EHang (EH) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of RMB 102.0 million (CNY 102 million), up 919.6% year-over-year and 65.3% quarter-over-quarter, driven by strong EH216-S deliveries and robust demand in China’s low-altitude economy sector.

• Delivered 49 EH216 series units in Q2, a ninefold increase year-over-year, with over 1,100 units in backlog and major orders in Shanxi, Zhejiang, and Hong Kong/Macau/Hubei.

• Secured three key certifications for EH216-S, including the world's first production certificate for pilotless passenger-carrying eVTOL from CAAC, enabling mass production.

• Signed strategic agreements for production expansion, including a joint venture with GAC and partnerships in China and the Middle East, plus debut flights in UAE and Saudi Arabia.

• Raised $76.2 million (RMB 554.1 million) via at-the-market equity offering, strengthening liquidity; no further ATM sales planned for 2024.

Financial highlights

• Q2 2024 revenue reached RMB 102.0 million (CNY 102 million), up 919.6% year-over-year and 65.3% sequentially.

• Gross margin was 62.4%, up from 60.2% a year ago and 61.9% in Q1 2024.

• Adjusted net income was RMB 1.2 million, compared to a net loss of RMB 51.8 million in Q2 2023 and RMB 10.1 million in Q1 2024.

• Adjusted operating loss narrowed to RMB 4.7 million, a 90.9% improvement year-over-year.

• Cash and equivalents at RMB 988.2 million as of June 30, 2024.

Outlook and guidance

• Q3 2024 revenue expected to reach RMB 123 million, up 329.8% year-over-year and 20.6% quarter-over-quarter.

• Confident in maintaining triple-digit year-over-year revenue growth for the next several quarters.

• Anticipates full-year positive cash flow in 2024 and sustained adjusted net income in 2025.

• Production ramp-up expected following EH216-S production certificate from CAAC.

• No further sales under the at-the-market equity program for the remainder of 2024.