EHang records 248% surge in Q3 revenue to US$3.9m on eVTOL license milestone

He emphasized that the Guangzhou-based firm is at a stage of commercialization, and to ensure flight safety, it will adopt stringent quality standards in production.

EHang (亿航, Nasdaq: EH), a pioneer in China’s eVTOL sector, yesterday announced its unaudited financial results for the third quarter ending September 30, 2023.

Total revenues were 28.6 million yuan (US$3.9 million), representing an increase of 247.9% from 8.2 million yuan in the third quarter of 2022, and an increase of 186.0% from 10 million yuan in the second quarter of 2023.

EHang attributed the spike in its financial performance to the ground-breaking acquisition of a type certificate in October.

EH216-S received the world’s first type certificate for unmanned eVTOL aircraft from Civil Aviation Administration of China.

This development cleared the way for the firm’s eVTOL model EH216-S to be manufactured toward the end of this year.

EHang’s operating loss in the third quarter stood at 70 million yuan, up 5.0% from the same period last year and up 7.0% over the second quarter of 2023, the statement shows.

Adjusted operating loss (non-GAAP) fell 35.2% over a year earlier to 34.2 million yuan and slid 33.3% from 51.3 million from the second quarter of 2023.

On an earnings call, Hu Huazhi, EHang founder, chairman and CEO, again hailed the firm’s securing of a type certificate for EH216-S as a “milestone worth commemorating.”

He emphasized that the Guangzhou-based firm is at a stage of commercialization, and to ensure flight safety, it will adopt stringent quality standards in production.

Sales and deliveries of EH216 series products totaled 13 units, compared with four in the third quarter of 2022 and five in the second quarter of 2023.

Despite EHang’s brightening market prospects, the company was not immune from skepticism over the veracity of its financial records.

Hindenburg Research, a short seller, recently cast doubt over EHang’s results, accusing the firm of inflating sales.

The firm dismissed these accusations, saying it never misled investors with the fabricated orders and sales that Hindenburg Research highlighted in its report.

In a WeChat post, Hu of EHang described the past two years as the “toughest” for the Guangzhou-based firm.

“Our stock became a target of vicious short-selling, and the entire company slowed down new product R&D, and we focused all our energies on blazing a trail for the whole industry — to apply for a type certificate to establish airworthiness,” Hu wrote.

Worldwide, the urban air mobility market, with the fledgling eVTOL segment at the core, is forecast to hit US$1 trillion in 2024 and US$9 trillion in 2050, according to a Morgan Stanley report.

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Ni Tao

Ni Tao is the founder and editor-in-chief of cnrobopedia. Prior to cnrobopedia, he had a full decade of experience with a major state-run English-language newspaper as a tech reporter and opinion writer. He is also a communications specialist, having provided consultancy services to established firms like Siemens, Philips, ABinBev, Diageo, Trip.com Group (Nasdaq: TCOM, HK: 9961), Jianpu Technology (NYSE: JT) and a handful of domestic startups. A graduate of Fudan University, he writes widely about China's business and tech scenes and other topics for global publications including South China Morning Post, SupChina, The Diplomat, CGTN, Banking Technology, among others, and tries to impart his experience to students at Fudan University Journalism School, where he is a part-time lecturer. When he's not writing about robotics, you can expect him to be on his beloved Yanagisawa saxophones, trying to play some jazz riffs, often in vain and occasionally against the protests of an angry neighbor. Get in touch with him by dropping a line at nitao0927@gmail.com.

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