EHang Intelligent Q2 revenue was 0.102 billion yuan, a year-on-year growth of 919%, turning the loss into profit. EHang Intelligent expects to obtain the first OC approval within this year.
On August 22nd, EHang Intelligent, the eVTOL leader, released its financial performance report for the second quarter of 2024.
The data shows that EHang Intelligent's Q2 revenue was 0.102 billion yuan, a year-on-year growth of 919% and a quarter-on-quarter growth of 65%. Quarterly revenue reaches a record high. In terms of profit, the company turned its loss into profit (adjusted), with an adjusted net income of 1.15 million yuan, while market expectations were for a loss of 24 million yuan.
EHang Intelligent stated that its revenue growth benefited from the first-mover advantage in the sales of low-altitude aviation products after obtaining all three licenses. The flagship product EH216-S has seen a significant increase in sales, with a total of 49 EH216-S products delivered in the second quarter, a rapid increase compared to 5 in the same period last year and 26 in the first quarter.
Regarding the backlog of orders, EHang Intelligent stated that the EH216 series has accumulated more than 1,000 orders in China since the third quarter of last year.
In addition to sales and delivery, EHang Intelligent has also started planning for the next phase of commercial operation.
The data shows that in July of this year, the Civil Aviation Administration of China has formally accepted the operation certificate (OC) application submitted by EHang Intelligent's wholly-owned subsidiary, EHang General Aviation, and its joint venture operating company, Hefei Wing Aviation, which specializes in UAM operation services. Currently, the CAAC review team has completed the document review and will conduct an on-site inspection in Hefei. The company expects to obtain the first OC approval within this year.
During the evening conference call, EHang Intelligent CEO Hu Huazhi stated that in June of this year, the company signed a purchase agreement for 300 aircraft with a customer in Wencheng County, Wenzhou City, Zhejiang Province. The first batch of 27 aircraft has been delivered in the second quarter and completed the maiden flight in Wencheng Scenic Area. Deposits have been paid for the remaining aircraft, and additional orders will be placed as the customer's operational scale expands.
At the same time, Ehang Intelligence has delivered the first batch of 10 EH216-S aircrafts to Taiyuan Xishan Cultural Tourism for local low-altitude tourism and completed the first manned flight in July in Taiyuan. This is part of the payment for 50 aircraft purchase orders, and Xishan Cultural Tourism will purchase another 450 aircrafts in the next 2 years and create a series of 'low-altitude + tourism' demonstration projects based on local iconic attractions.
To meet the continuous delivery of long-term bulk orders, Hu Huawei expressed that they are planning for future capacity expansion. Based on the strategic cooperation agreements with Guangzhou Airport Commission, Guangzhou Development District Commission, and Guangzhou Automobile Group in the first quarter of this year, and with further signing of a cooperation intention letter with Guangzhou Automobile Group in June, they plan to establish a joint venture to manufacture unmanned passenger aircrafts in Guangzhou, combining the experience and advantages of Guangzhou Automobile Group in intelligent manufacturing and automated production lines for electric vehicles. This will further enhance future production capacity.
In terms of key battery technology, Hu Huawei stated that they are developing the next generation of eVTOL battery solutions that comply with 4H standards (i.e. high energy density, high charge-discharge life, high instantaneous charge-discharge rate, and high safety).
It is reported that in April of this year, Ehang Intelligence and Guangzhou Automobile Group jointly developed the world's first ultra-fast charging eVTOL battery, which is expected to significantly improve the operational efficiency of aircraft and better meet the demand for large-scale and high-frequency UAM operations. In addition, samples of solid-state lithium battery cells developed in cooperation with Xinjie Battery are also being tested.
As of the time of writing, Ehang Intelligence has risen more than 17%, with a share price of $14.67, and a market cap of $0.93 billion.