Gareth Zhao's questions to EHang Holdings Ltd (EH) leadership • Q3 2024
Question
Gareth Zhao from Tianfeng Securities asked about the slight decline in gross margin for the quarter and the company's outlook on future cost reductions. He also requested more details on the progress of VTC (Type Certificate) certification in overseas markets.
Answer
CEO Huazhi Hu attributed the minor gross margin dip to fulfilling repeat orders at older contract prices. He anticipates future margins will remain stable around 60%, as cost reductions from scale will be balanced by investments in performance enhancements. Regarding overseas certification, he highlighted progress through pilot programs, citing an experimental flight permit in Brazil and sandbox model discussions in Thailand.