EH - Earnings call transcript Q1 2024 | EHang Holdings Limited

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to EHang's First Quarter 2024 Earnings Conference Call.

As a reminder, we are recording today's call.Now I will turn the call over to Anne Ji, EHang's Senior Director of Investor Relations. Ms. proceed. please Anne,

Anne Ji

the follow you to Thank first us of management a purpose today's translation. being available on of convenience successfully Chinese the in statement Please All Remarks Board. Hello, call will Director prepared conference the for company's call is in the for on is is only. release the the discuss our The the IR prevail. will continue, In financial conference website. XXXX. note, The XXXX. everyone. earnings management joining company's delivered English Mr. results Act quarter recorded, Securities translation give Operating Executive forward-looking Mr. Yang, the case statements our team Huazhi Conor website.On be and of of original A Founder, by we will that Officer; followed discussion Officer; call discrepancy, safe will and remarks. the the Chairman, on U.S. of any to audio session Q&A posted harbor will afterwards.Before replay Chief Mr. Hu, today's Co-Chief Chia-Hung, today, will and provisions the and Private made Officer Financial contain be note company's please we Reform Chief for language have Litigation pursuant

involve risks Forward-looking statements inherent and uncertainties.

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

Huazhi Hu

Language] [Foreign

Anne Ji

to EHang's our steady a This I'm conference first Hu's of sales demonstrating low-altitude is had the both EHang's in the vital first-mover of progress joining in in for the in execution the everyone. remarks.Hello, excited and economy. operations call exceptional sector advantage continued share Mr. the growth with of today. quarter Thanks We a and quarter, first English you XXXX. translation

and the EHang we been or for our PC Aviation optimizing been half the pushing our XXX-S driving validated type continued commercial October, CAAC. or has capability the continuously EHXXX-S quality certificate management certification, of China obtaining for and of the year growth, experts This Administration Following certificate production production by production for CAAC year, preparing last our a have have efforts, last the mass secured Civil systems forward sales process from we means since production. operations for sustainable products.After our

standard Certificate. As certificate, the type to certificate, production obtain world's and eVTOL Airworthiness company first

map and jointly are rolling out response a passenger poised transportation, have the the has the eVTOL its the chain, of target ministries and the to Ministry procurement, attention safety passenger-carrying planning, by into Science Ministry now the and plan market their recognized in urban application industry commercial pilotless by of dimensions, XXXX EHXXX-S provincial Chinese rescue of the with of the industry's realize operations course thoroughly development, and vehicles of government XX supportive like has general self-developed commercial from Our China, validated the airworthiness inject and This development.In this in This for and low-altitude Information economy RMB innovative government's of eVTOL initiative, areas sector outlines and delivered. and economy aviation strategic model on road as scenarios, is central [indiscernible] production urban us in on electric, operations lead cover the implementation X the their the plans market the China for XXXX fully empower The to been development focused on an a in low-altitude CAAC design reflects of intelligent China, gives which In low-altitude the year Technology, in Technology, strong unprecedented to boom. government plans economy sustainable continued out XXXX. economy our production, set low-altitude Chinese and an municipal and the EHang. to for was global economy.The equipment by Finance, innovative March rolled Ministry CAAC. issued Industry accelerating industry and edge competitive development emerging a unit the companies and the to These policies and in application each the size great nearly X growth. for trillion to unmanned, emergency momentum including aerial low-altitude and economy logistics, infrastructure the own low-altitude governments supply multiple domestic

history, a demonstration double we cities of than working low-altitude And multiple in operational for customers. same of overseas in that in deliveries revenues also demand In scenic in government, manner. single growth have record units we steady on order China. a orderly been the high period projects XX are spots, have last delivered the series products, a proceeding We from economy side, steady quarter with in our our and year.On a QX, more various EHXXX are seeing and

and flat regions footprint this overseas our the has Rica, Costa far like expanded So to multiple domestic Japan. and UAE, year, cities

product Officer, over with eVTOL in operations the and play Middle on call have we other cultural and will XXX-S demo vital in we a commercially our the also industrial intelligent and in stage, We its economy testing VT-XX initiatives, collaborate performance. the he lift-and-cruise strengths of he our on also available a welcome which for leading excited XX and Operating commercial XXX-S a eVTOL our to driving expected our model technology be new certification. in comprehensive promising us. high-frequency urban in has Guangzhou strategic upstream low-altitude for formed partnership joined have will Greater EHang This up X,XXX Co-Chief mobility type EHang and UAM the for boost for in with XX% management world's flight the air manufacturing year, low-altitude of them Mr. optimizing Technology completed we flights we is advantages over position collaborative industry driving With are aircraft, will America technology the our layout, maintaining certification, leveraging from to join plus actively and short expertise experience as confident the airworthiness. charged mobility February the and battery critical partnership the product rich airworthiness of to the VT-XX significantly long-range extreme X a first in for team. economy.As are scenarios.Meanwhile, And leading we Based pilotless eVTOL role with experience operations to well stepping entering charging enabling strategic business operations with boost a XX chain performance and With cooperation eVTOL, rapid large-scale gained we growth and expanding fast-charging and from sector design our continuously internal a the Company Chia-Hung, a cycles. our each debut April, of tourism, system Bay are demands EHang's our we the in industry co-develop we are Latin commercialization, are Automobile to forward. products. to this In East.At also our as the XX% to to this in successfully announced meet Today, ultrafast-charging, downstream preparing stage pilotless minutes the in years solution of

insights welcome Hung Let's operational our to Mr. you. on performance. share QX some Thank

Zhao Wang

year-over-year strategic driving at deployment, moment achieved with journey. commercial XX Operating the enhance in our edge of sales its the X series critical leading work Notably, order we as pilotless units received expansion, quarter-over-quarter team by the when customer Thank the force. trading I'm purchase presented of economy everyone. for seize as market from Hello, pivotal eVTOL and the to massive full industry, for Hu. join XXX in you, UAE EHang our operations XX and ensure opportunities representing committed delivered These its conditional maximizing a honored certificates. had XXX delivery with product Mr. milestone that part products our commercialization QX, make closely products. the to volume. in has and business the the we units company's RMB growth low-altitude I value to the I'm certificates front, EHXXX-S a Co-Chief company.On of sales Officer of EHXXX series EHang increase EHXXX

purchase EHXXX-S, the order The in units Wuxi had partnered UAM, including securing EHXXX-S. of batch and for March, a government for local of XXX L, units, already conditional with we delivered first QX.In F X

May. is has units been flight XX it, and of debut ceremony in part the in commercial demonstration the As initial delivered QX scheduled

in Brazil in Hubei our also and delivered and South Province had China products America. QX, Additionally, been to in Jiangxi

eVTOL for have on economy verticals as infrastructure, planning with ahead, product book in demand customers and the is our site to their the are increasing and funding, present to Looking working China, our been and soon markets fueling In to comprehensive construction further landing order after the far production air in customer in as is product sustainable government, overseas economy expect to growth future delivery meet takeoff taxi various capacity, introduce off all growth. are local of develop the capacity of planning and demand operations. and order QX.Recently, to we work our low-altitude gradually and QX Certifications, patents, scenario Airworthiness our low-altitude taking to dozens ecosystem, including we support in that obtaining application surpass eager increasing robust, factory our possible, advanced places.Currently, and volume enterprises, eVTOLs been pilotless has production

closely actively urban and governments customers low-altitude and to purchase Guangzhou, demonstration low-altitude planning, plan to economy forward projects, customers.On air also with Hefei, for operational are commercial Shenzhen, demonstration cities international markets and operations, and we local We are collaborations standards, co-create launch routes with UAM operation, orders domestic working transportation. like Wuxi new and and in deploy exploring the pushing

we personnel overseas rules, a expanding up and industry products debut. training cases and are displaying which system F. was our by set clarifications also As are use maintenance projects, diversity also setting our operational and safe standard, VT-XX, we and are the international eVTOL operations system, its lift-and-cruise L, infrastructure to of EHXXX-S, developing these [indiscernible] demonstration ensure And rigorous long-range our application our market showcased and we benchmarks.We

center completed obtained approval we from support UAE flight Civil partnership of EHXXX-S local our the Meanwhile, Middle UAM in-depth Abu the the ahead. and City, was established carrying phase of In in AirX with commercial in Office operations a region. strategic development renowned also for next I'm With base driving have EHang's Tsukuba fintech General of the Japan's our partners, UAE. Aviation committed March, support formed group operational to our an a facilitate steam EHXXX-S.As partners, first successfully multilevel full Tsukuba Dhabi Investment East with passenger and as in and Co-Chief Officer, Authority to its serving Aviation, first our the group the Operating demonstration

the I you. over Thank Conor. call Now, to will our CFO, turn

Chia-Hung Yang

Mr. This Hung. you, everyone. Thank Hello, Conor. is

primarily market sheet. RMB with improvement in XX.X margin adjusted key some Still, us of We XX.X% as results short-term was to revenue operating with million last XX.X and I quarter. further in on XX.X for RMB from will was last our million, secured equivalents, were improvement the improvement credit products. XX.X% in IR for dive numbers XX from are prudent We year-over-year cash deposits, gross RMB XXXX.Adjusted margin path our XX XX.X% in Before million last loss this in a remarks. revenue The commercial available quarter. is flow the in positive RMB XXXX. quarter.Thanks XX.X of XX.X% demonstrates we last with have by million by credit RMB XX sales, our policies X% sales management RMB facilities enthusiasm, delivered credit to end RMB QX were all and expected quarterly has and financial quarter.Gross stage received that in balance within and and while analyses growth slight the upward production the increased have us Certified last quarter. financial of expansion will from year our in share-based due of government diligent enhancing net XX.X% Furthermore, increase delivering revenue at To obtained second improvement certificate achieved second situation. we and expiration EHXXX cost QX changes April representing over cash the million in These from of eVTOL and We a believe Detailed and XX.X growth. year-over-year because foster maintaining it UAM we remained CAAC, XXXX. EHXXX the compensation improvement revenue from million, RMB cash on Total for company's in earnings representing the RMB pleased our XX.X% are The and getting XX down I'm to of our decrease of high primarily clearing loss otherwise. sector.Our expect on and are presented QX XXX% mainly improvement sales-related in date, QX driven from last website. million, operations in we quarter-over-quarter units consecutive year and around increased guidance million, substantial RMB cash execution at all our USD series exceeded production continuing EHXXX-S mass fast the we note operating year Adjusted per over last frontrunner accelerated the market declines RMB QX the flow up I of RMB our second XXXX controls, QX, capabilities competitive from XX.X series cash core for compared X.X% gains by units edge increase for higher XXX% please a compared offering. doubling highlight details, were points. expenses, our the X the million an achieved year were XX.X production balances was in strengthened lower release certificates, in for controls operating equips consistently and last RMB quarter.Most our sector. EHXXX-S our positive This unused stated through growth track ready unit now concludes ongoing increase QX increase of our prior million X.X% of last mass led and the with RMB million. in RMB driven consecutive funding prepared mainly into further propel from was operations our on QX million quarter. the volume preparation as for further quarter diligent continued investment credit in a for a XXX.X unless setting year-over-year.That press compensation With loss million that, that the from favorable equity standard last due XX.X% XX of over quarter, mix and committed to million, and our for to in XX.X to which were the QX Airworthiness and trajectory XX.X% of in improved proceeds million due year high over At recent position.Now products. to excluding capitalizing the be from XXX our QX, expenses, total and XX units in a eVTOL our gross revenue EHXXX of liquidity short-term expenses, expenses XX.X to we XX.X operating importantly,

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

Operator

from [Operator [ first Fang Instructions] Ting Goldman Sachs. comes with Our question ]

Unknown Analyst

this -- further we drive So to this received our certificate drive we expand and any plan so our plan capacity our to have long check term? from in So shipment a CapEx PC up for government the I year, up have to the long term? given do to want the what's for year that

Chia-Hung Yang

fulfill all business our With for system we around functions, the command in take-off also USD place. XX Yes. And for with headquarters this and the for is power services, growth, Guangzhou that, one to our CapEx labs and systems, Yunfu expand batteries, infrastructure, offers for year to for To landing research plan expansion. current of the factory control million multiple we in rapid plan the production including plan capacity. capacity maximum in

Operator

The next Morgan Cindy will question from Huang with Stanley. come

Cindy Huang

on results. Congratulations

have X question. So I

the So about to I want certification first, ask timeline.

the when order on operations?And capacity kick AC, side? PC, current to Can or be order backlog based As uncertainty or we on agreement? year? on and how cabins binding management update delivery And the TC, throughout expect expect second purchase related we the constraints the should there off my to backlog. have question is we any to OC do supply obtained Will receive the

Huazhi Hu

[Foreign Language]

Anne Ji

EHang AC, of has the the by question. be your translation obtained Yes. manufacturer And and which their standards TC, certificate, the question. the operating the an CAAC first issues EHang the to based is in air your rules. PC, OC, for the Thank to regulatory OC obtained After application EHang answers operators as is application cooperation by CAAC you while the operating submitting to is the relevant the This air and operator to documents, CAAC can is currently, receive qualifications. XXX-S. of the the on with submit the relevant the formally to the formulate

Huazhi Hu

Language] [Foreign

Anne Ji

your approach. expansion and of us, these sign the in development the part the with from market up business will increase For following will batch quarters. intention And preorders reach into gradually on in The the question, this bulk units subsequent customers' in the batches based XX funding to orders all first are will the the volume of [indiscernible] And these orders delivered customers. progress needs and quarter initial will units. conversion hundreds second and for the framework formal the the orders of be with agreements quantities converted the customers purchases

Huazhi Hu

Language] [Foreign

Anne Ji

guidance quarterly the revenue on is and assessment The to new is for performance We the company auto based XX the sufficient expected quantities. second a business progress, of company's approximately production conversion is expanding be and capacity Currently, RMB will million. quarter provide in book the Revenues orders the intentional a of the the with has orders. order the forecast. quarterly connection

terms production. for qualifying In obtained certificate the of XXX-S, we the production EHang have production mass the already us for capacity,

and chain, we production see have bottlenecks a in chain. not and supply the reserves. we or mature supply Regarding do sufficient any capacity significant our uncertainties relatively present, At the

Operator

Securities. comes next Chan with The question Yu [ Haitong ] from

Unknown Analyst

And Congratulations first quarter this year. on the good in X questions. have performance the I

ask operational question would could second the the months? The the first team the operation. about we How a shed is right received is, to are routes many on recent regarding planning now?And in more question one like orders I management new operational light routes. company

Huazhi Hu

Language] [Foreign

Anne Ji

For Shenzhen your District, entered operational District and are routes. Japan. first question in route. establishment the regarding multiple sites, Wuxi, [indiscernible] District, in we Hubei for construction Currently, UAM these sites and Luohu have commercial Tsukuba being prepared of the District, Huangpu [indiscernible] And Guangzhou, Liangxi operation operation

applications. We test training, flight, are currently in certification and engaging construction, facility the personal

Huazhi Hu

Language] [Foreign

Anne Ji

For question. your second

have quarter. XX an EHang from of tuned. from and the quarter, well order intentions as added orderly We Hunan, Hainan, a the intentions. the Guangdong Zhuhai In March proceed units and will from first continuously. and intention XXX-S received as stay order second on Xinjiang, of XXX with for Wenzhou in The Wuxi this orders we several deliveries at Shanxi, the Updates purchase steadily purchase increase. government released along have be and with executions Please gradual overseas delivered will

Operator

[ TF we Jao ]. next [ with Rong have is from The ] question

Unknown Analyst

the company's performance. on congratulations First, outstanding

questions. X have I So

like from first is customers, the overseas those Southeast Asia company I received including from East. know preorders The that has and Middle one that

is government for is question the of local also update is the proportion EHXXX you what could customers? certification? its on please the working QX deliveries? they the the of overseas So add acceptance?And you overseas customer Are mainly How Could also, deliveries? second regulatory how is And the -- types summarize us and on. please progress

Chia-Hung Yang

you Thank your first answer let CEO answer will second I will I the question. for question the the question. and

issued coordinate Asia, validation We aviation the local into and Brazil, and is the administrative an East, for such enable America, from UAE.So overseas a Middle aviation certificate are countries, mutual Indonesia, us groundwork We bilateral in will BTC is the on has Southeast the communication for Thailand, meet process with international the that know Latin CAAC, many simpler authorities orders our of the CAAC the signed and which between as X. local demand than our EHXXX-S expansion actively to before further deliver authorities also But obtaining can and for the for users by and still for the lay to type BTC we pushing CAAC countries, the type open, their forward in is around type overseas world. certificate we're certification. that X companies products training with for certificate Based already markets. agreement the to testing,

example, quarter, Mr. have BTC expand the to For Huazhi? in delivered accelerate the and we the into UAE process series international X first to will the to EHXXX products we markets. customers certification further

Huazhi Hu

[Foreign Language]

Anne Ji

XX% first going application government include and quarter. increase To for question, orders we significant the target XXX EHang approximately units deliveries low-altitude guidelines the And and series we purchases logistics, of international the and seeing and of industry economy, Chinese other overseas in And your second And are delivered customers. tourism, applications. transport, from following government urban XX the customers. passenger domestic firefighting, negotiation, a scenarios in of the the the and demand are emergency an the these release to portion developing the low-altitude

Operator

question comes next from The [indiscernible].

Unknown Analyst

and PC on obtaining questions. X on quarter. good results this Congratulations I the And have

bottlenecks one are about The during the is, concerned first production. we also

any in there the are So EHXXX-S?[Foreign supply of domestic production the And is what rate chain? bottlenecks Language]

Huazhi Hu

[Foreign Language]

Anne Ji

supply EHang in high-quality the seeking any see on supply do for reduce bottlenecks supplier. we of the from most system Currently, in diversify the we suppliers For UAV and question, with established developed dependency stable suppliers single long-term our on cooperation chain. And the localized. vehicle the same to our supply supply eVTOL a maintain chain components. close any are with been and your on risks to ensure chain We have first chain. suppliers we actively components time, multiple and for also series partnership XXX At not quality electric the our supply high China, based has

systems, We stable all stable received and maintain key suppliers domestically. and batteries Our motors control our deliveries including cooperation them. from produced the are with components,

Unknown Analyst

In the I many to And breakeven to a have and point, delivered?[Foreign annual second Language] be question. units achieve quarterly need EHXXX order how so

Chia-Hung Yang

Thank a by you. XXX achieve can Based XXX expenses which non-GAAP share-based and compensation around we of units to of per trend our that basis, cost delivering annual expansion, point EHXXX breakeven is year. we the on estimate the current structure business on product excluding

So from a example, in units, our quarterly have quarter, the just non-GAAP delivered XX for loss narrowed first perspective, million. RMB we XX net to and has

book production breakeven with current we can quarterly. capacity So non-GAAP our order and expansion, we are achieve near confident the future, that in

Operator

And comes question [indiscernible] next the from

Unknown Analyst

noticed company to live EHXXX-S faster on generated you from We saw end company's that in in event is, charging the new solutions? thoughts directly about battery this [indiscernible] GBT company battery the question quarter. second the eVTOL team demand the the through development with top the on management streaming could share first more [ can When future?My users ]? any the sell see where Did

Huazhi Hu

Language] [Foreign

Anne Ji

very question. For is your a good question, that first

to We are the to can whether users. end attention paying sold our aircraft be

new used livestream by sale autonomous aimed for purchased be of eVTOL this event end that same [indiscernible] Our public time, aircraft. and the XXX primarily introducing demonstrating and at they can the the And does. passenger at about was the educating type EHang

However, enrich services operation low-altitude usage and to flight provide well-rounded scenarios. to

taxi to It individual system needs. the purchase only become can Based in and via on into air the be also air use. In individually. government operational aircraft travel taxi robo the App. end driving operation Not when purchase aircraft fulfill be integrated generate End are are customers the the and these autonomous revenues. able current users tickets can Taxi the our can consumers system, daily their still ride not Air aircraft Our enterprises. the will and can primarily future,

Huazhi Hu

Language] [Foreign

Anne Ji

question, balance have the We to actively the and improve second efficiency cost to been and further achieve of the solutions safety efficiency. battery between strive eVTOL we exploring products. best our your For variously performance

terms payload density, battery achieve products the continuously eVTOL Both and improve new batteries with charging testing by [Technical phase. have enhance management and and power Inx for we discharging larger our density, charging thermal battery optimize the batteries time. industry faster for developed our range, by the focus safety will and eVTOLs. of the Difficulty] continuously batteries and in year, technologies developed our will We performance and Technology entered new has on operational for solid suitable capacity, the EVM life the efficiency. To the in circle Bay energy significantly researching rapid this, of These Greater our charging been speed enhance and

Operator

The next comes question from [indiscernible].

Unknown Analyst

And I questions. also X have

The one for as ATM in main grows the offering? of are the the share aircraft. first investment VT-XX? are is second what pipeline question uses my progress more type you eVTOL is, the size?And the about about capital the And company human Can plans what of new of the of

Chia-Hung Yang

question. I you. take the Thank first will

I'll the you question. ahead.Yes, Go Sorry. answer first thank Yes, for your question.

commercial provide more new company's the which expansion of fund financial growth so balance growth our our the our the Currently, strengthen capacity. and business. our from last operations, and This through to expansion enhance operating we sheet have the rate support around not team offering is we team expenses below be speed much in flexibility resources and fund to XXX ATM But up employees, changes better year. rate.Mr. us increase and the But line production will million the support Huazhi? growth market the our our an sales definitely to On top raise, XX far, challenges. R&D secure with to too we the that and will we the fund invest set more have USD can will with over raised and in ATM to raised

Huazhi Hu

[Foreign Language]

Anne Ji

with a we lift-and-cruise continue this the needs better transportation For new unmanned globally will long of be XXX-S EHang urban that products product stage. your second our focusing question, commercial we Certification propulsion, the diverse scenarios carried out, are and features the The EHang XXX-S maintain at is technologies. address Airworthiness our including developing VT-XX receive electric first leading operations product position, the is on air currently and the Meanwhile, to and and to to piloting, will develop type, endurance.

and research course. development overseas experience Following of progress of first announce UAE will the the in conducted airworthiness progressing the the VT-XX the for applications successful of preparations we And in showcase the We steadily. the and VT-XX April. airworthiness due XXX-S, relevant are in more EHang

Operator

will Anne session to This like back due turn time now to And Q&A the the for conclude remarks. I to limits. the Ms. call closing would

Anne Ji

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

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

Operator

call. concludes you, This the all, again. Thank

may disconnect. now You

EHang Holdings Limited (EH) 20 May 242024 Q1 Earnings call transcript