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EHang reports revenue increase over last quarter

By Jen Nevans | August 18, 2022

Estimated reading time 3 minutes, 58 seconds.

China-based eVTOL developer EHang said the company has reached a consensus with the Civil Aviation Administration of China (CAAC) on its certification basis and plan for its two-seat EH216-S autonomous aerial vehicle (AAV).

EHang
EHang told shareholders on Aug. 18 that it is making progress with its type certification program for the EH216-S eVTOL aircraft. EHang Image

“After obtaining the airworthiness certificate, the EH216 is expected to provide our tourism customers and end users with a unique, safe, technologically advanced and cost-effective low-altitude flight tourism experience,” Xin Fang, chief operating officer of EHang, told shareholders during the company’s second quarter earnings call on Aug. 18.

The company said it has worked out 13 means of compliance requirements related to the EH216 eVTOL, and is continuing to carry out internal tests and planning activities to demonstrate compliance.

During the second quarter, EHang secured its largest pre-order in Asia with 100 units from Prestige Aviation in Indonesia. The company also formed a partnership with Charoen Pokphand Group to introduce autonomous urban air mobility to Thailand, as well as sold and delivered five units to Tianxingjian Cultural Tourism Investment and Development LLC in China.

EHang and Tianxingjian plan to use the eVTOLs for aerial sightseeing in the Aizhai Wonder tourist area in Jishou, with Tianxingjian intending to purchase another 25 units as the project progresses.

In its latest second quarter earnings report, EHang reported RMB14.6 million (US$2.2 million) in total revenues — up 152.5% from RMB5.8 million (US$0.9 million) in the first quarter of 2022. EHang credits this to the increase in sales and deliveries of its EH216.

Huazhi Hu, EHang’s founder, chair and CEO, said the company “achieved excellent results” this quarter and has adapted and recovered from the impacts 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 Asian markets,” Hu said.

EHang reported a net loss of RMB73.9 million (US$11 million) in the second quarter of 2022, and as of June 30, 2022, its cash and cash equivalents sat at RMB240.7 million (US$35.9 million).

To support EHang’s operations in China, including its research and development, manufacturing, and sales, the eVTOL startup partnered with the Agricultural Bank of China’s Guangzhou branch to provide the company with indicative credit facilities of RMB1 billion (US$149 million).

Hu expects this partnership will “further diversify our funding sources to propel our future growth.”  

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