| Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
| Dec. 31, 2023 |
| Accounting Policies [Abstract] | |
| Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below. |
| Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIEs, for which the Company is the ultimate primary beneficiary. All significant inter-company transactions and balances between the Company, its subsidiaries, and the VIEs have been eliminated upon consolidation. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power: has the power to appoint or remove the majority of the members of the board of directors (the “Board”): to cast majority of votes at the meeting of the Board or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Company’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. |
| Use of estimates | (c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and revenues and expenses during the reporting periods in the consolidated financial statements and accompanying notes. Significant estimates and assumptions reflected in the Group’s consolidated financial statements include, but not limited to expected total costs of command-and-control |
| Foreign currency | (d) Foreign currency The functional currency of the Company, Ehfly, and EHANG Investment (HK) Limited (“EHang HK”) is the United States dollar (“US$”). The functional currency of EHang Holding GmbH (“EHang GmbH”), EHANG TECHNOLOGIES SPAIN & LATAM, S.L. (“EHang Spain”) and Ehang EUROPE SAS (“EHang France”) is the euro (“€”). The functional currency of the Company’s PRC subsidiaries and the VIEs is the Renminbi (“RMB”). The Group uses the RMB as its reporting currency. The determination of the respective functional currency is based on the criteria set out by ASC 830, Foreign Currency Matters Transactions denominated in foreign currencies are re-measured re-measured Non-monetary re-measured The financial statements of the Group’ entities of which the functional currency is not RMB use the periodic average exchange rates and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income (loss), a component of shareholders’ equity. |
| Convenience translation | (e) Convenience translation Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB7.0999 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 29, 2023. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate on December 29, 2023, or any other rate. |
| Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, deposits and highly liquid investments placed with bank and other financial institutions, which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. |
| Short-term deposits | (g) Short-term deposits Short-term deposits represent time deposits placed with banks with original maturities between three months and one year. Interest earned is recorded as interest income in the consolidated statements of comprehensive loss during the years presented. As of December 31, 2022, there was no short-term deposit in the Group. As of December 31, 2023, the Group’s short-term deposits had been placed in a reputable financial institution in the PRC. |
| Restricted short-term deposits | (h) Restricted short-term deposits As of December 31, 2023, restricted short-term deposits represent time deposits placed with a reputable bank in the PRC with original maturities between three months and one year, which are pledged for issuance of letter of credit. Interest earned is classified as “interest and investment income” in the consolidated statements of comprehensive loss during the periods presented. As of December 31, 2022, there was no restricted short-term deposit in the Group. |
| Derivative instruments | (i) Derivative instruments The Group’s derivative instruments are carried at fair value, which primarily consisted of foreign exchange forward contract. The fair values of the derivative instruments generally represent the estimated amounts expect to receive or pay upon termination of the contracts as of the reporting date. The Group selectively uses financial instruments to mitigate the risk of foreign currency exchange (losses) gains arose from the Group’s cash and cash equivalent denominated in US$. As the derivative instruments of foreign exchange forward contract does not qualify for hedge accounting treatment, changes in the fair value are reflected in “interest and investment income” of the consolidated statements of comprehensive loss. The notional principal amounts of the outstanding foreign exchange forward contract as of December 31, 2023 were approximately RMB34,072. Total change in fair value of the derivatives recorded in interest and investment income, was an income of RMB1,743(US$245) for the years ended December 31, 2023. |
| Short-term investments | (j) Short-term investments All highly liquid investments with original maturities of greater than three months but less than twelve months, are classified as short-term investments. Investments that are expected to be realized in cash during the next twelve months are also included in short-term investments. Short-term investments consist primarily of investments in marketable debt securities, which are redeemable within one year. These investments are measured at fair value and the change in fair value is recognized in “interest and investment income”. |
| Current expected credit loss | (k) Current expected credit loss Prior to January 1, 2023, accounts receivable are carried at net realizable value. An allowance for doubtful accounts is recorded in the period when loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging and other factors. Accounts receivable are written off after all collection effort has ceased. In June 2016, the FASB issued ASU No. 2016-13, The Group’s accounts receivable, contract assets, loans receivable and other receivables are within the scope of ASC Topic 326. The Group has identified the relevant risk characteristics of its customers and the related receivables which include the products the Group provides, the type of business, the scale of transactions on credit terms, the nature of counterparties and the level of credit risk of the customers, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis include payment terms offered in the normal course of business to customers and industry-specific factors that could impact the Group’s receivables. Additionally, external data and macroeconomic factors are also considered. This is assessed at each quarter based on the Group’s specific facts and circumstances. For the year ended December 31, 2023, the Group recorded RMB13,691 of expected credit loss in general and administrative expenses. The following table summarizes the activity in the allowance for credit losses related to accounts receivable, contract asset, loans receivable and other receivables for the year ended December 31, 2023:
For the year ended
RMB US$
Balance as of December 31, 2022 117,035 16,484
Adoption of ASC Topic 326 2,422 341
Balance as of January 1, 2023 119,457 16,825
Current period provision 16,455 2,317
Reversal (2,764 ) (389 )
Acquisition of non-controlling interests (390 ) (55 )
Foreign currency translation adjustments 48 7
Balance as of December 31, 2023 132,806 18,705 |
| Cost and estimated earnings in excess of billings | (l) Cost and estimated earnings in excess of billings Design and construction of customized command-and-control cost-to-cost command-and-control one-year command-and-control Revenue in excess of billings on the contracts is recorded as costs and estimated earnings in excess of billings. Billings in excess of revenues recognized on the contracts are recorded as deferred income until the above revenue recognition criteria are met. The carrying value of the Group’s costs and estimated earnings in excess of billings, net of the allowance for doubtful accounts, represents their estimated net realizable value. The Group recognizes an allowance for doubtful accounts on costs and estimated earnings in excess of billings when it is probable that it will not collect the amount and writes off any balances in the period when deemed uncollectible. The Group periodically reviews the status of contracts and decides how much of an allowance for doubtful accounts should be made based on factors surrounding the credit risk of customers and historical experience. The Group does not require collateral from its customers and does not charge interest for late payments by its customers. As of December 31, 2022 and December 31, 2023, there were no cost and estimated earnings in excess of billings. |
| Inventories | (m) Inventories Inventories are comprised of raw materials, work in progress and finished goods. The Group’s raw materials consist of accessories and hardware parts used to produce UAV command-and-control UAV UAV |
| Property and equipment, net | (n) Property and equipment, net Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows:
Category Estimated useful life Residual value
Mold and tooling 2-5 years 0%
Office equipment 5 years 5%
Machinery and electronic equipment 3-10 5%
Transportation equipment 4 years 5%
Leasehold improvements Shorter of lease term or the estimated useful lives of the assets 0% Repair and maintenance costs are charged to expense as incurred, whereas the costs of renewals and betterments that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. The loss on the disposal of property and equipment amounting to RMB820 and RMB138(US$19) were recognized in the consolidated statements of comprehensive loss for the years ended December 31, 2021 and 2023, respectively. The gain on the disposal of property and equipment amounting to was recognized in the consolidated statements of comprehensive loss for the years ended December 31, 2022. Direct costs that are related to the construction of property and equipment and incurred in connection with bringing the assets to their intended use are capitalized as construction-in-progress. Construction-in-progress |
| Intangible assets, net | (o) Intangible assets, net Intangible assets consist of software, patents and trademarks. Intangible assets with finite lives, including software, patents and trademarks are carried at acquisition cost less accumulated amortization and impairment, if any. Finite lived intangible assets are tested for impairment if impairment indicators arise. Amortization of intangible assets with finite lives are computed using the straight-line method over the estimated useful lives as below:
Category Estimated useful life
Software 3-5
Patents and trademarks 5 years The estimated useful lives of intangible assets with finite lives are reassessed if circumstances occur that indicate the original estimated useful lives have changed. There are no intangible assets with indefinite lives for the years ended December 31, 2021, 2022 and 2023. |
| Impairment of long-lived assets other than goodwill | (p) Impairment of long-lived assets other than goodwill The Group evaluates its long-lived assets or asset group, including intangible assets with finite lives, for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Group evaluates for impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the long-lived assets or asset group, when the market prices are not readily available. RMB1,627, nil and nil impairment of long-lived assets were recognized for the years ended December 31, 2021, 2022 and 2023, respectively. |
| Long-term investments | (q) Long-term investments The Group’s long-term investments consist of an equity investment without readily determinable fair value, equity investments accounted for using the equity method and debt security investments. Equity Investments without Readily Determinable Fair Values According to ASC 321, the Group elected to use the measurement alternative to measure the investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. The Group’s management regularly evaluates the impairment of its investments based on the performance and financial position of the investee as well as other evidence of estimated market values. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and current and future financing needs. An impairment loss is recognized in the consolidated statements of comprehensive loss equal to the excess of the investment’s cost over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of the investment. Equity Investments Accounted for Using the Equity Method Investments in equity investees represent investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC 323-10, Investments-Equity Method and Joint Ventures: Overall 323-10”). 323-10. The Group eliminates its intercompany profits or losses related to transactions with investees until profits or losses are realized through transactions with third parties. Debt Security Investment As of December 31, 2023, the Group’s long term debt security investment represented minority equity interest with redemption right in an investee. The Group elected to account for the debt investment under the fair value option model including preferred stock redeemable merely by the passage of time and at the option of the Group as a holder. The fair value option model permits the irrevocable election on an instrument-by-instrument |
| Fair value measurements of financial instruments | (r) Fair value measurements of financial instruments The Group applies ASC 820 (“ASC 820”), Fair Value Measurements and Disclosures ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters. The Group’s financial instruments primarily consist of cash and cash equivalents, short-term deposits, restricted short-term deposits, short-term investments, loans receivable, accounts receivable and payable, other current assets, bank loans, short-term debt, accrued expenses and other liabilities and mandatorily redeemable non-controlling non-controlling As of December 31, 2022, the Group had no financial assets that are measured at fair value. As of December 31, 2023, financial assets that are measured at fair value on a recurring basis consist of foreign exchange forward contract, short term investments and long-term debt security investment. Foreign exchange forward contract was classified within Level 2 of the fair value hierarchy because the quoted market price of underlying asset is not fully observable. Short term investments were categorized as Level 1 as observable inputs that reflected quoted prices for identical assets were in active markets, while long-term debt security investment did not have readily determinable market values and was categorized as Level 3 in the fair value hierarchy. Under these circumstances, the Group has adopted certain valuation techniques using unobservable inputs to measure their respective fair values. |
| Revenue recognition | (s) Revenue recognition The Group’s revenues are primarily derived from the sale of UAVs and related commercial solutions, mainly including air mobility solutions, smart city management solutions, and aerial media solutions. The Group enters into legally enforceable and binding agreements with its customers with fixed terms and conditions, including pricing. The Group recognizes revenue at the amount to which it expects to be entitled when control of When either party to a contract has performed, the Group presents the contract in the consolidated balance sheets as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. A contract asset is the Group’s right to consideration in exchange for goods and services that the Group has transferred to a customer when the consideration is conditioned other than the passage of time, which is recorded as If a customer pays consideration or the Group has a right to an amount of consideration that is unconditional, before the Group transfers a good or service to the customer, the Group presents the contract liability when the payment is made or a receivable is recorded (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. The Group’s contract liabilities primarily result from the advance received of sales of UAVs and related commercial solutions, which are recognized as revenue based on the consumption of the services or the delivery of the goods. The Group generally does not separately bill its customers for shipping and handling fees and charges. The Group elects to record the costs incurred for shipping and handling in “sales and marketing expenses” in its consolidated statements of comprehensive loss. The shipping and handling costs for the years ended December 31, 2021, 2022 and 2023 were RMB1,067, RMB848 and RMB1,427 (US$201), respectively. Practical Expedients The transaction price allocated to the performance obligations that are unsatisfied, or of Air mobility solutions Revenues from air mobility solutions are primarily product revenues from the sales of passenger-grade UAVs based on firm customer orders with fixed terms and conditions, including pricing, net of discounts, if any. The performance obligation under the contract is the delivery of passenger-grade UAVs, which is satisfied at a point in time, in general upon the Group’s receipt of acknowledgement receipts from customers or under some circumstances upon the products have been shipped to the contractually agreed location when the products are sold to customers outside PRC. The Group only provides the right of return for defective goods in connection with its warranty policy which is accounted for as an assurance-type warranty (Note 11). For the extended warranty beyond the standard policy, the Group considers it provides a level of protection beyond defects that existed at the time and accounts it as a separate performance obligation. The Group also sells software components of the passenger-grade UAVs. As the hardware and software components are highly interdependent, the entire bundle of promised goods is considered one performance obligation within the context of the contract. The single performance obligation is satisfied at a point in time, which is upon customer acceptance of the products. Service revenues from air mobility solutions are primarily provision of Smart city management solutions The Group enters into contracts with its customers for designing, building and delivering customized integrated command-and-control command-and-control cost-to-cost command-and-control command-and-control The Group reviews and updates the estimated total costs of command-and-control command-and-control Contract modifications, defined as changes in the scope or price (or both) of a contract that are approved by the parties to the contract, such as a contract amendment, exist when the parties to a contract approve a modification that either creates new or changes existing enforceable rights and obligations of the parties to the contract. Contract modifications, if any, will be accounting for as one of the following: (i) a separate contract; (ii) a termination of the existing contract and a creation of a new contract; or (iii) a combination of the preceding treatments. A contract modification is accounted for as a separate contract if the scope of the contract increases because of the addition of promised goods or services that are distinct and the price of the contract increases by an amount of consideration that reflects the Group’s standalone selling prices of the additional promised goods or services. When a contract modification is not considered a separate contract and the remaining goods or services are distinct from the goods or services transferred on or before the date of the contract modification, the Group accounts for the contract modification as a termination of the existing contract and a creation of a new contract. When a contract modification is not considered a separate contract and the remaining goods or services are not distinct, the Group accounts for the contract modification as an add-on catch-up Aerial media solutions The Group generates revenue by providing aerial media performance services and related products. Aerial media performance services allow multiple smart control-based drones to demonstrate and transform their formation to display diversified messages and images in specific airspace, that is tailor made based on different branding or advertising requirements. The Group uses self-produced drones and customizes the fleet formation performances based on customer’s needs and availability of airspace approval in the area. The performance is usually completed within a day and revenue is recognized when the service is delivered. The Group also sells hardware and software components of the aerial media performance drones. As the hardware and software components are highly interdependent, the entire bundle of promised goods is considered one performance obligation within the context of the contract. The single performance obligation is satisfied at a point in time, which is upon customer acceptance of the products. Others The Group generates other revenues mainly from stand-alone sales of consumer drones and their components and spare parts. Revenues are recognized when the consumer drones are shipped and the control of the drones are transferred to the customers. The Group started to phase out the consumer drone business in late 2016. |
| Cost of revenue | (t) Cost of revenue Cost of revenue consists primarily of autonomous aerial vehicle material and manufacturing costs, construction costs of smart city management solutions, product warranty costs, provision for inventories, payroll, employee benefits, rental fees, depreciation and related costs of operations. |
| Product warranty liability | (u) Product warranty liability The Group offers standard warranties to replace or repair defects on certain hardware parts of its passenger-grade UAVs for a period of six months to three years. The Group does not provide warranties to guarantee that the UAVs will perform as expected or in accordance with published specifications or provide expected benefits. The Group also provides a standard warranty for hardware and software for the command-and-control de-bugging Product warranty accrual is included in accrued expenses and non-current |
| Advertising expenditures | (v) Advertising expenditures Advertising expenditures are expensed as incurred and are included in sales and marketing expenses, which amounted to RMB2,114, RMB2,945 and RMB2,918 (US$411) for the years ended December 31, 2021, 2022 and 2023, respectively. |
| General and administrative expenses | (w) General and administrative expenses General and administrative expenses consist primarily of payroll, employee benefits, share-based compensation, legal and other professional services fees, long-lived assets impairment, allowance for doubtful accounts, and other general corporate related expenses. |
| Research and development expenses | (x) Research and development expenses Research and development expenses include materials and supplies, payroll, employee benefits, share-based compensation and other operating expenses such as rent, depreciation and The Group capitalizes costs to develop or obtain internal-use internal-use 350-40 350-40”), Internal-Use internal-use The Group also incurs cost to develop software embedded in its products. The software components cannot function or be sold separately from the UAV as a whole. The Group accounts for costs incurred in the development of software embedded in its products in accordance with ASC 985-20 985-20”), Costs of Software to be Sold, Leased, or Marketed |
| Leases | (y) Leases The Group leases facilities under non-cancellable No.2016-02(Topic Leases The Group has elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at commencement date of the lease and do not include options to purchase or renew that the Group is reasonably certain to exercise. The Group accounts for short-term leases with terms less than 12 months in accordance with ASC 842-20-25-2 Operating leases are included in right-of-use non-current right-of-use The Group elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Group to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. In addition, the Group also elected the practical expedient to apply consistently to all of the Group’s leases to use hindsight in determining the lease term (that is, when considering lessee options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of the Group’s right-of-use The Group has lease agreements with lease and non-lease non-lease As most of the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The incremental borrowing rate is a hypothetical rate based on the Group’s understanding of what its credit rating would be to borrow and resulting interest the Group would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis. (i) Right-of-use Right-of-use right-of-use (ii) Lease liabilities Lease liabilities are lessees’ obligations to make the lease payments arising from a lease, measured on a discounted basis. As a lessee, the weighted average remaining lease terms of the right-of-use For the years ended December 31, 2022 and 2023, operating lease cost was RMB13,986 and RMB11,527 (US$1,624), and short-term lease cost was RMB305 and RMB172 (US$24), respectively. There was no other lease cost other than operating lease cost and short-term lease cost for the year ended December 31, 2023. For the years ended December 31, 2022 and 2023, cash paid for operating leases included in operating cash flows was RMB11,164 and RMB6,877, respectively. For the years ended December 31, 2022 and 2023, leased assets obtained in exchange for operating lease liabilities was RMB64,869 and RMB9,127 (US$1,286), respectively. A maturity analysis of the Company’s operating lease liabilities and reconciliation of the undiscounted cash flows to
Office and production facilities rental
As of December 31,
2022 2023
RMB RMB US$
2023 5,632 — —
2024 4,290 5,716 805
2025 4,982 5,494 774
2026 6,448 6,949 979
2027 6,817 7,215 1,016
2028 — 6,803 958
2028 and thereafter 88,136 — —
2029 and thereafter — 89,853 12,656
Minimum lease payments 116,305 122,030 17,188
Less: imputed interest (40,872 ) (41,127 ) (5,793 )
Present value of lease liabilities 75,433 80,903 11,395
Less: Current portion (5,520 ) (5,595 ) (788 )
Non-current 69,913 75,308 10,607
For the years ended December , , the Group recognized operating lease expenses for all operating leases of RMB , under ASC 840. |
| Government subsidies | (z) Government subsidies Government subsidies primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. The government subsidies of operating nature with no further conditions to be met are recorded in “other operating income” when received. The government subsidies with certain operating conditions are recorded as “deferred government subsidies” on the consolidated balance sheets when received and are recorded as operating income when the conditions are met. On January 1, 2022, the Group adopted ASU No. 2021-10, |
| Income taxes | (aa) Income taxes The Group follows the liability method of accounting for income taxes in accordance with ASC 740 (‘‘ASC 740’’), Income Taxes more-likely-than-not The Group accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties arising from underpayment of income taxes shall be computed in accordance with the related PRC tax law. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Interest and penalties recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense. |
| Share-based compensation | (ab) Share-based compensation The Group applies ASC 718 (‘‘ASC 718’’), Compensation—Stock Compensation The Group has elected to recognize compensation expense using the straight-line method for share-based awards granted with service conditions that have a graded vesting schedule. Prior to the completion of the IPO, with the assistance of an independent third-party valuation firm, the group determined the grant date fair value of the awards granted to employees. Subsequent to the completion of the IPO, share-based awards granted were measured based on the fair value of ordinary share as of grant date. The Group accounts for forfeitures as they occur. A change in any of the terms or conditions of share-based payment awards is accounted for as a modification of awards. The Group measures the incremental compensation cost of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified, based on the share price and other pertinent factors at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period the modification occurred. For unvested awards, the Company recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. If the fair value of the modified award is lower than the fair value of the original award immediately before modification, the minimum compensation cost the Group recognizes is the cost of the original award. The Group doesn’t reflect reload features and contingent features in the grant-date fair value of an equity award. Reload features and contingent features are that require a grantee to transfer equity shares earned, or realized gains from the sale of equity instruments earned, to the issuing entity for consideration that is less than fair value on the date of transfer (including no consideration), such as a claw back feature. The Group accounted for these features if and when the contingent event occurs by recognizing the consideration received in the corresponding balance sheet account and a credit in the income statement equal to the lesser of the recognized compensation cost of the share-based payment arrangement that contains the contingent feature and the fair value of the consideration received, and debits in additional paid-in |
| Employee benefit expenses | (ac) Employee benefit expenses Full time employees of the Group in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund, maternity insurance and employment injury insurance are provided to employees. Chinese labor regulations require that PRC subsidiaries and VIEs of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions. The total expenses the Group incurred for the plan were RMB10,262, RMB12,361 and RMB13,298 (US$1,873) for the years ended December 31, 2021, 2022 and 2023, respectively. |
| Statutory reserve | (ad) Statutory reserve The Group’s PRC entities are required to make appropriations to certain non-distributable In accordance with the laws applicable to China’s Foreign Investment Enterprises, the Group’s subsidiaries registered as WFOEs have to make appropriations from its after-tax after-tax In addition, in accordance with the Company Laws of the PRC, the Group’s entities registered as PRC domestic companies must make appropriations from its after-tax non-distributable after-tax The use of the general reserve fund, statutory surplus fund and discretionary surplus fund are restricted to the off-setting For the years ended December 31, 2021, 2022 and 2023, appropriations to general reserve fund and statutory surplus fund amounted to RMB156, nil and RMB48 respectively. |
| Comprehensive income (loss) | (ae) Comprehensive income (loss) Comprehensive income (loss) is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income available-for-sale |
| Dividends | (af) Dividends Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2021, 2022 and 2023, respectively. |
| Loss per share | (ag) Loss per share In accordance with ASC 260 (“ASC 260”), Earnings per Share two-class two-class For the years ended December 31, 2021, 2022 and 2023, the two-class Ordinary equivalent shares consist of unvested restricted shares units, and ordinary shares issuable upon the exercise of outstanding share options (using the treasury stock method). Ordinary equivalent shares are excluded from the computation of diluted loss per share for all periods presented as their effects would be anti-dilutive. |
| Short-term debt | (ah) Short-term debt In December 2022, the Group entered into a share purchase agreement (the “SPA”) with an investor (the “Investor”) to issue predetermined number of Class A ordinary shares (the “Underlying Shares”) of the Company, at a fixed consideration in US$ (the “Private Placement”), upon meeting the specified preconditions, of which the substantial one is the Investor obtaining the Outbound Direct Investment (“ODI”) approval. In December 2022, a transitional agreement has been reached to supplement the Private Placement (the “Supplemental Agreement”), according to which before the ODI approval, the Investor provided RMB proceeds (the “RMB Proceeds”) as an interim funding, equivalent to consideration in U.S. dollar of the Private Placement, to the designated subsidiary of the Company. The RMB Proceeds and associated subsequent repayment obligation was accounted for as a liability to the Company, since: (i) The RMB Proceeds are a loan provided by the Investor to the subsidiary of the Company under the Supplemental Agreement. The Investor is entitled to receive the money back after at least three months if the ODI approval is not obtained due to force majeure or other situations agreed by the Company and Investor. (ii) It is within the Investor’s control that it can stop pursuing the ODI approval, and therefore it can make the repayment obligation to happen. (iii) Upon the occurrence of dissolution, windup or liquidation of the onshore subsidiary, the Investor could claim its creditor right in accordance with PRC bankruptcy law. Therefore the instrument is accounted for as a short-term debt under ASC 470, Debt. |
| Warrants | (ai) Warrants According to the SPA, the Company issued a purchase right to the Investor under which the Company will issue predetermined ordinary shares for a fixed cash consideration at a future date (the “Warrants”). The Warrants were accounted for as equity instruments to the Company, since:
i) The Warrants were indexed to the Company’s own stock, since:
• The Warrants will be exercised upon the ODI approval, which is not based on an observable market, or an observable index.
• The exercise price is fixed by the SPA and Supplement Agreement, and the number of Underlying Shares to be issued is also fixed divided by the fixed purchase price per share.
ii) The Warrants were classified in shareholders’ equity, since:
• The Warrants will be settled only by gross physical delivery of ordinary shares by the Company.
• The Company has the ability to settle the Private Placement in ordinary shares.
• The number of Underlying Shares to be issued is explicitly fixed at the total consideration divided by the fixed purchase price per share, with no adjustment provision.
• No requirement for cash settlement in the agreements.
• There are no cash settled top-off The Group received the Proceeds and issued short-term debt and Warrants in a bundled transaction in 2022. The RMB Proceeds shall be allocated to the two elements based on the relative fair values of the debt instrument without the Warrants and of the Warrants themselves at time of issuance. The portion of the RMB Proceeds so allocated to the Warrants shall be accounted for as additional paid-in On January 1, 2022, The Group has elected to early adopt the ASU No. 2020-06, Debt— Debt with Conversion and Other Options 470-20) Derivatives and Hedging—Contracts in Entity’s Own Equity 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity 2020-06), |
| Segment reporting | (aj) Segment reporting In accordance with ASC 280 (“ASC 280”), Segment Reporting - The following table presents revenue by customer incorporation location for the years ended December 31, 2021, 2022 and 2023, respectively:
For the year ended December 31,
2021 2022 2023
RMB % RMB % RMB US$ %
PRC 49,683 87 % 33,975 77 % 96,580 13,603 82 %
West Asia — — 4,630 10 % 9,188 1,294 8 %
East Asia 4,404 8 % 798 2 % 6,018 848 5 %
South America — — — — 4,729 666 4 %
Europe 2,199 4 % 2,638 6 % 501 71 1 %
Other 521 1 % 2,276 5 % 410 57 0 %
Total net revenues 56,807 100 % 44,317 100 % 117,426 16,539 100 % |
| Development and purchase cooperative arrangement | (ak) Development and purchase cooperative arrangement In April 2016, the Group entered into a development and purchase cooperative arrangement with a U.S. biotechnology company (“Biotech Customer”) to design, develop, test-run e-helicopter U U As part of the same arrangement, the Group may sell 1,000 units of customized U e-helicopter 15-year U U U U |
| Recent accounting pronouncements | (al) Recent accounting pronouncements The Company is an emerging growth company (“EGC”) as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act provides that an EGC can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an EGC to delay adoption of certain accounting standards until those standards would otherwise apply to private companies. The Group elected to take advantage of the extended transition period. However, this election will not apply should the Group cease to meet the definition of an EGC. In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, In December 2023, the FASB issued ASU No. 2023-09, |
