon­i­ca. The two com­pa­nies will part­ner on net­work con­nec­tiv­i­ty solu­tions for deploy­ing UAM intel­li­gent solu­tions in Europe and Latin Amer­i­ca.

Huazhi Hu, EHang’s Founder, Chair­man and CEO, remarked, “We end­ed the year with a quar­ter marked by robust growth. We have obtained the TC and AC from the CAAC for our pro­pri­etary EH216‑S in the fourth quar­ter, the world’s first of its kind for pilot­less pas­sen­ger- car­ry­ing eVTOL air­craft. This sig­nif­i­cant achieve­ment has had a pro­found impact on our busi­ness, as it has sparked a surge in demand for our remark­able EH216‑S. The mar­ket response has been over­whelm­ing­ly pos­i­tive, lead­ing to strong quar­ter­ly and year­ly rev­enue growth.”

Conor Chia-hung Yang

Conor Chia-hung Yang, EHang’s Chief Finan­cial Offi­cer, added, “In Q4, the com­pa­ny sur­passed our guid­ance and achieved rev­enue of RMB56.6 mil­lion, rep­re­sent­ing an increase of 260.9 per­cent com­pared with the same peri­od last year. Fur­ther­more, our fis­cal year rev­enues reached RMB117.4 mil­lion, wit­nessed sig­nif­i­cant growth of 165 per­cent com­pared with the pre­vi­ous year. These finan­cial results can be attrib­uted to the high­er sales vol­ume of our EH216 series prod­ucts.”

Since release of the Q4 report, the EHang share price has risen close to 30 per­cent (USD18.54 at NASDAQ close, Wednes­day).

For more infor­ma­tion

https://ir.ehang.com/news-releases/news-release-details/ehang-reports-fourth-quarter-and-fiscal-year-2023-unaudited

(Top image: EHang)

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