EHang Reports Third Quarter 2024 Unaudited Financial Results (summary)

EHang Holdings Limited, a leading Urban Air Mobility (UAM) technology company, reported strong financial results for the third quarter of 2024, marked by record-breaking revenues and significant progress across its business operations. Total revenues reached RMB128.1 million (US$18.3 million), reflecting a year-over-year increase of 347.8%. This was driven largely by the sale and delivery of 63 units of the EH216-S, the highest quarterly delivery volume in the company’s history.

Gross margin for the quarter stood at 61.2%, slightly lower than the previous year, mainly due to increased unit costs for certified airworthy products. Operating losses narrowed to RMB54.7 million (US$7.8 million), showing improvement over previous quarters. Importantly, the company achieved adjusted net income of RMB15.7 million (US$2.2 million), marking its second consecutive quarter of non-GAAP profitability.

EHang maintained positive operating cash flow for the fourth consecutive quarter and enhanced its liquidity through a strategic PIPE investment of over US$22 million. This investment came from Enpower and a strategic institutional investor from the Middle East, boosting the company’s financial capacity to fund growth initiatives, expand production, and advance its next-generation eVTOL technologies.

Operationally, EHang made significant strides in eVTOL (electric vertical takeoff and landing) aircraft deployment and mass production across multiple Chinese cities. The company successfully received essential certifications for the EH216-S, including the type certificate, production certificate, and standard airworthiness certificate.

EHang has launched UAM demonstration projects in pioneering cities such as Hefei, Guangzhou, Shenzhen, and others to establish urban air mobility hubs and expand eVTOL services for urban transport, aerial sightseeing, and other applications. In Hefei, the company launched the “Ascend” UAM Hub, capable of accommodating up to 20 units of EH216-S, complete with zones for passenger services and operations.

EHang expanded its footprint internationally with notable progress in several countries. The EH216-S eVTOL completed experimental and demonstration flights in Brazil, Thailand, Japan, and the United Arab Emirates (UAE), marking significant milestones in its international expansion. In Brazil, the National Civil Aviation Agency (ANAC) granted the Experimental Flight Authorization Certificate, and the EH216-S made its debut flight.

Similarly, in Thailand, the Civil Aviation Authority issued a Demonstration Flight Permit, allowing the EH216-S to perform a series of passenger-carrying flights in Bangkok. In Japan, the aircraft completed a flight tour across four cities, highlighting its versatility for aerial sightseeing, logistics, and emergency services. Across these countries, EHang has conducted more than 56,000 safe flights across 18 countries in Asia, Europe, North America, and Latin America.

EHang made considerable progress on several technological fronts, including a breakthrough in solid-state battery technology for eVTOLs. The EH216-S successfully completed its first flight test using a high-energy solid-state battery, resulting in a significant improvement in flight endurance up to 60%-90% longer than previous lithium batteries. The company plans to continue collaboration with Inx, a solid-state battery provider, to further develop and certify these batteries for larger-scale production by 2025.

In addition to expanding its product line, EHang upgraded its lift-and-cruise eVTOL model to the VT-35, designed for longer-range flights across inter-city, cross-bay, and cross-mountain routes. The new model complements the EH216-S, which focuses on intra-city operations, thus extending EHang’s comprehensive coverage of low-altitude urban air mobility needs.

EHang also formed strategic partnerships to enhance operational capabilities and talent development. In collaboration with the Civil Aviation Flight University of China (CAFUC), EHang aims to develop skilled personnel for its eVTOL operations, including pilots and maintenance staff, to support the growing demand in the UAM industry. Another key partnership with Zhuhai Enpower Electric Co., Ltd. aims to develop high-performance electric motor drive systems for eVTOLs, optimizing weight, power density, and cooling performance.

Throughout the third quarter, EHang also secured new orders for the EH216-S from customers such as KC Smart Mobility and Sunriver. KC Smart Mobility, a subsidiary of Kwoon Chung Bus Holdings Limited, plans to purchase 30 units for tourism and transport services in Hong Kong, Macau, and mainland China. Sunriver, a leading tourism company in China, signed a cooperation agreement to buy 50 units for cultural tourism projects, demonstrating the growing demand for eVTOLs in the tourism industry.

Looking ahead, EHang remains focused on accelerating commercialization, expanding operational routes, and leveraging new technologies to enhance the capabilities of its eVTOL solutions. For the fourth quarter of 2024, the company anticipates revenues of around RMB135 million, representing a 138.5% year-over-year growth, and expects to achieve total revenues of RMB427 million for the full year.

The company remains committed to advancing its market position as a pioneer in Urban Air Mobility, driving innovation, and establishing an extensive low-altitude air transportation ecosystem across both China and international markets.

Source: ehang.com