EHang recently released its Q4 Financials, 2023. The results are good news for the company and its investors, reports a press release.
Financial and Operational Highlights for Q4, 2023
Total Revenues: RMB117.4 million (USD16.5 million), representing a substantial increase of 165 percent from RMB44.3 million in 2022.
Gross Margin: 64.7 percent representing a consistently high gross margin level on par with 64.6 percent in Q3.
Operating Loss: RMB296.3 million (USD41.7 million), representing a 2.5 percent improvement from RMB304.0 million in 2022.
Net loss: RMB302.3 million (USD42.6 million), representing an 8.2 percent improvement from RMB329.3 million in 2022.
Sales and deliveries: 52 units of the EH216 AAV were sold in 2023, a significant increase compared with 21 units in 2022.
_____________________________________________________________________________________________________________________________________________________________________________
Business Highlights and Recent Developments During Q4, 2023
- Gained World’s First Pilotless Passenger-Carrying eVTOL Type Certificate and Standard Airworthiness Certificate for EH216‑S from the CAAC. These certifications demonstrate the AAV full compliance with safety standards and airworthiness requirements set by the CAAC. EHang now holds official approval for passenger-carrying commercial operations in China.
- Company began deliveries of certified aircraft to customers during Q4.
- The low-altitude economy (LAE) is now positioned as one of the national strategic emerging industries in China. Close to 20 provinces across the country have prioritised LAE in 2024, leading to implementation of favourable policies and regulations; attractive funding and subsidies; infrastructure support and suitable sites for eVTOL operations; paving the way for establishing a sustainable low-altitude ecosystem.
- To expedite EHang’s eVTOL sales and deliveries and to prepare for UAM commercial operations, collaborations between the public and private sectors are being fostered in pioneering cities such as Shenzhen, Guangzhou, Hefei, and Wuxi in China.
- In Guangzhou, the first certified EH216‑S with AC issued by the CAAC was delivered to a customer in Guangzhou in December 2023, who then conducted passenger-carrying flights at Jiulong Lake Park. More operation sites and flight routes for aerial sightseeing and logistics are planned for Guangzhou.
- In Hefei, EHang entered into a strategic cooperation agreement with the Hefei Municipal Government in October 2023 for joint development of a LAE economy ecosystem, which includes a target amount of USD100 million in extended support. EHang has delivered 15 units of EH216‑S to Hefei in Q4, 2023. The AAV completed passenger-carrying flights in Luogang Central Park, which is positioned to be a leading UAM super-aero-hub by the Hefei Municipal Government.
EHang 216‑S Flying Over Hefei
- In Wuxi, EHang cooperated with the local government for UAM in March, 2024, and received intentional purchase orders for 100 units of EH216‑S. The local government is to provide comprehensive support for EHang’s eVTOL future operations in Wuxi for various use cases including passenger transportation, aerial sightseeing, firefighting and emergency.
- EHang has expanded to UAE and joined SAVI Cluster and Reached Strategic Partnership as well as sales agreement with Wings Logistics Hub (WLH) for 100 Units with initial deliveries set to commence in Q1 of this year.
- Continuous Development in Europe includes UAM Centre in Spain and Partnership with Telefónica Tech. Last November, a Centre was located inside Spain’s Lleida–Alguaire International Airport. This is specifically for unmanned eVTOL aircraft and is Europe’s first-of-its-kind, setting a worldwide benchmark for the effective integration of such operations with airport infrastructure, air traffic management systems, operational procedures and other information technologies.
- In February, EHang entered into a strategic alliance with Telefónica Tech, a subsidiary of world-leading telecommunications service provider Telefonica. The two companies will partner on network connectivity solutions for deploying UAM intelligent solutions in Europe and Latin America.
Huazhi Hu, EHang’s Founder, Chairman and CEO, remarked, “We ended the year with a quarter marked by robust growth. We have obtained the TC and AC from the CAAC for our proprietary EH216‑S in the fourth quarter, the world’s first of its kind for pilotless passenger- carrying eVTOL aircraft. This significant achievement has had a profound impact on our business, as it has sparked a surge in demand for our remarkable EH216‑S. The market response has been overwhelmingly positive, leading to strong quarterly and yearly revenue growth.”
Conor Chia-hung Yang
Conor Chia-hung Yang, EHang’s Chief Financial Officer, added, “In Q4, the company surpassed our guidance and achieved revenue of RMB56.6 million, representing an increase of 260.9 percent compared with the same period last year. Furthermore, our fiscal year revenues reached RMB117.4 million, witnessed significant growth of 165 percent compared with the previous year. These financial results can be attributed to the higher sales volume of our EH216 series products.”
Since release of the Q4 report, the EHang share price has risen close to 30 percent (USD18.54 at NASDAQ close, Wednesday).
For more information
