EHang Holdings Ltd (EH) 2023 Q3 法說會逐字稿

Good day, ladies and gentlemen, thank you for standing by, and welcome to the EHang Third Quarter 2023 Earnings Conference Call. As a reminder, we are recording today's call.

女士們、先生們，美好的一天，感謝大家的支持，歡迎參加億航智能 2023 年第三季財報電話會議。謹此提醒您，我們正在為今天的通話進行錄音。

Now I will turn the call over to Anne Ji, EHang's Senior Director of Investor Relations. Ms. Anne, please proceed.

現在我將把電話轉給億航智能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 third quarter of 2023. The earnings release is available on the Company's IR website. Please note that 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 2023 年第三季的財務業績。請注意，電話會議正在錄音，音訊重播將發佈在公司的投資者關係網站上。

On our call today, we have Mr. Huazhi Hu, our Founder, Chairman and Chief Executive Officer; Mr. Xin Fang, Chief Operating Officer; Mr. Conor Yang, Chief Financial Officer and 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 case of any discrepancy, management statement in the original language will prevail. A Q&A session will follow afterwards.

今天參加我們電話會議的有我們的創辦人、董事長兼執行長胡華志先生；方鑫先生，營運長；楊康先生，財務長兼董事會董事。管理團隊將陸續發表事先準備好的演講。中文發言後將附有英文翻譯。所有翻譯僅供方便之用。如有任何差異，以原始語言的管理層聲明為準。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.

在我們繼續之前，請注意，今天的討論將包含根據 1995 年美國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，公司的實際結果可能與今天表達的預期有重大差異。有關這些以及其他風險和不確定性的更多資訊包含在公司向 SEC 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。

Also, please note that all numbers presented are in RMB and are for the third quarter of 2023, unless stated otherwise.

另請注意，除非另有說明，否則所有數字均以人民幣為單位，且為 2023 年第三季的數據。

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

現在，讓我將電話轉給我們的執行長胡華志先生。胡先生，請繼續。

(foreign language)

（外語）

[Interpreted] This is the English translation of Mr. Hu's remarks.

【解讀】這是胡錦濤主席講話的英文譯本。

Hello, everyone. Thank you all for joining our conference call today.

大家好。感謝大家今天參加我們的電話會議。

The third quarter of 2023 marks a significant milestone in our journey, as we have successfully reached one of the most highly anticipated and thrilling achievements. Our self-developed EH216-S passenger-carrying unmanned aerial vehicle system has obtained the type certificate from the CAAC on October 13th this year, making it the world's first TC for an unmanned eVTOL aircraft. It is not only a milestone for EHang, but also serves as a guiding light for the entire eVTOL industry, paving the way for its future development.

2023 年第三季標誌著我們旅程中的一個重要里程碑，因為我們成功實現了最受期待和最令人興奮的成就之一。本公司自主研發的EH216-S載人無人機系統已於今年10月13日取得中國民航局型號合格證，成為全球首個電動垂直起降無人機TC。這不僅是億航智慧的里程碑，也成為整個eVTOL產業的指路明燈，為其未來的發展鋪平了道路。

As the saying goes, being the pioneer in a new industry is no easy feat. It requires innovation from the ground up, and unwavering determination from the outset. At EHang, we have always been committed to this principle—— to keep in mind our humble beginnings and never give up. In the early days, when there were no established methods for eVTOL airworthiness certification worldwide, we embarked on a journey of continuous exploration, experiment, and improvement. It was in January 2021 that the CAAC officially accepted our TC application for the EH216-S. After that, over more than 1,000 days and nights, we persevered with relentless effort, overcoming challenges and demonstrating innovation. We also faced additional hurdles posed by the epidemic. Today, we have successfully completed the entire process of TC certification, starting from scratch, leading the way for unmanned eVTOL type certification.

俗話說，要成為新產業的先鋒絕非易事。它需要從頭開始的創新，以及從一開始就堅定不移的決心。在億航，我們始終恪守這項原則──牢記初心，永不放棄。在早期，當全球還沒有既定的eVTOL適航認證方法時，我們就踏上了不斷探索、實驗和改進的旅程。 2021年1月，民航局正式受理本司EH216-S的技術合作申請。此後的1000多個日日夜夜，我們堅持不懈，克服挑戰，展現創新。我們也面臨疫情帶來的額外障礙。今天，我們順利完成TC認證全流程，從零開始，引領無人eVTOL型式認證之路。

The EH216-S stands out as a disruptive and innovative product, boasting a range of unique features such as its all-electric nature, autonomous flying, fully back-up systems, and cluster management, among others. As a result, it differs significantly from traditional piloted aircraft in terms of technical architecture, configuration, performance, functionality, operation modes, and flight environments. Recognizing this, the CAAC gathered a team of nearly 100 top experts from across the nation to review and certify EH216-S. Through close collaboration between the EHang team and the CAAC review team, a rigorous and innovative approach was taken and establish the world's first airworthiness certification standard for passenger-carrying UAVs. Guided by the principle of "life first, safety first", this standard ensures that the EH216-S certifies at a level of safety equivalent to that of a piloted aircraft. This standard lays a solid foundation for the verification of the EH216-S, contributing Chinese wisdom and solutions to the global development of electric passenger-carrying UAVs in civil aviation and the establishment of comprehensive airworthiness certification standards.

EH216-S作為一款顛覆性創新產品脫穎而出，擁有全電動、自主飛行、全備份系統、叢集管理等一系列獨特功能。因此，它在技術架構、配置、性能、功能、運作模式、飛行環境等方面與傳統有人駕駛飛機有顯著差異。認識到這一點，民航總局召集了全國近百名頂尖專家組成的團隊，並對EH216-S進行了審查和認證。透過億航團隊與中國民航局評審小組的密切合作，採取嚴謹創新的方式，建立了全球首個載人無人機適航認證標準。該標準以「生命第一、安全第一」為指導原則，確保EH216-S獲得與有人駕駛飛機相當的安全等級認證。該標準為EH216-S的驗證奠定了堅實的基礎，為全球民航電動載人無人機的發展和全面適航認證標準的建立貢獻中國智慧和解決方案。

The process of airworthiness certification is a rigorous one with no shortcuts. Grounded in the principles of science, comprehensiveness, and safety, and following the framework of CCAR21, we, in collaboration with the CAAC, have undertaken an extensive and complex review and verification process. This comprehensive approach encompasses multiple dimensions and disciplines, ensuring a meticulous and systematic evaluation.

適航認證的過程是一個嚴格的過程，沒有捷徑。我們本著科學、全面、安全的原則，依照CCAR21的框架，與民航局合作，進行了廣泛而複雜的審查和驗證過程。這種綜合方法涵蓋多個維度和學科，確保進行細緻和系統的評估。

Across 12 professional subjects and 65 major categories, we have completed over 450 compliance test items. The 12 professional subjects cover a wide range of areas, including flight performance, structure, design and configuration, electrical system, propulsion unit, flight control system, ground control station, communication and data link, airborne human-computer interaction, general aspects, continued airworthiness, and system safety.

橫跨12個專業科目、65個大類，完成450多個合規測驗項目。 12個專業科目涵蓋領域廣泛，包括飛行性能、結構、設計與配置、電氣系統、推進裝置、飛行控制系統、地面控制站、通訊與資料鏈、機載人機互動、通用方面、續適航性和系統安全性。

The compliance tests involved assessing main material performance, structural strength, flame resistance, crashworthiness, gas toxicity, environmental conditions of equipment and systems, software simulation, data links, ground control station, overall system functionality, electromagnetic compatibility, flight performance and flight stability characteristics, etc.

合規性測試涉及評估主要材料性能、結構強度、阻燃性、耐撞性、氣體毒性、設備和系統的環境條件、軟體模擬、資料鏈、地面控制站、系統整體功能、電磁相容性、飛行性能和飛行穩定性特性。

Throughout the validation process, we meticulously scrutinized every component, equipment, and the entire aircraft for any potential defects, faults, or interferences. This scrutiny extended to both laboratory tests and flight tests.

在整個驗證過程中，我們仔細檢查每個零件、設備和整架飛機是否有任何潛在的缺陷、故障或乾擾。這種審查延伸到實驗室測試和飛行測試。

Over 1,500 compliance test flights, along with more than 40,000 safe flights records, EH216-S finally met all the requirements to complete the compliance review. The TC process has been conducted with scientific rigor and authoritative oversight.

經過1500餘次合規試飛，4萬餘條安全飛行記錄，EH216-S最終滿足了所有要求，完成了合規審查。 TC過程是在科學嚴謹和權威監督下進行的。

The TC signifies that the EH216-S is qualified for passenger-carrying commercial operations. It also marks the beginning of a new chapter, as we are poised to take the lead in commercial operations in the days to come.

該TC標誌著EH216-S具備載客商業營運資格。這也標誌著新篇章的開始，因為我們準備在未來的日子裡在商業運營方面處於領先地位。

I want to thank the entire team at EHang, as well as all the leaders and members of the CAAC and the review team for their support and dedicated efforts, and all the people who support and are passionate about our development as well as the eVTOL industry.

感謝億航整個團隊，感謝民航總局和評審組的各位領導和成員的支持和付出，感謝所有支持和熱衷我們發展和電動垂直起降行業的人們。

However, we are fully aware that obtaining TC does not mean we have succeeded. Instead, it just makes the beginning of a new chapter for us. The TC has opened the door to rapid advancements in the unmanned aviation industry and the vast opportunities presented by the low-altitude economy. It will propel China's urban air mobility industry into the fast lane.

但我們深知，獲得TC並不代表我們就成功了。相反，它只是為我們開啟了新篇章。 TC為無人駕駛航空業的快速發展和低空經濟帶來的巨大機會打開了大門。它將推動中國城市空中交通產業駛入快車道。

As a pioneer in this field, we anticipate several "firsts" that await us to achieve on this journey. These include milestones such as the first EH216-S aircraft produced according to the TC officially rolling off the production line, the first batch of EH216-S operation sites and routes, the first commercial flight, and the first passenger to buy a flight ticket. We invite you to stay tuned and witness these milestones as we progress forward.

作為這一領域的先驅，我們預計在這趟旅程中將有幾個「第一」等著我們實現。其中包括首架依照TC生產的EH216-S飛機正式下線、首批EH216-S營運場地及航線、首個商業航班、第一個旅客購買機票等里程碑事件。我們邀請您繼續關注並見證我們前進過程中的這些里程碑。

Undoubtedly, prioritizing flight safety is of paramount importance in the aviation industry, as it directly impacts the personal safety of every passenger. Throughout the past few years, we have conducted over 42,000 autonomous flights across 14 countries, establishing an outstanding track flight record. As we enter a new phase of commercial operations, we will continue to uphold our commitment to safe flights for a healthy and sustainable development of this industry.

毫無疑問，飛行安全對航空業至關重要，它直接關係到每位旅客的人身安全。在過去幾年中，我們已在 14 個國家/地區進行了超過 42,000 次自主飛行，創造了出色的追蹤飛行記錄。隨著商業營運進入新階段，我們將繼續堅守安全飛行的承諾，促進產業健康永續發展。

At the production level, we maintain strict control over the quality standards of our aircraft. Based on obtaining the AS9100D international aerospace and aviation quality management system certification, we are now actively collaborating with the CAAC to finalize the processing of the production certificate. This ensures that every aircraft produced in mass quantities adheres to the airworthiness standards and will be issued an airworthiness certificate and efficiently delivered to our customers.

在生產層面，我們嚴格控制飛機的品質標準。在獲得AS9100D國際航太航空品質管理系統認證的基礎上，目前正積極配合民航總局完成生產證書的辦理工作。這確保了每架大量生產的飛機都符合適航標準，並獲得適航證書並有效地交付給我們的客戶。

Regarding operations, we are advancing toward commercial operations of EH216-S in an orderly manner. We are undertaking comprehensive preparations, such as enhancing safety operation regulations, conducting personnel training, constructing vertiports, establishing maintenance and service systems, and obtaining operation licenses and insurance. Furthermore, in August of this year, our Unmanned Aircraft Cloud System received the approval for trial operations from the CAAC, which serves as a significant foundation for our upcoming commercial operations. It also plays a vital role in ensuring the safety and management of large-scale operations of our unmanned eVTOL aircraft.

營運方面，我們正在有序地推進EH216-S的商業營運。我們正在進行完善安全操作規範、進行人員培訓、建造垂直起降場、建立維護和服務體系、取得營運許可證和保險等全面準備工作。此外，今年8月，我們的無人機雲端系統獲得了民航總局的試運行批准，這為我們接下來的商業營運奠定了重要基礎。它還在確保我們的電動垂直起降無人機大規模運作的安全和管理方面發揮著至關重要的作用。

At the commercial operation stage, we will take a proper pace and approach of our development with a responsible mindset by prioritizing the public safety and fostering industry development. Initially, we have set restrictions on the usage and operational conditions of EH216-S, primarily focusing on sightseeing and short-distance passenger flights. Adhering to the principle of "progressive risks, conducted trial operation while advancing certification", we plan to gradually lift the restrictions, expanding operation scenarios into a broader range of urban air mobility applications, including airport shuttles and fully autonomous urban air taxis, etc. Throughout this process, EHang remains dedicated to enhancing our product, advancing fundamental research and development, and achieving milestones such as test flights with high-energy-density batteries, and test flights of our lift-and-cruise eVTOLs such as the VT-30, alongside its airworthiness certification. These efforts will be geared towards achieving significant advancements in our flight performance.

在商業營運階段，我們將以負責任的態度，把公共安全放在第一位，促進產業發展，掌握好發展的節奏和方式。最初，我們對EH216-S的使用和運作條件進行了限制，主要針對觀光和短程客運航班。秉持著「漸進風險、先試營運、先行認證」的原則，我們計劃逐步取消限制，將營運場景拓展到更廣泛的城市空中出行應用，包括機場班車、全自動城市空中計程車等。 ，億航智能始終致力於增強我們的產品，推進基礎研究和開發，並實現里程碑，例如使用高能量密度電池進行試飛，以及我們的升降巡航電動垂直起降飛機（例如VT-30）的試飛，以及其適航認證。這些努力將旨在實現我們的飛行性能的重大進步。

To achieve safe, autonomous, and eco-friendly urban air mobility is not only a longstanding commitment for EHang, but also a shared goal for humankind. Facing the long journey ahead, we are aware of the significant responsibilities and the mission as a pioneer of innovations. Our dedication remains unwavering, guided by the core principles of the Chinese civil aviation industry: a reverence for life, regulations, and duties. We are resolute in our pursuit of strategic goals, unwaveringly contributing towards the high-quality development of the civil unmanned aviation industry, thereby making meaningful progress in advancing this innovative sector.

實現安全、自主、環保的城市空中交通，不僅是億航智能的長期承諾，也是人類的共同目標。面對漫漫之旅，我們深知身為創新先鋒的重大責任和使命。我們的奉獻精神始終如一，始終遵循中國民航業的核心原則：敬畏生命、敬畏規則、敬畏責任。我們堅定不移地追求戰略目標，堅定不移地推動民用無人機產業高品質發展，推動民用無人機創新事業不斷取得新進展。

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

現在我將把電話轉交給我們的首席營運官方鑫先生。謝謝。

(foreign language)

（外語）

[Interpreted] This is the English translation of Mr. Fang's remarks.

【解讀】這是方先生講話的英文譯文。

Thank you, Mr. Hu, and hello, everyone. The achievement of the EH216-S TC in October this year marks EHang's transition from the product certification phase to the next stage of commercial operations. Aligned with our strategic positioning as an "urban air mobility platform operator", the company is set to implement an integrated business model driven by both product sales and operational services. Therefore, production, sales, and operations are the 3 key drivers to our business growth. I will now share the latest updates and plans of our company in these 3 areas.

謝謝胡總，大家好。今年10月EH216-S TC的取得，標誌著億航智慧從產品認證階段過渡到下一階段的商業營運。本公司秉承「城市空中交通平台營運商」的策略定位，實施產品銷售與營運服務雙驅動的一體化業務模式。因此，生產、銷售和營運是我們業務成長的三個關鍵驅動力。我現在就分享我們公司在這三個方面的最新動態和計劃。

Regarding sales, we successfully delivered 13 units of EH216 series products in the third quarter, marking a notable year-over-year and quarter-over-quarter growth. With the EH216-S receiving its TC, we've seen a significant increase in business collaborations and product purchase demand from customers around the globe, especially from China. For instance, Shenzhen Boling intends to purchase 100 units of EH216-S and we have delivered the initial 5 units for operational preparations. Moreover, in accordance with our strategic partnership, the Hefei Municipal Government is set to facilitate orders for at least 100 units of EH216 series products. As of now, the total sales pipeline for the EH216 series in China have more than 245 units, which will be delivered in phases as per customers' requirements.

銷售方面，第三季我們成功交付了13台EH216系列產品，較去年同期成長顯著。隨著EH216-S獲得TC，我們看到全球客戶（尤其是中國客戶）的業務合作和產品購買需求顯著增加。例如，深圳博菱擬採購100台EH216-S，我們已交付首批5台進行營運準備。此外，根據我們的策略夥伴關係，合肥市政府將促成至少100台EH216系列產品的訂單。截至目前，EH216系列在中國的總銷售管道已超過245台，將根據客戶需求分階段交付。

Regarding production, guided by the CAAC Central and Southern Regional Administration, we are steadily moving towards producing EH216-S according to its TC at our Yunfu factory. The initial batch of EH216-S produced based on its TC is scheduled to roll off our production line for deliveries to our customers in the fourth quarter of 2023.

生產方面，在民航中南地區管理局的指導下，我們正在雲浮工廠依照其TC穩步推進EH216-S的生產。基於其TC生產的第一批EH216-S計劃於2023年第四季下線交付給客戶。

In terms of operations, the growth and sustained development of the UAM ecosystem and emerging industries hinge on strategic government planning and policies. We are glad to see that just before the EH216-S obtained its TC, China issued the "Green Aviation Manufacturing Industry Development Outline (2023-2035)" jointly by the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance, and the CAAC, to encourage eVTOL operations by 2025. Moreover, recently many local governments in China have introduced a series of supportive policies to cultivate robust and sustainable growth in the low altitude economy, establishing a stable policy foundation for our UAV operations in China. Since the third quarter, we have entered strategic partnerships with Bao'an District Government of Shenzhen and Hefei Municipal Government. These governmental collaborations involve providing supports in terms of policies, infrastructures, applications, and subsidies to EHang, aimed at facilitating industrial growth and applications within these regions.

在營運方面，城市空中交通生態系統和新興產業的成長和持續發展取決於政府的策略規劃和政策。我們很高興地看到，就在EH216-S獲得技術資格證書之前，中國工業和資訊化部、科技部、國家航空暨太空總署聯合發布了《綠色航空製造產業發展綱要（2023-2035年）》。部、民航總局提出，2025年鼓勵電動垂直起降飛行。在中國的業務。第三季以來，我們與深圳市寶安區政府、合肥市政府建立了戰略合作關係。這些政府合作包括向億航智能提供政策、基礎設施、應用和補貼等方面的支持，旨在促進這些地區的產業發展和應用。

Serving as Shenzhen's gateway and a key transit hub in the Greater Bay Area, Bao'an District aims to become a pioneering zone for low-altitude economy innovation and development in China, and it plans to build over 100 low-altitude aircraft vertiports, along with the launch of more than 50 UAV routes by 2025. Currently, in strategic partnership with EHang, Bao'an is actively expediting the establishment of a UAM operation demonstration center at the OH Bay with the plan to initiate aerial tourism and local sightseeing services with EH216-S.

作為深圳的門戶和大灣區的重要交通樞紐，寶安區致力於成為中國低空經濟創新發展的先行區，計劃在沿線建設100多個低空飛機垂直機場。機航線。

Hefei city, serving as a central area for low-altitude airspace management reform in Anhui Province and as the regional general aviation service hub, is actively fostering the development of a low-altitude industry cluster. The Hefei Municipal Government intends to provide EHang with a total value of US$100 million supports, including facilitating purchase orders and financing support. Additionally, Hefei is dedicated to promoting the utilization of our UAVs across various low-altitude scenarios, including culture and tourism, emergency transportation, air logistics and firefighting, etc. Meanwhile, we will plan to launch regular operations with our UAVs in Luogang Central Park in Hefei.

合肥市作為安徽省低空空域管理改革中心區和區域通用航空服務樞紐，正積極培育低空產業群聚發展。合肥市政府擬提供億航智能總價值1億美元的支持，包括促成採購訂單和融資支持。此外，合肥也致力於推動無人機在文化旅遊、緊急交通、航空物流、消防等低空場景的應用。

Internationally, following by obtaining the TC from the CAAC, we are proactively engaging in efforts to secure bilateral recognition and certification from various civil aviation authorities, through communication and collaborations with our local customers and partners. This will position us well for the next phase of delivering international orders and expanding our business abroad.

在國際上，繼獲得中國民航局TC認證後，我們透過與當地客戶和合作夥伴的溝通與合作，積極爭取民航各主管機關的雙邊認可和認證。這將使我們為下一階段交付國際訂單和拓展海外業務做好準備。

Next, I will turn the call over to our CFO, Conor. Thanks.

接下來，我將把電話轉給我們的財務長康納。謝謝。

Thank you, Mr. Fang. Hello, everyone. This is Conor. Before I go into details, please note that all numbers presented are in RMB and are for the third quarter of 2023, unless stated otherwise. Detailed analyses are contained in our earnings press release, which is available on our IR website. I will now highlight upon some of the key points here.

謝謝方先生。大家好。這是康納。在詳細介紹之前，請注意，除非另有說明，否則所有數據均以人民幣為單位，且均為 2023 年第三季的數據。詳細分析包含在我們的收益新聞稿中，該新聞稿可在我們的投資者關係網站上取得。我現在將強調這裡的一些關鍵點。

In Q3, total revenues were RMB28.6 million, an increase of 248% from RMB8.2 million in the same period last year, and 186% increase compared to RMB10 million in Q2. The increases were primarily attributed to the increase in our sales volume of EH216 series products. We delivered 13 units of EH216, up 225% year-over-year, and 160% quarter-over-quarter. We've been seeing growing demand for our products upon obtaining the TC and expect our revenue to further increase and cash flow generation continue to strengthen in the next few quarters.

第三季總營收為人民幣2,860萬元，較去年同期的人民幣820萬元成長248%，較第二季的人民幣1,000萬元成長186%。此成長主要歸因於EH216系列產品銷售的成長。我們交付了 13 台 EH216，年增 225%，季增 160%。在獲得 TC 後，我們看到對我們產品的需求不斷增長，並預計我們的收入將進一步增加，現金流產生將在未來幾季繼續加強。

Gross margin continued to stand at a high level of 64.6% in Q3, an increase of 4.4 percentage points from 60.2% in Q2, primarily driven by higher average selling price of our EH216. Furthermore, our distinctive advantages in the UAM industry allow us to enjoy higher margin over other types of electric transportation vehicles.

第三季毛利率持續維持在 64.6% 的高位，較第二季的 60.2% 成長 4.4 個百分點，主要是由於我們的 EH216 平均售價較高。此外，我們在城市空中交通行業的獨特優勢使我們比其他類型的電動交通車輛享有更高的利潤率。

In Q3, our adjusted operating expenses, which are operating expenses excluding share-based compensation expenses, were RMB54 million, down 9.5% from RMB59.7 million in the same period last year, and down 7% from RMB58.1 million in Q2. These decreases were primarily due to a reduction in professional service fees and healthier situation in accounts receivable compared to last year, demonstrating effective cost control and improved operational efficiency.

第三季度，我們調整後的營運費用（不包括股權激勵費用的營運費用）為人民幣5,400 萬元，比去年同期的人民幣5,970 萬元下降9.5%，比第二季度的人民幣5,810 萬元下降7% 。這些下降主要是由於專業服務費用的減少以及應收帳款狀況較去年更加健康，體現了有效的成本控制和營運效率的提高。

As a result, our adjusted operating loss in Q3 was RMB34.2 million, an improvement from loss of RMB52.9 million in the same period last year, and a loss of RMB51.3 million in Q2. Adjusted net loss was RMB31.3 million, a significant reduction of 43.1% year-over-year and a reduction of 39.5% quarter-over-quarter.

因此，我們第三季調整後的營運虧損為人民幣 3,420 萬元，比去年同期的虧損人民幣 5,290 萬元和第二季的虧損 5,130 萬元有所改善。調整後淨虧損為人民幣3,130萬元，較去年大幅減少43.1%，較上季減少39.5%。

Turning to our balance sheet, our stringent approach to cash and liquidity management is reflected in our cash position. As of the end of Q3, we had RMB295.6 million of cash, cash equivalents, short-term investments, and restricted short-term deposits. In July, we successfully concluded a private placement, securing US$23 million from long-term strategic investors. The funding will bolster our liquidity and provide support for technology advancement, business development, and post-certification commercial operations. We are confident in our cash position would be sufficient to meet cash needs for us to reach cash flow positive status in the near future.

談到我們的資產負債表，我們嚴格的現金和流動性管理方法反映在我們的現金狀況上。截至第三季末，我們擁有現金、現金等價物、短期投資和受限短期存款人民幣2.956億元。 7月，我們成功完成私募，獲得長期策略投資者2,300萬美元融資。此次融資將增強我們的流動性，並為技術進步、業務發展和認證後商業營運提供支援。我們有信心我們的現金狀況足以滿足我們在不久的將來達到正現金流狀態的現金需求。

Starting from this quarter, we will provide revenue guidance for the next quarter in our earnings results. We are optimistic about our post-TC commercial operations. We anticipate achieving revenues of about RMB56 million for Q4, representing an increase of 257% year-over-year and an increase of 96% quarter-over-quarter. For the fiscal year 2023, we expect total revenues to be about RMB118 million, up 166% from last year.

從本季開始，我們將在獲利結果中提供下一季的營收指引。我們對TC後的商業營運持樂觀態度。我們預計第四季實現營收約人民幣5,600萬元，年增257%，季增96%。 2023財年，我們預期總營收約為人民幣1.18億元，較去年成長166%。

Looking forward, as we sell and deliver more products per customers' requests and steadily expand our commercial operations in the future, our cash flow will improve and we are confident that the company can generate positive cash flow in later part of 2024.

展望未來，隨著我們根據客戶的要求銷售和交付更多產品，並在未來穩步擴大我們的商業運營，我們的現金流將會改善，我們有信心公司能夠在 2024 年下半年產生正現金流。

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

我們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) The first questions come from the line of Tim Hsiao from Morgan Stanley.

（操作員說明） 第一個問題來自摩根士丹利的 Tim Hsiao。

Thank you for taking my question and congratulation on receiving the type certificate from CAAC. I'm Tim's colleague and will ask the question on behalf of him as he lost his voice due to a bad cold.

感謝您回答我的問題，並祝賀您獲得中國民航局的型號合格證。我是提姆的同事，我會代表他提出這個問題，因為他因重感冒而失去聲音。

Just a quick question about order backlog. Can we get a sense of the composition of current order backlog in terms of geographic mix and model mix? When will they start to contribute to EHang's revenue since the Company has obtained the type certificate?

只是一個關於訂單積壓的簡單問題。我們能否從地理組合和型號組合方面了解目前積壓訂單的組成？公司取得型式合格證後，他們什麼時候開始為億航智能貢獻收入？

Thank you for the question. Currently, our sales pipeline reaches more than 450 units of unmanned eVTOL aircraft from China and other parts of Asia. This includes more than 245 units from domestic customers and 210 units of pre-orders from Asian overseas market.

謝謝你的提問。目前，我們的銷售管道已超過 450 架來自中國和亞洲其他地區的無人駕駛電動垂直起降飛機。其中包括超過245台來自國內客戶和210台來自亞洲海外市場的預訂。

There are also orders from other countries that will be delivered after obtaining validation TC in these respective countries, and over 90% of our sales pipeline in the domestic and Asian markets are for EH216-S and less than 10% orders for EH216 logistic version and also EH216 firefighting version. This sales pipeline will be delivered in stages per our customers' requests. For instance, our scenic spot customers, they typically start with an initial purchase of 3 to 10 units for training and trial operations at local sites. Subsequently, as operations expand and demand increases, they will buy more products. So the purchase timeline typically spans 1 to 3 years.

還有其他國家的訂單，將在這些國家獲得驗證TC後交付，我們在國內和亞洲市場的銷售管道90％以上是EH216-S，EH216物流版本和EH216物流版本的訂單不足10％還有EH216消防版。此銷售管道將根據客戶的要求分階段交付。以我們的景區客戶為例，他們通常會先購買3到10台設備，用於在當地進行培訓和試運行。隨後，隨著業務的擴大和需求的增加，他們將購買更多的產品。因此，購買時間通常跨越 1 至 3 年。

We can see a significant increase in delivery volume in the fourth quarter upon obtaining the TC. Moving forward, we will provide revenue guidance for the next quarter in our quarterly financial reports. Thank you.

獲得TC後，我們可以看到第四季度的交付量顯著增加。展望未來，我們將在季度財務報告中提供下一季的收入指引。謝謝。

We are now going to proceed with our next question. And the questions come from the line of Ting Song from Goldman Sachs.

我們現在要繼續討論下一個問題。這些問題來自高盛的宋婷。

Just a quick one. What's EHang's progress on getting TC certification in overseas market like Middle East or some other countries?

只是快一點。億航智能在中東等海外市場取得TC認證進展如何？

(foreign language)

（外語）

[Interpreted] The type certificate we have obtained is by the CAAC. As we all know, in the past few years, the CAAC has reached a lot of bilateral regulation agreements with other aviation authorities in other countries.

[解讀]我們取得的型號合格證是由民航局核發的。眾所周知，過去幾年，中國民航局與其他國家航空當局達成了大量雙邊監管協議。

We're promoting the communication between the CAAC with other civil aviation authorities. For example, recently, the Brazil Civil Aviation Authority has come to China. So first, we will prioritize to work on the regions that we have orders in the local market.

我們正在推動民航局與其他民航部門的溝通。例如，最近，巴西民航局來到中國。因此，首先，我們將優先在當地市場有訂單的區域開展工作。

We believe we will make efforts to promote the VTC procedure, which means the verification of the type certificate in the local countries, and we will provide support to that work. Before we obtain the VTC, we can deliver some products to the local market and do some trainings for the local clients.

我們相信我們會努力推動VTC程序，即型號證書在當地的驗證，我們也會為這項工作提供支援。在我們獲得VTC之前，我們可以向當地市場交付一些產品，並為當地客戶做一些培訓。

We will extend our market expansions at a proper pace to the international market. We believe that soon we will see our global exposures. The VTC is an administrative work, so it's not as complicated as the type certificate.

我們將適度拓展國際市場。我們相信很快我們就會看到我們的全球業務。 VTC是一項行政工作，所以不像型號合格證那麼複雜。

The questions come from the line of Rong Zhao from TianFeng Securities.

問題來自天風證券趙蓉的電話。

I have 2 questions from my side. The first one is about EH216. I would like to ask whether the company sees the need to upgrade the products so as to increase the range and mileage, judging from the current feedback from the demand side? If so, what is the timeline and the cost outlook?

我有兩個問題。第一個是關於EH216的。請問，從目前需求方的回饋來看，公司是否認為有必要升級產品，以增加續航里程和里程？如果是的話，時間表和成本前景是什麼？

The second question is about airworthiness certification for EH216 logistics version. What is the expected time to get TC?

第二個問題是關於EH216物流版的適航認證。預計什麼時間可以拿到TC？

[Interpreted] Thanks for your question. The EH216-S is designed for short-distance air transportation within the city. According to our tests, our product is capable to do the air taxi services within the city. In order to achieve the longer flight time, we will continue to optimize our power system and the battery system.

[解釋]謝謝你的提問。 EH216-S專為城市內短途航空運輸而設計。根據我們的測試，我們的產品能夠在城市範圍內提供空中計程車服務。為了實現更長的飛行時間，我們將持續優化我們的動力系統和電池系統。

As you know that there are many companies in China who have invested in the solid-state lithium batteries. For example, the CATL. Recently, we have also invested in a domestic solid-state lithium battery company.

大家知道，中國有很多公司投資固態鋰電池。例如，寧德時代。最近我們也投資了一家國內固態鋰電池公司。

We are making efforts to achieve the goal that to double the flight performance in the future. Our goal is to achieve a longer flight range, but meanwhile, we will ensure safety.

我們正在努力實現未來飛行性能翻倍的目標。我們的目標是實現更遠的飛行距離，但同時我們也會確保安全。

When we were doing the type certification with the EH216, the VT-30 development pace is slower. But now after the type certification of EH216-S, we are also developing and working on the long-range model, which is the VT-30, a lift-and-cruise model for the intercity, longer range air mobility.

當我們用EH216進行型式認證時，VT-30的開發速度較慢。但現在在 EH216-S 獲得型式認證後，我們還在開發和開發遠程型號，即 VT-30，這是一款用於城際、遠程空中機動的升降巡航型號。

The EH216 has obtained the trial operation certificate for cargo transportation previously. So after there is a certification standard for this kind of aircraft, we will apply for type certification for the EH216-L.

EH216先前已取得貨物運輸試運行證明。所以當這種飛機有了認證標準之後，我們就會為EH216-L申請型號認證。

Before we obtain the type certificate of the EH216-L, we can still expand our business based on the trial operation permit that we have obtained.

在我們取得EH216-L型式合格證之前，我們仍可根據已取得的試運轉許可證來拓展我們的業務。

As the EH216-L and EH216-S share the same flight platform, so we can leverage the experience from the type certification for the passenger model. We can expect to take a shorter time on the EH216-L type certification than that of the passenger one.

由於EH216-L和EH216-S共享同一飛行平台，因此我們可以藉鏡客機型號認證的經驗。我們預計 EH216-L 型式認證所需的時間將比客運型式認證的時間更短。

The questions come from the line of Laura Li from Deutsche Bank.

這些問題來自德意志銀行的勞拉李（Laura Li）。

Congratulations on receiving the first type certificate. My first question is, we have already talked about the backlog orders, but just a clarification on this. Would you expect to be able to collect deposits? Also, when do we expect the first customer paying flight to occur?

恭喜您獲得第一類證書。我的第一個問題是，我們已經討論過積壓訂單的問題，但只是對此進行澄清。您希望能夠收取存款嗎？另外，我們預計第一個客戶支付航班費用什麼時候發生？

My second question is, how should we think about the cash burn trajectory and your future financing plans?

我的第二個問題是，我們應該如何考慮現金消耗軌跡和未來的融資計畫？

For your first question, as mentioned before that after securing the TC, we have seen a surge in interest and inquiries from many domestic and global customers. For our pre-order and order of intent, we charge small non-refundable deposits, which varies by customers to confirm their commitment to purchase. For the purchase order, right now, we collect about 30% for downpayment and then the remaining 60% to 70% before delivery.

關於你的第一個問題，正如之前提到的，在獲得TC後，我們看到許多國內外客戶的興趣和詢問激增。對於我們的預購和意向訂單，我們收取小額不可退還的押金，具體金額因客戶而異，以確認他們的購買承諾。對於採購訂單，目前我們收取約 30% 的首付款，然後在交貨前收取剩餘的 60% 至 70%。

For your second question on the cash burn situation and capital needs. Our current average monthly cash burn rate of operation is less than RMB10 million or roughly less than about US$1.4 million. At the end of the third quarter, we have RMB295.6 million of cash, cash equivalents, short-term investments, and restricted short-term deposits. Therefore, we believe that our current cash and cash equivalents and our anticipated cash flow from operations will be sufficient to meet our anticipated working capital requirements.

關於你的第二個問題，關於現金消耗狀況和資金需求。我們目前的平均每月營運現金消耗率不到1,000萬元人民幣，或約不到140萬美元。截至第三季末，我們擁有現金、現金等價物、短期投資和受限短期存款人民幣2.956億元。因此，我們相信我們目前的現金和現金等價物以及我們預期的營運現金流將足以滿足我們預期的營運資金需求。

Looking forward, as we sell and deliver more products per customers' requests and steadily expand our commercial operations in the future, our cash flow will improve, and we are confident that our company can generate positive cash flow in the later part of 2024.

展望未來，隨著我們根據客戶的要求銷售和交付更多產品，並在未來穩步擴大我們的商業運營，我們的現金流將會改善，我們有信心我們公司能夠在2024年下半年產生正現金流。

The next questions come from the line of Yu Chen from Haitong Securities.

接下來的問題來自海通證券的陳宇。

(foreign language)

（外語）

I kind of briefly repeat your questions. Your first question is, how about the order for the next 2 years? And then the validation of type certificate in overseas, how long will it take? Thirdly, regarding the ASP price of EH216.

我簡單地重複一下你的問題。您的第一個問題是，未來兩年的訂單狀況如何？那麼國外型號證明書的驗證需要多長時間？第三，關於EH216的ASP價格。

As we see that our guidance for the fourth quarter, basically, the EH216 volume has increased a lot. For the next 3 years, I will say that next year of 2024, the majority of the orders will come from domestic sightseeing places or scenic spots in China. We estimate that in China, there are over 6,000 scenic spots that can fly our products in their locations to enhance their revenue. Even we use like a 10% penetration rate in each site to use 5 units, that will be like over 3,000 EH216 demand from domestic scenic spots in the next several years.

正如我們所看到的，我們對第四季度的指導基本上是，EH216 的銷量增加了很多。未來3年，我會說明年2024年，大部分訂單來自國內的旅遊景點或中國的景區。我們估計，在中國，有超過6000個景區可以在其所在地飛行我們的產品，以增加他們的收入。即使我們以每個站點10%的滲透率使用5台，未來幾年國內景區對EH216的需求量將超過3000台。

So 2024, we'll see a strong demand coming out from scenic spots in China. The application for overseas validation of TC, will be a lot shorter than the TC we have obtained from the CAAC. We are expecting that roughly about 12 months more or less, for the foreign government to get approval for validation TC.

因此，2024年，我們將看到中國景區的強勁需求。申請海外驗證TC，會比我們從CAAC獲得的TC短很多。我們預計外國政府大約需要 12 個月左右的時間才能獲得 TC 驗證的批准。

Even though we have seen a strong demand from globally right now, but we're expecting, given the time of getting validation TC from different countries globally, we're expecting that global demand will come in a great way in 2025. In 2025, the growth drivers will be the domestic scenic spot demand as well as the international orders in 2025. And then it comes to the later part of 2025, for transportation purpose demand of our EH216 will start to contribute a meaningful portion of our business after 1 to 2 years build-out for the infrastructures and in talk with the local government in China.

儘管我們現在看到了來自全球的強勁需求，但我們預計，考慮到從全球不同國家獲得驗證 TC 的時間，我們預計全球需求將在 2025 年大幅成長。需求以及國際訂單。政府進行談判。

So 2026, there will be 3 ways of revenue-contribution orders. First one is, again, the domestic scenic spot and secondly, global order and thirdly, for transportation purpose of EH216. All these will contribute a lot of our revenues in the next 3 years.

那麼2026年，營收貢獻訂單將有3種方式。第一是國內景區，第二是全球訂單，第三是EH216的運輸目的。所有這些都將為我們未來3年貢獻大量收入。

Other than that, our logistics version of EH216, as well as the firefighting version of EH216 will also provide a strong growth driver for our revenues going forward.

除此之外，我們的物流版EH216以及消防版EH216也將為我們未來的收入提供強勁的成長動力。

Regarding to the ASP of EH216, we saw that there is a slight increase on ASP in third quarter versus second quarter. Especially after we obtain TC, we will have a stronger position in our pricing, so RMB2.16 million, that's the listed selling price, and we sometimes give certain discounts to our customers. But after we obtain TC, we think the pricing will be stronger. We should expect a slight increase on the ASP. Especially, if those orders coming from overseas, we can even sell at a lot higher prices. Gradually, looking forward that there is also upside on the ASP price for EH216.

關於EH216的平均售價，我們看到第三季的平均售價比第二季略有上升。特別是我們拿到TC之後，我們在定價上會有更強的地位，所以216萬元，這是掛牌售價，我們有時會給客戶一定的折扣。但在我們獲得TC之後，我們認為定價會更強。我們預計平均售價將略有上升。特別是，如果這些訂單來自海外，我們甚至可以以更高的價格出售。逐漸地，預計 EH216 的平均售價也有上漲空間。

Thank you. Seeing no more questions in the queue, let me turn back the call to Ms. Anne for closing remarks.

謝謝。看到隊列中沒有更多問題，讓我將電話轉回給安妮女士進行結束語。

Thank you, operator, and thank you all for participating on today's call. If you have any further questions, please contact our IR team by e-mail or participating in our 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。如果您有任何其他疑問，請透過電子郵件聯絡我們的投資者關係團隊或透過我們的投資者關係網站上提供的日曆資訊參加我們的以下投資者活動。我們感謝您的關注，並期待我們的下一次財報電話會議。謝謝。

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

再次感謝大家。通話就此結束。現在你們都可以斷開線路了。謝謝。

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

[本文字記錄中標記為[已翻譯]的部分是由現場通話中的口譯員朗讀的。