EHang Q2 2022 Earnings Name

EHang Holdings Restricted is without doubt one of the main passenger eVTOL corporations on this planet.

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On the EHang Q2 2022 earnings name final week, firm executives talked about what’s subsequent for the corporate pioneering aerial tourism and extra in Asia.

EHang Holdings Restricted [NASDAQ:EH]  is held within the AdvisorShares Drone Know-how ETF [NYSE ARCA:UAV], the one ETF devoted to the drone economic system. The AdvisorShares Drone Know-how ETF is a thematic funding technique looking for to seize the expansion alternatives in drones and autonomous autos (AV).  AdvisorShares is a DRONELIFE sponsor.

Since introducing the primary EHang passenger eVTOL on the CES in 2016, the corporate has been on the forefront of growing passenger eVTOLs for purposes that vary from emergency response to aerial tourism.  On the Q2 earnings name, firm executives mentioned that they’re near attaining a first-of-its-kind airworthiness certificates from China’s airspace authorities – a step ahead which can open the skies for EHang.

CEO Hu Huazhi mentioned that throughout the pandemic, EHang “actively tailored to the macro setting at dwelling and overseas,”  increasing “our orders, preorders, deliveries and clients, particularly in China and Southeast Asia,” and driving income up by over 150% from Q1.

Whereas the corporate is actively promoting, they’re targeted on airworthiness certification for the EHang 216-S, a automobile designed for on-deman autonomous air journey in city areas.  In accordance with Huazhi, certification is shut: “Each the CAAC and Guangdong authorities have clearly put pushing forwards related UEM pilot challenge and strongly pushing ahead EHang 216-S AAV sort certification course of,” he mentioned.

COO Fang Xin defined the significance of the certification.  The 216-S is the plane presently used for a trial “scenic flight challenge,” which takes vacationers up for a birds-eye view of the native panorama.  As tourism recovers from the pandemic, greater than 5,700 operational flights of the EH216 have operated on a trial foundation from 11 operational hubs: the shopper, nevertheless, plans to extend their fleet from 5 plane to 30.

“After acquiring the airworthiness certificates, EHang 216 is anticipated to supply our tourism clients and finish customers with a singular, protected, technologically superior, price efficient and nice low altitude flight tourism resolution and expertise,” mentioned Xin.

All informed, EHang has acquired greater than 200 preorders for his or her passenge eVTOLs.

Abstract of the highlights (numbers introduced in RMB) from CFO Richard Liu:

• In Q2 of 2022, complete revenues have been RMB14.6 million, representing a rise of 152.5% from RMB5.8 million in Q1. This was together with a 166.7% improve in EHang 216 AAV deliveries in Q2 to eight models from three models in Q1.
• In Q2, adjusted working bills, that are working bills excluding share-based compensation bills, have been RMB63.4 million in contrast with RMB46.1 million in Q1. The rise was primarily attributed to steady R&D of recent AAV fashions and the continued EHang 216 certification course of, each of that are progressing steadily {and professional} service charges associated to annual report submitting and different authorized issues and extra provisions for accounts receivable in gentle of affect from the continued COVID-19 epidemic and the management measures in China.
• In Q2, adjusted working loss was RMB51.2 million in contrast with RMB41.7 million.
• Adjusted internet loss was RMB50.8 million in Q2 in contrast with RMB40.9 million in Q1.
• Stability sheet: RMB240.7 million of money, money equivalents, restricted money, and short-term investments as of the top of Q2.

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