EHang quarterly revenues of USD3.2 million up 41.6 percent on over 60 percent gross margin

EHang Hold­ings has announced its unau­dit­ed finan­cial results for the first quar­ter 2023, show­ing total rev­enues of $3.2 mil­lion, rep­re­sent­ing a growth of 41.6% com­pared to the fourth quar­ter of 2022.

Gross mar­gin was 63.9%, rep­re­sent­ing a con­tin­ued high gross mar­gin on an oper­at­ing loss of $11.0 mil­lion, rep­re­sent­ing an improve­ment of 17.8% from the fourth quar­ter of 2022.

Adjust­ed oper­at­ing loss was $5.0 mil­lion, rep­re­sent­ing an improve­ment of 44.1%, while net loss was $12.7 mil­lion, rep­re­sent­ing an improve­ment of 21%, while adjust­ed net loss was $4.9 mil­lion, rep­re­sent­ing an improve­ment of 43.5%. Cash bal­ances were $31.7 mil­lion. Sales and deliv­er­ies of EH216 series AAVs3 were 11 units, com­pared with 6 units in the fourth quar­ter of 2022.

The EH216‑S type cer­ti­fi­ca­tion process with the Civ­il Avi­a­tion Admin­is­tra­tion of Chi­na (CAAC) achieved sig­nif­i­cant progress with more than 90% of the com­pli­ance tests in the final phase hav­ing been com­plet­ed.

EHang con­duct­ed a num­ber of lab­o­ra­to­ry tests, ground tests and flight tests at mul­ti­ple pro­fes­sion­al aero­nau­ti­cal lab­o­ra­to­ries and test sites across Chi­na under the CAAC’s inspec­tions.

The com­plet­ed tests, includ­ing but not lim­it­ed to bat­tery, envi­ron­men­tal, mate­r­i­al, strength, soft­ware, data link, ground con­trol sta­tion tests, demon­strat­ed and ver­i­fied the safe­ty and air­wor­thi­ness of the EH216‑S.

Under the CAAC’s guid­ance and the Company’s 100 Air Mobil­i­ty Route Ini­tia­tive, EHang, along with its cus­tomers and part­ners, have devel­oped a total of 19 tri­al oper­a­tion spots across 17 cities in Chi­na dur­ing the past two years.

As of today, approx­i­mate­ly 8,800 safe oper­a­tional tri­al flights have been com­plet­ed by EH216‑S for aer­i­al sight­see­ing at these spots, which paves the way for com­mer­cial oper­a­tions fol­low­ing the cer­ti­fi­ca­tion.

EHang received a pur­chase order for six EH216‑S from the Feng­shan Tourism Invest­ment Devel­op­ment Co., a typ­i­cal local tourism oper­a­tor which aims to boost its post-pan­dem­ic tourism busi­ness with new solu­tions, and deliv­ered them in the first quar­ter.

The cus­tomer plans to estab­lish a low-alti­tude fly­ing camp for aer­i­al sight­see­ing in Fengshan’s San­men­hai nation­al 4A-class scenic area, a UNESCO Glob­al Geop­ark and a famous karst land­form tourist resort in Guangxi, Chi­na.

Huazhi Hu, EHang’s founder, chair­man and CEO, said: “We wit­nessed increas­ing demands for our AAVs upon the post pan­dem­ic recov­ery of the tourism indus­try in Chi­na.

“In the first quar­ter, we achieved more cus­tomer orders and deliv­er­ies, lead­ing to remark­able rev­enue growth of 42% quar­ter over quar­ter and 283% year over year. Mean­while, we main­tained a high quar­ter­ly gross mar­gin of 63.9%, and a $10 mil­lion strate­gic invest­ment from the Qing­dao West Coast New Area was closed in the first quar­ter, which enhanced our cash posi­tion to sup­port our oper­a­tions and growth.”