EHang Holdings Ltd (EH) 2022 Q4 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the EHang Fourth Quarter 2022 and Fiscal Year 2022 Earnings Conference Call. As a reminder, we are recording today's call. Now I will turn over the conference to Anne Ji, EHang's Senior Director of Investor Relations. Ms. Anne, please proceed.

女士們、先生們，大家好。感謝您的支持，歡迎參加億航 2022 年第四季和 2022 財年財報電話會議。提醒一下，我們正在錄製今天的通話。現在，我將會議交給億航智慧投資者關係高級總監 Anne Ji。安妮女士，請繼續。

Hello, everyone. Thank you for joining us on today's conference call to discuss the Company's financial results for the fourth quarter and fiscal year of 2022. The earnings release is available on the Company's IR website. Please note the conference call is being recorded and the audio replay will be posted on the Company's IR website.

大家好。感謝您參加今天的電話會議，討論公司 2022 年第四季和財年的財務表現。請注意，電話會議正在錄音，音訊重播將發佈在該公司的 IR 網站上。

On the call today, we have Mr. Huazhi Hu, our Founder, Chairman and Chief Executive Officer; Mr. Xin Fang, Chief Operating Officer; Mr. Richard Liu, Chief Financial Officer; and Nick Yang, an Independent Director of the Board. The management team will successively give prepared remarks. Remarks delivered in Chinese will be followed by English translations. All translation is for convenience purpose only. In the case of any discrepancy, management's statement in the original language will prevail. A Q&A session will follow afterwards.

今天的電話會議由我們的創辦人、董事長兼執行長胡華志先生主持；方鑫先生，營運長；劉先生，財務長；以及董事會獨立董事 Nick Yang。管理團隊將依序發表準備好的發言。中文發言後將附有英文翻譯。所有翻譯僅是為了方便目的。若有任何差異，以管理階層原文聲明為準。隨後將進行問答環節。

Before we continue, please note that today's discussion will contain forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the Company's public filings with the SEC. The Company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Also, please note that all numbers presented are in RMB and are for the fourth quarter and fiscal year of 2022, unless stated otherwise.

在我們繼續之前，請注意，今天的討論將包含根據美國 1995 年私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。因此，公司的實際業績可能與今天表達的預期有重大差異。有關這些和其他風險和不確定性的更多資訊包含在公司向美國證券交易委員會提交的公開文件中。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。另請注意，除非另有說明，所有數字均以人民幣計算，且適用於 2022 年第四季和財政年度。

With that, let me now turn the call over to our CEO, Mr. Huazhi Hu. Please go ahead, Mr. Hu.

現在，我將把電話轉給我們的執行長胡華志先生。胡先生，請講。

[Interpreted] This is the English translation of Mr. Hu's remarks. Hello, everyone. Thank you for joining our earnings conference call today. 2022 as a year of opportunities and challenges for EHang. Against the everchanging backdrop of macroeconomic volatilities, political uncertainties, and the pandemic, we remained committed to our strategies and continued to make meaningful progress during the year in our main priorities of airworthiness certification, business development and ecosystem establishment. This not only strengthens our resilience for long-term development, but also reinforces our leadership in the global urban air mobility industry.

[翻譯]這是胡先生講話的英文翻譯。大家好。感謝您參加我們今天的收益電話會議。 2022年對億航來說，是機會與挑戰並存的一年。在宏觀經濟波動、政治不確定性和疫情不斷變化的背景下，我們始終堅持既定策略，並在適航認證、業務發展和生態系統建立等主要重點領域繼續取得有意義的進展。這不僅增強了我們長期發展的韌性，也鞏固了我們在全球城市空中交通產業的領導地位。

In the fourth quarter of last year, the EH216-S Type Certification successfully entered the final phase of demonstration and verification of compliance. However, due to massive infections after China lifted COVID control policies, until this year's Chinese Spring Festival holiday, the relevant TC progress was delayed to a certain extent. But now, we have manufactured the conforming aircraft for the purpose of airworthiness verification at our Yunfu Production Facility, passed the aircraft manufacturing conformity inspection, and are conducting compliance tests at flight bases in Guangzhou, Hezhou and other locations.

去年第四季度，EH216-S型號認證成功進入演示和符合性驗證的最後階段。但由於中國疫情解除後出現大規模感染，直至今年春節假期，相關TC進展受到一定程度的延遲。但現在，我們已經在雲浮生產基地生產了符合適航驗證要求的飛機，並通過了飛機製造一致性檢查，並正在廣州、賀州等地的飛行基地進行一致性測試。

In February this year, the CAAC Chief Engineer, and officials from the Department of Aircraft Airworthiness Certification, the Department of Flight Standard, the office of Air Traffic Regulation, the Central and Southern Regional Administration, as well as experts from the TC team, inspected the flight base in Hezhou. We worked together effectively, and the joint efforts of all parties not only accelerated the compliance flight tests and other review process in the final stage, but also made plans and arrangements for the next steps, which boosts our confidence in post-certification operations.

今年2月，中國民航局總工程師、適航司、飛標司、空管辦、中南地區管理局相關領導以及TC組專家到賀州飛行基地視察。我們協同有效，在各方共同努力下，不僅加速了最後階段符合性試飛等審查進程，而且對下一步工作做好了規劃和安排，增強了我們對取證後運行的信心。

As of today, we have been actively carrying out the work for demonstration and verification of compliance based on the means of compliance agreed by the CAAC. Our work includes submission of compliance test plans, laboratory tests, ground tests and inspections, flight tests, etc. At present, over 70% of the compliance tests have been either completed or to be signed soon. It means we have substantially completed over 90% of the entire type certification process.

目前，我們按照中國民航局同意的符合性方式，積極進行符合性論證和驗證工作。我們的工作包括提交合規性測試計劃、實驗室測試、地面測試和檢查、飛行測試等。這意味著我們已經基本完成了整個型式認證過程的90%以上。

We believe EHang is leading among the few eVTOL type certification projects that have been officially accepted by civil aviation regulators worldwide. Although the TC process for such a new innovative aircraft is full of difficulties, I'm proud of our team's unwavering efforts and groundbreaking achievements over the past few years. At the same time, we are very grateful to China's civil aviation regulator, the CAAC, for their full support and high attention to this innovative AAV. We believe we will bring the expected good news in the near future.

我們相信，億航在少數獲得全球民航監管機構正式接受的 eVTOL 型號認證項目中處於領先地位。雖然這架新型創新飛機的TC過程充滿困難，但我為我們團隊過去幾年的不懈努力和取得的突破性成就感到自豪。同時，我們也非常感謝中國民航局對這款創新自動駕駛飛行器的全力支持和高度關注。我們相信不久的將來我們就會帶來預期的好消息。

Therefore, we believe that EHang will take a lead in entering a new era of air mobility in 2023 and anticipate witnessing an epoch-making milestone in the global UAM industry.

因此，我們相信億航將在2023年率先進入空中交通新時代，並有望見證全球城市空中交通產業劃時代的里程碑。

What is worth mentioning other than EHang being the eVTOL industry leader is the large Chinese market we are rooted in and its huge potential for the UAM development. According to Morgan Stanley's forecasts, China is expected to account for about 30% of the global UAM market.

值得一提的是，億航除了是eVTOL產業的領導者之外，我們還紮根於龐大的中國市場，其UAM發展潛力巨大。根據摩根士丹利的預測，中國預計將佔全球UAM市場的30%左右。

In recent years, Chinese central and local governments have introduced a series of supportive policies for emerging sectors related to unmanned civil aviation, electric aviation, low-altitude economy, urban three-dimensional transportation, aviation tourism and so on. These have provided us with beneficial policies, a favorable market environment and a growing demand from government and enterprise customers. Our COO, Mr. Xin Fang, will talk more about it later.

近年來，中國中央和地方政府針對無人民航、電動航空、低空經濟、城市立體交通、航空旅遊等新興領域推出了一系列扶持政策。這些為我們提供了優惠的政策、良好的市場環境和日益增長的政企客戶需求。我們的首席營運官方鑫先生稍後會詳細談論這一點。

On the other hand, China has been a leader in the global UAV industry. It has accumulated profound expertise in the aspects of the upstream and downstream industry chain and professional talents. Besides, China has supply chain advantages of higher cost-effectiveness and delivery efficiency. These lay a solid foundation for our product R&D, manufacturing and product delivery.

另一方面，中國在全球無人機產業一直處於領先地位。在上下游產業鍊及專業人才方面累積了深厚的專業知識。此外，中國還擁有成本效益和交付效率更高的供應鏈優勢。這些為我們的產品研發、製造和產品交付奠定了堅實的基礎。

In overseas market, we are committed to actively engaging in the Asian market and participating in multiple air mobility projects in Europe as an eVTOL pioneer. We will continue collaborating with local customers, partners and governments to jointly explore a safe, intelligent, efficient and sustainable UAM operational system.

在海外市場，我們致力於積極參與亞洲市場，並作為eVTOL先驅參與歐洲多個空中交通項目。我們將繼續與當地客戶、合作夥伴、政府共同探索安全、智慧、高效、永續的城市空中交通營運系統。

To date, the EH216 series AAVs have successfully completed over 34,000 autonomous flights across 12 countries in Asia, Europe and Americas, which is the top flight record in the global eVTOL industry. Looking ahead, we will remain dedicated to expanding our reach and bringing our AAV solutions and flight experiences to more customers, partners and passengers worldwide.

截至目前，EH216系列自動駕駛飛行器已在亞洲、歐洲和美洲的12個國家成功完成超過34000次自主飛行，創下了全球電動垂直起降（eVTOL）行業的最高飛行記錄。展望未來，我們將繼續致力於擴大我們的業務範圍，為全球更多的客戶、合作夥伴和乘客帶來我們的 AAV 解決方案和飛行體驗。

In December last year, we are thrilled to welcome Mr. Nick Yang join our board of directors as an independent director. Although he is a new member of the board, he is also our old friend as one of EHang's early investors, who has been following the Company's growth and the development of the UAM industry for many years. With over 20 years of capital markets experience and entrepreneurial experience in multiple listed companies, I believe that Nick will bring strong support to EHang's growth in our new stage. Today, we also have Nick with us on the call, and he will be available to communicate with everyone in the Q&A session later.

去年12月，我們非常高興地歡迎 Nick Yang 先生加入我們的董事會擔任獨立董事。雖然他是董事會的新成員，但他也是我們的老朋友，作為億航的早期投資者之一，多年來一直關注著公司的成長和城市空中交通行業的發展。憑藉20多年的資本市場經驗和多家上市公司的創業經歷，我相信Nick將為億航在新階段的發展帶來強而有力的支持。今天，Nick 也參加了電話會議，稍後他將在問答環節與大家交流。

Next, I will turn over the call to our Chief Operating Officer, Mr. Xin Fang. Thank you.

接下來，我將把電話轉給我們的首席營運官方鑫先生。謝謝。

[Interpreted] This is the English translation of Mr. Fang's remarks. Thank you, Mr. Hu, and hello, everyone. Since the fourth quarter of last year, our top priority remained the TC project. We are pleased to report that we are now in the final sprint. In preparation for post-certification sustainable long-term growth, we are capitalizing our leading first-mover advantages to explore both domestic and overseas markets. We have been expanding our business and cooperation opportunities throughout the entire industry chain related to air mobility and the low-altitude economy. By building up order demand, enhancing our partnership and collaborations, we are laying a solid foundation for commercial delivery and operational services following certification.

[翻譯]這是方先生講話的英文翻譯。謝謝胡先生，大家好。從去年第四季開始，我們的首要任務仍然是TC專案。我們很高興地報告，我們目前正處於最後的衝刺階段。為了實現認證後的長期永續成長，我們正在利用領先的先發優勢，開拓國內和海外市場。我們一直在拓展與空中交通和低空經濟相關的整個產業鏈的業務和合作機會。透過建立訂單需求，加強合作夥伴關係和協作，我們為認證後的商業交付和營運服務奠定了堅實的基礎。

In China, the tourism industry, which had seen heavy impact from COVID, has rapidly recovered this year as the control policies were lifted. The China Tourism Academy predicts that in this year, the number of domestic tourists will reach 4.55 billion, up 80% compared to last year, and domestic tourism revenues will reach RMB4 trillion (about US$580 billion), an increase of 95% compared to last year. This presents excellent development opportunities for the low-altitude tourism, the first market where we plan to launch commercial operations after certification, as well as for our tourism industry customers.

在中國，受新冠疫情衝擊較大的旅遊業，今年隨著管制政策的解除，已快速復甦。中國旅遊研究院預計，今年國內旅遊人數將達45.5億人次，比去年增長80%；國內旅遊收入將達4兆元（約5800億美元），比去年增長95%。這為低空旅遊（我們計劃在認證後開展商業運營的第一個市場）以及我們的旅遊業客戶提供了絕佳的發展機會。

Since last year, we have been dedicated to developing our domestic market in China. Against the backdrop of macro policies promoting low-altitude tourism and economy, building a modern integrated transportation system, and developing new smart cities, we have continued extensive and deep business cooperations and industry layout with local governments, tourism and aviation enterprises in many provinces and cities, such as Guigang in Guangxi, Jishou and Changsha in Hunan, Huangshan in Anhui, Qingdao in Shandong, Ganzhou and Jiujiang in Jiangxi, Xi'an in Shaanxi, Hechi in Guangxi, Xinjiang, Shenzhen in Guangdong, etc.

自去年以來，我們一直致力於拓展中國國內市場。在國家發展低空旅遊經濟、建構現代綜合交通體系、發展新型智慧城市的宏觀政策背景下，我們與廣西貴港、湖南吉首、長沙、安徽黃山、山東青島、江西贛州、九江、陝西西安、廣西河池、新疆、廣東深圳等多個省市的地方政府、旅遊區和許多省市的持續進行廣泛、旅遊

To date, we have received orders for over 100 units of the EH216 series AAVs in China. These orders are expected to be fulfilled within 1 to 3 years after the TC process is completed. Additionally, with the approach of TC completion, there has been a significant growth in our customers' inquiries and demand for new orders from all over China.

截至目前，我們在中國已收到超過 100 台 EH216 系列 AAV 的訂單。這些訂單預計將在TC流程完成後的1至3年內完成。此外，隨著TC完工的臨近，來自全國各地的客戶諮詢和新訂單需求大幅增加。

For example, most recently, Xiyu Tourism, a leading tourism company in Xinjiang and listed on the Shenzhen Stock Exchange, announced its intention to sign a cooperation framework agreement with us. It plans to establish a joint venture, and operates a minimum of 120 units of EH216-S or our comparable passenger-grade AAVs in 5 years, for conducting low-altitude sightseeing tourism projects in key scenic locations in Xinjiang such as the Heavenly Lake of Tianshan.

例如最近，新疆旅遊龍頭、深交所上市公司西域旅遊宣布有意與我們簽署合作框架協議。計劃成立合資公司，5年內營運不少於120台EH216-S或公司同類載客級自動駕駛飛行器，在天山天池等新疆重點風景名勝區開展低空觀光旅遊項目。

Another example, in March this year, Xi'an Aerospace Investment Company signed a strategic partnership agreement and indicative purchase order with us. They plan to buy 20 units of EH216 aircraft within 3 years, in order to develop a smart air city and a low-altitude flight demonstration area in the Northwest China.

再例如，今年3月份，西安航太投資公司與我們簽署了策略合作協議和指示性採購訂單。計畫3年內購買20架EH216飛機，用於西北地區興建智慧航空城市及低空飛行示範區。

Meanwhile, we welcome partnerships with strategic investors who are willing to cooperate with EHang for long-term growth. For example, last December, Qingdao West Coast New Area reached a long-term strategic partnership with us over investment and business. It has not only provided US$10 million investment, but will also facilitate the local governments' applications of our entire product portfolio, which is expected to generate product demand worth of RMB100 million (about US$15 million) within the next 2 years. They will also provide full support to our local business operations, sales and services, production and infrastructure construction among other things, with the goal of building Qingdao city into an outstanding world-class pilot zone for UAM demonstration and applications.

同時，我們也歡迎與願意與億航合作、實現長期發展的策略投資者建立合作關係。例如去年12月，青島西岸新區就與我們達成了長期投資和業務策略夥伴關係。它不僅提供了1000萬美元的投資，還將促進地方政府應用我們的整個產品組合，預計未來2年內將產生價值1億元人民幣（約1500萬美元）的產品需求。他們也將全力支持我們在當地的業務運作、銷售服務、生產製造、基礎建設等，目標是將青島市建設成為世界一流的城市空中交通示範應用先行區。

In the future, we plan to adopt an integrated business strategy by both selling products and providing operational services for government and enterprise customers. Based on our principles of safety first, high standard, low costs, and high efficiency, we will utilize a complete set of AAV command and control system platform and UAM operation system to support our 3 major businesses, which are air mobility, smart city management and aerial media. Therefore, we are able to meet our customers' demand for diversified applications in low-altitude tourism, urban transportation, aerial logistics, firefighting emergency, medical rescue, smart city management and aerial media, etc.

未來我們計劃採取一體化經營策略，既銷售產品，也為政府和企業客戶提供營運服務。我們將本著安全第一、高標準、低成本、高效率的原則，利用全套的AAV指揮控制系統平台和UAM營運系統，支撐空中交通、智慧城市、空中媒體三大業務。滿足客戶在低空旅遊、城市交通、空中物流、消防緊急、醫療救援、智慧城市管理、空拍媒體等多樣化應用的需求。

In the past 2 years, under the CAAC's guidance, we have been taking a lead in carrying out trial operations while conducting type certification. To date, we have developed 18 operation spots for aerial sightseeing in 16 Chinese cities. More than 8,200 safe operational trial flights have been completed with EH216 AAVs. During this process, we have cultivated a professional and well-trained AAV operation team, developed a digital platform for AAV operation management and services, and accumulated rich feasible and replicable trial operation experience. All of these give us ample confidence and ability to create considerable UAM flight service values together with our customers and partners in the future upon obtaining certification and beginning commercial operations. This is also our first-mover advantages and operation benchmarks that we have built over the long term and are ahead of other companies in the industry.

近兩年來，我們在中國民航局的指導下，在進行型號合格審定的同時，也主導進行試運轉工作。目前我們已在中國16個城市開發了18個空中觀光營運點。 EH216 AAV 已完成超過 8,200 次安全運行試飛。在這個過程中，我們培養了一支專業化、訓練有素的AAV營運隊伍，開發了AAV營運管理和服務的數位化平台，累積了豐富可行、可複製的試營運經驗。這些都讓我們有足夠的信心和能力在未來獲得認證、投入商業營運後，與客戶、合作夥伴共同創造可觀的UAM飛行服務價值。這也是我們長期建構的領先於產業其他公司的先發優勢和營運標竿。

Additionally, we have been actively working on expanding cooperation across the UAM upstream and downstream industry chains as well as building the ecosystem. For example, we were very pleased to partner with HAECO Group, a subsidiary of Swire Group, in last October. This partnership plans to build an after-sales maintenance service system for EHang AAVs to provide our customers worldwide with more high-quality and efficient maintenance services while empowering our continued airworthiness following certification.

此外，我們也積極拓展UAM上下游產業鏈合作，建構生態系。例如，去年十月我們非常高興與太古集團旗下的港機集團合作。此次合作旨在打造億航自動駕駛飛行器售後維修服務體系，為全球客戶提供更優質、更有效率的維修服務，同時保障億航自動駕駛飛行器獲得認證後的持續適航能力。

In overseas markets such as Asia, last year we actively explored markets in Japan, Malaysia, Indonesia and Thailand, secured more than 200 units of pre-orders for EH216 series and established cooperations with local partners to carry out local trial flights surrounding AAV application scenarios such as low-altitude sightseeing tours, island-hopping mobility, and logistics transportation. This February we successfully conducted the first passenger-carrying EH216 demo flight in an open airspace overseas in Japan. This is also the first ever passenger-carrying flight of an autonomous eVTOL in Japan with approval.

在亞洲等海外市場，去年我們積極開拓日本、馬來西亞、印尼、泰國等市場，EH216系列獲得200餘台預購，並與當地合作夥伴建立合作，圍繞低空觀光、跳島出行、物流運輸等AAV應用場景開展當地試飛。今年2月，我們在日本海外開放空域成功進行了首次載客EH216示範飛行。這也是日本首次獲得批准的自動駕駛 eVTOL 載客飛行。

In Europe, in the fourth quarter of last year, we completed EH216's first flight in Spain, under EU's AMU-LED project to successfully verify the UAM Concepts of Operations. We also joined the EU's SAMVA project to explore unmanned aircraft system traffic management. In addition, we assisted the Spanish National Police to complete EH216's maiden flight for trial operations.

在歐洲，去年第四季度，我們在歐盟AMU-LED計畫下在西班牙完成了EH216的首飛，成功驗證了UAM的營運概念。我們也加入了歐盟的SAMVA項目，探索無人機系統交通管理。此外，我們也協助西班牙國家警察完成EH216的首飛試運行。

As noted by Mr. Hu, 2023 is a crucial year for us. As the turning point of airworthiness certification approaches, EHang and even the entire UAM industry are about to enter into commercialization. We are prepared, confident, and feel responsible to be a pioneer for commercialization in the global eVTOL industry. We plan to provide earnings guidance after certification.

正如胡先生所說，2023年對我們來說是至關重要的一年。隨著適航取證轉折點的臨近，億航乃至整個城市空中交通產業都即將步入商業化階段。我們有信心、有準備、有責任成為全球 eVTOL 產業商業化的先驅。我們計劃在認證後提供獲利指導。

I will now turn the call over to our CFO, Mr. Richard Liu, for financial results. Richard, please go ahead. Thank you.

現在，我將把電話轉給我們的財務長劉理查德先生，討論財務結果。理查德，請說。謝謝。

Thank you, Xin. Hello, everyone. Before I go into details, please note that all numbers presented are in RMB and for the fourth quarter and the fiscal year of 2022, unless stated otherwise. All percentage changes are on a quarter-over-quarter basis unless otherwise specified. Detailed analyses are contained in our earnings press release, which is available on our IR website. I will now highlight some of the key points here.

謝謝你，辛。大家好。在我介紹詳細資訊之前，請注意，除非另有說明，所有顯示的數字均以人民幣為單位，且針對的是 2022 年第四季和財年。除非另有說明，所有百分比變化均按季度計算。詳細分析包含在我們的收益新聞稿中，您可以在我們的 IR 網站上查閱。現在我將強調這裡的一些關鍵點。

Despite numerous uncertainties and challenges in 2022, we not only moved to the final phase of type certification, but also achieved significant progress in developing business and building an AAV ecosystem for post-certification growth. Meanwhile, we further enhanced our cost management, operational efficiency and financial soundness. And we are optimistic to see a turning point for the expected expansion of our commercial operations and a new era for our company and the UAM industry.

儘管2022年充滿許多不確定性和挑戰，我們不僅進入了型式認證的最後階段，而且在發展業務和構建AAV生態系統以實現認證後增長方面取得了重大進展。同時，我們進一步加強成本管理、營運效率和財務穩健性。我們樂觀地看到，我們商業營運預期擴張將迎來一個轉折點，我們公司和城市空中交通產業也將迎來一個新紀元。

In Q4, total revenues were RMB15.7 million, an increase of 90.7% from RMB8.2 million in Q3. The EH216 series of AAV deliveries in Q4 were 6 units, up 50% from 4 units in Q3. For the fiscal year 2022, total revenues were RMB44.3 million, compared with RMB56.8 million in 2021. The EH216 series of AAV deliveries in 2022 were 21 units, compared with 30 units in 2021.

第四季總營收為1570萬元人民幣，較第三季的820萬元人民幣成長90.7%。第四季EH216系列AAV交付量為6架，較第三季的4架成長50%。 2022財年總收入為人民幣4,430萬元，而2021年為人民幣5,680萬元。

Gross margin was 66.1% in Q4, a slight increase of 0.2 percentage points from 65.9% in Q3. Gross margin was 65.9% in 2022, representing an increase of 2.5 percentage points from 63.4% in 2021, mainly attributed to the higher average selling price of EH216 AAVs. These represent the continued high gross margin levels, compared to those of other electrically-powered mobility products such as electric vehicles, as a result of our competitive strengths and first-mover advantages in the global UAM and eVTOL industries.

第四季毛利率為66.1%，較第三季的65.9%略增加0.2個百分點。 2022 年毛利率為 65.9%，較 2021 年的 63.4% 增加 2.5 個百分點，主要由於 EH216 AAV 的平均售價較高。由於我們在全球 UAM 和 eVTOL 行業的競爭優勢和先發優勢，與電動車等其他電動出行產品相比，我們持續保持較高的毛利率水平。

In Q4, our adjusted operating expenses, which are operating expenses excluding share-based compensation expenses, were RMB73.2 million, compared with RMB59.7 million in Q3. The increase was mainly driven by the non-cash item of additional prudent provisions for receivables in response to the impact of COVID to customers, and more expenditures on aircraft conformity for EH216-S in its verification process for type certification, with reductions in travel and marketing expenses and professional service expenses, etc. On an annual basis, the adjusted operating expenses were RMB242.4 million in 2022, compared with RMB246.6 million in 2021.

第四季度，我們的調整後營業費用（即不包括股權激勵費用的營業費用）為 7,320 萬元，而第三季為 5,970 萬元人民幣。成長主要由於為應對新冠疫情對客戶的影響而提列的額外應收帳款審慎準備等非現金項目，以及EH216-S在型號認證驗證過程中的飛機一致性支出增加，差旅及營銷費用以及專業服務費用減少等。

As a result, our adjusted operating loss in Q4 was RMB61.3 million, compared with RMB52.9 million in Q3. Adjusted net loss in Q4 was RMB59.4 million, compared with RMB55.1 million in Q3.For the fiscal year, adjusted net loss was RMB206.2 million in 2022, compared with RMB192.8 million in 2021.

因此，我們第四季的調整後營業虧損為人民幣 6,130 萬元，而第三季為人民幣 5,290 萬元。第四季調整後淨虧損為人民幣5,940萬元，第三季調整後淨虧損為人民幣5,510萬元。

Moreover, our cash balance remains solid as we have been proactively managing our cash position and assessing our liquidity. As of the end of Q4, we had RMB249.3 million of cash, cash equivalents, restricted cash and short-term investments, compared with RMB208.8 million as of the end of Q3. In December, we formed a strategic partnership with Qingdao West Coast New Area, one of China's national new areas in Shandong province. This partnership comes with a US$10 million equity investment into the Company, and a potential additional investment of US$10 million in the future. This serves as additional liquidity support for our operations and growth.

此外，由於我們一直在積極管理現金狀況並評估流動性，我們的現金餘額仍然穩健。截至第四季末，我們擁有現金、現金等價物、受限現金和短期投資人民幣 2.493 億元，而第三季末為人民幣 2.088 億元。 12月，我們與山東省國家級新區之一的青島西海岸新區建立戰略合作夥伴關係。此次合作將對該公司進行 1,000 萬美元的股權投資，並且未來可能額外投資 1,000 萬美元。這為我們的營運和成長提供了額外的流動性支援。

That concludes our prepared remarks. Let's now open the call for questions. Operator, please go ahead.

我們的準備好的演講到此結束。現在讓我們開始提問。接線員，請繼續。

(Operator Instructions) We are now going to proceed with our first question, and the questions come from the Verena Jeng from Goldman Sachs.

(操作員指示) 我們現在開始第一個問題，問題來自高盛的 Verena Jeng。

I have 2 questions. First of all, it's about the TC progress. Could you share when we expect to get the TC, and how should we think about the timeline for mass production, delivery and also booked as revenues? Is it like after 1 to 2 months, we get the TC and we will have revenues and also the cash inflow? Do we have enough time to hire the people for the mass production?

我有兩個問題。首先是關於TC的進展。您能否分享我們預計何時獲得 TC，以及我們應該如何考慮量產、交付和入帳收入的時間表？是不是一到兩個月後，我們就可以獲得 TC 並獲得收入和現金流入？我們是否有足夠的時間來僱用人員進行大規模生產？

And the second question is about the responsibility. Could you share if failure happens, is there a clear line of who to take the responsibility? For example, the users, if they do not operate properly, or the component makers, if it is caused by certain component failure, or it could be really hard to prove what reasons caused the failure, and eventually we will need to take all the responsibility?

第二個問題是關於責任。能否分享一下，如果發生失敗，是否有明確的責任由誰承擔？比如說使用者如果沒有正確操作，又比如說元件廠商因為某個元件故障而導致產品失效，又或者說我們很難證明到底是什麼原因導致了產品的失效，最終是否需要大家承擔全部的責任？

Yes, this is Nick. As Mr. Hu has mentioned earlier, the TC process has completed over 90%. So it's just a matter of time that we complete the entire process and it's near the end right now.

是的，這是尼克。正如胡先生剛才提到的，TC流程已經完成了90%以上。因此，我們完成整個過程只是時間問題，現在已接近尾聲。

If you compare us to other eVTOL companies' progress, I think EHang is very far ahead. Most importantly, EH216-S is the only autonomous one among all eVTOL TC projects, as you know, while other ones are all piloted.

如果將我們與其他 eVTOL 公司的進展進行比較，我認為億航遙遙領先。最重要的是，如您所知，EH216-S 是所有 eVTOL TC 項目中唯一的自動駕駛項目，而其他項目均為駕駛飛行器。

For details, EHang has published the illustration about the entire TC process and a checklist of key milestones it has accomplished. We want to bring clarity to the process, and we'll update it very timely. This will act as a status bar and it's available on the IR website.

有關詳細信息，億航發布了整個 TC 流程的說明，以及已完成的關鍵里程碑清單。我們希望使這個過程更加清晰，並且我們會及時更新它。這將作為狀態列並可在 IR 網站上查看。

Regarding the post TC production and delivery, I think it won't take much time or concern to generate revenue soon because the Company has prepared for it all along by collecting more and more pre-orders beforehand. And also getting the Yunfu production facility established and operational for almost 2 years, and procured stocks of key components from suppliers.

至於 TC 之後的生產和交付，我認為不會花太多時間或擔心很快就能產生收入，因為公司一直都在為此做準備，提前收集越來越多的預訂單。並且雲浮生產基地已經建立並投入營運近兩年，並從供應商採購關鍵零件的庫存。

All these efforts can shorten our lead time to delivery. For cost control reasons, we have over 100 workers in our manufacturing facilities. That's enough for the near term. If needed, the company is very able to hire more local staff in the future.

所有這些努力可以縮短我們的交貨時間。出於成本控制原因，我們的製造工廠擁有 100 多名工人。就短期而言這就足夠了。如果有需要，該公司未來完全有能力僱用更多當地員工。

The second question will be answered by our COO, Mr. Xin Fang and followed by English translation.

第二個問題將由我們的首席營運官方鑫先生回答，然後進行英文翻譯。

[Interpreted] Thank you for your questions. Firstly, on general occasions, aviation accidents are caused by multiple factors. Determining the safety responsibility for aircraft accidents requires specialized investigation by relevant regulatory authorities, which is a complex process. The investigation is required to identify various reasons and factors related to the accident, before a final liability determination can be made.

[翻譯]感謝您的提問。首先，一般情況下，航空事故的發生是由多種因素造成的。認定飛機事故安全責任，需要相關監管部門進行專門調查，這是一個複雜的過程。需要進行調查以確定與事故相關的各種原因和因素，然後才能做出最終的責任認定。

In order to ensure safety and prevent accidents, we have adopted the redundancy method in the type design, structural safety and communication of the EH216-S AAV. This ensures that there is no single point of failure. And since our AAV is autonomous, passengers onboard don't need to pilot it. As a result, there is no safety hazard caused by passenger mis-controlling the vehicle during the flight.

為了確保安全，防止事故發生，我們在EH216-S AAV的型號設計、結構安全和通訊方面採用了冗餘方法。這確保了沒有單點故障。由於我們的 AAV 是自動駕駛的，因此機上的乘客無需駕駛。因此，飛行過程中不會發生因乘客錯誤控制飛行器而造成的安全隱患。

We will also create operation rules and provide safety instructions to passengers to ensure their safety. In terms of production and manufacturing, we strictly manage our suppliers and production procedures with high-quality standards in accordance with the requirements of the CAAC, ensuring that we can trace the original sources while determining the safety responsibility.

我們還將制定營運規則並向乘客提供安全指示，以確保他們的安全。在生產製造方面，我們嚴格按照中國民航局的要求，以高品質標準管理供應商和生產環節，確保可追溯的原始來源，並落實安全責任。

In terms of operations, we'll also set out standards for operators and conduct personnel training, so as to ensure operation safety throughout the process. And last, we provide liability insurance coverage for our aviation products and passengers as well as the relevant third parties. That is the answer to your second question. Thank you.

在操作方面，我們也會對操作人員制定標準，並進行人員培訓，確保整個流程的操作安全。最後，我們為我們的航空產品和乘客以及相關第三方提供責任保險。這就是你的第二個問題的答案。謝謝。

(Operator Instructions) We are now going to proceed with our next question. The next questions come from the line of Di Wu from TF Securities.

（操作員指示）我們現在將繼續回答下一個問題。接下來的問題來自天風證券的吳迪。

I have 2 questions as well. First is as EHang is more focusing on China market and you talked about an increasing customer demand in China, could you share more color over the total revenue in your EH216 pipeline orders, can you deliver these orders without type certificate obtained?

我也有兩個問題。首先，由於億航更加專注於中國市場，而且您談到了中國客戶需求的不斷增長，您能否分享更多有關 EH216 管道訂單總收入的細節，您是否可以在沒有獲得型號合格證的情況下交付這些訂單？

And my second question is our company has secured a significant number of pre-order in Asia, I mean, excluding China. Do these pre-orders also need type certification in respective countries or your progress of type certification in China help these foreign type certification? Or is it like a whole new process all over again?

我的第二個問題是，我們公司已經在亞洲（不包括中國）獲得了大量預訂單。這些預訂單也需要在各自國家進行型式認證嗎，或者你們在中國的型式認證進度是否有助於這些國外型式認證？或者這就像是一個全新的過程？

This is Richard. Let me take the questions. First of all, as discussed earlier, we currently have an order pipeline of 100+ units of EH216 in China. And this order pipeline has been growing with increasing inquiries, discussions from more potential customers in China, especially from the tourism sector.

這是理查德。請讓我來回答這些問題。首先，如同前面所討論的，我們目前在中國有 100 多台 EH216 的訂單。隨著來自中國潛在客戶（特別是旅遊業客戶）的諮詢和討論不斷增加，訂單管道也不斷擴大。

The related total contract value would amount to around RMB200 million or more. And if you back out the VAT in China, we can get the corresponding revenue estimate roughly around RMB177 million. So as put in our earnings release, most of these pipeline orders in China are conditional upon the TC and are expected to be fulfilled in 1 to 3 years after that.

相關合約總金額約2億元以上。如果去掉中國的增值稅，我們可以得到相應的收入估算，大約在1.77億元人民幣左右。正如我們在收益報告中所說，中國大部分管道訂單都以 TC 為條件，預計將在 1 至 3 年內完成。

However, there are indeed some customers in China, who are more sophisticated and understand that the TC is to be obtained soon and thus, do not require that before deliveries.

然而，中國確實有一些客戶，他們更加精明，知道很快就能獲得 TC，因此在交貨前不需要它。

In respect of your second question, those pre-orders in other Asian countries usually require the local TCs. We have been working with our local partners in communicating with local aviation authorities. What we have been experiencing is that the authorities in those Asian countries are open-minded to this type of innovative aerial vehicles, and especially interested in the uses in tourism, which is an important industry in their respective economy. So after we obtain the certification in China, it would provide a base for us to apply for the local certifications with the local aviation authorities, and we would not have to go from zero. To give you an example, in those Southeast Asian countries like Indonesia, we could apply for the local TCs through a VTC process, namely Validation of Type Certificate with the local aviation authorities, and it is expected to be a simplified process. Given so, it would help shorten the time and be more efficient for us to establish and further expand our market presence in those countries.

關於您的第二個問題，其他亞洲國家的預訂通常需要當地的 TC。我們一直與當地合作夥伴一起與當地航空當局進行溝通。我們發現，這些亞洲國家的當局對這類創新飛行器持開放態度，尤其對其在旅遊業的應用感興趣，因為旅遊業是各自經濟的重要產業。所以當我們在中國獲得認證後，這將為我們向當地航空當局申請當地認證提供基礎，而不必從零開始。舉個例子，在印尼等東南亞國家，我們可以透過VTC流程申請當地的TC，即向當地航空當局進行型號合格證驗證，預計這是一個簡化的流程。這樣一來，我們就能縮短時間，更有效率地在這些國家建立並進一步擴大市場影響力。

The questions come from Cindy Huang from Morgan Stanley.

問題來自摩根士丹利的 Cindy Huang。

I only have 1 question on margin. EHang currently has quite good gross margin at around 60%. How should we think about the gross margin this year and over time, especially after we kick off our commercial operations?

我對保證金只有一個問題。億航目前的毛利率相當不錯，約60%。我們應該如何考慮今年以及未來一段時間的毛利率，特別是在我們開始商業營運之後？

Thank you. I will take the questions. The current 60%+ GP margin is actually a comprehensive margin covering our vehicle hardware and software products and services. At the core of the Company, the technology advantage actually lies in our software. To some extent, EHang can be regarded as a software-based technology company that integrates intelligent aerial vehicle products and software products usually entail high GP margins. In addition, as the TC for EH216-S is expected to be obtained soon, after that, we will probably be the only eVTOL company with a TC in the market, especially in China for quite some time.

謝謝。我將回答這些問題。目前60%以上的毛利率，實際上是涵蓋我們車輛硬體和軟體產品和服務的綜合利潤率。我們公司的核心，技術的優勢其實在於我們的軟體。從某種程度上來說，億航智能可以看作是一家整合式智慧飛行器產品的軟體型科技公司，而軟體產品通常具有較高的毛利率。此外，由於預計很快就會獲得 EH216-S 的 TC，此後，我們很可能將在相當長的一段時間內成為市場上唯一一家擁有 TC 的 eVTOL 公司，尤其是在中國。

So as you can tell, we would have some more pricing power on the market end. Further, as our sales are expected to scale up after TC and it is anticipated that we would also have more negotiation power with our suppliers to control our procurement costs. Therefore, it is expected that we will continue to maintain this 60% GP margin level.

所以正如你所看到的，我們在市場方面會擁有更多的定價權。此外，由於預計 TC 之後我們的銷售額將擴大，預計我們也將擁有更多的與供應商談判的能力，以控制我們的採購成本。因此，預計我們將繼續維持60%的毛利率水準。

Due to time constraint, we will end the Q&A session here. And I would like now to turn the call back to Ms. Anne for closing remarks.

由於時間限制，我們將在這裡結束問答環節。現在我想請安妮女士作結語。

Thank you, operator, and thank you all for participating on today's call. If you have further questions, please contact our IR team by e-mail or participate in the following investor events through the calendar information provided on our IR website. We appreciate your interest and look forward to our next earnings call. Thank you.

謝謝接線員，也謝謝大家參加今天的電話會議。如果您還有其他問題，請透過電子郵件聯絡我們的 IR 團隊，或透過我們的 IR 網站上提供的日曆資訊參加以下投資者活動。感謝您的關注，我們期待下次財報電話會議。謝謝。

Thank you all again. This concludes the conference call today. You may now disconnect your lines. Thank you.

再次感謝大家。今天的電話會議到此結束。現在您可以斷開線路了。謝謝。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[本記錄中標記為[已翻譯]的部分由現場翻譯人員朗讀。