EHang Holdings Ltd (EH) 2021 Q4 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the EHang Fourth Quarter 2021 and Fiscal Year 2021 Earnings Conference Call. As a reminder, we are recording today's call. Now I will turn the call over to Julia Qian, Managing Director of the Blueshirt Group Asia, EHang's IR firm. Ms. Qian, please proceed.

女士們、先生們，大家好。感謝您的支持，歡迎參加億航 2021 年第四季和 2021 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，我將電話轉交給億航投資者關係公司 Blueshirt Group Asia 的董事總經理 Julia Qian。請錢女士繼續。

Hello, everyone. Thank you all for joining us on today's conference call to discuss the Company's financial results for the fourth quarter and fiscal year of 2021. The earnings release is available on IR website as well as from Newswire services.

大家好。感謝大家參加今天的電話會議，討論公司 2021 年第四季和財年的財務業績。

Please note the conference call is being recorded and the audio replay will be posted on the Company's IR website. Today, EHang management team, which includes Mr. Hu Huazhi, Chief Executive Officer; Mr. Edward Xu, Chief Strategy Officer; Mr. Xin Fang, Chief Operating Officer; and Mr. Richard Liu, Chief Financial Officer, 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.

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。今天，億航管理團隊，包括執行長胡華志先生；首席策略官徐建先生；方鑫先生，營運長；以及財務長劉理查德先生將依序發表演說。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 provision 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。

Also, please note that all numbers presented are in RMB and are for the fourth quarter and full year of 2021, unless stated otherwise. With that, let me now turn the call over to CEO, Mr. Hu Huazhi. Please go ahead, Mr. Hu.

另請注意，除非另有說明，所有數字均以人民幣計算，且均為 2021 年第四季和全年的數字。現在，我將把電話轉給執行長胡華志先生。胡先生，請講。

(foreign language)

（外語）

Below is the translation of Mr. Hu's remarks.

以下是胡先生講話的譯本。

[Interpreted] Hello, everyone. Thanks for joining our earnings call today. I'm very delighted to share EHang's operating performance for the fourth quarter and fiscal year of 2021 as well as our recent developments.

[翻譯]大家好。感謝您參加我們今天的財報電話會議。我很高興與大家分享億航2021年第四季及財年的經營業績以及我們近期的發展。

Despite challenges at home and across the globe in the past year, EHang has always focused on exploring the vast market of the urban mobility ("UAM") as an innovative and technology-driven enterprise. We are committed to creating value for our industry, partners and shareholders while making significant progress in the following key areas.

過去的一年，儘管面臨國內外的挑戰，但作為一家創新、科技型企業，億航始終專注於探索廣闊的城市交通（「UAM」）市場。我們致力於為我們的產業、合作夥伴和股東創造價值，同時在以下關鍵領域取得重大進展。

First, obtaining the airworthiness certification of the EH216-S has always been placed as our top priority, and the past year has seen remarkable progress on this project. Notably, we worked with the Civil Aviation Administration of China, in short CAAC, to develop the Special Conditions for the EH216-S type certification, the first for passenger-carrying autonomous aerial vehicles in the world, which was formally adopted and issued by the CAAC in February this year. This means that the type certification of the EH216-S has the certification basis for further implementation. At present, the certification of EH216-S is in the Compliance Review phase, and we are grateful for the CAAC's support to EHang.

第一，EH216-S飛機適航認證一直是我們的首要任務，一年來這個計畫取得了顯著進展。值得一提的是，我們與中國民航局（簡稱CAAC）合作制定了EH216-S型號合格審定的特殊條件，這是世界上第一個載人自動駕駛飛行器型號合格審定的特殊條件，並於今年2月由中國民航局正式採納並發布。這意味著EH216-S的型式認證有了進一步實施的認證基礎。目前EH216-S的取證正處於符合性審查階段，我們感謝中國民航局對億航的支持。

Next, turning to our "100 Air Mobility Routes Initiative", we are the frontrunner of the industry and carried out operational trial flights in China during the certification process.

接下來談到我們的“100條空中交通航線計劃”，我們是該行業的領跑者，並在認證過程中在中國進行了運營試飛。

We are developing UAM pilot projects in multiple cities in China to continuously accumulate real flight experience in various scenarios. In the near future, we will disclose the first group of Chinese cities that will have our commercial UAM services and flight routes after we secure the airworthiness certification.

我們正在國內多個城市進行UAM試點項目，並持續累積各類場景下的真實飛行經驗。不久的將來，待我們取得適航認證後，將公佈首批在中國開展商業城市空中交通服務的城市和航線。

Moving on to sales and marketing, we are pleased to gradually open up a greater Asian market. Following our significant achievements in South Korea, Japan, Indonesia and Malaysia, we will continue close cooperation with more partners in Southeast Asian countries. More importantly, the orders and the pre-orders of our passenger-grade AAVs in the past few years have accumulatively surpassed 1,000 units, forming a solid foundation for our future revenue growth.

在銷售和行銷方面，我們很高興能夠逐步開拓更大的亞洲市場。繼我們在韓國、日本、印尼、馬來西亞等地取得顯著成績之後，我們也將繼續與東南亞國家的更多合作夥伴密切合作。更重要的是，我們過去幾年的載人級自動駕駛飛行器的訂單和預購量已累計超過1,000輛，為我們未來的收入成長奠定了堅實的基礎。

Moreover, I'd like to address our product and technological developments.

此外，我想談談我們的產品和技術發展。

First about the VT-30. EHang has accumulated years of considerable experience and technical reserves in aircraft manufacturing and aircraft control in the field of UAM. For the product of VT-30, we maintained the principle of safety first without impatience or rash ventures.

首先介紹一下VT-30。億航在城市空中交通領域，在飛機製造、飛機控制等方面累積了多年豐富的經驗與技術儲備。對於VT-30這款產品，我們秉持安全第一的原則，不急不躁，不冒進。

At the beginning of the process of designing, R&D as well as testing for this product, we had been establishing its airworthiness system already. So far, we have added a larger number of aircraft component tests and conducted a larger number of flight tests after ensuring the overall safety of the aircraft. As of March 25, the test flight time of VT-30 has exceeded 50 hours.

我們在該產品設計、研發和試驗之初就已建立了該產品的適航系統。目前，我們在確保飛機整體安全的前提下，增加了更多飛機零件的測試，進行了更多的飛行測試。截至3月25日，VT-30的試飛時間已超過50小時。

Secondly, with regard to [logistics] (corrected by the company after the call), in the past few years, we have never stopped to research and development of aircraft for logistic uses. Our main target air logistics use cases are for inter-provincial air logistics and long-range air logistics over islands and mountains. Currently, we have developed 5 aerial logistic models that can fly autonomously in the automatic dispatching system. These 5 models have been tested with loads ranging from 2kg to 200kg.

第二，關於[物流]（公司電話後更正），過去幾年，我們對物流飛機的研發從未間斷。我們的主要目標航空物流用例是省際航空物流和島嶼和山區的遠程航空物流。目前，我們已研發出5架可在自動調度系統中自主飛行的空中物流模型。這 5 款型號經過測試，負載範圍從 2 公斤到 200 公斤。

We are conducting a large number of operational trial flights under island logistic scenarios in coastal areas. It's worth noting that our inter-provincial air logistics route between Hezhou and Guangzhou City is about to open soon, which will be a significant step forward to our future operation for inter-provincial long-range air logistics.

我們正在沿海地區進行大量島嶼物流場景作業試飛。值得一提的是，我司賀州至廣州市省際航空物流航線即將開通，對我司今後開展省際遠程航空物流業務具有重要意義。

Next, let's turn to our team. Our staff has gradually increased in the past year, with a key focus on the expansion of our technical R&D team. We established a special team for the EH216-S airworthiness certification project to address our top priority and also built up an experienced UAM operations team.

接下來，讓我們來談談我們的團隊。在過去的一年裡，我們的員工人數逐漸增加，重點是擴大技術研發團隊。我們特別成立了EH216-S適航認證專案團隊作為當務之急，並打造了一支經驗豐富的UAM營運團隊。

Additionally, I'm very thrilled that Mr. Xin Fang joined our company in February as our Chief Operating Officer. Today is also the first time for him to join our earnings call. Mr. Fang has more than 20 years of experience in corporate management, sales of technology products and solutions, and tourism project development and operations. I believe he will bring us significant strength to our future business growth.

此外，我非常高興方鑫先生於二月加入我們公司，擔任營運長。今天也是他第一次參加我們的財報電話會議。方先生擁有二十餘年企業管理、科技產品及解決方案銷售、旅遊項目開發及營運經驗。我相信他將會為我們未來的業務成長帶來巨大的力量。

I will now turn the call over to our Chief Strategy Officer, Edward Xu, to bring more detailed performance. Thank you.

現在，我將把電話轉給我們的首席策略長 Edward Xu，帶來更詳細的表現。謝謝。

Thank you, Mr. Hu. Hello, everyone. I'm Edward Xu, Chief Strategy Officer of EHang. Now let me summarize the operational results of the year of 2021.

謝謝胡先生。大家好。我是億航智能首席策略官徐建鋒。現在我來總結一下2021年的經營業績。

Basically, we followed our strategic positioning as a UAM platform operator and prioritized the airworthiness certification of the EH216-S AAVs throughout the year. We invested significant resources in the certification project by working closely with CAAC experts since the beginning of the year. With EHang's diligent and solid contributions, in December, the CAAC finally published the world's first Special Conditions for the EH216-S type certification, which set the foundation for airworthiness certification for all the AAVs. We believe this is a new milestone not only in the certification project, but in the history of human aviation. While the type certification process for the EH216-S is still ongoing, we have added strength in our efforts to obtain the Type Certificate as soon as possible.

基本上，我們遵循作為 UAM 平台營運商的策略性定位，並在全年優先考慮 EH216-S AAV 的適航認證。自今年年初以來，我們與中國民航局專家密切合作，在該認證項目上投入了大量資源。在億航智能的辛勤付出和紮實努力下，中國民航局終於在12月發布了全球首個EH216-S型號合格審定特殊條件，為所有自動駕駛飛行器的適航審定奠定了基礎。我們相信這不僅是該認證計畫的新里程碑，也是人類航空史上的新里程碑。雖然 EH216-S 的型號認證過程仍在進行中，但我們已經加強努力，以盡快獲得型號認證。

On the other hand, we accelerated the test operations of EH216 AAVs with the aim to fully roll out commercial operations soon after obtaining the Type Certificate.

另一方面，我們加快了EH216自動駕駛飛行器的試運行，目標是在取得型號合格證後儘快全面投入商業運營。

As we have positioned ourselves as "the world's leading UAM platform operator", it defines our innovative business model as a hybrid one of "sales + operation", which is a combination of OEM and AAV operations.

由於我們將自己定位為“全球領先的UAM平台營運商”，因此將我們的創新商業模式定義為“銷售+營運”的混合模式，即OEM營運與AAV營運相結合。

As we have highlighted in our previous calls, we believe this new model has strategic importance because AAV sales should be boosted by real commercial operations. This is especially true when our self-developed autonomous flight technologies make the hybrid model possible and necessary to ensure absolute safety and maximum market acceptance of our products.

正如我們在先前的電話會議中所強調的那樣，我們認為這種新模式具有戰略重要性，因為 AAV 的銷售應該透過實際的商業營運來推動。尤其是當我們自主開發的自主飛行技術使混合模型成為可能和必要時，以確保我們產品的絕對安全和最大程度的市場接受度。

Specifically, our ongoing "100 Air Mobility Route Initiative" was launched in mid-2021, under the guidance of the CAAC. With a focus on the Guangdong-HK-Macau Greater Bay area, we launched 9 operational spots in cities of Guangzhou, Shenzhen, Hezhou, Zhaoqing and Sanya, etc. So far, we have completed more than 4,000 trial flights.

具體來說，我們正在進行的「100條空中機動航線計畫」在中國民航局的指導下於 2021 年中期啟動。聚焦粵港澳大灣區，在廣州、深圳、賀州、肇慶、三亞等9個城市開通營運點，累計完成試飛4,000餘次。

Notably, we collaborated with Guangzhou Development District Communications Investment Group in the fourth quarter of 2021 to add a new "5G Intelligent Air Mobility Experience Center" in Guangzhou. Through such activities, we were able to accumulate necessary data and gain relevant experiences for future UAM operations.

值得注意的是，我們於2021年第四季與廣州開發區交投集團合作，在廣州新增「5G智慧空中交通體驗中心」。透過這樣的活動，我們為未來的UAM營運累積了必要的數據並獲得了相關經驗。

On sales and promotion of our products and services, we have expanded our efforts by acquiring new customers and partners. Specifically, since fourth quarter of 2021, we highlighted the partnerships with major SOEs, including Shenzhen Expressway, the Guangzhou Development District Communications Investment Group and Guangxi Guigang Qintang District Urban Construction Investment Group.

在我們的產品和服務的銷售和推廣方面，我們透過尋找新客戶和合作夥伴加大了力度。具體而言，自2021年第四季以來，我們重點加強與主要國有企業的合作，包括深圳高速、廣州開發區交通投資集團和廣西貴港市覃塘區城市建設投資集團。

In the overseas market, we have built new partnerships with Prestige Aviation in Indonesia, the MASC and AirX in Japan, AEROTREE Group in Malaysia, etc. We believe the expanded partnerships will help us in our future business operations within the next 6 to 12 months, especially upon receiving the official grant of Type Certificate from the CAAC.

在海外市場，我們與印尼的Prestige Aviation、日本的MASC和AirX、馬來西亞的AEROTREE Group等建立了新的合作夥伴關係。

Now let me turn the call to our COO, Mr. Fang, to address our operational plan for 2022. Mr. Fang, please go ahead. Thank you.

現在，讓我把電話轉給我們的營運官方先生，來談談我們 2022 年的營運計畫。謝謝。

(foreign language)

（外語）

Below is the translation of Mr. Xin Fang's remarks.

以下是方辛先生講話的譯本。

[Interpreted] Thank you, Edward. Hello, everyone. I'm Xin Fang. First, I would like to thank Mr. Hu for inviting me to join EHang as COO. After joining the company, I was deeply impressed by the energy, dedication to innovation and relentless efforts of everyone at EHang. Safety and security are at the heart of every member of EHang team, and they strive for innovative AAV technology research and development.

[翻譯] 謝謝你，愛德華。大家好。我是鑫芳。首先感謝胡總邀請我加入億航擔任COO。加入公司後，億航員工的活力、創新精神和不懈努力給我留下了深刻的印象。安全和保障是億航團隊每位成員的核心，他們致力於創新的 AAV 技術研發。

We expect to obtain the Type Certificate of the EH216-S AAV around the middle of 2022, which will lay a solid foundation for its commercial operations.

我們預計在2022年中期左右獲得EH216-S AAV的型號合格證，為其商業運營奠定堅實的基礎。

Meanwhile, we are accelerating our arrangement for operating the EH216 AAVs to ensure that our commercial services can be launched gradually after obtaining the Type Certificate.

同時，我們正加快推進EH216自動飛行器的營運部署，確保取得型號合格證後能逐步進行商業服務。

We plan to upgrade the production line at the same time. This way, we can quickly and steadily increase production based on the highest standards of the aviation industry after obtaining the Type Certificate. Close attention to high quality will also be strictly implemented in order to ensure that we will deliver safe, reliable and compliant products to the market.

我們計劃同時升級生產線。這樣，取得型號合格證後，我們就能夠依照航空業的最高標準，快速且穩定地增加產量。我們也將嚴格關注高品質，以確保向市場提供安全、可靠、合規的產品。

For the fiscal year 2022, we expect total revenues to be in the range between RMB 190 million and RMB 210 million, with most of revenues are expected to be generated in the second half of the year upon receiving the EH216-S AAV Type Certificate and launching commercial operational services.

對於2022財年，我們預計總收入將在人民幣1.9億元至人民幣2.1億元之間，大部分收入預計將在下半年獲得EH216-S AAV型號合格證並啟動商業運營服務後產生。

From the perspective of application scenarios, we expect our revenues in 2022 will mainly come from air mobility uses, including aerial sightseeing, aerial firefighting, and aerial logistics, as well as smart city management area, etc.

從應用情境來看，我們預計2022年的收入主要來自於空中交通領域，包括空中觀光、空中消防、空中物流，以及智慧城市管理領域等。

EHang is now seeking partnerships with leading companies in the industries with the application potentials by leveraging our existing technologies. Through the leading advantages in their original fields and UAM platform and Command-and-Control center provided by EHang, we will jointly conduct derivative development of AAV platforms to address the specific industry needs. Through our partners industry expertise, favorable channels and reputation, we can quickly open up additional applications and sales for our air mobility business.

目前，億航正利用現有技術，尋求與具有應用潛力的行業領先公司建立合作夥伴關係。透過雙方在原有領域的領先優勢，以及億航提供的城市空中交通平台和指揮控制中心，共同進行自動駕駛飛行器平台的衍生開發，滿足特定的產業需求。透過我們合作夥伴的行業專業知識、良好的管道和聲譽，我們可以快速為我們的空中交通業務開闢更多的應用和銷售。

Urban air mobility is EHang's core strategy and we actively seek related strategic cooperation with partners such as domestic mainstream helicopter general aviation companies. By leveraging their original airlines and ensuring infrastructures such as airports, we plan to gradually promote operations of low and medium-altitude air mobility routes in China. We also expect to bring EHang's AAVs to the market in the following 3 areas.

城市空中交通是億航的核心策略，我們積極與國內主流直升機通航公司等合作夥伴尋求相關策略合作。依托對方原有的航空公司，確保機場等基礎設施，逐步推動我國中低空空中交通航線的開通。我們也預期在以下三個領域將億航的 AAV 推向市場。

First, in the tourism sector, we've started carrying out in-depth aerial sightseeing layouts and actively cooperate with target tourism operators to explore innovative tourism revenue growth opportunities. We plan to launch EH216 aerial sightseeing operational services after obtaining the Type Certificate, through collaborations with multiple domestic tourist attractions and the continuous expansion of commercial operation scenic spots such as Forest Lake in Zhaoqing City in Guangdong Province, and Qintang in Guigang City in Guangxi Province.

首先，在旅遊領域，我們開始進行深度空中觀光佈局，並積極與目標旅遊業者合作，探索創新旅遊收入成長機會。我們計劃在取得型號合格證後，開展EH216空中觀光運營服務，與國內多個旅遊景區合作，並持續拓展廣東肇慶森林湖、廣西貴港覃塘等商業運營景區。

Secondly, we will partner with leading integrated firefighting solution providers in China. For the needs of emergency management departments in firefighting and emergency response, we will leverage our partners' existing channels to promote efficient and tailored aerial firefighting solutions that address the difficulties and pain points of high-rise building firefighting. As an innovative enterprise, EHang not only develop our own businesses, but also undertake our social responsibilities to bring values to the people and the community.

其次，我們將與中國領先的綜合消防解決方案提供者合作。針對緊急管理部門在消防緊急處置方面的需求，利用合作夥伴已有的管道，推廣高效、個人化的空中消防解決方案，解決高層建築消防的困難和痛點。作為一家創新企業，億航不僅發展自身的事業，更積極承擔社會責任，為人民和社會帶來價值。

Thirdly, we are also communicating with several leading logistics companies to jointly develop proper air logistics use cases combining EHang's self-developed AAVs and Command-and-Control platform with the ample operation experiences from our logistics partners, we can create cost-effective and efficient air logistics solutions and operating models.

第三，我們也在和幾家領先的物流公司溝通，共同開發合適的航空物流用例，結合億航自主研發的自動駕駛飛行器和指揮控制平台以及我們物流合作夥伴豐富的營運經驗，創造出具有成本效益和高效的航空物流解決方案和營運模式。

Meanwhile, we plan to utilize our technological advantages of the self-developed Command-and-Control system platform for further productization as well as strengthening its promotion and operation in the urban management fields, such as smart city and smart transportation.

同時，我們計畫運用自主研發的指揮調度系統平台的技術優勢，進一步產品化，加強在智慧城市、智慧交通等城市管理領域的推廣與運作。

We will gradually establish an operational ecosystem with the integration of the hardware and software that combines fleet management and air traffic management when AAVs enter the mass market.

當自動駕駛飛行器進入大眾市場後，我們將逐步建立起集機隊管理與空中交通管理於一體的軟硬體一體化營運生態系統。

As a result, flights will be safer and more efficiently conducted, and the ecosystem will also be evolving in a healthy way with an increasing fleet in the sky.

因此，飛行將更加安全、更有高效，隨著天空中飛機數量的增加，生態系統也將更健康地發展。

EHang is continuously improving our trainings and post-sales service system. Moreover, EHang partners with professional international and domestic institutions to swiftly establish a more sophisticated training and post-sales service system based on our partners' existing system and experience.

億航正不斷完善我們的訓練和售後服務體系。此外，億航也與國際、國內專業機構合作，在合作夥伴已有的體系和經驗基礎上，迅速建立起更完善的培訓和售後服務體系。

We firmly believe that with the joint efforts of EHang and all the authorities and partners concerned with the UAM industry, we will be able to accelerate to provide everyone with a safe, autonomous and eco-friendly air mobility.

我們堅信，在億航以及所有城市空中交通行業主管部門和合作夥伴的共同努力下，一定能加快為所有人提供安全、自主、綠色的空中交通。

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, and hello, everyone. Before I go into details, please note that all numbers presented are in RMB and are for the fourth quarter of 2021, 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，Xin，大家好。在我介紹詳細資訊之前，請注意，除非另有說明，所有數字均以人民幣為單位，且為 2021 年第四季的數字。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。

2021 was a unique year as we initiated a strategic upgrade and transition to implement our strategic positioning as an urban air mobility platform operator and migrate our sales model from a product-sales-centric model towards a more operating platform-oriented and integrated model.

2021年是特別的一年，我們啟動了策略升級轉型，落實城市空中交通平台營運商的策略定位，將銷售模式從以產品銷售為中心的模式轉向以營運平台為導向的綜合模式。

As discussed earlier, in 2021, we had been focusing on the ongoing certification project and preparation for the "100 Mobility Routes Initiative" in China. And we believe this will lay the essential foundation for our next stage revenue growth with increased sales and deliveries and operational services after obtaining the certification.

如同前面所討論的，2021 年，我們一直專注於正在進行的認證項目和中國「100 條出行路線計畫」的準備工作。我們相信，這將為我們獲得認證後增加銷售、交付和營運服務，以實現下一階段的收入成長奠定重要基礎。

As such, in Q4, total revenue were RMB 8.7 million compared with RMB 13 million in Q3. The EH216 series of AAV deliveries in Q4 were 4 units, compared with 8 units in Q3. For the fiscal year 2021, total revenues were RMB 56.8 million, compared with RMB 180.1 million in 2020. The EH216 series of AAV deliveries in 2021 were 30 units, compared with 70 units in 2020.

因此，第四季總收入為人民幣 870 萬元，而第三季為人民幣 1,300 萬元。第四季EH216系列AAV交付量為4架，第三季為8架。 2021財年總收入為人民幣5,680萬元，而2020年為人民幣1.801億元。

Gross margin was 60.1% in Q4, a minor decrease of 1.7 percentage points from 61.8% in Q3, mainly due to the changes in revenue mix. I'm glad that our margin continued to be kept at a relatively high level, demonstrating our solid competitiveness. We even achieved a year-over-year increase of 4.4 percentage points in 2021, a record high gross margin of 63.4% with the contribution from a Command-and-Control system delivered in 2021.

第四季毛利率為60.1%，較第三季的61.8%小幅下降1.7個百分點，主要由於收入結構的變化。我很高興我們的利潤率繼續保持在較高的水平，這反映了我們雄厚的競爭力。我們甚至在 2021 年實現了同比增長 4.4 個百分點，毛利率達到創紀錄的 63.4%，這得益於 2021 年交付的指揮和控制系統的貢獻。

In Q4, our adjusted operating expenses, which are operating expenses, excluding share-based compensation expenses, increased by 46.2% quarter-over-quarter to RMB 90.4 million from RMB 61.8 million in Q3. The adjusted operating expenses was RMB 246.6 million in 2021, up 62.6% from RMB 151.6 million in 2020.

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）從第三季度的人民幣 6,180 萬元環比增長 46.2% 至人民幣 9,040 萬元。 2021年經調整營業費用為人民幣2.466億元，較2020年的人民幣1.516億元成長62.6%。

We continued to maintain significant R&D expenditures for the development of AAV models, including the EH216 Series, VT-30 and the other new models along with their related operating systems with enhanced functionalities as well as for the growing R&D team. This reflects our commitment to strengthening our product development and certification efforts in order to drive future sales growth and commercial operations. Continuous and advanced R&D is a cornerstone of our business, and we will remain dedicated to R&D to propel future business growth. Furthermore, there were additional provisions for receivables due to the impacts of the continuous COVID-19 pandemic and related prevention and control measures in China.

我們持續保持大量的研發投入，用於AAV型號的開發，包括EH216系列、VT-30和其他新型號，以及功能增強的相關作業系統以及不斷壯大的研發團隊。這反映了我們致力於加強產品開發和認證工作，以推動未來銷售成長和商業營運。持續、先進的研發是我們業務的基石，我們將繼續致力於研發以推動未來業務成長。此外，受國內新冠肺炎疫情持續及相關防治措施的影響，公司提列了額外應收帳款撥備。

As a result, our adjusted operating loss in Q4 was RMB 83.8 million, compared with RMB 48.9 million in Q3. Adjusted net loss in Q4 was RMB 82.2 million compared with RMB 47.8 million in Q3. For the fiscal year, adjusted net loss was RMB 192.8 million in 2021, compared with RMB 37.2 million in 2020.

因此，我們第四季的調整後營業虧損為人民幣 8,380 萬元，而第三季為人民幣 4,890 萬元。第四季調整後淨虧損為人民幣 8,220 萬元，第三季為 4,780 萬元。就本財年而言，2021年調整後淨虧損為人民幣1.928億元，2020年為人民幣3,720萬元。

Nevertheless, our balance sheet remains healthy. As of the end of Q4, we had RMB 312.1 million of cash, cash equivalents, restricted cash and short-term investments, compared with RMB 357 million as of the end of Q3 and RMB 189.4 million a year earlier. We will continue to maintain effective operational expense and cost management.

儘管如此，我們的資產負債表仍然健康。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 3.121 億元，而第三季末為人民幣 3.57 億元，去年同期為人民幣 1.894 億元。我們將繼續保持有效的營運費用和成本管理。

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) Your first question comes from the line of Tim Hsiao from Morgan Stanley.

（操作員指示）您的第一個問題來自摩根士丹利的 Tim Hsiao。

This is Tim from Morgan Stanley. I've got 2 questions. The first one is about the impact from the rising pandemic in China. In light of rising, the tightening COVID control measures in China, especially in the first quarter, have we seen any potential hiccup to our supply chain management, TC certification progress and also the order delivery, especially largely into second quarter this year?

我是摩根士丹利的提姆。我有兩個問題。第一個是關於中國疫情加劇的影響。鑑於中國不斷加強的新冠疫情管控措施，尤其是在第一季度，我們的供應鏈管理、TC 認證進度以及訂單交付是否會出現任何潛在的障礙，尤其是在今年第二季度？

In the meantime, how do we think about this kind of margin trend this year, given the impact from the pandemic and, of course, the cost inflation? That's my first question.

同時，考慮到疫情的影響，當然還有成本通膨，我們如何看待今年的這種利潤趨勢？這是我的第一個問題。

My second question is about the Urban Air Mobility operation. We saw pretty strong progress, but could you please share a little bit more about the quantitative updates about business development. It would be great if the management can elaborate a little more about the fleet size, the volume rules in terms of numbers that have been implemented and also our current operational situation.

我的第二個問題是關於城市空中交通行動。我們看到了相當強勁的進展，但您能否分享更多有關業務發展的定量更新資訊。如果管理階層可以更詳細地說明機隊規模、已實施的數量規則以及我們目前的營運情況，那就太好了。

Thank you, Tim, for your questions. This is Edward Xu, Chief Strategy Officer of EHang. Let me answer your first question and our CFO, Richard, can elaborate more on the margin trend.

謝謝你，提姆，提出的問題。我是億航首席策略官徐建鋒。讓我來回答您的第一個問題，我們的財務長理查德可以進一步詳細說明利潤率趨勢。

On your first question, basically regarding the ongoing COVID-19 pandemic in China, so far, we [don't see a] (corrected by the company after the call) material impact on our supply chain because our suppliers are mostly distributed in South China, in Dongguan area. We noticed that the recent closedown of Shenzhen, but it didn't have much impact so far. And also, we did some preparation by prepare the inventories for our products beforehand.

關於您的第一個問題，基本上是關於中國正在發生的 COVID-19 疫情，到目前為止，我們 [沒有看到]（公司在電話會議後更正）對我們的供應鏈產生重大影響，因為我們的供應商主要分佈在華南地區的東莞地區。我們注意到深圳最近實施了封城措施，但是目前還沒有造成太大的影響。而且，我們也提前做好了準備，準備好了我們產品的庫存。

So far, we see our inventories at a satisfactory level. So we don't see any major impact so far. On TC certification progress, we think it is still on the right track. So far, our special team is working very closely with CAAC experts which is not disrupted by the pandemic as well. That's all for this and Richard can elaborate more on the margin trend.

到目前為止，我們的庫存處於令人滿意的水平。因此到目前為止我們還沒有看到任何重大影響。關於TC認證的進展，我們認為仍然在正確的軌道上。到目前為止，我們的特別團隊正與中國民航局的專家密切合作，這也沒有受到疫情的干擾。這就是全部了，Richard 可以更詳細地闡述利潤趨勢。

Tim, this is Richard. I will take the second part of your first question regarding the margin trend. As Edward just said, we have not seen any material impact from the increased situation of recent pandemic in China. In addition, there are some recent price increases of raw materials due to the changes of the world political landscape.

提姆，這是理查。我將回答您第一個問題的第二部分，有關利潤趨勢。正如愛德華剛才所說，我們並沒有看到近期中國疫情加劇帶來任何實質影響。此外，受世界政治格局變化影響，近期原物料價格也出現一定上漲。

We have so far seen some impacts from this aspect. As such, we have been trying to stock up some key components and materials as our stock reserves. Along this line, it is expected that our overall gross margin might be brought to the average levels of previous years, roughly in the range from 55% to 60%. Having said that, in our revenues, as you know, there are revenues from selling our proprietary Command-and-Control systems on which the price increases of raw materials and supplies would be limited. Therefore, if the percentage of the revenues from this in the total revenues will go up in the year, it will actually help enhance our overall gross margin, as you can see. In sum, we will continue to pay close attention to the development of the cost conditions as a result of the recent development and take a proper measure to minimize such impacts on our gross margin.

我們目前已經看到了這方面的一些影響。因此，我們一直在努力儲存一些關鍵零件和材料作為我們的庫存儲備。依照這個思路，預計我們的整體毛利率可以回到往年的平均水平，大概在55%到60%之間。話雖如此，如你所知，我們的收入來自銷售我們專有的指揮和控制系統，因此原材料和供應品的價格上漲會受到限制。因此，如果這項收入佔總收入的百分比在年內上升，那麼它實際上將有助於提高我們的整體毛利率，正如你所看到的。總之，我們將繼續密切關注近期事態發展所導致的成本狀況，並採取適當措施將其對毛利率的影響降至最低。

Tim, I would add one point. On the operational side, you're right, maybe there are some impacts on our operation because we do have a collaboration with a helicopter company in Shenzhen. Also, we plan to launch more operational spots in Zhuhai, for example, which was disrupted by the pandemic at the moment. So on the operational side, we do see some impact.

提姆，我想補充一點。從營運方面來說，您說得對，這可能會對我們的營運產生一些影響，因為我們確實與深圳的直升機公司有合作。此外，我們也計劃在珠海等地開設更多營運點，目前珠海受到了疫情的干擾。因此在營運方面，我們確實看到了一些影響。

Next, regarding your second question, as updated in our earnings release, so far, under the "100 Air Mobility Routes Initiative", our UAM operating team has selected and developed 9 operational spots in Chinese cities, including Guangzhou, Hezhou, Shenzhen, Zhaoqing and Sanya, etc. At these 9 operational spots, so far we have conducted over 4,000 operational trial flight with our EH216 AAVs in real practical scenarios for aerial sightseeing.

接下來，關於您的第二個問題，正如我們在財報中更新的那樣，到目前為止，在「百條空中交通路線計劃」下，我們的城市空中交通運營團隊已經在中國城市選擇並開發了9個運營點，包括廣州、賀州、深圳、肇慶和三亞等。

So far, multiple flight routes can be developed at each operational spots. In the near future, we will be able to release the first group of cities in China as our target to launch our commercial operational services and flight routes at the local operation spots after we obtain the TC and also the commercial license from CAAC.

目前，每個營運點均可開發多條航線。在不久的將來，當我們取得中國民航局頒發的TC和商業許可證後，我們將能夠在中國以首批城市為目標，在當地的營運點推出我們的商業營運服務和航線。

(Operator Instructions) Your next question comes from the line of Di Wu from TF Securities.

(操作員指示)您的下一個問題來自天風證券的吳迪。

I have 2 questions as well. First, geographically speaking, can we say China is EHang's top priority regarding obtaining the Type Certificate and all the licenses? How should we think about other regions coming down on this, for example, in terms of licenses? Where will be EHang's next target, Korea or Europe?

我也有兩個問題。首先，從地理位置上講，我們可以說中國是億航取得型號合格證和所有許可證的首要任務嗎？例如在許可證方面，我們應該如何看待其他地區對此採取的措施？億航的下一個目標是韓國還是歐洲？

And my second question is in terms of competitive advantages and the market share-wise, how does the management team view other competitors? Where does EHang stand among those foreign and domestic competitors?

我的第二個問題是，從競爭優勢和市佔率來看，管理團隊如何看待其他競爭對手？在國內外競爭對手中，億航的地位如何？

Yes, thank you for your question. This is Edward again. Let me answer your questions.

是的，謝謝你的提問。我又是愛德華。讓我來回答你的問題。

First of all, regarding the geographic distribution, we believe that China appears to be our most prioritized market so far, given the following reasons.

首先，關於地理分佈，我們認為中國似乎是我們迄今為止最優先考慮的市場，原因如下。

First, it is our home market, where our firm is based. Second, we got the support from the regulator, i.e., the CAAC in respect of airworthiness certification for unmanned aircraft for low altitude passenger-carrying urban air mobility operations. Third, this is a huge market with a good potential. With the largest population and the prosperous major city clusters, such as the Pearl River Delta, the Yangtze River Delta and the Bohai Bay areas, etc which means that the huge urban population has a potential for this mobility market.

首先，這是我們的本土市場，也是我們公司的所在地。二是獲得了中國民航局對低空載人城市空中交通無人機適航審定的支持。第三，這是一個巨大的市場，具有很好的潛力。擁有中國最大、最繁榮的主要城市群，如珠三角、長三角、環渤海灣地區等，意味著龐大的城市人口具有這流動市場的潛力。

Meanwhile, we also keep our focus on the overseas market such as Asian countries, including Japan, Korea, Indonesia and Malaysia, etc. Those countries which we have made visible progress in client acquisitions, trial flights and regulator relationship construction, etc.

同時，我們也將海外市場重點放在亞洲國家，包括日本、韓國、印尼、馬來西亞等，這些國家在客戶取得、試航、監管機構關係建設等方面都取得了明顯的進展。

Finally, we think that some Western countries, including Europe and the U.S., but those markets, the regulations could be more conservative. So we are taking a more passive stance and we focus on China, and we believe that any success in China's certification could be a leverage for us to go into those markets.

最後，我們認為一些西方國家，包括歐洲和美國，但那些市場的監管可能會更保守。因此，我們採取了更被動的立場，並將重點放在中國，我們相信，在中國獲得任何認證的成功都可能成為我們進入這些市場的槓桿。

Regarding your second question, we have kept a close watch on the global UAM market, especially on the development of the peer group as well. We believe we are a leading player in terms of product design and a real flight record so far.

關於第二個問題，我們一直密切關注全球UAM市場，特別是同行的發展。我們相信，我們在產品設計和實際飛行記錄方面目前處於領先地位。

For example, our EH216 AAV is by far the world's leading aerial vehicle product that is able to complete autonomous flights. We noticed that from the peer group, most of them are still focused on manned flight. Autonomous flight is definitely something that is on their next steps, and we have built the world's first centralized AAV platform to manage multiple AAV operations with cluster management technologies. So far, we have conducted over 20,000 autonomous trial flights in 11 countries.

例如，我們的EH216 AAV是迄今為止世界領先的能夠完成自主飛行的飛行器產品。我們注意到，從同行來看，大部分還是把重點放在載人飛行上。自主飛行肯定是他們下一步要做的事情，我們已經建立了世界上第一個集中式 AAV 平台，使用叢集管理技術來管理多架 AAV 的運作。到目前為止，我們已經在11個國家進行了超過20,000次自主試飛。

Moreover, we have made the most progress in airworthiness certification with CAAC who published the world's first set of special conditions for the type certification for autonomous aerial vehicles like our EH216. That means we are leading in terms of the certification progress as well.

此外，我們在中國民航局的適航認證方面取得了最大進展，中國民航局發布了世界上第一份針對我們的 EH216 等自主飛行器型號合格審定的特殊條件。這意味著我們在認證進展方面也處於領先地位。

As we are targeting around the middle of the year for Type Certificate grant for our EH216-S AAVs, we aim to be the first firm to launch commercial operational service in the world, probably in the second half of the year. Given that, we believe that we do have the first-mover advantage over our peer group. Thank you.

我們計劃在今年年中為我們的 EH216-S AAV 獲得型號合格證，我們的目標是成為世界上第一家推出商業營運服務的公司，時間可能是在今年下半年。有鑑於此，我們相信我們確實比同行擁有先發優勢。謝謝。

As there are no further questions and the interest of time, I would now like to hand the conference back to the speakers for any closing remarks.

由於沒有其他問題，而且時間也有限，我現在想將會議交還給發言者，以便他們作結束語。

No further questions?

沒有其他問題？

Thank you, operator.

謝謝您，接線生。

We do have a question that has just come through. Are you happy to take this? Your question comes from the line of David Zazula from Barclays. Apologies. It looks like we are not taking no further questions.

我們確實剛剛收到一個問題。你樂意接受這個嗎？您的問題來自巴克萊銀行的 David Zazula。抱歉。看來我們已經不再接受其他提問了。

Can you hear me?

你聽得到我嗎？

I can hear you, yes.

是的，我聽得到你的聲音。

So we can give the closing remarks, right?

那我們可以做結束語了，對嗎？

Yes, please. Please go ahead.

是的，請。請繼續。

Thank you all for participating on today's call. We will look forward to reporting to you in our next quarter. Thank you very much.

感謝大家參加今天的電話會議。我們期待在下個季度向您報告。非常感謝。

That does conclude the conference for today. Thank you for participating. You may all disconnect.

今天的會議就到此結束。感謝您的參與。你們都可以斷開連線。

[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。