EH - Earnings call transcript Q2 2024 | EHang Holdings Limited

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Operator

Good day, ladies and gentlemen, thank you for standing by and welcome to the EHang Second Quarter of 2024 Earnings Conference Call.

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

Now we'll turn the call over to Anne Ji, EHang's Senior Director of Investor Relations. Ms. Anne, please.

Anne Ji

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 website. release earnings is on company's The available IR the recorded Please and posted note the website. IR company's call the is on the replay will conference audio be being

prepared remarks. by management will case On the language statement give Officer Mr. purpose and is Remarks ] The Huazhi management Chinese the to original afterwards. Conor Chief In were English Financial have for we the prevail. deliver A followed successfully of Hu, only. and translation Director the the Chairman Board. Officer; in Founder, call Chief any Q&A discrepancy, will Officer; translations. Executive session Operating today, All and of in Chief follow convenience Mr. Mr. [ will our team Zhao Wang, Yang,

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

statements involve risks uncertainties. Forward-looking and inherent

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

Huazhi Hu

urban aspects, in second year, leading earnings Thank for as deliveries, EHang everyone. Hello, air sites a multiple EHang which us certifications, remarkable successfully including the we joining company EHang's industry, continue mobility of of financial global obtained performance, deployment the this and Since next-generation enabling industry. This production is production and industry to our and PC eVTOL achieved orders leading in you XXX-S. ramp-up, has quarter products. and This the April, R&D results a [Interpreted] operation call. certificate, the for standards technologies is

proud are certifications pilotless aircraft. passenger-carrying to the and world's manufacturer to only We be X eVTOL for developer eVTOL possess designer, the

these number the hand, have variable policies eVTOL across and bring forces benefited our as Driven innovative With productive the from demand country economy the our also as new a aircraft, quality X development promoted low-altitude the support nation, by widespread in emerging by and a development strategic strong for garnered certifications product, we have for national a China's of low-altitude that the strong the of industry. market bulk representative large orders. customers of plans

year-over-year and revenues Yunfu to XXX-S, increase of volume continuing XX both Quarterly promising which quarter-over-quarter ramp-up year, RMB X,XXX grow. a growth very over have This started as a year-over-year, we the reached Chinese we surged the with preorders ninefold the than net bulk received high XXX-S. XX% PC, number After QX and facility increase both earlier to million, production in certified XXX We as QX company's and revenues The increase. Since securing was Our of a record is Moreover, in in XX.X%, a start. marks has our delivery market. QX. a margin quarterly last expected, delivered EHang income units production EHang we a achieved a units adjusted highs also year-over-year. increase quarter-over-quarter. ninefold

further with this allow venture produce planning, delivery the for establish bulk intelligent the for also strictly meet QX production aircraft a four-party Guangzhou. District and [ production capacity, intent in the accordance quickly pilotless Airport is an operational Development Guangzhou in We efficiency, Management are our of for merely and in Committee future Technological future joint with support, which in and personnel product and the further aircraft automated will planning passenger-carrying the us development. are or enhance requests. To June Economic system production advantages and year Zone, site the vehicles MOU manufacturing the look leverage Automobile standards to venture. of production customer's signed cooperation the to the we deliveries cooperation orders, of continue point, forward signed quality expansion. expertise long-term to line and which training, system, will with this of GAC's Administrative the joint on to Economic This to production will improve the management in continuous to with customers. scale demand GAC capacity a Based and important Committee procedures our our to market the more and the to our ] provision and GAC, steadily We exceptional the whether EHang of starting Guangzhou production respond is deliveries. Delivery and lifting strategic Equally increase Guangzhou according efficiency electric we after-sales agreement order Group. We

customer Our steady our stream while both deliveries of operations. business are service a product and focus and ensuring maintaining current operations, sales safe and

explore foster to global the closely that with and sustainable development. With customers, of which authorities, growth co-create regulatory progress. that, industry's we we in pilotless focusing areas key we the partners are a commercial ecosystem and achieved eVTOL taking operations a on significant through X As have the provider, are the to pioneer responsibility collaborating

first The cultivation. is one talent

eVTOL safe a system program have team, aircraft designed assessment We personnel to and with customers customized equip our ensuring training operational developed operations. qualified

vertiports formulation participated actively technical collaborated with only of customers also among group other Zhuhai, Wencheng, for but XXX-S not vertiports, and low-altitude of the the local mobility center Guangzhou, China's governments to locations. Hefei, Taiyuan, establish and and We and in EHang development. in demonstration eVTOL requirements first standards Shenzhen, projects the urban infrastructure Secondly, operation

EHang standards General Aviation operational OC the accepted and the by July, or Air Certificate submitted certification. Aviation. and Thirdly, Hefei In CAAC Heyi the Operator applications

it project the for the way eVTOL the OC eVTOLs. establishment pilotless first paving world's passenger-carrying is world's for the of standard commercial the operation As for first aircraft, passenger-carrying the pilotless

in our have for lift on and with will performance. our VT-XX pace As while redesign technology eVTOL a upgrade slow technological the more prototype, a operations. Building not products conducted forward we R&D an model, comprehensive innovative cruise and and flight sales exceptional pushing of to company, new down and we technologies aiming achieve

will for be We tuned soon, releasing please stay exciting this so the news.

of continuously XXX-S are the areas performance the in EHang We also technology. battery of optimizing critical our

battery eVTOL safety. that and life, next-generation density, the XH high means standards, discharge high developing cycle meet are rate We instantaneous charge high energy which solutions high

partnered Automobile operational Group, development large-scale, collaboration developed incubated Guangzhou for and the expected Bay the operations. in example, we new with motors, battery researching Greater April, continuously significantly research also world's demands the and with meet such and high-frequency to the UAM provider solutions Meanwhile, materials, For core eVTOLs. technologies Furthermore, iterating electric in we a and achieve we ultra-fast the also are and upgrading lithium for improve them of charging battery eVTOL efficiency for are propellers, testing and of Inx. Technology, is first cells the solid-state to This developing battery by sustained as components, improvement. solutions

Area. with facilities a under state-of-the-art aerial upgraded system. and Company, chain to and city, strengthen cooperated more also brand-new our transportation high-quality This and the River Guangzhou Zhuhai Huangpu command demonstration performance exhibition a our routes located complexes will and control well Bay and completion Greater EHang to the also a are enhances and R&D as that surrounding our our Furthermore, economy Also, a to testing will stability as supply feature in industrial low-altitude also future This we futuristic technologies and air flight of banks share of launch our laboratories with our our suppliers, the our with the of supporting communities layout. ground, urban the of connecting not provider and Electric in into helps the support have you leading office nearing center motors. I'm Enpower only creating area as the support water and new eVTOLs, on are new aircraft, as to complex such designed with landmark, commercial development transportation, and center EV delighted powertrain We district newly batteries currently space. such at but and UAM new headquarters, a new components, and construction. Pearl for a integrate sightseeing headquarters electric

obtaining commitment we and we this air to and celebrate the from certificate, trailblazer dedication standard have to of trajectory. type standards boundaries long-term the and pilotless pushed and the world's have drive anniversary, in from and on XXth our the first exciting the journey stable we certificate, supporters mobility over shareholders. airworthiness shaping prototype will EHang's commercial production leader to absence for consistently a through reliable financial establishing X flights pilotless innovations industry. eVTOL the its value pioneering our growth our concepts work applications, X and led exploring aircraft contributing global Throughout, With reflect industry passenger-carrying As and into technologies, and continue to industry. Today, our and UAM to from phase humble we remained of performance for creating passenger-carrying stakeholders, them, shaping and and respect our to in urban perseverance, innovations hard subsequently becoming years driving strong a to certificate the the next steadfast and a the beginnings achieving we of pilotless industry, passion operations, greater eVTOLs. From standards, aviation have and safe in of world's to first

our our to Next to let turn performance. operational me on elaborate COO, Wang over Mr. QX

Zhao Wang

production and have have for authorized that everyone. aircraft Since Thank standard production hello, each airworthiness certificates securing for mass certificate you, the EHXXX-S we our of and Mr. delivered. in Hu, we April, secure been

continue of quarter-over-quarter deliveries revenue the EHXXX-S, of a to generating a Our units and second over representing RMB Xx sales In XX million, we XXX year-over-year and increase of delivered of XX%. grow. increase quarter,

XXX partnerships. up some received Let of Wencheng, for additional and examples me purchase June, key customers with a partnered we and order units plan In EHXXX-S. of Province an with to purchase Zhejiang highlight

across a The at debut a first also a customer comprehensive placed the first aircraft Province. units East for batch to in aircraft China conducted distribution obtain XX of operations. Wencheng has and local delivered in Zhejiang and already have a quarter network prepayment expands authorized will for remaining establish our in be become made the provincial-level the distributor and Wencheng. We area subsequent qualifications the sailing will our second flight orders as customer sales its

further Hong the EHang for development Kong, and XX milestone debut operations bus low-altitude Taiyuan. In with Chung tourism to economy in EHXXX-S signed Holdings Tourism Jilin, the of operation July, of KC Smart We Mainland a to in Shanxi in Great units first demonstration Kwoon its and carrying Furthermore, Province, delivery development market part making in low-altitude development completed plans Province. subsidiary for operator, services flights Hubei of the of July, EHXXX-S also Province. Area cooperation This advancing deployed second in be a purchase Taiyuan, Shanxi delivered is with China. XX-unit the Guangdong, non-franchise Xishan XX in and of areas paid agreement delivered Mobility batch EHXXX-S Bay Hong will been we Bus of and an Kong's next area tourism for a to customer from and plans of in and units of Smart products, a also economy Macau years. units further in the scenic XXX demonstration series fully the to landmark largest over a create boosting order low-altitude in Limited. the Taiyuan that Hainan, our in purchase quarter, customers Japan. In These Xishan sales construction low-altitude X has Tourism Mobility, Liaoning, additional KC passenger units EHXXX-S

market. X,XXX received for units has over in company China the EHXXX-S pre-orders Our eVTOLs

expansion, receive orders. the new million, capacity. a We mean production trend capacity continue maintain The orders the to revenues we to third growing in quarter reach third the as RMB also demand increasing expect With of a the higher will we production quarter. delivery anticipate for XXX more

the Yunfu the a to new establishing same China standards, as production our ensuring demands region. a aircraft automated focused that every large factory in to are joint intelligent such on base to will headquarters in GAC, delivery While time, at enterprises, the establish manufacturing production we and City, are meet which East also with expanding growing we upgrading regional Hefei scale China venture meets manufacturing East our production lines. At up actively EHang, working delivery

projects. while We preparations, customers training, creating delivery and providing with are advancing ensuring to and commercial fully demonstration production operation operation application committed

to personnel personnel aviation the on ensure ensures operation and operation sufficient customers and are of terms delivery, after that with In training operation, and and public. At duty certified operation, provide same for of on, compliant time, flight our and aircraft establish theoretical comprehensive our personnel training, so in to eVTOL and courses plan including training aircraft and learning academy the management so daily domestic education, program we ensure we proficient to on. operating safety professional a services customers and safety. emergency training manner to that maintenance also management, are This out safe carry to jointly cooperate colleges our providing capable the with institutions systems license

large-scale, Civil of with training China the standardized future our curriculum Flight state of joint program industry's the For in University professional and is Aviation now a design. operations,

dedicated sites of On Central key operational solutions, ports local Guangzhou sites service areas. Operation including is equipped Lake, Luogang have providing Jiulong customers. Port while by Park, construction launched, EHXXX-S, closely passenger infrastructure facilities, for requirements Hefei front, design and infrastructure our the hangars managed EHang these Bay, collaborates the governments Each in Wencheng Tangjia by been and Zhuhai water with OH and including technical locations Lake. and Tianding is Shenzhen

In future planning networks addition, many to local build mobility. air governments operation are for

over For regular-use X,XXX RMB of landing up into will infrastructure. XX to targets landing billion to include verticals This XXX low-altitude example, plans hundreds low-altitude and and Shenzhen platforms pads. invest Guangzhou community set and take-off

this easy accordance future for EHXXX-S. suited the EHXXX-S autonomously, China's to can able lightweight, vertiports. This actively group air and to for compact, It's set Notably, vertiports stage in May, accommodate first ideally urban all shaping built will be eVTOL were standards. transportation. will industry in Our involved manage cost-effective. In is for future standard with we standard fleets fly

Operator operators. of and standards In X the Mr. certification, or the as applications in by for Hu operations. our Aviation, EHang Air July, UAM CAAC mentioned, accepted is Certificate operation OC terms One General subsidiary

on-site joint Heyi The Aviation, Aviation's operation in CAAC conduct other venture application inspection about finished Hefei. to is Heyi soon. The and is documents reviewing has our our

Abu customers year, within we expanding applying to formed in our we will for eVTOL with this safety network. In accumulated This receive OC partnership with established General is first operations operation help will China pilotless and also Southern the passenger-carrying allowing have The commercial OC strategy expected operator launch to a more Afterwards, July, EHXXX-S. with and experience also partners Since per standards. our routes. reached and second thrilled to support commercial XXX under we local from planning to per a direct Airport, with Guangzhou, China at range subsidies flights They and continue international overseas East islands. Zhuhai, Southern robust including expand Moreover, leading are service Chimelong Ocean for Middle eVTOL our Group. service a East, Hefei These April, development general June, we of the aviation the the a RMB to Office Saudi will flights Group. Middle region. third to East the our XXX we UAE in we quarter. business debut Multi Arabia. the continue to in footprint has eVTOL and into providing In RMB the expanded such Middle the XX In quarter, market Investment completed worldwide. EHXXX-S our the Africa, strategy America market, then, for Central will countries flight, expand Level and passenger Dhabi the including Aviation, tourism, subsidies introduce provider and cross-island Shenzhen, eVTOL those are services, Zhuhai support Airlines to and markets, Together, governments, range we in transportation our and Kingdom, several Europe. cooperation surrounding as in and cargo are the see offering UAE in operators. In In May eVTOL

will consistently. delivering our strategy sales results executing operations on Looking focus ahead, we business and on and

priority. China's our industry, a UAM play and commercializing role top economy goal key Our safety with low-altitude is to as in global

Thanks. Next Conor Yang, over CFO, will financial on performance. to our the call turn I

Chia-Hung Yang

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

exceptional I are execution to that our are our report release for detailed some details, numbers now in cash in closer I X CAAC, application operating net positive over quarter note the operations please commercial to results analysis and adjusted significant our second our exceeded accepted step a of website. otherwise, for income, and led RMB second generated that stated all dive flow into growth. Before accelerated of XX%, has diligent am pleased in XXXX. another financial and quarters. revenue Unless early formally Notably, been points. I presented quarter our guidance consecutive highlight IR on quarter achieved OC have by continued XXXX. press to will by We key has available marking are

into from XX second from growth We and a from units products. high XXX.X% sales increase series earlier increase second quarter, of let's a XX.X% XXXX. Gross prior volume dive X.X percentage units year-over-year significant increase quarter up in second XX were of details quarter, second in XX.X% were The delivered mainly Total due consistently products in and primarily by X Now quarter. significant margin EHXXX points of XX.X% first representing units XXXX results. changes revenue driven a quarter our RMB a XXX percentage to second from in and The in quarter higher XX.X% X.X remains series XXXX. of million, increase quarter EHXXX revenue increase year were in mix. first at a in quarter points

million to models and higher channel of of in Our XXXX, XX.X expenses, in XX.X% expenses eVTOL million, mainly second our to expenses, RMB sales-related the different our gross the are XX.X% were RMB edge aircrafts. was and eVTOL quarter The expenditures sector. In sales high up XX quarter, from expansion up million compensation, margin increase prior excluding increased in continued share-based from adjusted XX.X competitive operating RMB operating compensation which quarter. on underscore second due

first from improvement was adjusted notable quarter RMB XXXX, in RMB million in from X.X and XX.X% XX.X XXXX. operating quarter RMB loss XX.X improvement XX.X% a quarter million, Second million a second

income X.X second XX.X was million, net second of and anticipated. in net adjusted to we This quarter net million cash of loss flow income Adjusted credit second compared quarter quarter were million to RMB positive quarter, first third XXXX. Thanks in balances quarter, are our net from earlier investment balance management adding adjusted RMB than end loss RMB to consecutive have proud of restricted our adjusted have and XX.X the XXXX, million. sheet. quarter, to achieved short-term our and equivalents, in prudent strength XXX.X improved cash short-term achieved operations cash, deposit, deposit for controls, we the cash short-term RMB At

strengthened operating as of a Market Additionally, we from confidence U.S. million flow. cash in the have growing our raised than future XX more with position RMB today, and offering At liquidity

under new proceeds growth. continue products, and next team secured well will will next-generation in and commercial applications our ADS we and raised offering phase business the At selling eVTOL phase and Mr. a technologies to by We growth certificates for having not Market of in accepted fill by expansions, Guangzhou, product strategy, development XXXX. and R&D are the aforementioned setting positioned for Hu, including The of already new upcoming commercial other CAAC, stage X commence headquarters operations EHXXX-S purposes. With OC the operations our

around total for quarter, flow year-over-year positive our quarter achieved revenue flow in We positive remarks. net an representing adjusted Having trend million, foreseeable increase to third cash concludes this for the of income continue will XXX prepared quarter net to of in the RMB cash full-year income operating XX.X% in XXXX quarter-over-quarter. second lead ultimately XXXX. That are and be upward confident that and and XXX.X% we and expect third XXXX consecutive adjusted

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

Operator

of take Li to Laura Deutsche comes question. going the from from And first Bank. the We're Instructions] line [Operator it

Xinran Li

Congratulations strong quarter. on the

oversee that? my operation to first XXXX thinking question when realistic? would start to the timeline So that you expect of is Is about commercial markets,

Huazhi Hu

certifications. besides, VTC the is Brazil, CAAC process, getting helped for also airworthiness overseas operations the throughout UAE, EHang the other local starting we educate EHang on And Thailand, the extending to us required cetera. The countries' and certificates Indonesia, markets. certification. Indonesia markets, validation or our this approvals safety in actively forward a the been presence now, public, the Right not tax and our local recognition EHang enhance a But and in like process. and the international agreements aircraft's but and overseas And have the with schedule there. few the authorities, of with the only to the et depends flight cooperate market, East XXX-S with features, the on And local have aviation provide of to communication already of regulator's made progress. our working bilateral as We such paving authorities [Interpreted] VTC way conducted their deliveries Middle the aircraft in and advancing regulatory timeline in will for the the demo and actively documents depends to for countries extend commercial push

Xinran Li

I I'm And we drone XX%. my we a impressive understand our share of or just get chain second the EV supply overlap business? to margin think question percentage over what growth is, really or trying of with actually

Chia-Hung Yang

Okay. China, Most EV components electric car. design imported from of is with And our from or battery the overseas. domestic, chips some different procurement are than

our China. own and design our in battery to suppliers we So motors, as outsource we well own design as we electric

[Technical And car, and mostly assemble Difficulty] part most the produce we Yunfu so, with so different. far. in for the factory factory, our but in own are we overlapping in general, So there portions certain EV

Operator

line Sachs. And Goldman the question comes from Song from of next Ting the

Ting Song

see TC EHXXX features. I that ask So the are is VT-XX, and My in we different the obtaining progress the question EHang first as VT-XX it about of size of and will together.

develop are R&D the when the on key And EHXXX? question compared you the challenges what spending. So to my second is VT-XX of

be or So the X your enhancement of would existing focus Will the key expectation the more in next you And on model? your what's years? of what investment? R&D spend model spending R&D the the on new

Huazhi Hu

the not for enhancing for lift it required sales flight submit for EHXXX-S application English released. [Interpreted] the landing you our will the VT-XX Leveraging translation. will need the has keep and team X And is this. And EHXXX-S because large takeoff we prototype, and city the upgrading and within once is and model R&D on on it's cruise updated areas. transportation currently we cruise is eVTOL the lift the and operations. And its now redesigning our our our focus and TC does performance. so This model perfect And is compact is it since air certificates, the main also

and model lift is specifically within transportation. And series taxi to for for portfolio use suitable air and is is the uses urban replacement for our not cruise current it That a areas. VT-XX the meant the intercity the complement product air While cases. EHXXX-S. designed It's

Chia-Hung Yang

Okay. This second answer is Conor. I'll the R&D. question regarding

the R&D adjusted about of expenses second On quarter, total is XX%. OpEx

going will total EHXXX-S our actually rate And if we XX% as So forward, both our the first year-over-year, for â€“ than And R&D XX% R&D long-haul that materials expecting quarter. And and well OpEx. performance expenses. I first and be our say optimizing carry OpEx. airworthiness will the XX% committed the and efforts compare example, R&D and our higher flights that will of include expenses be improved, will passenger expenses, we number gross expenses expenses aircrafts we're are Difficulty]. And on developing around to eVTOLs of believe increased development. a to quarter certification improvement overall we team the our other revenue for be of with R&D future focus R&D for would expansion, [Technical that the have test will R&D on lot you R&D about

the to even R&D will expenses increase though of years. to continue our coming expenses, continue So we revenue the drop in percentage R&D the as

Operator

to line from Huang Morgan And the question Stanley. next of comes Cindy the

Cindy Huang

on EHang update will orders I us question. on also, quick mix purchase my that's many see progress terms have first we and idea you new a the give rough how in Could a backlog? they backlog. Congratulations have question could be So delivered? in we My regarding on order geographic made remarkable hand of significant on And when has XQ order orders. your results. securing first is

Huazhi Hu

and our orders requests the to our years over and market. the Currently, their their next X business batches X orders. has pace pre-orders plan and development We of customers' in China placing to units the this for [Interpreted] by X,XXX deliver over

getting are and customers and more We new orders. more

pioneer facilities, expanding of we will order the growing. In focus future, be around eVTOL expect country. production existing also next our we to in demonstration more the we to the this aim to help will apply phase, replicate for setting deliveries up on the our orders. customers year, to deliveries accelerating new cities and experience share And So projects exemplify OC, sites these the in the locations operational in pipeline our keep And our and operation.

Chia-Hung Yang

about mix, the quarter quarter the the as promoting to other To orders, recall, rapid Difficulty], first year as of last fourth you [Technical if government this no your for a add we've that our total contributed order geographic XX% our on the delivery since around year, But is question distribution PRC well XX% on the growth revenue. very revenue seen time.

demand So that we're year, decrease the strong. will geographic of of from And the is next. mix, year in this XX% overseas quite percentage that revenue be international terms and for still the expecting China will from last even though

Cindy Huang

is margin. question second And gross very That's regarding comprehensive. my

the should gross especially take commercial how over off after operations? we about we think margin time, So

Chia-Hung Yang

now, certain pricing But on scale of product of continue XXX. procurement. in we'll are we that leverage side, power, margin, our have even have the can Right, provide we we to features improve will gross a right other we the terms commercialization. for only Therefore, as company the though our up,

margin. get we'll TC, So net-net, the plus current still after the maintain That's we XX% gross situation. the

In we second terms Difficulty] quarter. overall achieved adjusted of [Technical have the net margin,

with will As continue expecting growth, to the that the [Technical so to income very revenue we're net revenue come. years very, strong margin in growth we many the improve have seen Difficulty],

Operator

from of Securities. Yu Cindy -- Chen from from the And line from the question Huang Haitong comes

Yu Chen

have company's the progress. X I for questions. business Congratulations

actively question sites The starting customers? the places. is, second governments for could commercial flight and and model planned operations, operation is some flight across current we What promoting including local UAM with noticed first cooperation personnel provide the that establishment is, EHXXX the operations? My commercials pricing or the for your team company schedules training insight is one management operation various of for into the plans company's each

Huazhi Hu

operators risks our Luogang [Interpreted] General we cities, are Central sightseeing EHang Shenzhen, throughout and at in the their other Guangzhou, Wencheng. in competitive our our the For a accumulate TC, targeted for the reference operational maintenance mitigate headquarters lower. operations pricing, from the our actively in compared operational sites applications. will operational continuously of don't And for will Wuxi, subsidies operations. to your have cases. XXX-F we to the will cost for new start more the as local route price also are first question And much question, on aerial besides Taiyuan have local currently and use preparing sightseeing process, and they uncertainties. And Wuxi, governments Taiyuan Park Hefei It's costs. helicopters, operators manual lower cost first can is acquisition pilot which Hefei the aerial is case very and obtained Guangzhou the EHang new experience than serve the offering Aviation, our use OC Shenzhen, half and and because refine the eVTOL Heyi Moreover, them among even Aviation and or partners their helicopter Once be starting and and

between For aerial setting the operational serves air and company General second models. services your example, subsidies subsidies and transportation RMB XXX range to eVTOL Hefei, XXX And RMB and for operators for to within plan subsidiary EHang cities. an in the Shenzhen and offer sightseeing from demo per as to for our customers, flight. And up to projects each Aviation wholly-owned person and our is operating provide platform question, they

and to joint in Boling established Aviation have partners or such Wings a customer We the operation through eVTOL Pengcheng as Group Shenzhen. the EHang local provide government Hefei in established General venture services our Heyi Aviation with

operational provides model necessary guidance, our technical like training. the including services, the support EHang cooperation this. personnel specs and works So after-sales

for the that building venture and the a system the can to While sustained. commercial commercial joint we they customers, operational be By operations. OC are operations and an safe replicated obtain scaled up together, the and working a responsible for forms create and and team government planning The ensure infrastructure. can model and

Operator

And from question [indiscernible] the next from TF comes Securities.

Unknown Analyst

congratulations outstanding X questions. performance company's I this So on have the quarter.

growth -- The maintain growth How first you expect view to the trajectory? you do the trend one forward? revenue looking quarterly do is so company's

Chia-Hung Yang

Conor. is This

over have up. production And has X,XXX ramping our We pre-ordered China. in been units

maintain to growth expect in third quarter. we revenue So the the

growth revenue XXX% growth and year-over-year units. So than That's our quarter guidance the XXX for XX% our more third is quarter-over-quarter. of

confident coming in digit revenue quarter. are that growth We year-over-year the achieve our will triple

units China, applied transportation with in in we larger explained various demand in be market [indiscernible]. And cities that the international China, in sightseeing will As purpose together over it's when there demand demand. are aerial even XX,XXX to

achieve a growth the believe next to X X that very we we for years. rate high should So

Unknown Analyst

question lies market. my So second in the overseas

noticed we have So that recently. have expanding East market you Middle

in So longer eVTOL the these distance? fly like Middle market can Do competition countries tend models advantage favor what's like to that your East?

Huazhi Hu

first the Yes. test [Interpreted] to EHang is company conduct flights. eVTOL

to company in EHang in the answers the was flights East, the first our translation conduct eVTOL your eVTOL first of the flight Here's XXXX. pilot Middle test to which Dubai in question. is back

Sorry XXXX.

CAAC UAE's In framework with Civil of over terms agreement a we The for Authority certification, Aviation also forward or advantage of peers. our the General have is airworthiness an certification. recognition mutual GCAA moving airworthiness

the in first will its of Dhabi, for year. It's first we the approval. foundation conducting Dhabi and VTC. our GCAA's test We in lays the be with Abu including May, the terminals. Abu vertiports for flights UAE in a now, And eVTOL UAE GCAA are very planning And that future kind infrastructure carry making significant the some the conducted this the within passenger flight milestone

been very interest more for the growing a for air support we partners serve be we urban market, EHang is to the that East to in diversified demand the transportation. confident needs. believe use the introduce aircraft really we of type range local new the the the flight are for for of passengers XXX-S needs the seeing What first commercialize And not meet region. in be eVTOL UAE and our Saudi the of with issue feed We've is key to a And can will We and matters eVTOLs. and to in Arabia, operations customers Middle specific and cases. particularly the

Operator

the CITIC And from Zhao comes question the line of Rong from Securities.

Unknown Analyst

congratulations the business first, progress this on strong company's and performance So quarter.

questions. X have I Here

for first, other cap underway I locations. with so Guangzhou, the So expansion in mean, plans the Hefei state and

is can plans expansion and provide in capital insight So question. over expect cap what the management could the we So its my next terms state years? two more into first this expenditure of

Chia-Hung Yang

we current more do facilities, In our Yunfu to plan automation.

signed lots in know, management. partnership in you have automation, and As supply we strategic of GAC agreement a chain with they experience have

build the facilities will improve other province, new build the automation the together to Guangdong as Yunfu Hefei current factory, with in our in in we we So well assembly will plan plant, as on plan. side, one, the And that's Guangzhou GAC.

So an overall, for next should year. productions add we year, in annual the next X,XXX additional

together CapEx, of terms all In we're building test headquarters, building we're we're with building we're our our also labs, expansions. a new re-innovating of our these factory -- supply building lots R&D center facilities,

expecting for now we're $XX around XXXX CapEx CapEx $XX million. for the US will will around expecting be be XXXX million -- So and US

Unknown Analyst

on provide And plans more have could my ATM financing future? management the and information companies financing second for question is recent

Chia-Hung Yang

the Since have market. raised disturbing through million April, XX.X program we without our USD ATM

USD program positive price this continue And price operation, also growth a this ADS also revenue to the our capital for XX.X we're decide and optimize all not And XX strategy and for best with the rapid consistent always now share]. help average drive cashflow looking USD ATM the per for under to [ selling Our the average financing we build to to company right growth. million is our year. strategy the and business actually from structure

Operator

Thank you all.

the turn for call closing the me is Anne back limited, time Ms. let remarks. Given to

Anne Ji

today's all call. participating Thank operator. you Thank for our you,

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

Operator

today. That concludes our you conference for participating. for Thank

marked were day. [Portions all may by disconnect. an spoken present transcript that this [Interpreted] of a the nice You Have interpreter call.] live are on

EHang Holdings Limited (EH) 22 Aug 242024 Q2 Earnings call transcript