Ehang 2025 expected revenue

【1】

**S5: Management Change:**
No specific management changes were announced during the call.

**S6: Next quarter forward-looking estimates by management team:**
EHang expects total revenue for 2025 t…
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**S5: Management Change:**
No specific management changes were announced during the call.

**S6: Next quarter forward-looking estimates by management team:**
EHang expects total revenue for 2025 to reach RMB900 million, approximately a 97% increase year-over-year. The company plans to continue capacity expansions and strengthen market presence in both domestic and international markets. The company forecasts achieving quarterly GAAP profitability in the latter half of 2025, with full-year profitability anticipated in 2026. They are set for operational growth with expenses expected to grow by 40%, significantly lower than the projected revenue increase.
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【2】

**Customized Smart Earning Call Summary Prompt**

**S1: Financial and operational highlights:**

– **Revenue:** Ehang Q2 2024 revenues reached RMB 102 million, a significant increase of 919.6% year ov…
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**Customized Smart Earning Call Summary Prompt**

**S1: Financial and operational highlights:**

– **Revenue:** Ehang Q2 2024 revenues reached RMB 102 million, a significant increase of 919.6% year over year and 65.3% quarter over quarter.
– **Gross Margins:** Overall gross margin was 62.4%, up from 60.2% in Q2 2023.
– **Revenue Growth Rate:** Witnessed a substantial 919.6% year-over-year growth.
– **Cash Reserves:** End of Q2 2024, cash, cash equivalents, short-term deposits, and restricted short-term deposits totaled RMB 988.2 million.
– **R&D and Marketing Expense:** R&D expenses accounted for approximately 45% to 50% of total operating expenses. Increased expenditures were focused on expanding sales channels and R&D of new eVTOL models.
– **Total Sales:** Delivered 49 units of EH216S, which marks a ninefold increase year-over-year.

**S2: Market Expansion**

Ehang is focused on expanding its production facilities and has secured over 1,100 units in bulk preorders in China, with significant market interest in the Middle East and international markets like Africa, Central America, and Europe. The company anticipates a growing delivery trend in Q3 and beyond.

**S3: Strategic Cooperation**

Ehang expanded strategic cooperations, including signing an MoU with Guangzhou Automobile Group (GAC) to enhance production capacity via a joint venture. They also partnered with governments and companies in regions like the Middle East and Shenzhen.

**S4: New Product Launch**

A redesigned and technologically upgraded version of the VT30 model will be released. The company is developing next-generation eVTOL battery solutions to improve enhancing operational efficiency and performance.

**S5: Management Change**

No management changes were discussed during this earnings call.

**S6: Next quarter forward-looking estimates by the management team**
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【3】

**Customized Smart Earning Call Summary Prompt**

**S1: Financial and operational highlights:**
– **Revenue:** Q4 revenue reached RMB164 million, marking a 239.1% YoY increase. Full-year revenue was…
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**Customized Smart Earning Call Summary Prompt**

**S1: Financial and operational highlights:**
– **Revenue:** Q4 revenue reached RMB164 million, marking a 239.1% YoY increase. Full-year revenue was RMB456 million, a 288.5% growth compared to the previous year.
– **Gross Margins:** Q4 gross margin was 60.7%, slightly down from the previous year but consistent with the previous quarter. Full-year gross margin was 61.4%.
– **Cash Reserves:** The company ended the year with total cash and cash equivalents of RMB1.1 billion.
– **R&D and Marketing Expense:** Increased due to strategic expansions and product development, with R&D focusing on battery technology and new model advancements.
– **Total Sales in Units Growth Rate:** Delivered 78 units in Q4, a 239% YoY increase, and a total of 216 units for the year, up 315% from 2023.

**S2: Market Expansion:**
EHang is expanding its presence in China with significant operations in South, East, and North China aimed at developing regional production capacities. Internationally, they continue to conduct flight demonstrations in countries like Japan, Thailand, Spain, and Mexico. The company is enhancing its global market strategy while planning for future expansions.

**S3: Strategic Cooperation:**
EHang is actively collaborating with various governments and industry leaders such as Hefei municipal government, JAC Motors, Weihai High-tech Zone, and partners in the production of advanced Evito models and development of infrastructure. These collaborations aim at building a comprehensive ecosystem and specifications for future air mobility services.

**S4: New Product Launch:**
The company is working on its next-generation, high-energy solid-state lithium batteries, aiming to enhance endurance and enable fast charging. They are also advancing the VT-35, a long-haul model, currently in its final development stages, set to begin airworthiness certification soon.
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【4】

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

Hello, everyone, and thank you for joining our earnings call. Q4 and full year 2024 marked another record …
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With that, let me now turn the call over to our CEO, Mr. Huazhi Hu. Please go ahead, Mr. Hu.

Hello, everyone, and thank you for joining our earnings call. Q4 and full year 2024 marked another record breaking period for EHAN. We continue to grow significantly, beating our guidance and setting new record high quarterly and annual deliveries and revenues. In Q4, we delivered 78 units of EH216 series product generating revenues of RMB164 million representing an increase of 239.1% year over year. For the full year, we delivered two sixteen units with the total revenue reaching RMB456 million, marking a 288.5% year over year increase. More importantly, 2024 was a breakthrough year as we achieved positive adjusted net income and positive operating cash flow for the first year, a significant milestone in Ehon's decade long journey. With this, Ehon also became the first Evito company in the global urban air mobility industry to achieve non GAAP profitability, further solidifying our leadership. At China's Twenty Twenty Five Two sessions, the low altitude economy took center stage as strategic emerging industry and a key driver of new quality productivity. For the second consecutive year, it was included in the government work report, which explicitly calls for large scale demonstration projects to advance new technologies, new products and new applications to promote the sector's safe and healthy development.
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【5】

In February, EH216S completed Europe's First autonomous Evito flight in an urban environment in Benidorm, Spain, setting a precedent for future urban air mobility deployment in Europe. Most recently, …
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In February, EH216S completed Europe's First autonomous Evito flight in an urban environment in Benidorm, Spain, setting a precedent for future urban air mobility deployment in Europe. Most recently, we conducted our first flight in Mexico, cumulative flight record has surpassed 64,000 flights. As we move into 2025, we will continue to execute our global market strategy of deepening domestic business while expanding globally. We'll remain focused on both sales and operations, further diversifying our revenue streams. Amidst China's Trillion level low altitude economy and the Blue Ocean market, along with the great potentials for areas I see across nearly 15,000 Class A and above tourist attractions and nearly 700 cities for urban air mobility, we remain optimistic about the strong demand for our Evito product and operational services. Confident in our long term growth prospects, we expect total revenue for 2025 to reach RMB900 million, representing an approximately 97% increase year over year. Now I'll turn the call over to our CFO, Connor, for the financial performance. Thank you. Hello, everyone. This is Connor. Before I go into details, please note that all numbers presented are in RMB unless otherwise stated. Detailed analysis are contained in our earnings press release, which is available on our IR site.
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【6】

“`json
[
{
"Analyst name and firm name": "Laura Lee, Deutsche Bank",
"The question": "Inquired about the timeline for commercial operations in overseas markets, particularly quest…
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“`json
[
{
"Analyst name and firm name": "Laura Lee, Deutsche Bank",
"The question": "Inquired about the timeline for commercial operations in overseas markets, particularly questioning if a 2025 start is realistic.",
"The response": "Ehang is actively extending its presence in international markets, but the timeline for starting commercial operations depends on local regulatory approvals and certifications. Ehang is working with various aviation authorities such as the UAE, Brazil, Indonesia, and Thailand. The timeline will depend on local regulators' schedules and processes, with active cooperation from Ehang in providing necessary documents."
},
{
"Analyst name and firm name": "Laura Lee, Deutsche Bank",
"The question": "Asked about the gross margin of over 60% and the extent of overlap with the EV or drone business supply chain.",
"The response": "Most procurement comes from within China, though some electronic components or chips are imported. Battery design is unique to their aircraft and does not overlap with EV cars. They design their own batteries and electric motors, which are outsourced to suppliers in China. A portion overlaps with the EV sector, but most production and assembly occur in their Yunfu factory."
},
{
"Analyst name and firm name": "Ting Song, Goldman Sachs",
"The question": "Inquired about the progress of obtaining the TC for VT30 and the challenges as compared to EH216. Also asked about R&D spending expectations over the next three years.",
"The response": "Ehang is currently redesigning and upgrading the lift and cruise model VT30 for enhanced performance. Once this is complete, they will submit the required certification applications. EH216 has three certifications, and the focus is now on sales and operations. R&D spending should be around 45%-50% of operating expenses, focusing on optimizing EH216 and developing other models. While they continue to increase R&D, the expense percentage relative to revenue will decrease over time."
},
{
"Analyst name and firm name": "Cindy Hwan, Morgan Stanley",
"The question": "Asked for an update on order backlog, including geographic mix.",
"The response": "There are over 1,100 units ordered in China, with plans to deliver over the next 1 to 3 years. Focus is on expanding production facilities and deliveries. For geographic mix, 90% of revenue will come from China this year, with international demand still strong but constituting a smaller percentage."
},
{
"Analyst name and firm name": "Cindy Hwan, Morgan Stanley",
"The question": "Inquired about gross margin expectations over time, especially after commercial operations commence.",
"The response": "Ehang maintains pricing power and expects to keep gross margins above 60% even as they scale. Net income margin is expected to improve with revenue growth."
},
{
"Analyst name and firm name": "Yu Chen, Haitong Securities",
"The question": "Asked about operational plans for EH216, including commercial routes and pricing strategies.",
"The response": "Operators will start operations in Guangzhou and other key locations, starting with area sightseeing uses. Pricing compared to helicopters is more competitive at half the cost or less due to lower acquisition, maintenance, and no pilot costs. Government subsidies further support pricing strategies in certain cities."
},
{
"Analyst name and firm name": "Yu Chen, Haitong Securities",
"The question": "Asked about the operational cooperation model with local governments and customers.",
"The response": "Ehang works through Ehang General Aviation, forming joint ventures with local governments to provide operation services. Ehang supports with training and technical specs, while government and customers handle infrastructure and operational setup. This model ensures scalable and safe operations."
},
{
"Analyst name and firm name": "Gareth Securities",
"The question": "Inquired about maintaining quarterly growth trends and revenue growth trajectory.",
"The response": "Ehang has a strong order book of over 1,000 units and a ramping production capacity, with expected Q3 revenue guidance of RMB 123 million, marking substantial growth both year-over-year and quarter-over-quarter. They anticipate strong growth in the next 3 to 5 years based on market demand."
},
{
"Analyst name and firm name": "Gareth Securities",
"The question": "Asked about Ehang's competitive advantages in Middle East markets and if longer-distance Evito models are favored.",
"The response": "Ehang conducted successful test flights in the region and holds an advantage due to prospective certification agreements with local authorities. They completed a significant passenger flight in Abu Dhabi. Demand exists for urban air transportation; operational range isn't a key constraint, but meeting specific passenger needs is vital."
},
{
"Analyst name and firm name": "Rongai Zhuo, Citic Securities",
"The question": "Asked about capital expenditure plans in Guangzhou, Hefei, and other locations over the next two years.",
"The response": "Ehang plans to enhance automation in their current facilities, collaborating with GAC for expertise in Guangzhou, while also building an assembly plant in Hefei. In 2024, estimated CapEx is USD 15 million, with USD 20 million expected for 2025."
},
{
"Analyst name and firm name": "Rongai Zhuo, Citic Securities",
"The question": "Inquired about recent ATM financing and future financial plans.",
"The response": "Ehang raised USD 76.2 million through their ATM program without market disturbance, averaging USD 16.5 per share. They will not continue with the ATM program due to strong operating cash flow and will optimize capital structure for growth."
}
]
“`
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