EHang - Earnings Call - Q4 2024

Transcript

Operator (participant)

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the EHang Fourth Quarter and Fiscal Year 2024 Earnings Conference call. Please note that the management's prepared remarks and the subsequent Q&A session will primarily be conducted in Chinese, and the corresponding simultaneous or consecutive interpretation can be accessed on the English line. As a reminder, all translations are for convenient purpose only. In case of any discrepancy, the management statement in the original language will prevail. To listen to the original remarks by management, please join the Chinese line. Additionally, both the Chinese and English lines are open for questions, and today's call is being recorded. Now I will turn the call over to Anne Ji, EHang's Senior Director of Investor Relations. Ms. Anne, please proceed.

Anne Ji (Senior Director of Investor Relations)

Hello everyone. Thank you all for joining us on today's conference call to discuss the company's financial results for the fourth quarter and fiscal year of 2024. The earnings release is available on the company's IR website. Please note the conference call is being recorded, and the audio replay will be posted on the company's IR website. On the call today, we have Mr. Huazhi Hu, our Founder, Chairman, and the Chief Executive Officer; Mr. Zhao Wang, Chief Operating Officer; and Mr. Conor Yang, Chief Financial Officer. Before we continue, please note that today's discussion will contain forward-looking statements made pursuant to the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today.

Further information regarding this and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Also, please note that all numbers presented are in RMB and are for the fourth quarter of 2024, unless stated otherwise. With that, let me now turn it over to our CEO, Mr. Huazhi Hu. Please go ahead, Mr. Hu.

Huazhi Hu (Founder, Chairman and CEO)

Hello everyone, and thank you for joining our earnings call. Q4 and full year 2024 marked another record-breaking period for EHang. 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 RMB 164 million, representing an increase of 239.1% year-over-year. For the full year, we delivered 216 units, with a total revenue reaching RMB 456 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 EHang's decade-long journey. With this, EHang also became the first eVTOL company in the global urban air mobility industry to achieve non-GAAP profitability, further solidifying our leadership.

At China's 2025 Two Sessions, the Low-Altitude Economy took center stage as a 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. Additionally, China's NDRC, National Development and Reform Commission, established a dedicated Low-Altitude Economy Development Department in December 2024. Meanwhile, the local governments in over 50 cities across China have introduced their localized development plans for the sector. These government initiatives further highlight China's long-term national strategy and strong commitment to developing the Low-Altitude Economy. If 2024 was the year of planning for Low-Altitude development, 2025 will be the year of its implementation.

Since obtaining the three airworthiness certificates, we have been accelerating the commercial deliveries and operational deployment of the EH216-S. Our customers have already established over 20 eVTOL operational demonstration sites and e-ports across 16 cities in China, including Hefei, Guangzhou, Shenzhen, Shanghai, Wuxi, Taiyuan, and Wenzhou. This year, our top priority is to launch operational demonstration projects in key cities to enable the public to experience the eVTOL flights firsthand. To this end, we have been actively driving the operator certification process for a pilotless passenger-carrying eVTOL aircraft. Currently, the Civil Aviation Administration of China has completed document and on-site inspections for the first two applicants accepted. They are EHang General Aviation, our wholly owned subsidiary specializing in UAM operation services, and Heyi Aviation, our joint venture in Hefei. Both are now awaiting the final approval.

We look forward to the early issuance of the two operator certificates, marking the beginning of the commercial eVTOL operation era. Looking ahead, we expect more operators to apply for the operator certificates, paving the way for broader commercial flight service of the EH216-S in the future. 2025 marks a pivotal year for AI technology innovation in China and globally. This year's government work report reaffirms the nation's commitment to the AI+ initiative, emphasizing the acceleration of AI applications across various industries, including the Low-Altitude Economy. As a pioneer in pilotless eVTOL technology, EHang continues deepening our AI+ strategy, leveraging our core technologies, including safety redundancy, autonomous flight and fleet management, along with intelligent system platform. We're integrating AI across the whole eVTOL lifecycle to drive intelligent upgrades and innovative practices in commercial operations.

This includes further optimizing our key technologies and capabilities, such as intelligent flight control algorithms, autonomic detection, flight route planning, command and control, human-machine interaction, scenario simulation, and the UAV cloud system. Beyond enhancing our aircraft, AI is set to expedite the construction and enhancement of the digital infrastructure for air mobility. EHang will collaborate with multiple Chinese universities, colleges, and relevant government departments, and the commercial conglomerates to advance the integration and innovative integration of digital technologies such as 5G, 6G, satellite communication sensor technologies, and high-precision navigation with the low altitude aviation industry. Together, we aim to build a smart low altitude ecosystem, interconnecting air traffic infrastructure, flight corridors, communication and navigation systems, airspace management, and operational services. This will establish a secure, efficient, and intelligent digital foundation to support commercial operations for EHang and our customers.

On the product front, we continue to advance our multi-rotor EH216 series through strategic collaborations with leading upstream companies, including Inx Energy, Greater Bay Technology, and Enpower. Together, we are developing customized next-generation high-energy solid-state lithium batteries, fast-charging batteries, and electric motors. We have achieved great progress in sample design, prototyping, and testing. We conducted the industry's first EH216 test flight powered by solid-state lithium batteries, delivering an impressive endurance of over 48 minutes. We are thrilled about this major technological breakthrough that reinforces our confidence in next phase overall performance enhancements. For our upgraded lift and cruise model, VT-35, its prototype is in its final assembly and testing. We plan to complete the full functionality test flights as soon as possible and initiate the airworthiness certification process. It will be unveiled soon.

For the flying car that targets the mass consumer market, we formed a cross-industry strategic partnership with China Automobile to actively design and discuss new product solutions to explore innovative approaches to future personal transportation. Over the past decade, EHang has pioneered numerous industry firsts, and we firmly believe the next 10 years will witness the rise of the Low-Altitude Economy, disruptive development of AI technologies, and transformative development in unmanned aviation. As the saying goes, a journey of 1,000 miles begins with the first step. As EHang enters its next decade in 2025, we remain steadfast in our commitment to advancing technological innovation, industry standards, operational demonstration, and ecosystem development of pilotless eVTOLs. We aim to lead the transformation of urban air mobility while promoting the safe, healthy, and sustainable development of the industry. Next, I'll turn the call over to our COO, Mr. Wang. Thank you.

Zhao Wang (COO)

Hello everyone, this is Wang Zhao. We closed 2024 with record high deliveries and revenues, exceeding our performance guidance. This success is driven by strong market demand and growing customer orders. In particular, our EH216-S autonomous passenger eVTOL has received a 30-unit order from Shandong Province, a 30-unit order from Zhejiang Province, along with an initial 5-unit order and an inductive order from another 45 units from Sunriver, with the result of 78 units deliveries in Q4 and RMB 164 million revenues. The total annual deliveries reached 216 units, with a total revenues of RMB 456 million. To meet the continuously growing order demands, we're focusing on enhancing production efficiency, scaling production capability, and planning capacity expansion. Guided by our manufacture-to-order principle, we're establishing our regional and networked production base layout in South China, East China, and North China.

In South China, our phase I Yunfu production base currently has an annual capacity of 300 units. This year, we plan to expand phase II with 24,000sq m of new production lines while upgrading automation and efficiency. By 2025, Yunfu production base is expected to reach double size and a total annual capacity of 1,000 units. It will also produce a large number of aviation materials and components for our customers. In East China, with Hefei as our regional headquarters, we are further deepening strategic cooperation with Hefei Government, partnering with the advanced new energy vehicle manufacturer JAC Group and Hefei Guoxuan Holdings to build an advanced generalized and automated eVTOL manufacturing base. Additionally, we are collaborating with the Weihai High-Tech Zone in Shandong Province to establish a pilotless passenger eVTOL R&D and manufacturing base there, creating an all-round collaboration system, integrated production sales and operations.

In North China, we have entered a partnership with the Beijing Fangshan District Government to establish a national headquarters for low altitude emergency rescue equipment. The headquarters features a 72,000sq m factory, a training center of over 100,000sq m, and a training and exercise base of hundreds of acres. Leveraging EHang's current flight platform and autonomous flying technologies, we plan to vigorously develop R&D, production, and operations in the fire emergency rescue sector, providing support for the life safety with autonomous flying vehicles. This year's Sunriver promoted large-scale application demonstration actions and the safe and healthy development of the Low-Altitude Economy, which are deeply in line with EHang's development strategy. We fully endorse this principle: safety is the top priority of the sector. From the eVTOL design to the flight and operational system, EHang has implemented comprehensive safeguards for commercial operations.

EHang has integrated the full redundancy philosophy from the IT sector into the design of our pilotless passenger eVTOLs, and it has passed rigorous airworthiness testing and certification. The three major electrical systems within the aircraft all have sufficient redundancy with backups, eliminating single point failures. As the Low-Altitude Economy approaches a critical phase of mass adoption, the industry requires a suite of scientific, comprehensive, rigorous, and safety-oriented operational framework for eVTOLs. During the operator certification review process, EHang worked closely with government agencies, regulators, academic institutions, and industry associations to advance the establishment and improvement of relevant standards and regulations. To strengthen safety operations, we have internally optimized our organizational structure to establish a comprehensive safety operational system and team.

From product sales, customer service, personal training, aviation materials sales, maintenance and repair, and software system to landing path design, route planning, and integrated operational services, we are building a full-cycle value chain encompassing hardware services and operations to provide customers with one-stop solutions. Looking ahead, our revenue streams will become more diversified. This year, EHang remains committed to the safety-first principle while focusing on low altitude tourism as the key entry point and urban air mobility as a large-scale goal to expand our UAM operational network in pioneer cities to demonstrate the Low-Altitude Economy and then systematically scaling operations from point-to-point connections to a fully integrated network. For example, our second UAM hub at Luogang Park in Hefei, the eVTOL operations center at Longhua Airport in Shanghai's Xuhui Riverside, and the first automated vertiport at the UAM center in Luohu, Shenzhen. These flagship projects serve as typical models.

Over the next three years, we will work with partners such as China State Construction, China Communications Construction Company, and other infrastructure construction units, local governments, and major commercial partners to jointly develop more than 100 urban air mobility terminals and more than 100 low altitude cultural tourism terminals in national 5A level scenic areas across China. We aim to build a city-level Low-Altitude Economy flight service system and carry out integrated business cooperation that combines culture and tourism, transportation, emergency response, and logistics. In 2025, based on EHang's current mature flight platform and autonomous flying technologies, we will not only vigorously develop passenger business but also develop non-passenger business. The fire emergency rescue sector has already been established in the capital, Beijing. Besides, EHang is committed to developing low energy, long-endurance logistics UAV products, which will greatly promote the development of low-cost, high-efficiency aerial logistics transportation.

We aim to realize applications in intraprovincial, interprovincial, and cross-border logistics scenarios. Currently, we have started exploration and layout in Beijing, Guangdong, Guangxi, and Hainan. Overseas, we are expanding our presence in Asia, Europe, and South America to continuously advance our market development, flight scenarios, and regulatory approvals. In Q4 last year, we conducted three consecutive days of EH216-S passenger carrying flights in central Bangkok, Thailand, and plan to launch commercial trial operations this year within the sandbox areas designated by the Thai Civil Aviation Authority. In Japan, we completed a new four-city flight tour, expanding our flight footprint across 16 cities and showcasing multiple use cases, including aerial sightseeing, intra-island transportation, aerial logistics, and emergency services. In February this year, EH216-S completed Europe's first autonomous eVTOL 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, further expanding our global footprint to the 19th country. To date, our 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 will 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 aerial sightseeing 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 eVTOL products and operational services. Confident in our long-term growth prospects, we expect total revenue for 2025 to reach CNY 900 million, representing an approximately 97% increase year-over-year.

Now, I'll turn the call over to our CFO, Conor, for the financial performance. Thank you.

Conor Yang (CFO)

Hello everyone, this is Conor. Before I go into details, please know that all numbers presented are in RMB unless otherwise stated. Detailed analyses are contained in our earnings press release, which is available on our IR site. I will now highlight some of the key points here. I am pleased to report that we closed 2024 on a strong note, surpassing expectations for both Q4 and the full year. In Q4, we achieved record revenues of RMB 164.3 million, representing an impressive 190% year-over-year growth. For 2024, our total revenues reached an all-time high of RMB 456.2 million, up a substantial 289% year-over-year. This outstanding performance was primarily driven by strong eVTOL market demand, along with our well-coordinated and impactful strategic initiatives in key areas including OC certification, production scaling, and commercial readiness.

On deliveries, we set a new quarterly record with 78 units of the EH216-S delivered in Q4, marking a 239% year-over-year increase and a 24% sequential growth. For 2024, total deliveries of the EH216 series reached 216 units, up 315% from 52 units in 2023. Our gross margin for Q4 was 60.7%, slightly down from 64.7% in the same period of 2023 and on par with Q3. For full year 2024, the annual gross margin was 61.4%, a slight decrease from 64.1% in 2023. The decreases in gross margin were primarily due to changes in the revenue mix and higher unit costs for the EH216-S. Despite these modest declines, our gross margin remained high at 60%, highlighting our competitive edge and pricing power in the eVTOL sector.

Turning to the operating expenses, in Q4, adjusted operating expenses, which is defined as operating expenses excluding share-based compensation, were RMB 78.2 million, up 22% year-over-year from RMB 64.2 million, but down 10% from Q3. The sequential decline reflects cost control and efficiency optimization, while the year-over-year increase was mainly due to the expansion of sales channels, higher employee compensation, and investments in new eVTOL models. In addition, we continue to actively invest in the development and iteration of new eVTOL models and technologies since we obtained the three airworthiness certificates. For 2024, adjusted operating expenses were RMB 290.1 million, up 28.2% from RMB 226.3 million in 2023. Strong top-line growth and cost efficiency contributed to a solid improvement in non-GAAP profitability. Adjusted operating income for Q4 was RMB 27.9 million, a significant improvement from the adjusted operating loss of RMB 24.9 million in Q4 2023 and up 208.2% from Q3.

In Q4, we realized the third consecutive quarter of adjusted net income for RMB 36.4 million, a sharp improvement from the adjusted net loss of RMB 22.1 million in Q4 2023 and up 132.3% from Q3. For 2024, we achieved the first-ever annual adjusted net income of RMB 43.1 million, a significant improvement from the adjusted net loss of RMB 139 million in 2023, marking our entry into a new phase of sustainable and accelerating profitability. Alongside strong revenue growth and improving profitability, we also maintained a solid liquidity position. As of the end of Q4, our total cash and cash equivalents, restricted short-term deposits, and short-term investments was RMB 1,155,000,000. This strong cash balance provides us with strategic flexibility to support growth initiatives, invest in innovation, and enhance market competitiveness.

Notably, we recorded our fifth consecutive quarter of positive operating cash flow and the first-ever annual positive operating cash flow, amounting to approximately RMB 160 million in 2024, demonstrating our ability to generate a sustainable cash flow while scaling operations. Looking ahead to 2025, we are in the final stretch of obtaining operator certificates. We believe that the achievement of this key milestone, along with our active progress in eVTOL commercialization readiness, operational deployments, production scale-up, technological innovation, and global market expansion, will further solidify our industry leadership, lay a strong foundation for accelerated growth, and drive us into a new growth cycle. Based on our current progress and market demand, we're expecting a total revenue in 2025 of approximately RMB 900 million, representing a year-over-year increase of 97%. Thank you.

Operator (participant)

Thank you. Now, let's open the call for questions. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Ting Song from Goldman Sachs. Please go ahead.

Ting Song (Analyst)

谢谢，谢谢接受我的提问。我就一个问题是关于产能这边的，就是我们刚刚提到说云浮今年年底会有1,000台的产能，那我们怎么看合肥跟威海这边在就是2025年、26年的进展会是怎么样？然后另外就是年底到了1,000台产能，我们怎么理解最后的那个产量跟产能的关系，就是我们的产能利用率在2025到26年之间大概会达到多少？谢谢。

Thank you for taking my question. I just have a question which is regarded on the production capacity. I know we are expanding our production capacity for the Yunfu phase II. Wondering what kind of added production capacity we are looking at for the Hefei production facility by the end of 2025 and 2026. Also, if we're talking about a total production capacity of 1,000 units, how much volume are we seeing? How much will be the utilization rate we're looking at between 2025 and 2026? Thank you.

大家好，这个问题我来回答。云浮二期的扩产会在今年完成，然后以千架规模的总年产能。未来云浮一期和二期的产线分工也会更加明确和精细，分别聚焦在这个航台、零部件、生产加工，还有整机组装。此外，在云浮呢，我们还通过与英布尔的合资公司在智能制造和供应链管理方面合作，进行产线的改造和扩张，并提升自动化制造水平和生产效率。合肥呢，我们是计划与江淮汽车、合肥国贤共股成立合资公司，在合肥建立现代化的地工航空器生产制造基地。根据合肥政府的计划，预计会在一年半到两年左右完工。此外，我们在山东威海和北京房山。

I'll take this question. For Yunfu phase II, for the capacity expansion, this will complete this year, reaching a total annual capacity of 1,000 units. The Yunfu phase I and phase II production lines will have specialized focuses. They will be focusing on aviation materials/components manufacturing and aircraft assembly, respectively. Additionally, with our joint venture with Enpower, we are also upgrading the production lines, improving the automation and efficiency in manufacturing and supply chain management. With regard to Hefei, we plan to establish a JV with JAC Group and Hefei Guoxian Holdings to build a modern low altitude aircraft manufacturing facility. According to the planning of the Hefei local government, the expansion construction work is expected to be completed in one and a half to two years.

此外，我们在山东威海和北京房山也有生产规划。刚才已经详细介绍，公司未来整体产能扩张的原则是以销定产，有序扩张，按华南、华东、华北等区域进行综合布局，并且根据载人、物流、应急消防等不同细分产品线和业务板块进行精细化的管理。谢谢。

Additionally, we also have plans for production in Weihai, Shandong Province, and Fangshan District, Beijing, as previously mentioned. Our expansion for the capacity follows manufacturing-to-order principle. We will adopt a systematic growth strategy across different parts of China, say, South, East, and North China. They will have specialized management for different product lines, including passenger transport, logistics, and emergency response and firefighting. Thank you.

Operator (participant)

Thank you. Your next question comes from Cindy Huang from Morgan Stanley. Please go ahead.

Cindy Huang (Research Analyst)

感谢接受我的提问，也非常恭喜你们取得了亮眼的四季度业绩。我的第一个问题是想请管理层更新一下获取这个OC的时间点，还有哪些步骤跟预期的里程碑。那第二个问题是想请管理层分享一下一行预计何时能够实现全年GAAP盈利。那随着积极的合作伙伴关系和基础设施建设的推进，能否提供一下未来几个季度的OPEX跟CAPEX的指引？谢谢。

Thank you for taking my question. First, congratulations on the strong Q4 results. Could management provide additional color on the executive timeline for our OC application? What are some of the milestones we are expecting with regard to the application? My second question is that when are we going to achieve a GAAP profitability? With our collaboration initiatives and also the construction of many of the infrastructure and facilities, can you please offer a ballpark CapEx and OpEx for the coming quarters of this year? Thank you.

大家好，我来回答第一个问题。很高兴告诉大家，中国民航局已经完成了首批受理的两家EVITO运营商的OC文件和现场审查工作，包括我们的全资子公司一航同行和我们在合肥的合资运营公司合一航空。也就是作为申请方，第一批这两家运营商都已经完成了所有相关工作。目前只等待局方的最后的审批结果，这已经是个里程碑了。我们期待首批这两张OC证尽快颁发，率先启动商业化运营。

Let me take your first question. We are glad to announce that we have completed, so the CAAC has completed the acceptance and onsite inspection of these two AC applicants. That is for our Heyi subsidiary company. We are now just waiting for, so we have pretty much completed all the required work and just waiting for the final regulatory approval. We also expect these OC will be rewarded to us as soon as possible. The inspection and everything I mentioned itself is already a milestone, and these will provide the basis for us to roll into commercial operations as soon as possible.

我们想强调的是，这将是无人驾驶航空器飞行管理暂时条例新规生效后的首批无人驾驶载人EVITO的OC证书。因此首次OC审定的过程也是相关审定标准的建立完善的过程，责任重大，意义非凡。它将为未来EH216-S乃至整个无人驾驶载人航空器在中国的商业化安全运营规定奠定重要基础和市场能力。谢谢。

I want to emphasize that these will be the first unmanned eVTOL OC issued under the new interim regulations for the UAV flight management. The certification process itself is establishing and also refining the standards. It is a significant responsibility that will set crucial precedents for the safe commercial operation of EH216-S and all unmanned passenger carrying aircraft in China. Thank you.

Conor Yang (CFO)

年。另外呢，在 [Foreign language].

This is Conor. I will take your second question. As we have mentioned, we have achieved non-GAAP profitability in 2024. With your question of how and when are we going to achieve a full year GAAP profitability, according to our plan and also our estimated revenue growth of 97%, which is RMB 900 million revenue in 2025, we expect to achieve GAAP profitability quarterly in the second half of 2024. However, for full year GAAP profitability, that will be sometime in 2026.

今年全年的这个资本支出，就是CAPEX的话，预计在4,000万美元左右，主要会在这个扩充产能。刚才提到这个云浮二期、合肥、威海、北京的这个生产基地。另外我们在这个消防机、物流机方面的持续投入，还有在这个广州新总部的建设，预计今年能够完成。所以在CAPEX上的预计大概是4,000万美金。

With regard to CapEx, our full year CapEx guidance for 2025 will be $14 million. The CapEx will be used in scaling up our production capacity in Yunfu phase II, Weihai, Heyi, as well as our planned production site in Fangshan District, Beijing. We will also use the money for developing models that will be used in emergency response and logistics. Plus, there's going to be investment in construction of our new headquarter in Beijing, in Guangzhou.

对，另外这个整个OPEX的这个增长的话，2025年整个运营费用的话，我们预计增长同比增长大概在40%左右。

We expect the OpEx to grow at 40% year-over-year in 2025.

谢谢。

Thank you.

Operator (participant)

Thank you. Your next question comes from Wei Shen from UBS. Please go ahead.

Wei Shen (Research Analyst)

各位管理层晚上好。我想两个问题，一个是想问一下公司的一个毛利率的一个展望。第二个问题是想问一下2025年公司的一个融资计划。谢谢。

Two questions. Good evening, management. Two questions. One is on the gross margin outlook, and the other one is on financing plans in 2025.

Conor Yang (CFO)

我是Conor，我来回答。毛利率的话，我们的目标毛利率是60%，但是会有一些上下变浮动的这样的因素。如果刚才提到就是说我们今年会在产品上更加的多元化，那这个可能会对还有国外的这个扩充，这对毛利率会有所帮助。另外就是说我们会发展这个经销商，所以这个经销商的加盟的话，毛利率可能会有所向下。所以目标在60%，那可能会有上下的一些变动。

Our targeted gross margin is around 60%, give or take. To achieve that, we are going to adopt two initiatives. For one, we are going to invest more efforts, roll out more product lines to make our product offering more diversified, with the diversification that's going to help drive up the gross margin. The second initiative we are planning to, what I've just mentioned, that will going to help grow the gross margin. However, we are planning to do a distribution model, which is going to sacrifice the gross margin a little bit, but give or take, we're aiming 60% gross margin.

公司的这个融资计划，去年我们这个累计融资了将近1亿美元，然后我们现金储备超过了11亿人民币。那在2024年我们也创造了这个全年的正向现金流1.6亿。所以目前公司的这个自身经营情况具备了自我造血能力，也进入了这个健康的发展轨道。但当然随着这个我们今年会加速市场，还有这个业务的这个扩张，当然在市场预期也会通过进一步的融资来增加我们的资金实力，有助于公司在这个EVITO新的技术、新的产品的研发，还有这个市场销售的这个开拓，在各地生产基地的这个扩张，还有这个团队的这个人员的扩充，为公司下一个阶段增长提供更充足的资金。谢谢。

Last year we raised nearly $100 million. Also, our current cash reserves exceeded RMB 1.1 billion. As I mentioned, our positive cash flow is around RMB 160 million for 2024. As you can see, our business is self, you know, we have a business of self-sustaining capability and healthy development. With regard to this year, we'll accelerate market and business expansion, seeking additional financing to strengthen our capital position. This will support new eVTOL technology and product development, market expansion, new headquarters construction, production facility development, and team growth. Ensuring sufficient funding for our next growth phase. Thank you.

Operator (participant)

Thank you. Your next question comes from Laura Li from Deutsche Bank. Please go ahead.

Laura Li (Analyst)

Hi. Thank you for taking my question and congrats on a strong year. My first question is about the air taxi part. We noticed there are increasing announcements of UAM, either you're building like an experience center or like development of digital infrastructures. Just wondering, is there any rough timeline for the air taxi operation and any notable milestones in between?

首先感谢管理层接受我的提问，恭喜全年降落的业绩。我这边问题是关于空中出租车的，然后我们其实留意到市面上有更多的关于UAM相关的新闻发布，或多是关于体验中心或者是合作开发一些数字技术设施等等。那我想问一下，我们公司空中出租车运营的大致的时间表以及重要的里程碑有哪些？谢谢。

Huazhi Hu (Founder, Chairman and CEO)

我是王哲，我来回答这个问题。空中出租车的场景是一行长期以来希望实现的愿景和公司使命。但是航空业是把安全放在第一位的行业，需要一步一步稳扎稳打。因此我们这两年会先在国内各个旅游景区都先备起来，累积足够多的安全运行数据，再过渡到空中出租车的场景。空中出租车的场景落地有赖于地面的基础建设、起降点，低空的一些数字基建，包括通信、导航、监视、空中交通系统这些的完善。目前国内各地都出台了明确的低空基建规划和落地时间表。很多城市未来三年计划建设数百上千规模的低空飞行的测量坪和航线。目前我们正在与中交集团设计建设城市空中交通枢纽航站楼。同时作为行业先行者，不仅参与建研建策，我们也在积极的规划布局，包括我们与中交、中建、各地政府的合作，也是在为 air taxi 的生态构建和场景落地铺路。

Thank you. This is Huazhi Hu. I will take this question. While air taxi services remain our long-term vision and mission, aviation prioritizes safety above all, requiring careful step-by-step progress. Over the next couple of years, we will first establish operations in domestic tourism areas to accumulate enough data before we venture into air taxi services. Air taxi implementation depends on ground infrastructure, particularly ports and many low-altitude digital infrastructures, including communication, navigation, surveillance, air traffic management. Right now, cities across China have put forward clear and specific plans and timelines for the infrastructure construction, with many planning hundreds to thousands of vertiports and routes over the next three years. As an industry pioneer, EHang is actively contributing to policy development and infrastructure planning.

Partnerships with CCCC and CSES, CICEC and many local governments are actually helping to build the ecosystem and framework for air taxi operations.

Operator (participant)

Thank you. Your next question comes from Rongyan Zhou from CITIC. Please go ahead.

Rongyan Zhou (Analyst)

首先感谢管理层之前的介绍，然后也感谢接受我的提问。我这边主要有两个问题。第一个就是关于我们国外的问题，就是我们公司在国外的整体的这个各种这种认证的进度和订单的进展是什么样的。第二个问题就是关于我们收入的多元化的一个计划和一个预测或者规划。当然这里的收入的这个多元化更多的是指就是说除了我们在制造端的收入之外，我们在其他的像商业运营之后或者商业，或者说是在除了制造之外的这些收入的构成，大约会是一个怎样的计划的指引。谢谢。

Thank you for the presentation, and thank you for taking my question. My questions are on your overseas market. The first one is the progress of our OC certification, as well as the orders. What kind of situation are we at right now? My second question is on our plans on diversifying our revenue streams. With that, I mean particularly what kind of revenue growth or mix are we looking at outside of manufacturing of these flying vehicles? Any guidance or plan on that?

这两个问题我来回答。第一个是有关国外的认证。那么四季度以来，我们在日本、泰国、西班牙、墨西哥等地完成了飞行演示。飞行足迹现在已经拓展到19个国家。去年我们在阿联酋、日本、多米尼亚等海外国家均有订单交付。通过当地的飞行演示以及和多国民航局的深入接触，我们作为无人驾驶载人航空机的开创者，一直在持续推动各国对新型航空机的适航认证。多民航局也非常的支持我们在海外的适航取证。我们会跟局方一起携手推动无人驾驶载人航空机这一新型的航空机在海外的认证，积极探索先试的思路和方式，争取早日让我们的 EVITOL 在海外运行起来。谢谢。

I'll take the question. Since Q4, we have completed flight demonstrations in Japan, Thailand, Spain, Mexico, and many others, expanding our flight footprint to 19 countries. Last year, we delivered orders to overseas markets. That includes UAE, Japan, and Dominica. As pioneers in pilotless passenger carrying aircraft, we are actively engaging with civil aviation authorities worldwide through local flight demonstrations and discussions to promote the airworthiness certification for this new aircraft. The CAAC is very supportive of our efforts in applying for international certification, and we are working together to promote the certification of unmanned passenger carrying aircraft overseas. We are actively exploring some innovative pilot-first approaches to expedite the international operations of our eVTOLs. Thank you.

[Foreign language]

On your second question of diversifying our revenue streams, EHang maintains a dual strategy of both operations and sales. We position ourselves beyond just being an eVTOL manufacturer. We build a complete lifecycle value system for our customers, featuring hardware, service, and operations. This includes product sales, customer service, personnel training, aviation materials, maintenance software systems, and route planning and operations. As the eVTOL commercial operations scale up, EHang will develop more diversified revenue streams. Additionally, I want to tell you that beyond the passenger transportation, we are intensifying our efforts on logistics and firefighting business this year to broaden our revenue sources. Thank you.

Operator (participant)

Thank you. Your next question comes from Yiming Wang from China Renaissance. Please go ahead.

Yiming Wang (Analyst)

好的，感谢管理层接受我的提问。我有两个问题。第一个问题是想请教一下目前公司的新增订单情况。第二个问题是有关和江淮的合作。那想请问在和江淮的这个生产基地合作过程中，EHang 和江淮的具体决策分工以及未来的成本和收益是如何分摊的？谢谢。

Thank you for taking my question. I got two questions. One is on the updates on new orders, and the second question is on the collaboration with the JAC production base. What kind of roles will JAC and EHang play in this JV, and what kind of profit split and also cost split are we looking at between you two? Thank you.

[Foreign language]

Our domestic demand is very strong, with the current intentional orders exceeding 1,000 units, plus many more orders are under negotiation. Just so you know that we have dozens of clients who place orders of dozens of units at each time. Additionally, you should know that China has nearly 15,000 grade A and above tourism attractions for aerial sightseeing, and there are nearly 700 cities that offer or are planning air mobility services. We remain optimistic about the strong demand for our eVTOL products and operational services. Thank you.

最后问题是关于江淮的合作。那么此次和江淮汽车的合作是在合肥市政府的支持下展开的。我们和江淮汽车、合肥国乡控股在合肥成立合资公司，建立 EVITOL 的制造基地。江淮汽车在传统汽车制造领域积累了成熟的制造能力和供应链管理经验。我们的优势是在于 EVITOL 领域的先进的研发、生产和试航经验。因此此次合作将充分发挥双方在各自领域的优势。这是合资公司的具体细节还在讨论中，现在还暂时不能透露。

With regard to your second question, the joint venture partnership with JAC is actually carried out with the support of the Hefei municipal government, and we are building a joint venture with JAC and Hefei Guoxian Holdings to build an eVTOL production base. JAC has accumulated expertise in manufacturing and supply chain management in the automobile sector, whereas for us, we are leading in the development, production, and OC in the eVTOL sector. This cooperation will bring the best of us and leverage both parties' respective advantages. With regard to the specific details of this JV, it is still under discussion, and I'm sorry I could not disclose more at the moment. Thank you.

Operator (participant)

Thank you. Your next question comes from Yu Chen from Guangzhou Securities. Please go ahead.

Yu Chen (Analyst)

好的，感谢管理层接受我的提问。那非常恭喜，首先先恭喜一下公司在 2020 年又取得非常大的突破，也是非常棒的成绩。我这边的话就是有一个问题，关于财务方面的问题想跟领导再确认一下。就是关于这个咱们的这个四季度的报表来看的话，管理费用和研发费用环比都是有一个显著的增加。那想请领导如何看待我们未来一两年内这两项费用的一个趋势。

First of all, thank you for taking my question and congratulate on the breakthroughs and the strong results achieved in 2024. I got a question on the financials that I would like to double-check with the management. In Q4, we have seen that management and R&D related expenses grow significantly, quarter-over-quarter in Q4. How does management view the trend for these expenses for 2025?

Conor Yang (CFO)

对，目前公司呢，处于这个业务扩张期，所以呢，这些费用都有所上升。但是呢，如果各位看一下，就是这些各项费用呢，占收入的这个比例呢，是显著的下降的。所以我们的这个利润率也在提升。那未来从今年到明年来讲，我觉得就是说研发费用、销售费用肯定会持续上去，但是这个管理幅度也会有部分的增加。但这个增加比例呢，肯定是远低于我们收入的同比的这个增长比例。刚才提到我们在今年销售预期 97% 的同比增长下，我们预计整体的这个运营费用的话的同比增长应该在 40% 左右。

Thank you for asking that question [crosstalk]. You know that the company is still expanding, and that's why we are seeing substantial revenue and delivery growth over the past year. We are also expanding our team, leading to increased expenses. However, expenses as a percentage of the revenue have decreased significantly. Looking into this year, we expect the sales and R&D expenses to grow, definitely for sure, with moderate growth in management expenses. As revenue growth will outpace expense growth, we expect the ratio of SG&A to revenue to continue declining. As you know, we are projecting a 97% growth in our revenues, whereas our operation growth related costs will grow at 40% year-over-year. Thank you.

Operator (participant)

Thank you. Your next question comes from Ling Liu from Guosheng Securities. Please go ahead.

Ling Liu (Analyst)

各位管理层好，首先恭喜我们的马航业绩。我想请教两个问题，第一个是关于我们 EHang IO 的电池，想问一下咱们目前下一代的锂电池的进展怎么样？有没有预计的一个升级的时间，或者能否分享一下就是升级后的这种续航表现会是什么样子？然后第二个问题呢，是关于我们的长航程的产品 VT-35，这个产品的升级目前有哪些进展，以及我们自己预计什么时候能够去提交 TC 申请呢？谢谢领导。

Thank you. Two questions. One is on the EH216 battery. What is the progress on the next generation lithium batteries, and what are the expected upgrade timeline and the anticipated flight endurance improvements? How are that looking? Second question is on the product of VT-35. What is the update on that, and when are we planning to submit to the TC application? Thank you.

第一个关于电池，我来回答。目前电池这块呢，我们分为了两个研发方向。第一个呢，是快充电池，我们和聚氨基盐达成合作，目前已经有样品送到公司进行测试，可以大幅度的缩短飞行器的充电时间。第二个是固态电池，我们战略投资的新建能源，双方配合度和研发进展非常好，以实现阶段性的重大技术突破，使得 216 的这个续航时间实现了翻倍的提升。因此今年我们将继续优化一下各项的性能，开展场景验证。争取年底之前实现装机量产。谢谢。

With regard to battery, right now we are pursuing two directions for the battery involvement. First, on the fast charging batteries. Fast charging, we are partnering with Greater Bay Technology and currently testing samples that could significantly reduce the charging time. That is for one. Secondly, on the solid-state batteries, our strategic investment in Inx Energy is progressing well. We are having very excellent cooperation and R&D breakthroughs. We have doubled the EH216 flight endurance, and we will continue fine-tuning the performance and conducting more scenario validation. We are aiming for mass production and installation by the end of this year. Thank you.

第二个是有关长航程飞行器。长航程飞行器 VT-35 的研发样机已经在总装调试了。我们计划尽快完成全功能的试飞，并随后又启动试航审定的项目。不久就会展现在大家的面前了。谢谢。

With regard to the long-haul model VT-35, right now the development prototype is currently in its final assembly and debugging stage. We plan to complete the full-function flight testing soon and initiate the airworthiness certification project. It will be unveiled to the public shortly.

Operator (participant)

Thank you. Seeing no more questions in the queue, let me turn the call back to Ms. Ji for closing remarks.

Anne Ji (Senior Director of Investor Relations)

好的，感谢主持人，也感谢各位今天参加我们的业绩电话会议。如果大家有进一步的问题，也欢迎通过电子邮件联系电子邮件联系我们的这个投资者关系团队。另一个呢，我们在公司的 IO 网站上也发布了日后的这个投资者活动的一些日程。我们也非常期待通过线上线下跟各位分析师和投资者有更加深入的交流。最后感谢大家的关注，并且期待我们下一次的财报电话会议。谢谢。

Thank you, Operator, and thank you all for participating on today's call. If you have further questions, please contact our IR team by email or participate in the following investor event through the calendar information provided on our IR website. We appreciate your interest and look forward to our next earnings call. Thank you.

Operator (participant)

Thank you all again. This concludes the call. You may now disconnect.