EHang (EH) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of CNY/RMB 102 million, up 919.6% year-over-year and 65.3% quarter-over-quarter, driven by 49 EH216-S deliveries and robust demand in China and overseas.

• Attained adjusted net income of CNY/RMB 1.2 million, positive operating cash flow for the third consecutive quarter, and strengthened liquidity with $76.2 million raised via at-the-market equity offering.

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

• Signed strategic partnerships and joint ventures in China and the Middle East, including with GAC, China Southern Airlines General Aviation, MLG, ADIO, and GBT, and secured major orders in Shanxi, Zhejiang, and for Hong Kong/Macau/Hubei.

• Expanded international presence with debut autonomous eVTOL flights and partnerships in UAE and Saudi Arabia.

Financial highlights

• Q2 2024 revenue reached CNY/RMB 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.

• Adjusted net income of CNY/RMB 1.2 million, compared to a loss of CNY/RMB 51.8 million in Q2 2023.

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

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

Outlook and guidance

• Q3 2024 revenue guidance of CNY/RMB 123 million, up 329.8% year-over-year and 20.6% quarter-over-quarter.

• Expecting continued triple-digit revenue growth year-over-year for the next several quarters.

• Confident in achieving full-year positive cash flow in 2024 and adjusted net income in 2025.

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

• Anticipates continued expansion in China and the Middle East, leveraging new partnerships and certifications.