Turning losses into profits! EHang Intelligent Q2 revenue soared 9 times year-on-year, expecting to obtain the first operational qualification certificate within the year | Financial Report Insights

The low-altitude economy is flourishing, and the eVTOL technology leader EHang Intelligent achieved historical highs in both sales and revenue in the second quarter, unexpectedly turning losses into profits. The company expects to obtain its first operational certificate within the year.

On August 22, EHang Intelligent released its financial performance report for the second quarter of 2024.

1) Key Financial Data:

Revenue: The revenue in the second quarter reached 102 million yuan, hitting a historical high for the company, with a year-on-year increase of 919.6% and a quarter-on-quarter increase of 65.3%, marking the highest growth rate in the company's history.

Profit: The company turned losses into profits in the second quarter, with an adjusted net profit of 1.15 million yuan. Market expectations were for a loss of 24 million yuan, compared to a loss of 51.77 million yuan in the same period last year.

Cash Flow: EHang Intelligent has achieved positive operating cash flow for three consecutive quarters, raising approximately 550 million yuan from the ATM project. There will be no further ATM issuance within the year.

2) Key Business Highlights:

In the second quarter, a total of 49 EH216-S aircraft were delivered, setting a historical record. In the same period last year, 5 aircraft were delivered, and 26 were delivered in the first quarter.

3) Performance Outlook:

For the third quarter, the company expects total revenue to be around 123 million yuan, with a year-on-year increase of approximately 329.8% and a quarter-on-quarter increase of 20.6%.

Following the financial report announcement, EHang Intelligent's US stock rose over 4% in pre-market trading.

Regarding the strong growth in performance, EHang Intelligent's founder, chairman, and CEO, Hu Huazhi, stated that the EH216-S has obtained three certifications, allowing the company to accelerate production and delivery processes. Coupled with government support policies to promote the development of the low-altitude economy, demand and orders from domestic and international customers, including governments and tourism operators, have significantly increased. As a result, the company delivered 49 EH216-S aircraft this quarter, achieving a historical high, driving substantial revenue growth, and signing purchase orders and intent orders for hundreds of EH216-S aircraft with domestic customers.

Expected First Operational Certificate to be Approved Within the Year

In April this year, EHang Intelligent's EH216-S became the world's first eVTOL aircraft with all three certificates: Type Certificate (TC), Airworthiness Certificate (AC), and Production Certificate (PC). According to the specifications, the EH216-S has a length of 5.73 meters, a height of 1.93 meters, can be fully charged within two hours, has a maximum flight speed of 130 kilometers per hour, a flight time of 25 minutes, and a designed range of 30 kilometers EH216-S can be used in scenarios such as passenger transportation, tourism, logistics, medical emergency, etc., currently priced at 2.39 million yuan.

It is reported that EHang Intelligent received multiple sales projects in the second quarter:

In May of this year, EHang signed a memorandum of understanding with Xishan Ecotourism Investment and Construction Co., Ltd. ("Xishan Tourism") in Taiyuan City, receiving a purchase order for 50 EH216-S and full payment of 113 million yuan (15.5 million US dollars). EHang has delivered the first batch of 10 units to Xishan Tourism in the second quarter of 2024;

In June of this year, EHang Intelligent signed a cooperation agreement with the government of Wencheng County, Wenzhou City, Zhejiang Province, China, and obtained an order for 30 EH216-S.

EHang Intelligent has also begun planning for the next commercial operation. According to Xinhua News Agency, in July of this year, the Civil Aviation Administration has formally accepted the operation qualification certificate ("OC") application submitted by EHang Intelligent's wholly-owned subsidiary EHang Tonghang and the joint venture operation company Hefei Heying Aviation, which are specifically engaged in UAM operation services. Currently, the CAAC review team has completed the document review work and will conduct on-site inspections in Hefei next. EHang Intelligent expects the first OC to be approved within this year.