EH - Earnings call transcript Q2 2022 | EHang Holdings Limited

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Operator

Good day, ladies and gentlemen, and thank you for standing by, and welcome to the EHang Second Quarter 2022 Earning Conference Call.

As a reminder, we are recording today's call.

Now, I will turn the call over to Julia Qian, Managing Director of The Blueshirt Group of Asia, EHang IR firm. Ms. Qian, please proceed.

Julia Qian

everyone. Hello, for financial today’s quarter results all discuss call of us company’s the for joining you conference on to XXXX. Thank the second well release from earnings is on website The available Newswire as services. IR as conference the be will the audio on note, recorded and call Please posted website. the IR company’s replay being is Mr. Today, include management EHang’s which team, Huazhi, Officer; Mr. Hu Chief Executive Fang, Operating Chief Officer; Xin and Mr. give Richard Liu, Chief Financial prepared Officer, remarks. will successfully will in Chinese be delivered English followed Remarks translation. by for is purpose only. convenience All translation prevail. will In in of the the any statement language case management’s discrepancy, original A afterwards. Q&A follow session will

Before to provision discussion Litigation made US we that contain will today’s Securities XXXX. continue, please the note forward-looking statements Reform Private of pursuant Act of Harbor Safe the

involves risks inherent uncertainties. statement Forward-looking and

maybe company’s numbers does Also, not such, unless the as and in other any the Hu. stated required XXXX, the Mr. different company risks now law. from today. public that, SEC. except are is The obligation applicable otherwise. of Huazhi. these RMB any As forward-looking results expectations turn under all in included With please filing statements, and company’s uncertainties the with Hu over the go let Please materially update present to Further the actual quarter assume expressed CEO, to call information and ahead, me are for second the the Mr. note, regarding

Hu Huazhi

QX continue and expand strengthen from a more in significant of This XXX% QX. spend and customers, ourselves, and Southeast We today. excellent home Thank the COVID Language] at up revenue of we QX, In to our not increase have from orders, were results. call The for you, macro the but In able achieve actively gradually environment, earnings we environment deliveries recovering in [Foreign operator, time to total impact our and and Thanks Julia. world our secure efforts drove Asia. by everyone. China pandemic. joining over continued especially preorders, to adapted to the was Hello, abroad. also only

continued such commercial with China. partnerships Group, long-term future. support in and business partners, the the expand We in be partnerships These largest Agricultural strong of to of companies and C.P. finance development the business of as EHang's to the Thailand our will strategic one Bank

of later. will at for in AAV of thing the an production, CFO with influence design present our experience profound XXX-S have elaborate set the It Western has is EHang and important been aviation has new this concepts production on safe been and of This process and airworthiness products. and summarized operation countries set the them is of COO embedded faces on The year. the of entire most comprehensive the that their Our essential has based us progressed an by into to concepts full recent understanding since the process making which mass Type certification, century. in on from aircraft

Here, I available pioneering to the predecessors and who would efforts. the like to express to with appreciation tremendous my experience sincere contributed admiration

days, certification which based RADs this our CAAC issued safety to applicable of aircraft, early EH-XXX. In new start production. there and special we been like type before conform standards airworthiness standards the available any However, explore to productization on the hadn't conditions, to own

development exploration to production certification past respect regard, airworthiness expert the and basis, team certification with have as the finally the airworthiness manufacturing certification design strongly as forward we of respectively. business EHang in emphasized airworthiness general the aircraft we XXX-S project conforming ground had for and one well production compliance of our process aviation. certification. light our systems, design EHang support in a this forms process series CAAC solid Based as the foundation consensus QX according plan, system. management UEM certification regulated with with experience, for industry, a is reached also the there to on are the XXX. and aircraft of a and no favorable and to design, developing work for further established this in In with compliance. standards certification our and can on Based Both the industry system, every unique design the specified In this in in have but preparation put airworthiness pushing the concept CCERXX that, out plan several of management charge topics planning which AAV conditions now unmanned only According the and can believe enhanced conventional our product aircraft in forwards the and airworthiness obtain methods, the the We Currently, type work Guangzhou, CAAC this aircraft on the worked system. only our Moreover, to worked VT-XX from unmanned pushing MAL and of not unmanned member a certification at referred key own on encouraged we configuration We in government's and cetera. relevant an scientific system, such We airworthiness that experience carrying control products aircraft in of and As and XX made previous years XXXX. systems eVTOL line standards with Guangdong, It as to and pilot standards in government as is relevant the type , are corporation new requirements the there learned project are up, further of SAE, aircraft the confidence months. the airworthiness clearly verification. design but Guangdong Guangdong internationally in CAAC demonstration out regulation where and strategic be process, every with the also branch AACM, policy manner the internal management tests of new precedent, was of civil activities stage newly XXX. from recently et team headquarters With the [ph] and VT-XX aviation component meets and and the to airworthiness the have of our to EHang RTCA, CAAC established nationally. speeding small agreement develop and on aircraft the the lay applicable us continuing Guangdong recognized aviation controlled our framework innovation the compatible CAAC to of to we new in to of principles including June, this in Datalink type closely the the located management certificate. together. in OEMs, for And these cash so aviation the tasks a enable witness concept center provincial

for Xin highlights Next, in call will turn Operating QX. the I to Officer, Mr. our Chief over business Fang

Fang Xin

the Mr. Language] remarks. Mr. Thank you, Here's translation [Foreign Frang's Hu. Hello, of everyone.

and XXXX Province five of consumption. other initiated XXX to Aizhai XA bringing spots low future. scenic to for tourism customers units low Area, establish operations As customer up parts expediated the a the of pandemic the EHang QX, June and Aizhai. authorities plan network spots, business CAAC emerging related plan develop destinations. AAVs mobility our plans and market market expand Wonder scenic flight tourism a progress of low we XX of to this spots more expanding XA XXX, steadily. Against recovering business parks tourist with has altitude areas to the spot supporting indicating in scenic resorts, connecting year, and by initiative. by delivered spots, tourism, expanding sizing flight for and excellent as flight scenic XXX in more to scenic backdrop, project Tourism theme strategic XA tourism, level over transformation to with project integrated QX COVID which the the Aviation the private Jishou. tremendous issued our level Under this China to In era This models development in regions. the In replicable XXth in supporting we situation Air the a a policy public in the at innovative Hunan since development altitude promote in tourism, has Development Tourism been of making The for Cultural of aviation trial China altitude stabilized year, of Tianxingjian this the flight than scale special potential additional have tourism. enterprise for in for initial model gradually low an helpful government Company, flight XXX and we formed route corporation According a partnership Jishou General creates altitude level statistics, in is five-year of The ongoing in order the post scenic purchase project units are EHang national purchase other business Investment National city such tourism, China's flight of affiliated

China. operation technologically and safe, pleasant is to our our EHang are cross aero-logistics In EHXXX EHang we AAVs of partners. in to smart flights intend out also Thailand, high by scenario comprehensive transportation, joint trial reached we of low in reached so Asia, AAVs the altitude a In operational tourism, use airworthiness venture establish Indonesian received flight EHang in obtaining After future. X,XXX Asia parties an effective area and received one certificate, solution with the strategic cooperation and XX provide sector in customers actively cost a been we an than demand is also more largest The urban aviation far. users to market in the experience. which in tourism for Conglomerates introducing XXX presence cases, sightseeing local and company, EHang with advanced, expected in where is empowerment of mobility at units the management corporations Southeast from aerial practical with far, of end a QX, So expanding Aviation, to XXX and Group, unique, through a has also city carry has preorder the and CP conducted We've spots preorder two tourism Prestige largest intent have XXX the Thailand.

in in aero to moving securing you. remain the Europe please for core on regional given business our will financial as and confident call results. Liu, Thank values in Richard environment, I certification, expect Richard, over potentials adapting business outlook We orders, second the and we turn recovery year market. CFO, expanding our ahead. unique now of our our half of growth are EHang in actively continuing go size media macro and We product the the long-term advantages. XXX a forward more the this

Richard Liu

and you, hello, everyone. Thank Xin,

numbers on is RMB and as in our now continues Before we in percentage unless the specified. analysis, the IR highlight on shift for quarter model. and Asia, unless strategic first earnings XXXX, Detailed here. a please note some I in contained integrated are second towards points changes press increasing details, are the which or efforts a business release, our for our basis positive will All of strength. available stated of solution I an aim XXXX, otherwise. service ongoing and platform that orders with in otherwise key go into our quarter-over-quarter reflecting The of solid all website. are presented are air deliveries urban preorders operational yielding In results are quarter China mobility

EHang operational trial as flights also As to focus process, Mobility we XXX spots further our in operation with continue Air the as XXX well made we of Type increased Routes Initiative, expansion development in Certification China. on continuously

increasing internationally. units customer units operational for both a QX. AAVs, five from province tourism sting to Demand in have was and to credit a growth RMBX.X million XX units additional we for strategy we following delivered QX RMBXX.X of of Bank from of billion representing the in Branch in three of Hunan example in operator indicative that with and in China One execution revenues a in AAV been along AAV total our is areas our The million, business the as XXX.X% China the struck QX, to buy deliveries strategic eight Agricultural XXX units project typical were support products QX facilities in XXXX, for an government-backed In China local partnership plans EHang This Additionally, in like with XXX years. increase XXX.X% QX. progresses. RMBX to EHang Guangzhou the increase in services.

of to customers from Japan, trend units of beginning Another preorders in this Asian have and Malaysia further example is the of that the XXX Southeast up expansion and we year, obtained we Indonesia markets. in since see

operating in increase XXX R&D of and our level though to gross compared as we gross matters both In was million products RMBXX.X of which light car QX QX. fees to was models and been the energy continuous which in steadily XX.X% RMBXX.X to expenses, expenses at COVID-XX QX, and the edge UAM to expansion ongoing Additionally, electric companies, excluding new show adjusted EHang progressing measures point were with filing high compared additional first new million legal impact and further continues our mainly compared report The provisions industries. were already to This attributed companies. loss RMBXX.X such in other mover X.X a and are Even in accounts from share-based percentage EV related QX. margin professional process, service million AAV of the certification With in XX.X% epidemic margin RMBXX.X and expenses, control that adjusted operating as with to ongoing able are China. in operating our global competitive in in overall the compensation for receivable has other million. from mobility the our drive to a annual QX,

in in was adjusted RMBXX.X QX. million Our loss RMBXX.X QX compared with net million

remains of RMBX.X of believe of investments the slight a restricted end QX, is with our cash prepared remarks. Our even business concludes solid million we quarter-over-quarter. cash, With cash, track. and increase of That RMBXXX.X our the short-term on equivalents, sheet balance that, with as million good

Let's open the Operator, for please. call questions. now

Operator

session. The question Ladies Hsiao. Instructions] first and [Operator open. your the Please line is begin Tim ahead, from go gentlemen, now we question-and-answer is

Tim Hsiao

two management my quick thanks team, questions. have for Hi, taking actually I questions.

first especially in past customer progress in having we of saw acquisitions, good terms making the few their The been over one quarters. Asia is some EHang

government? you far kind collaborations preorders and some And should got Just plan facilities. get the have we do the of around because to Bank we've the the billion wondering expect regarding addition, In delivery? think question what partnership investments second that’s kick the when how And and Agricultural us do going size my contribution when to our start we to entitle we with funding many with updates of credit so X and we China, could of the noticed about in? the indicated is that we that also

accelerate Just And look our cash it like quarters? investments you're of months? share how that? So, wondering what upcoming information to going how upcoming have you to little more use investment kind Thank does do rate we are plan And going in a now? in about you. flow you could bit --

Julia Qian

questions. questions your give Thanks second Please your a management for the us translate to team. to

will We with the you. provide later. translation Thank answers

FangXin

Fang Hi, is Tim, this Xin.

in received other market. for pre-orders beginning total of Let in Asia Since are of this to pre-orders your me of three units the local take to China first delivered year, a in Asian market. customer orders. the be More XXX obtaining about we in have XXX question about type the expected certificate subject of a units than passenger-grade certification years, or needs and our relevant in AAVs

the short the both are to on able which customer have be also to we based time some addition delivered orders, discussions, In or received in the preorders, quickly customers' demand. enhanced

trial been the regarding centers deliveries we the governments [ph] completed have in are some Prudential example, units set put in up talks batch received the from also the For into QX, the different with which Corporation Jishou, we already local X year At to the and plans operations. make first regions. this we to of in In operations operational actively orders customer we plans and for present, this order be strategic governments. within with already which [indiscernible] expect year to agreement, a completed full prepare commercial orders, to agreement be once results. and there purchase contribution types signed will successfully the some for to our a notable certain have cooperation obtain Upon in

Richard Liu

as innovative this institutions and is represents time This commercial Bank an type started largest to indicated grant the will facilities Basically, of your technology industry. bank [ph] of such first tap one to second partner partnership new that have Agricultural I company. is Hi, EVECO credit us traditional with of into Tim, this financial to question. China take Richard. is the this

Agricultural China financial for development So et and for supply Ehang, it facilities indicated also loans, services years, regular Basically, over cetera. the RMBX is and banking a credit operations Bank chain good the our only following comprehensive of billion business the sign, of products not including support financing, please credit cover to but industry. leasing,

for to they the our be RMBXX money the credit needs. a the of starter operations terms have extended us will financial used the in -- facility, growth. investment have facilitate more we of business the we to CapEx respect and to so sales growth towards any CapEx sales million supporting will as TC obtained. how grow we is existing see been loan. production as leasing Further, In plan investment, would after financing near-term, in Thus, discussing option the future have our So an

and unique a as operation burn, has China, others. this cash compared the you lean know, to EHang’s EHang is running been if in somewhat start Regarding

can get a probably our flow feeling cash statements. You from

to rough you operations around rate or average million million. annualizing ask get If give it, US$X.X run roughly idea, you roughly is for the would current our million cash level RMBXXX US$XX monthly of RMBXX around million or a current if you

it expected the TC is your expected Hope flow be or answers that. situation cash operational after obtained, following cash to would the As flow improved question. that the is sales increase this is further

Tim Hsiao

very Richard Thank much Fang for and Mr. detail you Thank story. you.

Richard Liu

Thank for question. you your

question. Next

Operator

Please standby.

Let's De. question Lu go from Please our take ahead. next

is open. line Your

De Lu

Thank two my you you. I taking have questions as for and questions, Thank well.

center, elaborate corporation? model operating EHang for more from the AAV And be bit like most one that tourist much. crucial? on as stay there that like a control competitors technology, business that most making leasing so what management Like, How AAV cancellation first seen be propeller will or you the could the technology industry innovation AAV, tourist like feel leader, team be the EHang are second would the little noise for in management AAV who doing a will buying the a or the The of attraction, question, the area? is such? for for what now and or the is a example, having or we've attraction many team for to example, particular battery will or important in the command now if the Thank

Julia Qian

a for for Please question. us translation. give second Thanks the

De Lu

course. Of

FangXin

traditional spot will Xin. provide but which The the transportation ways such long and spot professional had aero infrastructures, redundancy [Foreign Language] AAVs our The now both Language] spot of fresh for by our investment. including for cars fleet of structure good Hi, sightseeing and and high designed pilots. operators high they on safety month certain cannot costs sightseeing efficiency point-to-point full and favored [Foreign for as ways Fang your innovation and expenses Lu scenic aero aircraft a Therefore, scenic vehicles for the I take have features into only operations next tourist use the is low-cost experience, limitations, acquisition multiple operators. the model The time. a and reflected cable which as design De. is key cannot cases, have with the invested [Foreign return are Fiber, a with helicopters, Language] in are This and questions. and business in demand traditional safety, and that also the tourists serve scenic a management. a the aircraft the maintenance

monitoring charge services AAV stage or our Language] structure, with the of the providing and our operational essentially stable flight more the lease only tourism, only XA saves UEM can the our can be to to professional EHang QX, provides scenic Aizhai decal customer customers flight way both with spot cost spot placed pilots. altitude qualified of high our [Foreign a customers, as competence in on an We're are industry Language] for plans moderator a of taking and operational EHang command at resources managed. Wonder. develop In The in question, the national at leading for also low purchase who Project our terms not industry, and example. purchase can and the the XXX, sport. Language] And the while monitored aerial hiring [Foreign scenic both It's your Regarding [Foreign us can in technologies of based work it to second infrastructures with Hunan In operators, our Flight our still order but realize customer the partnership Scenic a it sales as our EHang AAVs. level take as other control. and complementary the operation. through and leader joint autonomous our AAV parties' competitors

and all systems In algorithms, flight to our efforts of systems, our we altogether your able you. flight to technologies, unmanned the these command integrated answer of iteration we and control control industry. and from including questions. aircraft evolution ahead terms Thank continuous That's autonomous system. one, With battery stay day lift the technologies, have systems the are in and also invested the of

De Lu

Thank you so much.

Operator

our next Please We're your going ahead. take And standby. the you Jung question. Thank next question. now from for Please [ph]. Verena to question go

Unidentified Analyst

I translate two quickly here. questions. [Foreign Language] Let me have

paralyze share second differences First, take breakeven? And And the the barrier production line? do the Thank passenger we on firefighting can the landing? these roughly in AAV across to you. the hackers also safely same to the and logistic safety. on Could can emergency technology. the AAV? question what the products let level Any is we what's any if over system, entry flight unit different My if the happens? or And

Richard Liu

Verena. is Hi, question. your Richard. for This Thanks

answer Let to me try your questions.

to shoot core the the the on approach control, XXX-L, XXX the actually. based specific as parts series time that, to large modules are part, developed. shared With has different which develop needs. essentially I technology the of for and carrying be to model of to the The our and amount model was logistic fundamental is for the further be now due needs. it firefighting propulsion, first, such -- relevant tell the can manpower within probably flight XXX-F, fundamental on are a on model a safety require payroll et which level are cetera, guess, large functional focus The are of -- call been intertribal tailor-made XXX-F same different and you core XXX-S. basically, highest Basically, on It we our XXX-L developing So model use, the and model then corresponding requires top is the passenger products. and

along we XXX to respect line, To you idea, As at as the also predetermined be flight who deal sales estimated -- to routes over control question, adjusted in through said and the breakeven our XXX normal on the control rough and series breakeven, situation. can range In hedging XXX production give situation systems. there a current given prices. shared. usually ground an flies system command rough itself. question, security public of flight operational a the carry Having is AV give the that by the the them separated between of your case your to it's annual basis, respect the around from AV of the network private and the protection command so are levels and you and it is ground control In expenses of to look network, weather's are of by can products, of AV of units company that, connection can the In necessarily could high-level through several take the it And emergency, the whole. regarding of second staff, with monitoring basically, the roughly a itself measures. and

case, land. question. I the itself to by AV system can command predetermining in Hope flights be find area your or answer safe the hacked, ground to So the still fly Thank will you. control complete the nearest

Julia Qian

It's you, very you. clear. Thank Richard. Thank

Operator

over conference for go no are Thank There ahead. question. back further for I remarks. Please your closing the hand will you questions. now

Julia Qian

today's next appreciate your for Thank on see our your participating We and you, quarter you support. thank entry on for and call progress. you operator, again all and

Operator

conference today. This you conclude for for participating. the Thank

You may all disconnect.

EHang Holdings Limited (EH) 18 Aug 222022 Q2 Earnings call transcript