Wei Shen

Wei Shen of UBS Group inquired about potential increases in the Average Selling Price (ASP) for data center engines in the second half of the year and sought more detail on the company's strategy to expand from engine manufacturing into generator set production.

Answer

Weng Ming Hoh, President & Director, stated that there was no significant ASP increase for data center engines in H1 2025 and reiterated the no-guidance policy for H2. He clarified that Yuchai's core business remains selling engines to OEMs and it only produces full generator sets on specific customer request to avoid competing with its primary OEM partners.

Wei Shen of UBS Group inquired about potential increases in the Average Selling Price (ASP) for data center engines in the second half of the year and asked for details on how an expansion into generator manufacturing would impact revenue and profit.

Answer

President & Director Weng Ming Hoh stated that ASPs are largely set by their OEM customers and did not provide H2 guidance. He clarified that Yuchai's core business remains engine sales, and they only build full generator sets upon specific customer request to avoid competing with their OEM partners.

Wei Shen of UBS Group inquired about potential increases in the Average Selling Price (ASP) for data center engines in the second half of the year and sought more details on the company's strategy to expand into generator manufacturing.

Answer

President & Director Weng Ming Hoh stated that ASPs are largely determined by their OEM customers and reiterated the no-guidance policy for future pricing. He also clarified that the company's core business remains engine sales, and it only produces full gensets upon specific customer request to avoid competing with its OEM partners.

Wei Shen from UBS asked about the company's gross margin outlook and its financing plans for 2025.

Answer

CFO Conor Yang stated that EHang is targeting a gross margin of around 60%. He explained this would be achieved by diversifying product lines, which would be partially offset by a shift towards a distribution model. Regarding financing, Mr. Yang noted the company's strong cash position and positive operating cash flow but confirmed plans to seek additional financing in 2025 to support growth, product development, and facility expansion.