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EH EHang Holdings Ltd

15.13
1.11 (7.92%)
21 Dec 2024 - Closed
Delayed by 15 minutes
Name Symbol Market Type
EHang Holdings Ltd NASDAQ:EH NASDAQ Depository Receipt
  Price Change % Change Price Bid Price Offer Price High Price Low Price Open Price Traded Last Trade
  1.11 7.92% 15.13 14.60 15.50 15.30 14.01 14.07 2,483,599 05:00:08

Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

18/11/2024 4:40pm

Edgar (US Regulatory)


 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2024

Commission File Number 001-39151

 

 

EHANG HOLDINGS LIMITED

 

 

11/F Building One, EHang Technology Park

No. 29 Bishan Blvd., Huangpu District

Guangzhou, 510700

People’s Republic of China

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐

 

 

 


Exhibit Index

Exhibit 99.1—Press Release: EHang Reports Third Quarter 2024 Unaudited Financial Results


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    EHang Holdings Limited
    By:  

/s/ Conor Chia-hung Yang

    Name:   Conor Chia-hung Yang
    Title:   Chief Financial Officer
Date: November 18, 2024    

Exhibit 99.1

EHang Reports Third Quarter 2024 Unaudited Financial Results

 

   

Record-High Quarterly Revenues, Up 347.8% YoY

 

   

Achieved Quarterly Adjusted Operating Income2 (non-GAAP) and the Second Consecutive Quarter of Adjusted Net Income3 (non-GAAP)

 

   

Maintained Positive Operating Cash Flow for the Fourth Consecutive Quarter

 

   

Over US$22 Million Strategic PIPE Investment to Further Strengthen Liquidity

 

   

Significant eVTOL Sales and Operational Progress in Pioneering Chinese Cities

 

   

New Orders from KC Smart Mobility and Sunriver

 

   

Steady Progress in Air Operator Certification for Commercial Operations

 

   

Strategic Partnership with Civil Aviation Flight University of China for eVTOL Talent Training

 

   

Expanded International Presence with Flights in Brazil, Thailand, Japan and the UAE

 

   

Breakthrough in Solid-State Battery Technology: EH216-S Completes First eVTOL Solid-State Battery Flight Test

 

   

Strategic Partnership with Enpower for Advanced eVTOL Integrated Electric Motor Drive Systems

 

   

Lift-and-Cruise eVTOL Model Upgraded to VT-35

Guangzhou, China, November 18, 2024 — EHang Holdings Limited (“EHang” or the “Company”) (Nasdaq: EH), the world’s leading Urban Air Mobility (“UAM”) technology platform company, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Financial and Operational Highlights for the Third Quarter 2024

 

   

Sales and deliveries of EH216 series products1 were 63 units, the highest quarterly delivery volume in the Company’s history, compared with 13 units in the third quarter of 2023, and 49 units in the second quarter of 2024.

 

   

Total revenues reached a record high of RMB128.1 million (US$18.3 million), representing an increase of 347.8% from RMB28.6 million in the third quarter of 2023, and an increase of 25.6% from RMB102.0 million in the second quarter of 2024.

 

   

Gross margin was 61.2%, representing a decrease of 3.4 percentage points from 64.6% in the third quarter of 2023, and a decrease of 1.2 percentage points from 62.4% in the second quarter of 2024.

 

   

Operating loss was RMB54.7 million (US$7.8 million), representing a 21.8% improvement from RMB70.0 million in the third quarter of 2023 and a 29.3% improvement from RMB77.4 million in the second quarter of 2024.

 

   

Adjusted operating income2 (non-GAAP) was RMB9.0 million (US$1.3 million), compared with adjusted operating loss of RMB34.2 million in the third quarter of 2023, and adjusted operating loss of RMB4.7 million in the second quarter of 2024.

 

   

Net loss was RMB48.1 million (US$6.9 million), representing a 28.3% improvement from RMB67.1 million in the third quarter of 2023, and a 32.8% improvement from RMB71.6 million in the second quarter of 2024.

 

 

1 

The EH216 series products include EH216-S, the standard model for passenger transportation, EH216-F model for aerial firefighting, and EH216-L model for aerial logistics.

2 

Adjusted operating income (loss) is a non-GAAP financial measure, which is defined as operating loss excluding share-based compensation expenses. Operating loss was RMB54.7 million (US$7.8 million) in the third quarter of 2024. See “Non-GAAP Financial Measures” below.

 

1


   

Adjusted net income3 (non-GAAP) was RMB15.7 million (US$2.2 million), compared with adjusted net loss3 of RMB31.3 million in the third quarter of 2023, and representing an increase of 1,262.0% from RMB1.2 million in the second quarter of 2024, achieving the second consecutive quarter of non-GAAP profitability.

 

   

Cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments balances were RMB1,077.6 million (US$153.6 million) as of September 30, 2024.

 

   

Positive cash flow from operations continued in the third quarter of 2024. This was the fourth consecutive quarter that the Company generated positive cash flow from operations.

Business Highlights for the Third Quarter 2024 and Recent Developments

 

   

Significant eVTOL Sales and Operational Progress in Pioneering Chinese Cities

After receiving the type certificate, production certificate and standard airworthiness certificate for the EH216-S pilotless passenger eVTOL aircraft, EHang is now prepared for mass production and deliveries. The Company is working closely with customers and partners to establish UAM demonstration projects in several Chinese cities such as Hefei, Guangzhou, Shenzhen, Taiyuan, Wencheng, Zhuhai, and more, to showcase eVTOL operations. These efforts include assisting customers obtain their Air Operator Certificate (“OC”), training eVTOL operators and maintenance personnel, building EH216-S vertiports and UAM operational sites, planning flight routes and business strategies, and promoting eVTOL sales and operations across China.

In Hefei, EHang, in collaboration with the Hefei municipal government, launched a new UAM Hub named “Ascend” at Luogang Central Park in November. This marks the second eVTOL operation site for EH216-S in Hefei, following the first UAM Operation Center established in May. The UAM Hub spans nearly 2,000 square meters and can accommodate up to 20 units of EH216-S. It includes dedicated zones for ticketing, passenger waiting, boarding, a command-and-control center, and charging and maintenance facilities. In the third quarter of this year, EHang delivered an additional five units of EH216-S to the Hefei customer for deployment at the new UAM Hub. According to the Hefei government’s plan, over 30 vertiports for eVTOLs will be established in Hefei over the next three years to create a UAM passenger transportation network for aerial sightseeing, multimodal air transport, emergency response, peri-urban travel, and more.

In Guangzhou, EHang’s customer Heli launched the first-ever cross-river round-trip flights with the EH216-S eVTOL between Tiande Plaza and Haixinsha Island in downtown Guangzhou in September, showcasing aerial tourism and air transportation use cases in the city’s central business district. In October, the EH216-S also completed a pilotless passenger-carrying flight in Nansha District, where a comprehensive unmanned system across sea, land and air is planned. EHang is committed to developing more flight routes within a 30-kilometer UAM living circle in Guangzhou, transforming the city’s transportation landscape.

In Shenzhen, five more units of the EH216-S were delivered to the customer Boling for a repeat order in the third quarter. These units will be deployed at Boling’s second UAM Operation Center in Luohu District, following the establishment of the first center in Bao’an District in December 2023.

In Taiyuan, EHang, in collaboration with Xishan Tourism, conducted its debut passenger-carrying flights of the EH216-S at Paddy Field Park in July, after delivering 10 units of the EH216-S to the customer in the second quarter. During the third quarter, an additional 40 units were delivered to Taiyuan for low-altitude sightseeing and tourism uses.

 

 

3 

Adjusted net income (loss) is a non-GAAP financial measure, which is defined as net loss excluding share-based compensation expenses and certain non-operational expenses. Net loss was RMB48.1 million (US$6.9 million) in the third quarter of 2024. See “Non-GAAP Financial Measures” below.

 

2


In Wencheng, an additional three units of the EH216-S were delivered to the local customer in the third quarter, following the delivery of 27 units in the second quarter. Several bespoke eVTOL vertiports and flight routes for the EH216-S have been established in Wencheng for aerial sightseeing and tourism. EHang has also formed a joint venture with Wencheng Transportation Development Group to handle eVTOL demonstration, sales, leasing, maintenance, and future operations. Wencheng is currently constructing a commercial center, covering 20,000 square meters, that integrates business, living, operations, and EH216-S display and delivery areas.

In Zhuhai, EHang, in partnership with Wanshan Development Group, established the Wanshan Land-Island Low-altitude Operation Center in July. This center integrates aerial logistics and passenger transportation using EHang’s eVTOLs. EHang, in collaboration with China Post, has jointly launched the first island logistics route “Zhuhai Drone #1”. EHang’s VT-20 series logistic eVTOLs completed a debut round-trip flight, transporting parcels and seafood between Zhuhai Center and Gui Mountain. The 37km trip took 25 minutes, saving 80% of the time compared with traditional transportation methods. Additionally, the EH216-S completed passenger-carrying flights for aerial sightseeing.

Furthermore, the Company also secured new orders from, and completed deliveries for clients in Fujian, Chongqing, Tianjin, Guizhou and Shaanxi in the third quarter of 2024.

 

   

Partnership with KC Smart Mobility with Purchase Plan for 30 Units of the EH216-S to Advance Sale and Tourism and Travel Operations in Hong Kong, Macau and Hubei Province in China

In July, EHang signed a purchase and operations cooperation agreement with KC Smart Mobility, a subsidiary of Kwoon Chung Bus Holdings Limited (“KCBH”) (0306.HK), Hong Kong’s largest non-franchised bus operator, providing passenger transport services between mainland China and Hong Kong, as well as local transport and tourism services in Hong Kong and other locations. KC Smart Mobility plans to purchase a total of 30 units of the EH216-S from EHang for tourism and travel operations in Hong Kong, Macau, as well as the cities of Xiangyang and Shiyan in China’s Hubei Province by the end of 2026. Previously, as part of the 30-unit purchase plan, the first order of five units has been placed and delivered to Hubei for aerial sightseeing uses in the first quarter of 2024.

 

   

Cooperation with Sunriver to Expand Chinese Cultural Tourism Market with Purchase Plan for 50 Units of the EH216-S

In November, EHang signed a cooperation framework agreement with Sunriver (600576.SH), a China A-share listed tourism company with over 40 tourism attractions under its and its parent company’s management, to jointly explore an industrial model that integrates low-altitude economy with cultural tourism in China. Sunriver plans to purchase 50 units of the EH216-S or similar pilotless passenger aircraft from EHang for its cultural tourism projects based on market development needs. Sunriver has placed a purchase order for 5 units of EH216-S as the first batch.

 

   

Steady Progress in Air Operator Certification for Commercial Operations

In July 2024, the Civil Aviation Administration of China (“CAAC”) formally accepted the OC applications submitted by EHang General Aviation and Heyi Aviation, the low-altitude economy operating company in Hefei. This marks the world’s first OC certification project for pilotless passenger eVTOL aircraft, indicating that the first related operational standards are about to be established, ensuring safety for the commercial operations of the EH216-S in China. The OC review is progressing steadily, with the first OC expected to be issued by the end of this year. The Company is also actively assisting other customers and partners in Guangzhou, Shenzhen, Wuxi, Wencheng and Zhuhai with their OC applications to accelerate the commercial operations of the EH216-S nationwide and promote the development of low-altitude economy demonstration zones in more cities.

 

3


   

Strategic Partnership with Civil Aviation Flight University of China for eVTOL Talent Training

In October 2024, EHang entered into a strategic partnership with the Civil Aviation Flight University of China (“CAFUC”). Building upon the CAFUC’s extensive expertise in civil aviation education, research, and talent development, the two parties will work together to train skilled personnel, including operators and maintenance staff for EHang’s pilotless eVTOL aircraft. This training will cover personnel licensing and operational supervision. This partnership aims to address the growing demand for an estimated millions of talents in the low-altitude economy and support the sustainable, high-quality development of the civil unmanned aerial vehicle industry.

 

   

Expanded International Presence with Flights in Brazil, Thailand, Japan and the UAE

In Brazil, the National Civil Aviation Agency (“ANAC”) granted the Experimental Flight Authorization Certificate for the EH216-S in September, allowing trial operations of this aircraft system. Following this, the EH216-S made its debut flight in Brazil in collaboration with the Company’s local partner Gohobby. The two parties are carrying out extensive trial and test campaigns in Brazil to facilitate local airworthiness certification, working with the ANAC, the Brazilian Airspace Control Department, and the CAAC.

In Thailand, the Civil Aviation Authority of Thailand (“CAAT”) issued a Demonstration Flight Permit, allowing the EH216-S to debut a series of passenger-carrying flights in central Bangkok during the Thailand Drone Exhibition & Symposium 2024 in November. EHang, in collaboration with the CAAT, plans to conduct flight tests with the EH216-S in Thailand and aims to launch commercial flight operations in various regions such as Phuket and Koh Samui by 2025.

In Japan, EH216-S completed a new round of four-city flight tour in Japan in October, expanding its flight footprint to a total of 16 Japanese cities. This tour showcased the EH216-S’s versatility in various use cases, including aerial sightseeing, island transportation, aerial logistics, and emergency services.

In the United Arab Emirates (“UAE”), EHang and its Middle East partner, Wings Logistic Hub, continued to explore the use cases of pilotless eVTOL in the region. In November, the EH216-L, which was delivered to Wings Logistic Hub in the first quarter of 2024, completed a cross-sea flight on the Abu Dhabi, demonstrating its excellent stability and safety as a logistics eVTOL.

To date, EHang and its local partners have conducted over 56,000 safe flights with pilotless eVTOLs in 18 countries across Asia, Europe, North America, and Latin America.

 

   

Breakthrough in Solid-State Battery Technology: EH216-S Completes First eVTOL Solid-State Battery Flight Test

In November, EHang announced a significant breakthrough in high-energy solid-state battery technology, developed in collaboration with Inx, a leading lithium metal solid-state battery provider invested in by EHang, under the support of the Low-Altitude Economy Battery Research Institute of the Hefei International Advanced Technology Application Promotion Center. The EH216-S completed the first eVTOL solid-state battery flight test, lasting 48 minutes and 10 seconds, significantly improving its flight endurance by 60%-90%. Compared to liquid lithium batteries, solid-state batteries offer higher energy density, better thermal stability, reduced flammability, a wider working temperature range, improved storage stability and excellent maintenance-free qualities. EHang will continue to cooperate with Inx to further test and optimize the battery’s performance and stability, aiming for large-scale production of certified solid-state batteries for the EH216-S by the end of 2025.

 

   

Strategic Partnership with Enpower for Advanced eVTOL Integrated Electric Motor Drive Systems

In November, EHang entered into a long-term strategic partnership and technology development cooperation with Zhuhai Enpower Electric Co., Ltd. (“Enpower”, SZ300681), a Chinese leading new energy vehicle power systems provider, with the aim to co-develop high-performance electric motors and motor controllers with lighter weight, higher power density, superior cooling performance, and broader compatibility for EHang’s suite of eVTOL models.

 

4


   

Lift-and-Cruise eVTOL Model Upgraded to VT-35

Building on the VT-30 prototype, EHang has upgraded its lift-and-cruise eVTOL model to the VT-35. This long-range model complements the Company’s existing product portfolio by targeting application scenarios such as inter-city, cross-bay, and cross-mountain routes, extending beyond the EH216-S’s intra-city UAM coverage. With the EH216 series and VT series, the Company aims to provide comprehensive coverage for low-altitude flights across various scenarios.

 

   

Over US$22 Million Strategic PIPE Investment to Further Strengthen Liquidity

In November, EHang announced a strategic investment totaling over US$22 million from Enpower, and a strategic institutional investor from the Middle East. Both investors agree to a 180-day lock-up period. This strategic investment brings EHang’s total year-to-date financing to nearly US$100 million, enhancing the Company’s financial position as it embarks on its next phase of development and growth in the global UAM industry. The financing proceeds will bolster EHang’s efforts to advance the Company’s next-generation eVTOL technologies and products, scale production capacity, expand its team, establish new headquarters and operation sites, and support general corporate activities.

Management Remarks

Mr. Huazhi Hu, Founder, Chairman and Chief Executive Officer of EHang, commented, “In Q3, EHang once again made remarkable milestones that reinforce our leadership and strategic vision in UAM. As the first eVTOL manufacturer to receive three key certifications for pilotless aerial vehicles, coupled with strengthened government initiatives, we saw an increase in orders from a diverse customers base. Quarterly deliveries of the EH216-S hit a new high of 63 units, more than quadrupling from the prior year, driving robust revenue growth and reflecting strong market demand and recognition of our innovative eVTOL solutions.

Our progress towards obtaining the OC for pilotless passenger-carrying aircraft is on track, marking a global first that will indicate readiness for full-scale operations. We are also actively assisting customers and partners across multiple regions to expedite their OC applications, accelerating the nationwide commercialization of the EH216-S. Additionally, we continue to build the low-altitude ecosystem, including launching a UAM Hub in Hefei, forming a strategic partnership with CAFUC for talent development, and establishing a comprehensive after-sales maintenance system. As part of our global expansion, we have extended our flight footprint to 18 countries and made significant progress in overseas markets.

Looking ahead, we remain committed to advancing technology, including breakthroughs in solid-state batteries to enhance flight endurance and the development of long-range eVTOL aircraft. These efforts are critical to expanding our operations, supporting both intra- and inter-city routes, and meeting the growing demands of our industry and stakeholders. EHang’s unwavering focus on safety, innovation, and sustainable growth positions us to seize the substantial opportunities within the low-altitude economy. We are excited to bring our unique operational and flight experiences to more cities, both in China and abroad.”

Mr. Conor Yang, Chief Financial Officer of EHang, stated, “Driven by our pioneering eVTOL products, industry-first certifications, and deepened policy support, we continued to deliver outstanding financial performance that surpassed our guidance. Specifically, our Q3 revenue surged 347.8% year-over-year, reaching a record high of RMB128.1 million, a testament to the powerful market resonance of our advanced EH216-S pilotless eVTOLs.

 

5


We also saw significant improvements in profitability, including a quarterly adjusted operating income2 and the second consecutive quarter of adjusted net income3. Furthermore, we strengthened our cash position for the next phase of growth, with positive operating cash flow for four consecutive quarters and year-to-date financing approaching US$100 million. This includes a recent PIPE investment of over US$22 million from two strategic investors, Enpower and an institutional investor from the Middle East. For the coming quarters, we believe that our strategic foresight, capital preparedness, and core strengths gives us strong capability to sustain this upward trajectory as we accelerate our development while driving innovation at every step.”

Financial Results for the Third Quarter 2024

Revenues

Total revenues were RMB128.1 million (US$18.3 million), representing an increase of 347.8% from RMB28.6 million in the third quarter of 2023, and an increase of 25.6% from RMB102.0 million in the second quarter of 2024. The year-over-year and quarter-over-quarter increases were primarily due to the increase in the sales volume of EH216 series products.

Costs of revenues

Costs of revenues were RMB49.7 million (US$7.1million), compared with RMB10.1 million in the third quarter of 2023 and RMB38.4 million in the second quarter of 2024. The year-over-year and quarter-over-quarter increases were in line with the increase in the sales volume of EH216 series products.

Gross profit and gross margin

Gross profit was RMB78.4 million (US$11.2 million), representing an increase of 324.3% from RMB18.5 million in the third quarter of 2023, and an increase of 23.2% from RMB63.7 million in the second quarter of 2024. The year-over-year and quarter-over-quarter increases were primarily due to the increase in the sales volume of EH216 series products.

Gross margin was 61.2%, representing a 3.4 percentage points decrease from 64.6% in the third quarter of 2023, and a 1.2 percentage points decrease from 62.4% in the second quarter of 2024. The year-over-year and quarter-over-quarter decreases were mainly due to changes in revenue mix and increased cost per unit of the airworthiness certified EH216-S product.

Operating expenses

Total operating expenses were RMB150.7 million (US$21.5 million), compared with RMB89.8 million in the third quarter of 2023, and RMB143.3 million in the second quarter of 2024.

 

   

Sales and marketing expenses were RMB47.3 million (US$6.7 million), compared with RMB13.7 million in the third quarter of 2023, and RMB27.3 million in the second quarter of 2024. The year-over-year and quarter-over-quarter increases were mainly attributable to increased sales-related compensation and associated share-based compensation expenses due to modification of outstanding share-based awards, as well as increased expansion of sales channels.

 

   

General and administrative expenses were RMB59.5 million (US$8.5 million), compared with RMB38.4 million in the third quarter of 2023, and RMB54.2 million in the second quarter of 2024. The year-over-year increase was mainly attributable to increased employee compensation and related share-based compensation expenses due to modification of outstanding share-based awards and the higher expected credit loss expenses. The quarter-over-quarter increase was mainly attributable to higher expected credit loss expenses for receivables on certain customers, while partially offset by the reduction in the share-based compensation expenses.

 

6


   

Research and development expenses were RMB43.9 million (US$6.3 million), compared with RMB37.7 million in the third quarter of 2023, and RMB61.8 million in the second quarter of 2024. The year-over-year increase was mainly attributable to incremental expenditures on different models of eVTOL aircraft and increased employee compensation. The quarter-over-quarter decreases was mainly attributable to lower share-based compensation expenses due to modification of outstanding share-based awards in the second quarter of 2024.

Adjusted operating expenses4 (non-GAAP)

Adjusted operating expenses were RMB86.9 million (US$12.4 million), representing an increase of 60.9% from RMB54.0 million in the third quarter of 2023, and an increase of 23.1% from RMB70.6 million in the second quarter of 2024. Adjusted sales and marketing expenses, adjusted general and administrative expenses, and adjusted research and development expenses were RMB20.3 million (US$2.9 million), RMB31.3 million (US$4.5 million) and RMB35.3 million (US$5.0 million) in the third quarter of 2024, respectively.

Operating loss

Operating loss was RMB54.7 million (US$7.8 million), representing a 21.8% improvement from RMB70.0 million in the third quarter of 2023, and a 29.3% improvement from RMB77.4 million in the second quarter of 2024.

Adjusted operating income (loss) (non-GAAP)

Adjusted operating income was RMB9.0 million (US$1.3 million), compared with adjusted operating loss of RMB34.2 million in the third quarter of 2023, and adjusted operating loss of RMB4.7 million in the second quarter of 2024.

Net loss

Net loss was RMB48.1 million (US$6.9 million), representing an improvement of 28.3% from RMB67.1 million in the third quarter of 2023, and an improvement of 32.8% from RMB71.6 million in the second quarter of 2024.

Adjusted net income (loss) (non-GAAP)

Adjusted net income was RMB15.7 million (US$2.2 million), compared with adjusted net loss of RMB31.3 million in the third quarter of 2023, and representing an increase of 1,262.0% from RMB1.2 million in the second quarter of 2024.

Adjusted net income attributable to EHang’s ordinary shareholders was RMB15.7 million (US$2.2 million). Adjusted net loss attributable to EHang’s ordinary shareholders in the third quarter of 2023 was RMB31.3 million, and adjusted net income attributable to EHang’s ordinary shareholders was RMB1.2 million in the second quarter of 2024.

Earnings (loss) per share and per ADS

Basic and diluted net loss per ordinary share were both RMB0.35 (US$0.05). Adjusted basic and diluted net earnings per ordinary share5 (non-GAAP) were both RMB0.11 (US$0.016).

 

 

 

4 

Adjusted operating expenses is a non-GAAP financial measure, which is defined as operating expenses excluding share-based compensation expenses. See “Non-GAAP Financial Measures” below.

5 

Adjusted basic and diluted net earnings (loss) per ordinary share is a non-GAAP financial measure, which is defined as basic and diluted loss per ordinary share excluding share-based compensation expenses and certain non-operational expenses. See “Non-GAAP Financial Measures” below.

 

7


Basic and diluted net loss per ADS were both RMB0.70 (US$0.10). Adjusted basic and diluted net earnings per ADS6 (non-GAAP) were both RMB0.22 (US$0.032).

Balance Sheets

Cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments balances were RMB1,077.6 million (US$153.6 million) as of September 30, 2024.

Business Outlook

For the fourth quarter of 2024, the Company expects the total revenues to be around RMB135 million, representing an increase of 138.5% year-over-year. With that, the total revenue for the year of 2024 is expected to reach RMB427 million, with a year-on-year increase of 263.5%.

The above outlook is based on information available as of the date of this press release and reflects the Company’s current and preliminary views regarding its business situation and market conditions, which are subject to change.

Conference Call

EHang’s management team will host an earnings conference call at 8:00 AM on Monday, November 18, 2024, U.S. Eastern Time (9:00 PM on Monday, November 18, 2024, Beijing/Hong Kong Time).

To join the conference call via telephone, participants must use the following link to complete an online registration process. Upon registering, each participant will receive email instructions to access the conference call, including dial-in information and a PIN number allowing access to the conference call.

Participant Online Registration:

English line: https://s1.c-conf.com/diamondpass/10043281-hguy76.html

Chinese line: https://s1.c-conf.com/diamondpass/10043282-jh7y6t.html

A live and archived webcast of the conference call will be available on the Company’s investors relations website at http://ir.ehang.com/.

About EHang

EHang Holdings Limited (Nasdaq: EH) (“EHang”) is the world’s leading urban air mobility (“UAM”) technology platform company. Our mission is to enable safe, autonomous, and eco-friendly air mobility accessible to everyone. EHang provides customers in various industries with unmanned aerial vehicle (“UAV”) systems and solutions: air mobility (including passenger transportation and logistics), smart city management, and aerial media solutions. EHang’s EH216-S has obtained the world’s first type certificate, production certificate and standard airworthiness certificate for passenger-carrying pilotless eVTOL aircraft issued by the Civil Aviation Administration of China. As the forerunner of cutting-edge UAV technologies and commercial solutions in the global UAM industry, EHang continues to explore the boundaries of the sky to make flying technologies benefit our life in smart cities. For more information, please visit www.ehang.com.

 

6 

Adjusted basic and diluted net earnings (loss) per ADS is a non-GAAP financial measure, which is defined as basic and diluted loss per ADS excluding share-based compensation expenses and certain non-operational expenses. See “Non-GAAP Financial Measures” below.

 

8


Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Statements that are not historical facts, including statements about management’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to those relating to certifications, our expectations regarding demand for, and market acceptance of, our products and solutions and the commercialization of UAM services, our relationships with strategic partners, and current litigation and potential litigation involving us. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management’s control. These statements involve risks and uncertainties that may cause EHang’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

Non-GAAP Financial Measures

The Company uses adjusted operating expenses, adjusted sales and marketing expenses, adjusted general and administrative expenses, adjusted research and development expenses, adjusted operating income (loss), adjusted net income (loss), adjusted net income (loss) attributable to ordinary shareholders, adjusted basic and diluted earnings (loss) per ordinary share and adjusted basic and diluted earnings (loss) per ADS (collectively, the “Non-GAAP Financial Measures”) in evaluating its operating results and for financial and operational decision-making purposes. There was no income tax impact on the Company’s non-GAAP adjustments because the non-GAAP adjustments are usually recorded in entities located in tax-free jurisdictions, such as the Cayman Islands.

The Company believes that the Non-GAAP Financial Measures help identify underlying trends in its business that could otherwise be distorted by the effects of items of (i) share-based compensation expenses and (ii) certain non-operational expenses, such as amortization of debt discounts, which are included in their comparable GAAP measures. The Company believes that the Non-GAAP Financial Measures provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management members in their financial and operational decision-making.

The Non-GAAP Financial Measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The Non-GAAP Financial Measures have limitations as analytical tools. One of the key limitations of using the Non-GAAP Financial Measures is that they do not reflect all items of expense that affect the Company’s operations. Share-based compensation expenses have been and may continue to be incurred in the business and are not reflected in the presentation of the Non-GAAP Financial Measures. Further, the Non-GAAP Financial Measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the Non-GAAP Financial Measures to the nearest U.S. GAAP measures, all of which should be considered when evaluating the Company’s performance.

Each of the Non-GAAP Financial Measures should not be considered in isolation or construed as an alternative to its comparable GAAP measure or any other measure of performance or as an indicator of the Company’s operating performance or financial results. Investors are encouraged to review the Company’s most directly comparable GAAP measures in conjunction with the Non-GAAP Financial Measures. The Non-GAAP Financial Measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

 

9


For more information on the Non-GAAP Financial Measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.

Exchange Rate

This press release contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB 7.0176 to US$1.00, the noon buying rate in effect on September 30, 2024 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to in this press release could have been converted into USD or RMB, as the case may be, at any particular rate or at all.

Investor Contact: ir@ehang.com

Media Contact: pr@ehang.com

 

10


EHANG HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

     As of
December 31, 2023
     As of
September 30, 2024
 
     RMB      RMB      US$  
     (Unaudited)      (Unaudited)      (Unaudited)  

ASSETS

        

Current assets:

        

Cash and cash equivalents

     228,250        611,745        87,173  

Short-term deposits

     14,397        115,534        16,463  

Short-term investments

     57,494        309,915        44,163  

Restricted short-term deposits

     33,942        40,419        5,760  

Accounts receivable, net7

     34,786        18,399        2,622  

Inventories

     59,488        67,879        9,673  

Prepayments and other current assets

     24,691        29,796        4,246  
  

 

 

    

 

 

    

 

 

 

Total current assets

     453,048        1,193,687        170,100  
  

 

 

    

 

 

    

 

 

 

Non-current assets:

        

Property and equipment, net

     44,623        43,416        6,187  

Operating lease right-of-use assets, net

     74,528        124,255        17,706  

Intangible assets, net

     2,426        2,383        340  

Long-term loans receivable

     4,215        —         —   

Long-term investments

     18,369        22,718        3,237  

Other non-current assets

     1,436        2,063        294  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     145,597        194,835        27,764  
  

 

 

    

 

 

    

 

 

 

Total assets

     598,645        1,388,522        197,864  
  

 

 

    

 

 

    

 

 

 

 

7 

As of December 31, 2023 and September 30, 2024, amount due from a related party of RMB1,700 and RMB1,530 (US$218) are included in accounts receivable, net, respectively.

 

11


EHANG HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONT’D)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

     As of
December 31, 2023
    As of
September 30, 2024
 
     RMB     RMB     US$  
     (Unaudited)     (Unaudited)     (Unaudited)  

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current liabilities

      

Short-term bank loans

     69,798       69,592       9,917  

Short-term debt

     —        90,000       12,825  

Notes payables

     —        3,977       567  

Accounts payable

     35,101       100,514       14,323  

Contract liabilities8

     37,169       54,593       7,779  

Current portion of long-term bank loans

     3,538       10,000       1,425  

Mandatorily redeemable non-controlling interests

       40,000       5,700  

Accrued expenses and other liabilities

     94,149       118,178       16,841  

Current portion of lease liabilities

     5,595       10,958       1,562  

Deferred income

     1,549       1,533       218  

Deferred government subsidies

     3,147       822       117  

Income taxes payable

     29       128       18  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     250,075       500,295       71,292  
  

 

 

   

 

 

   

 

 

 

Non-current liabilities:

      

Long-term bank loans

     9,308       7,500       1,069  

Mandatorily redeemable non-controlling interests

     40,000       —        —   

Deferred tax liabilities

     292       292       42  

Unrecognized tax benefit

     5,480       5,480       781  

Lease liabilities

     75,308       123,138       17,547  

Deferred income

     1,486       319       45  

Other non-current liabilities

     2,477       4,701       670  
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     134,351       141,430       20,154  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     384,426       641,725       91,446  
  

 

 

   

 

 

   

 

 

 

Shareholders’ equity:

      

Ordinary shares

     80       87       12  

Additional paid-in capital

     1,951,936       2,677,148       381,491  

Statutory reserves

     1,239       1,239       177  

Accumulated deficit

     (1,754,542     (1,937,460     (276,086

Accumulated other comprehensive income

     15,079       5,593       797  
  

 

 

   

 

 

   

 

 

 

Total EHang Holdings Limited shareholders’ equity

     213,792       746,607       106,391  

Non-controlling interests

     427       190       27  
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     214,219       746,797       106,418  
  

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

     598,645       1,388,522       197,864  
  

 

 

   

 

 

   

 

 

 

 

8 

As of December 31, 2023 and September 30, 2024, amount due to a related party of RMB2,000 and RMB2,000 (US$285) are included in contract liabilities, respectively.

 

12


EHANG HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for per share data and per ADS data)

 

     Three Months Ended     Nine Months Ended  
     September 30,
2023
    June 30,
2024
    September 30,
2024
    September 30,
2023
    September 30,
2024
 
     RMB     RMB     RMB     US$     RMB     RMB     US$  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Total revenues

     28,615       102,019       128,128       18,258       60,822       291,874       41,592  

Costs of revenues

     (10,136     (38,367     (49,713     (7,084     (22,129     (111,616     (15,905
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     18,479       63,652       78,415       11,174       38,693       180,258       25,687  

Operating expenses:

              

Sales and marketing expenses

     (13,677     (27,321     (47,279     (6,737     (39,677     (94,824     (13,512

General and administrative expenses

     (38,409     (54,235     (59,559     (8,487     (94,466     (163,470     (23,294

Research and development expenses

     (37,686     (61,800     (43,866     (6,251     (129,175     (143,502     (20,449
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     (89,772     (143,356     (150,704     (21,475     (263,318     (401,796     (57,255

Other operating income

     1,284       2,261       17,543       2,500       3,565       23,511       3,350  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (70,009     (77,443     (54,746     (7,801     (221,060     (198,027     (28,218

Other income (expense):

              

Interest and investment income

     2,196       6,763       8,944       1,275       4,145       18,571       2,646  

Interest expenses

     (718     (799     (847     (121     (2,248     (2,505     (357

Amortization of debt discounts

     —        —        —        —        (12,023     —        —   

Foreign exchange gain (loss)

     821       (483     353       50       (303     (375     (53

Other non-operating income, net

     974       911       43       6       3,700       1,991       284  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense)

     3,273       6,392       8,493       1,210       (6,729     17,682       2,520  

Loss before income tax and loss from equity method investment

     (66,736     (71,051     (46,253     (6,591     (227,789     (180,345     (25,698
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expenses

     (118     (18     (190     (27     (132     (209     (30
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss before loss from equity method investment

     (66,854     (71,069     (46,443     (6,618     (227,921     (180,554     (25,728

Loss from equity method investment

     (262     (565     (1,689     (241     (1,959     (2,601     (371
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (67,116     (71,634     (48,132     (6,859     (229,880     (183,155     (26,099
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

13


EHANG HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONT’D)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for per share data and per ADS data)

 

     Three Months Ended     Nine Months Ended  
     September 30,
2023
    June 30,
2024
    September 30,
2024
    September 30,
2023
    September 30,
2024
 
     RMB     RMB     RMB     US$     RMB     RMB     US$  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Net loss

     (67,116     (71,634     (48,132     (6,859     (229,880     (183,155     (26,099

Net loss attributable to non-controlling interests

     68       97       76       11       444       237       34  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to ordinary shareholders

     (67,048     (71,537     (48,056     (6,848     (229,436     (182,918     (26,065

Net loss per ordinary share:

              

Basic and diluted

     (0.54     (0.54     (0.35     (0.05     (1.91     (1.39     (0.20

Shares used in net loss per ordinary share computation (in thousands of shares):

              

Basic

     123,866       131,537       137,807       137,807       120,167       132,037       132,037  

Diluted

     123,866       131,537       137,807       137,807       120,167       132,037       132,037  

Loss per ADS (2 ordinary shares equal to 1 ADS) Basic and diluted

     (1.08     (1.08     (0.70     (0.10     (3.82     (2.78     (0.40

Other comprehensive income

              

Foreign currency translation adjustments net of nil tax

     348       2,816       (13,053     (1,860     4,594       (9,486     (1,352
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income (loss), net of tax

     348       2,816       (13,053     (1,860     4,594       (9,486     (1,352

Comprehensive loss

     (66,768     (68,818     (61,185     (8,719     (225,286     (192,641     (27,451

Comprehensive loss attributable to non-controlling interests

     68       97       76       11       444       237       34  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive loss attributable to ordinary shareholders

     (66,700     (68,721     (61,109     (8,708     (224,842     (192,404     (27,417
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

14


EHANG HOLDINGS LIMITED

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for per share data and per ADS data)

 

    Three Months Ended     Nine Months Ended  
    September 30,
2023
    June 30,
2024
    September 30,
2024
    September 30,
2023
    September 30,
2024
 
                               
    RMB     RMB     RMB     US$     RMB     RMB     US$  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Gross profit

    18,479       63,652       78,415       11,174       38,693       180,258       25,687  

Plus: Share-based compensation

    —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted gross profit

    18,479       63,652       78,415       11,174       38,693       180,258       25,687  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Sales and marketing expenses

    (13,677     (27,321     (47,279     (6,737     (39,677     (94,824     (13,512

Plus: Share-based compensation

    4,767       11,725       26,963       3,842       14,373       47,505       6,769  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted sales and marketing expenses

    (8,910     (15,596     (20,316     (2,895     (25,304     (47,319     (6,743
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

General and administrative expenses

    (38,409     (54,235     (59,559     (8,487     (94,466     (163,470     (23,294

Plus: Share-based compensation

    22,327       31,848       28,281       4,030       42,183       89,650       12,775  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted general and administrative expenses

    (16,082     (22,387     (31,278     (4,457     (52,283     (73,820     (10,519
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Research and development expenses

    (37,686     (61,800     (43,866     (6,251     (129,175     (143,502     (20,449

Plus: Share-based compensation

    8,679       29,211       8,551       1,218       44,611       52,710       7,512  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted research and development expenses

    (29,007     (32,589     (35,315     (5,033     (84,564     (90,792     (12,937
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

    (89,772     (143,356     (150,704     (21,475     (263,318     (401,796     (57,255

Plus: Share-based compensation

    35,773       72,784       63,795       9,090       101,167       189,865       27,056  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating expenses

    (53,999     (70,572     (86,909     (12,385     (162,151     (211,931     (30,199
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

    (70,009     (77,443     (54,746     (7,801     (221,060     (198,027     (28,218

Plus: Share-based compensation

    35,773       72,784       63,795       9,090       101,167       189,865       27,056  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating (loss) income

    (34,236     (4,659     9,049       1,289       (119,893     (8,162     (1,162
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

15


EHANG HOLDINGS LIMITED

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (CONT’D)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for per share data and per ADS data)

 

    Three Months Ended     Nine Months Ended  
    September 30,
2023
    June 30,
2024
    September 30,
2024
    September 30,
2023
    September 30,
2024
 
                               
    RMB     RMB     RMB     US$     RMB     RMB     US$  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Net loss

    (67,116     (71,634     (48,132     (6,859     (229,880     (183,155     (26,099

Plus: Share-based compensation

    35,773       72,784       63,795       9,090       101,167       189,865       27,056  

Plus: Amortization of debt discounts

    —        —        —        —        12,023       —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net (loss) income

    (31,343     1,150       15,663       2,231       (116,690     6,710       957  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to ordinary shareholders

    (67,048     (71,537     (48,056     (6,848     (229,436     (182,918     (26,065

Plus: Share-based compensation

    35,773       72,784       63,795       9,090       101,167       189,865       27,056  

Plus: Amortization of debt discounts

    —        —        —        —        12,023       —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net (loss) income attributable to ordinary shareholders

    (31,275     1,247       15,739       2,242       (116,246     6,947       991  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in net earnings (loss) per ordinary share computation (in thousands of shares):

             

Basic

    123,866       131,537       137,807       137,807       120,167       132,037       132,037  

Diluted

    123,866       134,037       140,516       140,516       120,167       134,221       134,221  

Adjusted basic and diluted net earnings (loss) per ordinary share

    (0.25     0.01       0.11       0.016       (0.97     0.05       0.01  

Adjusted basic and diluted net earnings (loss) per ADS

    (0.50     0.02       0.22       0.032       (1.94     0.10       0.02  

 

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