Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the EHang Fourth Quarter 2022 and Fiscal Year 2022 Earnings Conference Call.

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

Now I will turn over the conference to Anne Ji, EHang's Senior Director of Investor Relations. Ms. proceed. please Anne,

Anne Ji

is you recorded. to Thank fourth us today's posted conference company's earnings on and Please the company's Hello, that on audio note the for replay company's call the release The XXXX. discuss year is the website. on financial conference the fiscal website. being everyone. call of joining available The results IR quarter be for will

Mr. Chairman today, Officer; call Huazhi have Fang, and Mr. Chief Officer; we Officer; an successfully and Independent the Financial will Founder, the follow English On of prevail. Director In Board. Hu, prepared be case session Richard Executive Remarks will translation original will A of discrepancy, Mr. team Xin Q&A Yang, Chief purpose Chinese Operating followed translations. statement Chief the our Liu, investment The management's language only. give any by will in delivered is remarks. afterwards. in All for convenience Nick

note will of XXXX. of we Securities Act the Reform that provisions Before Litigation today's U.S. harbor statements please contain made to safe discussion continue, Private the pursuant forward-looking

Forward-looking uncertainties. statements inherent involve risks and

and law. any otherwise. year obligation RMB to the and note for please regarding Also, applicable such, uncertainties and SEC. all actual the XXXX, as forward-looking that be information may different other the does not filings presented of company As The statements, expectations under update stated the the Further today. in risks are results any from and company's in is fourth expressed the required unless numbers are included materially public except company's fiscal these with assume quarter

Please the Mr. Mr. turn go ahead, now call over Hu. me Hu. CEO, let to Huazhi that, our With

Huazhi Hu

our opportunities everyone. for main translation backdrops pandemic, the conference Hu's and meaningful political business certification, during and ever-changing remarks. priorities our volatilities, Thank in of development uncertainties challenges as and to XXXX make of This is earnings of to ecosystem a EHang. we progress for the Mr. year the Against you and English the strategies call committed continue today. airworthiness year macroeconomic remain establishment. of our joining Hello,

strengthens last only leadership reinforce certification entered not EHang the of urban in the quarter year, long-term of but the also This final development, type companies. mobility the the and resilience industry. a fourth successfully demonstration XXX-S implication phase our our In global for of

However, due extent. until Dragon certain China policies, holiday, COVID was this relevant project to massive the TC infections after year's Chinese control to a delayed lifted a

at inspection past the at But now manufacturing aircraft air witness conformity we other locations. have the for aircraft manufactured confirming and of Hezhou basis production Yunfu conducting purpose are compliance the facility, verification in our tests Guangzhou, and flight a

Central Chief Administration and the TC Hezhou. officials team, Air expect In South in year, office the Traffic Aircraft Engineer Standard, Operations, Department the Certification, X from the as February of the Department the this CAAC well as the of of from the base the Flight Regional experts Airforce and the

and arrangements in our parties and plans next We together which operations. the in stage, effectively for of efforts test accelerated joint post the review compliance flight the and but also boosts final process not all certification are confidence worked only in the made steps,

the of and demonstration on a actively for based the the we been compliance agreed means compliance out As today, carrying verification work by of have CAAC.

Our tests, flight laboratory work cetera. of and includes et submission inspections, plans, test test ground tests, compliance

few worldwide. amount, It entire been EHang either the of projects have completed At completed is signed civil over present, to we by certification been aviation over certification process. type XX% of the means soon. or that accepted substantially compliance regulators leading be We tests have eVTOL has type believe XX% officially

grateful the of new AV. this high achievements a At Civil support efforts are same of over the few Aviation process to full and innovative TC for the their difficulties, very and aircraft innovative proud full past CAAC, the groundbreaking award-winning years. Regulator, China is I'm our attention to time, Although such we for teams

bring expected the mobility witnessing a Therefore, new anticipate we in global and XXXX [indiscernible] believe UAM and in We a milestone good of near we're news will year future. air particularly we entering in believe industry.

X-dimensional worth recent mentioning alluded China expected is What and about UAM to XX% Stanley's other so global EHang being have favorable sectors market. provided to potential from and with a market is huge series a industry of governments its the than and electric government and market has Chinese better for altitude us development. policies enterprise that [indiscernible] According for introduced of related the customers. beneficial transportation, urban account supportive local to years, and environment Morgan on. large is growing emerging tourism Chinese the UAM This the central In we aviation leader a in low economy, forecast, demand aviation, aviation, for policies,

later. Our it about COO, Fang, Mr. Xin talk more will

On expertise the in China chain has product the industry manufacturing professional pilots. upstream downstream our chain cost This and efficiency. China the the hand, the has delivery other a industry, accumulated profound has of R&D, a supply aspects of higher for and leader delivery. Besides, foundation effectiveness a global lead and product been and in advantages and UAV solid

mobility The overseas an aviation we multiple committed in are projects engaging market in Asian Europe and actively participating pioneer. market, to air in as

collaborating to a continue UAM safe, intelligent, efficient jointly with sustainable partners and local system. operational governments will explore and customers, We a

and XXX across aviation AAVs global is EHang record the sites have line the countries Europe To Asia, top XX the successfully completed over industry. in date, Americas, autonomous in which Series XX,XXX

more and Directors will as to expanding we Independent an Mr. are our our Nick Yang, we year, thrilled In experiences worldwide. Board of partners dedicated to Director. last ahead, December remain welcome bring solutions joining AAV and reach passengers our to flight Looking and customers,

of growth has a been the EHang's is industry as member UAM friends years. for new our who the old of of Although the Board, the he's he the early development company's and following many investors also one

our we support also I companies, will in that new later. in strong to available XX the listed over with Q&A experience session and us Nick in capital Today, With everyone Nick and he call, believe [indiscernible] bring years market stage. growth communicate have be on with EHang's the of experience will entrepreneurial to

to Next, I Fang. the turn Thank Mr. our will you. Chief Xin Operating over Officer, call

Xin Fang

This our of last Hu, Fang's of is the priority the Mr. remains the Since top year, remarks. Thank fourth project. you, quarter hello, and Mr. English translation everyone. TC

We are pleased are sprint. in the to final now report that we

In domestic capitalizing explore preparation for are sustainable market. advantages mobility post and growth, we leading to certification, long-term our both first overseas

opportunities have economy. mobility We entire cooperation throughout chain industry the air related business low-altitude our and expanding the to been and

solid are certification. delivery of order building our a The foundation laying and commercial partnership and cooperations, services we following for demand, enhancing operational

last seen domestic impact from which rapidly has has lifted. Academy In compared policies of COVID, billion, year, The up USD were to billion, in XX% reach last year Tourism compared after excellent recovered year, that this will the an for X.XX X% This China, industry, will heavy RMB development and tourists of predicts domestic the the XXX tourism number this to control tourism China tourism. the opportunities increase revenues presents trillion, about X year. reach low-altitude

and smart of to as cities. where a after customers. to more macro building year, system The last market in tourism China than the low first backdrop integrated and our been well we against have market operations we Since transportation plan our economy, policies promoting for domestic altitude developing dedicated launch developing certification new industry tourism commercial as

in in with Shenzhen governments, local in extensive provinces and such industry in Jishou tourism Xi'an, cooperations enterprises in Ganzhou Guangdong, Guangxi, and continued cetera. layout in in as Jiangxi, deep Jiujiang, and have Shanxi, many Qingdao, in aviation and Hunan, We and Shandong, business Changsha Huangshan cities Guigang Anhui, and et

series XXX be date, is after the To have orders in fulfilled we expected These to for over orders received EHang are AAVs X X units years completed. XXX China. within TC process of the to

of a in significant has and inquiries demand over been Additionally, there China. with all TC growth new our for the completion, customers' orders from the approach

in Xinjiang minimum Xiyu its venture Exchange Xinjiang, For tourism agreement of of a key XXX-S, conducting intention a example, with Tianshan. joint plans a EHang to recently, our It comparable as in low-altitude most listed to in AAVs in projects locations scenic Shenzhen and leading X units lake establish years Stock framework and tourism, announced such cooperation of heavenly on where sign XXX us. company sightseeing for our the operate tourism passenger-grade

Another They low-altitude example, signed indicative aircraft buy their Company X years within purchase Aerospace in to us. smart year, develop area EHang Northwest flight this and strategic plan a order in agreement to with and order Investment partnership Xi'an the a in XX city XXX the March China. units of air demonstration

for are to willing with Hong EHang with growth. cooperate Kong Meanwhile, long-term investors strategic who partnerships

about and support our to entire million, XX USD zone will constructions, For full to December, Qingdao investment only million an XXX example, portfolio, pilot investment, strategic next not generate outstanding is long-term X our area UAM local which partnership also business. with demand operations, services, with has reached business the a worth million the a It Qingdao sales and provided the applications. XX but coast world-class of over things West provide among local years. goal RMB infrastructure project production will and other us applications facilitate government building of a USD City and new expected within into also of They for product last demonstration

[indiscernible] integrated and high and In products to high Based and on that enterprise operational the government efficiency. future, cost business low we customers. services an strategy of for principles adopt plan selling providing both standard, the

control system we city UAM media, cetera. smart a and firefighting urban X platform utilize are media. to will transportation, management We smart major set common management operation city diversified for to low-altitude demand and our AAV which our are able support aerial et meet mobility, medical aerial tourism, aerial customers' logistics, air in applications and emergency, of complete rescue, system businesses, Therefore,

the we in In have spots Chinese we safe completed been X,XXX with AAVs. flights while To for out aerial developed operational conducting EHXXX trial the the XX CAAC cities. carrying have More lead have years, been sightseeing type in certification. than guidance, date, under taking operations trial XX X past operations

for process, management replicable this team, platform operations have reach and experience. and a professional and accumulated we During to develop feasible digital [indiscernible] and operation services, operation cultivated AAV cloud AAV

ahead and give our and of a together us and create to service our upon mover the are with ability first All certification of have term companies obtaining beginning future operation the the other advantages and operations. that is considerable price over in industry. customers these values This we in UAM benchmarks also built commercial ample long partners and confidence

Additionally, chains well across and as we ecosystem. on been cooperation the expanding the UAM building downstream upstream have actively working as industry

Haeco we For while with very empowering service AAVs Group, pleased This maintenance our high-quality October. after-sales provide service our to with partnership system are Group, EHang an a and be continued partner example, for of certification. worldwide airworthiness more Swire to subsidiary to customers maintaining last tends efficient in following

and sightseeing Indonesia XXX Malaysia, surrounding Asia, In overseas as carry with application actively for series preorders established XXX out explored last local of market Japan, secured EHang such such toruists trial more and as and to we low-altitude, Thailand, logistics mobility than markets, transportation. scenarios [indiscernible] flights partners and year, in cooperations AAV local units

in we Japan. in XXX of overseas aviator space successfully February, passenger-carrying This is autonomous passenger-carrying first This the EHang an with an ever demo flight air open approval. in the conducted first Japan flight also

in flight the used first EHangXXX last quarter verify of concepts Europe, fourth In of year, to and in the completed AMU-LED the successfully UAM project Spain operations. we

the joined SAMVA an explore management. aircraft traffic also UAM project system We to

Spanish their flights National Maiden for the completing police assisted we addition, EHangXXX to operations. travel In

Mr. a us. crucial by noted XXXX Hu, year is for As

commercialization. are about approaches, industry point and entire to airworthiness turning EHang certification of the even As into UAM enter the

are for We Richard, now to commercialization over industry's. please provide CFO, and to financial be We confident you. specification. Thank guidance earnings in ahead. responsible plan the after for Liu, a and global our will prepared the turn call results. aviator Mr. Richard feel to I go pioneer

Richard Liu

Xin. Hello, Thank you, everyone.

stated points all a is are highlight of release, Before percentage quarter-over-quarter fourth our the Detailed I please year changes specified. basis that I and press All now otherwise are note details, some for unless numbers key are unless quarter and here. go available website. earnings contained of will in on which analysis otherwise. IR our in RMB the into fiscal on the presented XXXX,

growth. XXXX, of we to not significant building but certification, type Despite an and in developing for ecosystem challenges numerous only AAV achieved and uncertainty phase progress business certification the final post in moved also

further a the and expansion point a we cost UAM our the operations financial operational commercial for company see our numbers management, are for our we and era to Meanwhile, and efficiency optimistic expected industry. the new turning enhanced of and

RMB were of XX% in EHXXX X from revenues In XX.X% QX. QX, X.X deliveries total in an X of increase million series The XX.X from QX. QX in million, AAV units, RMB units were up

in million RMB were revenues total RMB The AAV XXXX. deliveries XX with XXXX, XXXX. units, compared with XXXX year units XX.X compared in fiscal the million XX in EHXXX For XX.X of series were

XX.X% to in in XXXX, price This percentage XX.X% and products EHXXX was of represents X.X average from Gross UAM of percentage mainly points EV slight compared in industries. attributed X.X XXXX, increase our an AAVs. of higher other points a the margin vehicles to global in those from QX. QX, increase margin as a representing strengths competitive XX.X% was first-mover result Gross XX.X% such and continued advantages the electric mobility levels of gross electrically of the margin powered in as high selling

reductions share-based In of which its in XX.X expenditure expenses, expenses, expenses service expenses, mainly was for additional with proven and customers million RMB were in receivables et the QX. QX, compared travel in cetera. The and operating our professional verification RMB increase to on for response aircraft process operating to the XX.X for into provisions conformity driven certification COVID compensation EHXXX-S item in type marketing noncash adjusted and expenses, of excluding are impact million by more

On the were basis, an million XXXX, in XXXX. adjusted RMB annual XXX.X in compared million operating RMB with XXX.X expenses

RMB As QX. million in with in net with million XX.X our was RMB XX.X QX compared million XX.X RMB Adjusted in a adjusted loss QX was million loss QX. in result, operating RMB compared XX.X

fiscal RMB Moreover, RMB our cash compared XXX.X we XXXX, was solid our net XXX.X balance and in loss For the million million with proactively XXXX. been position managing remains have our in liquidity. year, assessing as cash adjusted

restricted QX, cash QX. investments of short-term of of cash of with end XXX.X compared end RMB and million million the cash, as had of equivalents, XXX.X RMB As the we

XX partnership December, formed potential China's a million investment USD new of with support West Coast Qingdao we prepared This liquidity comes strategic additional into and and XX new growth. areas concludes for our as In future. the a company This a USD investment in additional with equity Shandong partnership area, one of remarks. national province. in operations That serves million the

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

Operator

[Operator Instructions].

are with now going from our questions the first to come We proceed and question, [indiscernible]. the

Unidentified Analyst

questions. I have two

we it's time and delivery the think the hire production? how X after the also we Could months, enough production have a all, also expect and about get you like TC people Or to time X we for should or line it First a about revenues? focus Is to when for the and have get we progress. of mass we share to will revenues TC cash the inflow? mass do TC, the the

take second there for if really the the you properly not makers, if about to the question And do to line component could all certain reasons operate is Could users, responsibility. who example, we need clear a share it the the responsibility? it Or the what caused value will to is failure, the caused component if and is the of take failure the they or be hard responsibility. by or eventually, prove happens,

Nick Yang

Yes, this is Nick.

of the end just time, over matter a Hu Mr. TC it's earlier, It's now. and process As completed has mentioned the XX%. near

is can ahead. compare aviaton EHXXXS Most with Hello? me? other anybody hear company's EHang the importantly, -- think far you I progress, If

Unidentified Analyst

hear can you. I Yes,

Nick Yang

Am I connected? Hello.

Unidentified Analyst

hear we you. Yes, can

Nick Yang

anybody Can hear I disconnected. Yes. me?

Operator

We can Nick. hear you,

Nick Yang

TC Hu Sorry earlier, XX%. about mentioned has Mr. that. process completed has Yes, as the over

a it's complete time the end process and matter So of we just it's right entire now. near that the

one autonomous is compare other importantly, to while Most all if piloted. companies this EHXXX-S is TC projects, very the progress, know, eVTOL So among other I EHang you think far are only as ahead. you aviation ones our

For and the it accomplished. has checklist TC key a published has the details, EHang about entire of illustration milestones process

we'll clarity bring very and the it So we want update to to process, timely.

on as the very act status website. IR it's available will bar this So a and

time collecting for take because has revenue won't and the to post I soon beforehand. preorders or delivery, company by regarding the and along much production TC prepared generate all concern to think So it more more

-- establish almost the getting facility operational and X stocks and key also to So suppliers. components of procured getting Yunfu production for an years from

these efforts time delivery. All lead to shorten can our

XXX we workers cultural reasons, our cost facilities. over manufacturing So for have in

that's staffs the near to very future. you But hire needed, if in local enough company So able is so the the for more term.

Okay.

Anne Ji

Hu by will translation. our question followed by be Mr. English second CEO, and answered The

Huazhi Hu

you for Okay. questions. Thank your

Firstly, on related access stiction the for costing this required accident the demand. investigation aviation general is rationalize process. determine the authorities, multi-factors primaries which And and expenses, with before clients airport to with a to accident home met is are regulatory responsibility complex element in final utilization factors

And in [indiscernible] this the and imitation order we accidents, the AV board redundant to and structural is no the and technology AAV, measures autonomous, denominated since there ensures ensure prevent metal. adopted safety the design pilot. safety and have And point our a passengers of of on single in

is there [indiscernible]. no and cost have a result, [indiscernible] As the

We promote procedures CAAC manufacturing, determining accordance period of our the safety. strictly authority. and that the the to production instructions And standards passengers and our original create and safety in we suppliers high-quality rules will will be the can and to in sources their the the requirements also ensure with the create operational manage production terms ensuring we with of

we'll testers operations, also of terms the now in standards operators set our and And for training. are

ensure our So third to the as your last, the That liability question. coverage insurance is passengers is aviation we to closes. And parties. you. provide the as Thank well second for answer products relevant operations and as our throughout

Operator

[Operator Instructions].

Securities. come our line to proceed question. going of questions next with next The now from from are We the Tianfeng [indiscernible]

Unidentified Analyst

have well. questions two I as

over orders, these First is customer as could share color specify can the you increasing revenue pipeline total is orders talked China, about an China more and you deliver you focusing demand in EHangXXX on obtain? EHang without market more

certification these over it type foreign again? in in a progress question number a certification whole China type has free I also Or patients? these of help is like process all in China. your excluding new type Asia, company secured or respective our is mean, my of have And order second preorders significant Do countries

Richard Liu

Richard. is This

Let me take the questions.

as China. currently earlier, inquiries, from all, especially of pipeline order have discussions more in XXX-plus First from been has with going per And year in this of discussed increasing an we China, customers pipeline order the units [indiscernible]. potential

the value of set part XXX estimate corresponding R&D. venue we roughly more. something to around the million XXX the get total you And around content amount in would or And if RMB related China, VAT can

most conditional put to in China X TC partner the earnings and practical are upon our be that. in in release, orders years as are X after to So these of

are not more in others. obtention the thus, were we the to that before require However, indeed do that understand customers some sophisticated and TC and be China, is

In that of those preorders are local question, been with local partners it. other TC. second communicating local respect require aviation a working your in have with countries Asian What Well, have usually our we onto we money in their area this and is is Asian actually program, are an experiencing economy. respective in to been the in countries of which open is industry interested innovative type important in vehicles. uses

countries to the aviation local a So for China, do we and to of process, we with local type increased as you with to after for certify be process. Asian aviation do we go the us and the Indonesia, have called vibe certificate obtained like not the in local authorities, selection for price a Southeast EPC validation from sections namely the example in simplified given the is look local to both it expected

to time for the market our will So profits be in further expand us those sorting establish more countries. and we help efficient and

Operator

Morgan from The questions [indiscernible] come Stanley. from

Unidentified Analyst

margin gross quite And operations? and kick should on XX%. one around especially over commercial the about margin question we has this have our EHang think only good how off year gross time, currently after I margin. at we

Richard Liu

is that Gitlin to software-based advantage products comprehensive services. Thank current hardware or the a and some [indiscernible] you. or of company, in questions. actually vehicle license software. take vehicle software core percent a margin our company the But products will Yihaodian, our techno [indiscernible] The integrates separate covering GP extent, the the technology and At actually margin markets. I and

on In the [indiscernible]. HXXX addition to obtained keys of for assess be expected

After only market, in in company that, China the we were especially the probably [indiscernible].

negotiation pricing costs. affected, GC up work scale to expected the control And market. on also is to can tell, more some to the would we XX% you level. this also is have anticipated Further, have suppliers sales therefore, GC power power we as our of more it continue opportunity we our will maintain So are margin

Operator

would remarks. here. to to Due constraint, to will I turn closing Anne And for end now we Q&A the the Ms. session like call back time

Anne Ji

Thank thank on operator, in you, and listening for today's all you call.

our by calendar our provided If our Thank the appreciate further your website. look or forward investor on through call. IR e-mail interest, team you and to have contact questions, please information We we earnings you. on next

Operator

today. again. you concludes all call conference This Thank the

You may lines. Thank you. now disconnect your

EHang Holdings Limited (EH) 22 Mar 232022 Q4 Earnings call transcript