EHang Posts 2Q Earnings, Progress on Certification of its eVTOL Prototype

EHang, the Chinese eVTOL firm which trades on the Nasdaq, has posted 2Q earnings with total revenue up 152% from 2Q 2021 and increasing pre-orders in its Asia market. The firm also logged firm orders for 8 of its EH216 prototype eVTOL, bringing its 2022 sale/delivery total to 11.

The EH216-S Type Certification process has progressed into new phases following that the Civil Aviation Administration of China (“CAAC”) issued EHang with the first Special Conditions for TC of a human-carrying unmanned aircraft system specially for EH216-S in February 2022. The CAAC TC expert team and EHang have reached a consensus on the Project Specific Certification Plan, Certification Basis, and the Certification Plan, respectively.

On top of references to CCAR-23 and many other internationally recognized regulations and standards, and conventional aircraft configuration management and airworthiness experience, EHang certification team has made further innovative explorations on new topics related to unmanned aircraft system, such as unmanned system, data link and ground control system, and worked out 13 means of compliance applicable to EH216.

Mr. Huazhi Hu, EHang’s Founder, Chairman and Chief Executive Officer, said, “During the past quarter, we achieved excellent results from our efforts in actively adapting to the macro environment and gradually recovering from the continuous impact of the COVID-19 resurgence in China. Our unique and leading AAV products and solutions drove the increases in orders, pre-orders, deliveries and customers especially in domestic and Southeast Asia markets, bringing total revenues to an increase of up to 152.5% quarter-over-quarter and high quarterly gross margin of 67.1%. We are pleased to expand our strategic business and financial partners, such as C.P. Group in Thailand on AAV sales and UAM operations, and the Agricultural Bank of China Guangzhou Branch with RMB1 billion indicative credit facilities for long-term cooperation, which will further diversify our funding sources to propel our future growth.”

“More importantly, we are grateful for both the CAAC and our certification team’s efforts, professionalism, innovation spirit, and great support, that made our today’s certification progress and breakthrough possible, bringing us closer to the goal of the EH216-S type certification and a new era of urban air mobility.”

Why it matters: EHang is expecting a strong outlook for its eVTOL prototype and marketability. EHang continues to move forward its EH216 certification, securing more product orders, and expanding its regional aerial media business in the Europe market. If it can acheive type certificate from China’s CAAC, expect strong market share in many Asian markets for the EHang EH216.

Source: EHang Press Release