EHang Holdings Limited has announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2022.
Financial Results for Fiscal Year 2022
Revenues
Total revenues were down to US$ 6.4M, compared with US$ 8.3M in 2021, primarily due to the decrease in the sales volume of AAV products.
Costs of revenues
Costs of revenues were US$2.2M, compared with US$ 3M in 2021, primarily due to the change in the sales volume of AAV products and solutions.
Gross profit and gross margin
Gross profit was down to US$4.2M, compared with US$5.2M in 2021.
Gross margin was 65.9%, representing an increase of 2.5 percentage points from 63.4% in 2021. The increase was mainly attributed to higher averaging selling price of EH216 AAVs in 2022.
Operating expenses
Total operating expenses were US$ 49.2M, compared with US$ 53.5M in 2021.
Business Highlights for the Fourth Quarter 2022 and Recent Developments
Sales and deliveries of the EH216 series AAVs were 21 units in 2022, compared with 30 units in 2021.
EH216-S Type Certification Process Over 90% Completed
In the fourth quarter 2022, the EH216-S Unmanned Aircraft System (“UAS”) TC process with the Civil Aviation Administration of China (“CAAC”) has progressed into the final phase of Demonstration and Verification of Compliance. Although the original schedule was impacted and delayed by the resurgence of COVID-19 in mainland China in December 2022, the TC project had accelerated onto a fast track.
In February 2023, the CAAC officials and its appointed TC team of experts inspected the ongoing flight tests in Hezhou, which is one of China’s 20 Unmanned Civil Aviation Experimental Zones approved by the CAAC. Both the current EH216-S airworthiness certification results and the following operation plan have been reviewed and discussed with the CAAC.
At present, several EH216-S conforming aircraft, which were manufactured in EHang’s Yunfu production facility, have successfully passed the manufacturing conformity inspection by the CAAC and are undergoing required compliance tests at flight bases in Guangzhou and Hezhou as well as laboratories in other locations. Based on the CAAC-agreed compliance test plans, more than 70% of tests have been or will be completed soon, including laboratory tests, ground tests and inspections, flight tests and data analysis. The Company is making all efforts to conclude remaining tests as soon as possible.
As of today, more than 90% of the entire TC process has been completed, which is believed to be the fastest progress among all TC projects of electric vertical take-off and landing (“eVTOL”) aircraft worldwide.
EH216 Trial Operations Expanded Stably in China
Under the CAAC’s guidance and the Company’s 100 Air Mobility Route Initiative, EHang, along with its customers and partners, have developed a total of 18 trial operation spots across 16 cities in China during the past two years. More than 8,200 safe operational trial flights have been completed by EH216 AAVs for aerial sightseeing at these spots.
CEO Remarks
Mr. Huazhi Hu, EHang’s Founder, Chairman and Chief Executive Officer, said,
“2022 was a challenging year with uncertainties, but we focused on executing our strategies and made positive progress in EH216-S type certification with the CAAC, alongside significant market expansion in China and other Asian countries, laying a solid foundation for our upcoming post-certification entry into the market and commercial operations with our cutting-edge AAV products and UAM solutions.”
“In 2023, we are getting well positioned to leverage China’s tourism and economic recovery, growing market demands, and our imminent inflection point into commercialization with keen anticipation for obtaining the world’s first autonomous eVTOL type certificate, to unlock an exciting new era of the UAM industry that EHang is leading.”
Source: Stockhouse