EHang Q3 2023 Financial Update

EHang, the world's leading urban air mobility technology platform company, reported its unaudited financial results for the third quarter of 2023. Revenues increased by 248% year-over-year and 186% quarter-over-quarter. The company received the world's first type certificate for unmanned eVTOL from the Civil Aviation Administration of China. EHang also secured a strategic partnership with the Shenzhen Bao'an District Government and the Hefei Municipal Government.
Nov. 25, 2023 08:10
EHang Q3 2023 Financial Update

EHang Holdings Limited ("EHang" or the "Company") EH, the world's leading Urban Air Mobility ("UAM") technology platform company, today announced its unaudited financial results for the third quarter ended September 30, 2023.

Total revenues for the third quarter of 2023 were RMB28.6 million (US$3.9 million), representing an increase of 247.9% from the same period in 2022 and an increase of 186.0% from the second quarter of 2023. The increase in revenues was primarily due to the higher sales volume of EH216 series products.

Gross margin for the third quarter of 2023 was 64.6%, slightly lower than the same period in 2022 but higher than the second quarter of 2023. The decrease in gross margin compared to the previous year was mainly due to changes in revenue mix, while the increase compared to the previous quarter was mainly due to a higher average selling price of EH216 series products.

Operating loss for the third quarter of 2023 was RMB70.0 million (US$9.6 million), an improvement of 5.0% from the same period in 2022 and an improvement of 7.0% from the second quarter of 2023.

Adjusted operating loss, which excludes share-based compensation expenses, for the third quarter of 2023 was RMB34.2 million (US$4.7 million), an improvement of 35.2% from the same period in 2022 and an improvement of 33.3% from the second quarter of 2023.

Net loss for the third quarter of 2023 was RMB67.1 million (US$9.2 million), an improvement of 12.3% from the same period in 2022 and an improvement of 11.4% from the second quarter of 2023.

Adjusted net loss, which excludes share-based compensation expenses, for the third quarter of 2023 was RMB31.3 million (US$4.3 million), an improvement of 43.1% from the same period in 2022 and an improvement of 39.5% from the second quarter of 2023.

Cash, cash equivalents, short-term investments, and restricted short-term deposits balances were RMB295.6 million (US$40.5 million) as of September 30, 2023.

In terms of business highlights, EH216-S, the Company's self-developed passenger-carrying unmanned aerial vehicle ("UAV") system, received the world's first type certificate for unmanned eVTOL from the Civil Aviation Administration of China (CAAC). The CAAC also approved the EHang Unmanned Aircraft Cloud System ("UACS") for trial operations. EHang also announced strategic partnerships with the Shenzhen Bao'an District Government and the Hefei Municipal Government. Additionally, the Company closed a US$23 million PIPE investment from strategic investors and made a strategic investment in Inx to develop a solid-state lithium metal battery supply chain for eVTOLs.

The Company expects total revenues for the fourth quarter of 2023 to be approximately RMB56 million, representing an increase of 257% year over year and an increase of 96% quarter over quarter. For the fiscal year of 2023, the Company expects total revenues to be approximately RMB118 million, up 166% from 2022.