EHang Holdings Limited (“EHang” or the “Company”) (Nasdaq: EH), the
world’s leading Urban Air Mobility (“UAM”) technology platform
company, today announced its unaudited financial results for the
third quarter ended September 30, 2023.
Financial and Operational Highlights for the Third
Quarter 2023
- Total revenues were RMB28.6 million (US$3.9
million), representing an increase of 247.9% from RMB8.2 million in
the third quarter of 2022, and an increase of 186.0% from RMB10.0
million in the second quarter of 2023.
- Gross margin was 64.6%, representing a
consistently high gross margin level with a slight decrease of 1.3
percentage points compared to 65.9% in the third quarter of 2022,
but an increase of 4.4 percentage points compared to 60.2% in the
second quarter of 2023. The year-over-year decrease was mainly due
to changes in revenue mix. The quarter-over-quarter increase was
mainly due to higher average selling price of EH216 series
products.
- Operating loss was RMB70.0 million
(US$9.6million), representing an improvement of 5.0% from RMB73.7
million in the third quarter of 2022 and an improvement of 7.0%
from RMB75.3 million in the second quarter of 2023.
- Adjusted operating loss1
(non-GAAP) was RMB34.2 million (US$4.7 million),
representing an improvement of 35.2% from RMB52.9 million in the
third quarter of 2022, and an improvement of 33.3% from RMB51.3
million in the second quarter of 2023.
- Net loss was RMB67.1 million (US$9.2 million),
representing an improvement of 12.3% from RMB76.5 million in the
third quarter of 2022, and an improvement of 11.4% from RMB75.7
million in the second quarter of 2023.
- Adjusted net loss2
(non-GAAP) was RMB31.3 million (US$4.3 million),
representing an improvement of 43.1% from RMB55.1 million in the
third quarter of 2022, and an improvement of 39.5% from RMB51.8
million in the second quarter of 2023.
- Cash, cash equivalents, short-term investments and
restricted short-term deposits balances were RMB295.6
million (US$40.5 million) as of September 30, 2023.
- Sales and deliveries of EH216 series
products3 were 13 units, a notable
increase compared with 4 units in the third quarter of 2022, and 5
units in the second quarter of 2023.
Business Highlights for the Third
Quarter 2023 and Recent Developments
- EH216-S Received the World’s First Type Certificate for
Unmanned eVTOL from CAAC
In October 2023, EH216-S, our self-developed passenger-carrying
unmanned aerial vehicle (“UAV”) system, obtained the type
certificate (“TC”) from the Civil Aviation Administration of China
(the “CAAC”). The EH216-S model has successfully demonstrated its
full compliance with the safety standards and airworthiness
requirements set by the CAAC, thereby qualifying for commercial
operations involving passenger-carrying UAVs. As the world’s first
TC for unmanned electric vertical take-off and landing aircraft
(“eVTOL”), EH216-S TC not only sets a benchmark for the
airworthiness certification of innovative eVTOLs in China and
overseas, but also serves as an epoch-making milestone for
commercial UAM operations.
Under the guidance of the CAAC, EHang is steadily moving forward
with EH216-S production in line with its TC. The first batch of the
certified EH216-S is scheduled to roll off the production line in
the fourth quarter of 2023. The Company is also working on the
Production Certification with the CAAC regarding its qualification
for mass productions of EH216-S.
- CAAC Approved EHang Unmanned
Aircraft Cloud System for Trial Operations
In August 2023, the CAAC approved the EHang Unmanned Aircraft
Cloud System (“UACS”) for trial operations. EHang UACS features
functions of management of airspace, UAVs, flight plans and
operators, etc., enabling cluster management of multiple aircrafts
within the same airspace, and ensuring safer and more reliable
operations. EHang UACS provides a significant safeguard for
operational safety and management of its UAVs at scale.
- Strategic Partnership with Bao’an District Government
of Shenzhen on UAM and Delivery of 5 Units of EH216-S to Local
Customer for Operation Preparations
In July 2023, EHang reached a Memorandum of Understanding
(“MOU”) with the Bao’an District Government of Shenzhen
Municipality on a strategic partnership for UAM operations. Both
parties will jointly develop UAM use cases, systems, and routes to
build Shenzhen as a national low-altitude economy development
demonstration city. A UAM Operation Demonstration Center is being
built at the OH Bay in Bao’an District with the plan to launch
aerial tourism and sightseeing experience services with EH216-S. In
anticipation of flight operations in Bao’an District, EHang
delivered five units of EH216-S to a local customer, Boling, in
September 2023. Boling has expressed its intent to potentially
purchase an additional 95 units of the EH216-S for future use in
Shenzhen, as outlined in a signed letter of intent.
- Strategic Partnership with
Hefei Municipal Government with US$100 Million Support
Plan
In October 2023, EHang entered into a strategic cooperation
agreement with the Hefei Municipal Government for joint development
of a low-altitude economy ecosystem in Hefei, China. EHang plans to
launch regular UAV operations in Luogang Central Park, Hefei,
transforming it into a leading UAM super aerohub. The Hefei
Municipal Government intends to extend support to EHang in various
forms with a target amount of US$100 million. The support will be
provided either through the coordination or facilitation of
purchase orders for a minimum of 100 units of EH216 series
products, and/or by providing financing support. The specific
timing, amount and type of support will be subject to the
definitive agreements.
- EHang European Urban Air Mobility Center Opens in
Spain
In November 2023, EHang announced the opening of our first
European UAM Center in Spain. Located inside the Lleida–Alguaire
International Airport, the center is the first-of-its-kind in
Europe for unmanned eVTOL aircraft, setting a benchmark globally
for the effective integration of eVTOL operations with airport
infrastructure, air traffic management systems, operational
procedures, and other information technologies.
- US$23 Million PIPE Investment from
Strategic Investors to Strengthen Liquidity
In July 2023, EHang secured US$23 million of equity investment
through a private placement from several strategic investors. The
gross proceeds from the placement will be used for working capital
and general corporate purposes, enabling acceleration of strategic
plans for technology advancement, business development, and
commercial operations.
- Strategic Investment in Inx to Develop Solid-State
Lithium Metal Battery Supply Chain for eVTOLs
In September 2023, EHang strategically invested in Shenzhen Inx
Technology Co., Ltd. (“Inx”), a solid-state lithium metal battery
technology company in China, and plans to cooperate with Inx on the
research, development and production of solid-state lithium metal
batteries for EHang’s unmanned eVTOL products. Our strategic
investment in Inx aligns seamlessly with EHang’s pursuit of
greener, low-carbon technologies, and is also part of the Company’s
efforts to deploy and enhance our upstream battery supply
chain.
CEO Remarks
Mr. Huazhi Hu, EHang’s Founder, Chairman and Chief Executive
Officer, commented, “The third quarter reflects our exceptional
performance in multiple aspects. A pivotal milestone was the TC for
our groundbreaking EH216-S, the first of its kind in the unmanned
eVTOL industry around the world. This certification evidences our
adherence to CAAC’s stringent safety and airworthiness standards,
and enables us to move toward commercial operations with
confidence.”
“To support our commercial endeavors, we have forged strategic
alliances with key entities such as the Bao’an District Government
of Shenzhen and the Hefei Municipal Government. These partnerships
are instrumental in establishing innovative projects like the UAM
Operation Demonstration Center in Shenzhen and could facilitate
potential supports with a target amount of $100 million from
the Hefei Municipal Government. These initiatives, combined with
certifications and favorable policies, will position us to meet the
increasing demands and orders for our trailblazing unmanned eVTOL
products. As the first mover in the eVTOL industry, we will
continue committing ourselves to delivering safe, autonomous,
efficient, and eco-friendly UAM solutions and
services.”Financial Results for the Third Quarter
2023
Revenues
Total revenues were RMB28.6 million (US$3.9 million),
representing an increase of 247.9% from RMB8.2 million in the third
quarter of 2022, and an increase of 186.0% from RMB10.0 million in
the second quarter of 2023. The year-over-year and
quarter-over-quarter increases were primarily due to the increase
in the sales volume of EH216 series products.
Costs of revenues
Costs of revenues were RMB10.1 million (US$1.4 million),
compared with RMB2.8 million in the third quarter of 2022 and
RMB4.0 million in the second quarter of 2023. The year-over-year
and quarter-over-quarter increases were primarily in line with the
increase in the sales volume of EH216 series products.
Gross profit and gross margin
Gross profit was RMB18.5 million (US$2.5 million), representing
an increase of 240.6% from RMB5.4 million in the third quarter of
2022, and an increase of 207.0% from RMB6.0 million in the second
quarter of 2023. The year-over-year and quarter-over-quarter
increases were primarily due to the increase in the sales volume of
EH216 series products.Gross margin was 64.6%, down 1.3 percentage
points from 65.9% in the third quarter of 2022 but up 4.4
percentage points from 60.2% in the second quarter of 2023. The
year-over-year decrease was mainly due to changes in revenue mix.
The quarter-over-quarter increase was mainly due to higher average
selling price of EH216 series products.
Operating expenses
Total operating expenses were RMB89.8 million
(US$12.3 million), compared with RMB80.5 million in the third
quarter of 2022, and RMB82.0 million in the second quarter of
2023.
- Sales and marketing expenses were RMB13.7 million (US$1.9
million), compared with RMB12.7 million in the third quarter of
2022, and on par with RMB13.5 million in the second quarter of
2023. The year-over-year increase was mainly attributed to
increased marketing and promotional activities to expand brand
awareness and higher employee compensation.
- General and administrative expenses were RMB38.4 million
(US$5.2 million), compared with RMB36.5 million in the third
quarter of 2022, and RMB31.1 million in the second quarter of 2023.
The year-over-year and quarter-over-quarter increases were mainly
attributed to higher share-based compensation expenses for new
grant of share-based awards, while partially offset by a reduction
in professional service fees and provisions for several accounts
receivable on certain customers.
- Research and development expenses were RMB37.7 million (US$5.2
million), compared with RMB31.3 million in the third quarter of
2022, and on par with RMB37.4 million in the second quarter of
2023. The year-over-year and quarter-over-quarter increases were
mainly due to the focus on the EH216-S TC and continuous
expenditures on the compliance tests in the final demonstration and
verification phase of the TC.
Adjusted operating expenses4
(non-GAAP)
Adjusted operating expenses were RMB54.0 million (US$7.4
million), representing a reduction of 9.5% from RMB59.7 million in
the third quarter of 2022, and a reduction of 7.0% from RMB58.1
million in the second quarter of 2023. Adjusted sales and marketing
expenses, adjusted general and administration expenses, and
adjusted research and development expenses were RMB8.9 million
(US$1.2 million), RMB16.1 million (US$2.2 million) and RMB29.0
million (US$4.0 million) in the third quarter of 2023,
respectively. The changes in adjusted operating expenses were
primarily due to the same reasons discussed under the heading
“Operating expenses” above.
Operating loss
Operating loss was RMB70.0 million (US$9.6 million),
representing an improvement of 5.0% from RMB73.7 million in the
third quarter of 2022, and an improvement of 7.0% from RMB75.3
million in the second quarter of 2023.
Adjusted operating loss
(non-GAAP)5
Adjusted operating loss was RMB34.2 million (US$4.7 million),
representing an improvement of 35.2% from RMB52.9 million in the
third quarter of 2022, and an improvement of 33.3% from RMB51.3
million in the second quarter of 2023.
Net loss
Net loss was RMB67.1 million (US$9.2 million), representing an
improvement of 12.3% from RMB76.5 million in the third quarter of
2022, and an improvement of 11.4% from RMB75.7 million in the
second quarter of 2023.
Adjusted net loss
(non-GAAP)6
Adjusted net loss was RMB31.3 million (US$4.3million),
representing an improvement of 43.1% from RMB55.1 million in the
third quarter of 2022, and improvement of 39.5% from RMB51.8
million in the second quarter of 2023.
Adjusted net loss attributable to EHang’s ordinary shareholders
was RMB31.3 million (US$4.3million), representing an improvement of
42.8% from RMB54.7 million in the third quarter of 2022, and an
improvement of 39.4% from RMB51.6 million in the second quarter of
2023.
Loss per share and per ADS
Basic and diluted net loss per ordinary share were both RMB0.54
(US$0.07). Adjusted basic and diluted net loss per ordinary share7
(non-GAAP) were both RMB0.25 (US$0.03).
Basic and diluted net loss per ADS were both RMB1.08 (US$0.14).
Adjusted basic and diluted net loss per ADS8 (non-GAAP) were both
RMB0.50 (US$0.06).
Balance Sheets
- Cash, cash equivalents, short-term investments and restricted
short-term deposits balances were RMB295.6 million (US$40.5
million) as of September 30, 2023. In July 2023, the Company
completed and closed the private investment of US$23 million from
long-term strategic investors to support the needs of working
capital and general corporate purposes, enabling acceleration of
strategic plans for technological advancement, business
development, and post-certification commercial operations.
Liquidity
The Company has been incurring losses from operations since
inception. For the nine months ended September 30, 2023, the
Company had net loss of RMB229.9 million (US$31.5 million). As of
December 31, 2022 and September 30, 2023, accumulated deficit
amounted to RMB1,450.4 million and RMB1,682.2 million (US$230.6
million), respectively.
The Company’s liquidity and operation depend on its ability to
enhance its operating cash flows and financial position by
commencing scalable commercial sales of EH216-S, and raising
additional funds through debt financings or equity offerings. In
July 2023, the Company received US$23 million of equity investment
through private placement from several strategic investors. The
gross proceeds from the placement have strengthened the Company’s
liquidity status. In addition, up to the date of this earnings
release, the Company has unused credit facilities of RMB61.0
million (US$8.4 million). Therefore, we believe that our current
cash and cash equivalents and our anticipated cash flows from
operations will be sufficient to meet our anticipated working
capital requirements and material cash requirements for at least
the next 12 months. However, we may need additional cash resources
in the future if we experience changes in business conditions or
other developments, or if we pursue opportunities for investment,
acquisition, capital expenditure or similar actions.
Business Outlook
For the fourth quarter of 2023, the Company expects the total
revenues to be approximately RMB56 million, representing an
increase of 257% year over year and an increase of 96% quarter over
quarter.
For the fiscal year of 2023, the Company expects total revenues
to be approximately RMB118 million, up 166% from 2022.
The above outlook is based on information available as of the
date of this press release and reflects the Company’s current and
preliminary expectations regarding its business situation and
market conditions. The outlook is subject to changes, especially
given uncertainties and situations related to certification,
geopolitics, economic landscape, etc.
Conference Call
EHang’s management team will host an earnings conference call at
8:00 AM on Wednesday, November 22, 2023, U.S. Eastern Time (9:00 PM
on Wednesday, November 22, 2023, Beijing/Hong Kong Time).
To join the conference call via telephone, participants must use
the following link to complete an online registration process. Upon
registering, each participant will receive email instructions to
access the conference call, including dial-in information and a PIN
number allowing access to the conference call.
Participant Online Registration:
https://register.vevent.com/register/BIa55748e1f2f14620aa4cc19b6fc33d8e
A live and archived webcast of the conference call will be
available on the Company’s investors relations website at
http://ir.ehang.com/.
About EHang
EHang (Nasdaq: EH) is the world’s leading urban air mobility
(“UAM”) technology platform company. Our mission is to enable safe,
autonomous, and eco-friendly air mobility accessible to everyone.
EHang provides customers in various industries with unmanned aerial
vehicle (“UAV”) systems and solutions: air mobility (including
passenger transportation and logistics), smart city management, and
aerial media solutions. EHang has obtained the world’s first type
certificate for unmanned eVTOL from the Civil Aviation
Administration of China in 2023. As the forerunner of cutting-edge
UAV technologies and commercial solutions in the global UAM
industry, EHang continues to explore the boundaries of the sky to
make flying technologies benefit our life in smart cities. For more
information, please visit www.ehang.com.
Safe Harbor Statement
This press release contains statements that may constitute
“forward-looking” statements pursuant to the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “aims,”
“future,” “intends,” “plans,” “believes,” “estimates,” “likely to”
and similar statements. Statements that are not historical facts,
including statements about management’s beliefs and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to those
relating to certifications, our expectations regarding demand for,
and market acceptance of, our products and solutions and the
commercialization of UAM services, our relationships with strategic
partners, and current litigation and potential litigation involving
us. Management has based these forward-looking statements on its
current expectations, assumptions, estimates and projections. While
they believe these expectations, assumptions, estimates and
projections are reasonable, such forward-looking statements are
only predictions and involve known and unknown risks and
uncertainties, many of which are beyond management’s control. These
statements involve risks and uncertainties that may cause EHang’s
actual results, performance or achievements to differ materially
from any future results, performance or achievements expressed or
implied by these forward-looking statements.
Non-GAAP Financial
Measures
The Company uses adjusted gross profit, adjusted operating
expenses, adjusted sales and marketing expenses, adjusted general
and administration expenses, adjusted research and development
expenses, adjusted operating loss, adjusted net loss, adjusted net
loss attributable to ordinary shareholders, adjusted basic and
diluted loss per ordinary share and adjusted basic and diluted loss
per ADS (collectively, the “Non-GAAP Financial Measures”) in
evaluating its operating results and for financial and operational
decision-making purposes. There was no income tax impact on the
Company’s non-GAAP adjustments because the non-GAAP adjustments are
usually recorded in entities located in tax-free jurisdictions,
such as the Cayman Islands.
The Company believes that the Non-GAAP Financial Measures help
identify underlying trends in its business that could otherwise be
distorted by the effects of items of (i) share-based compensation
expenses and (ii) certain non-operational expenses, such as
provisions for legal proceedings and amortization of debt
discounts, which are included in their comparable GAAP measures.
The Company believes that the Non-GAAP Financial Measures provide
useful information about its operating results, enhance the overall
understanding of its past performance and future prospects and
allow for greater visibility with respect to key metrics used by
its management members in their financial and operational
decision-making.
The Non-GAAP Financial Measures are not defined under U.S. GAAP
and are not presented in accordance with U.S. GAAP. The Non-GAAP
Financial Measures have limitations as analytical tools. One of the
key limitations of using the Non-GAAP Financial Measures is that
they do not reflect all items of expense that affect the Company’s
operations. Share-based compensation expenses have been and may
continue to be incurred in the business and are not reflected in
the presentation of the Non-GAAP Financial Measures. Further, the
Non-GAAP Financial Measures may differ from the non-GAAP
information used by other companies, including peer companies, and
therefore their comparability may be limited. The Company
compensates for these limitations by reconciling the Non-GAAP
Financial Measures to the nearest U.S. GAAP measures, all of which
should be considered when evaluating the Company’s performance.
Each of the Non-GAAP Financial Measures should not be considered
in isolation or construed as an alternative to its comparable GAAP
measure or any other measure of performance or as an indicator of
the Company’s operating performance or financial results. Investors
are encouraged to review the Company’s most directly comparable
GAAP measures in conjunction with the Non-GAAP Financial Measures.
The Non-GAAP Financial Measures presented here may not be
comparable to similarly titled measures presented by other
companies. Other companies may calculate similarly titled measures
differently, limiting their usefulness as comparative measures to
the Company’s data. The Company encourages investors and others to
review its financial information in its entirety and not rely on a
single financial measure.
For more information on the Non-GAAP Financial Measures, please
see the table captioned “Unaudited Reconciliations of GAAP and
Non-GAAP Results” set forth at the end of this press release.
Exchange Rate
This press release contains translations of certain RMB amounts
into U.S. dollars (“USD”) at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to USD were made at the rate of RMB7.2960 to
US$1.00, the noon buying rate in effect on September 29, 2023 in
the H.10 statistical release of the Federal Reserve Board. The
Company makes no representation that the RMB or USD amounts
referred to in this press release could have been converted into
USD or RMB, as the case may be, at any particular rate or at
all.
Investor Contact:
ir@ehang.com
Media Contact:
pr@ehang.com
____________________
1 Adjusted operating loss is a non-GAAP financial measure, which
is defined as operating loss excluding share-based compensation
expenses. See “Non-GAAP Financial Measures” below.2 Adjusted net
loss is a non-GAAP financial measure, which is defined as net loss
excluding share-based compensation expenses. See “Non-GAAP
Financial Measures” below.3 The EH216 series products include
EH216-S, the standard model for passenger transportation, EH216-F
model for aerial firefighting, and EH216-L model for aerial
logistics. 4 Adjusted operating expenses is a non-GAAP financial
measure, which is defined as operating expenses excluding
share-based compensation expenses. See “Non-GAAP Financial
Measures” below.5 Adjusted operating loss is a non-GAAP financial
measure, which is defined as operating loss excluding share-based
compensation expenses. See “Non-GAAP Financial Measures” below.6
Adjusted net loss is a non-GAAP financial measure, which is defined
as net loss excluding share-based compensation expenses. See
“Non-GAAP Financial Measures” below.7 Adjusted basic and diluted
net loss per ordinary share is a non-GAAP financial measure, which
is defined as basic and diluted loss per ordinary share excluding
share-based compensation expenses. See “Non-GAAP Financial
Measures” below.8 Adjusted basic and diluted net loss per ADS is a
non-GAAP financial measure, which is defined as basic and diluted
loss per ADS excluding share-based compensation expenses. See
“Non-GAAP Financial Measures” below.
EHANG HOLDINGS LIMITEDUNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (Amounts in thousands
of Renminbi (“RMB”) and US dollars (“US$”)) |
|
|
|
|
|
|
|
As of |
|
As of |
|
|
December 31, 2022 |
|
September 30, 2023 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
249,310 |
|
233,042 |
|
31,941 |
Short-term investments |
|
- |
|
28,748 |
|
3,940 |
Restricted short-term deposits |
|
- |
|
33,779 |
|
4,630 |
Accounts receivable, net9 |
|
20,298 |
|
16,645 |
|
2,281 |
Inventories |
|
72,364 |
|
65,223 |
|
8,940 |
Prepayments and other current
assets9 |
|
45,183 |
|
47,998 |
|
6,578 |
Amount due from a related
party |
|
- |
|
1,700 |
|
233 |
Total current assets |
|
387,155 |
|
427,135 |
|
58,543 |
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
Property and equipment,
net |
|
47,060 |
|
43,766 |
|
5,999 |
Operating lease right‑of‑use
assets, net |
|
73,482 |
|
78,561 |
|
10,768 |
Intangible assets, net |
|
1,959 |
|
2,309 |
|
316 |
Long-term loans receivable |
|
9,980 |
|
7,569 |
|
1,037 |
Long-term investments10 |
|
9,839 |
|
15,880 |
|
2,177 |
Other non-current assets |
|
1,392 |
|
1,641 |
|
225 |
Total non-current assets |
|
143,712 |
|
149,726 |
|
20,522 |
|
|
|
|
|
|
|
Total assets |
|
530,867 |
|
576,861 |
|
79,065 |
|
|
|
|
|
|
|
____________________
9 On January 1, 2023, the Company adopted ASU 2016-13, Financial
Instruments — Credit Losses (Topic 326), using the modified
retrospective method and have no material impact on the
consolidated financial statements.10 The Company established a
joint venture with Xiyu Tourism, a third party, in the second
quarter of 2023 and accounted as an equity method investment. In
addition, the Company invested in Shenzhen Inx Technology Co.,
Ltd., a solid-state lithium metal battery technology company, and
accounted as debt investment.
EHANG HOLDINGS LIMITEDUNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (CONT’D)(Amounts in
thousands of Renminbi (“RMB”) and US dollars (“US$”)) |
|
|
|
As of |
|
As of |
|
|
December 31, 2022 |
|
September 30, 2023 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Short-term bank loans |
|
49,794 |
|
|
39,568 |
|
5,423 |
|
Short-term debt11 |
|
57,838 |
|
|
- |
|
- |
|
Accounts payable |
|
35,456 |
|
|
33,688 |
|
4,617 |
|
Contract liabilities |
|
19,321 |
|
|
27,795 |
|
3,810 |
|
Current portion of long-term
bank loans |
|
13,154 |
|
|
3,538 |
|
485 |
|
Accrued expenses and other
liabilities |
|
97,763 |
|
|
82,062 |
|
11,249 |
|
Current portion of lease
liabilities |
|
5,520 |
|
|
7,534 |
|
1,033 |
|
Deferred income |
|
1,495 |
|
|
1,571 |
|
215 |
|
Deferred government
subsidies |
|
1,993 |
|
|
3,036 |
|
416 |
|
Income taxes payable |
|
7 |
|
|
3 |
|
- |
|
Total current
liabilities |
|
282,341 |
|
|
198,795 |
|
27,248 |
|
|
|
|
|
|
|
|
Non-current
liabilities: |
|
|
|
|
|
|
Long-term bank loans |
|
3,846 |
|
|
10,692 |
|
1,465 |
|
Mandatorily redeemable
non-controlling interests |
|
40,000 |
|
|
40,000 |
|
5,482 |
|
Deferred tax liabilities |
|
292 |
|
|
292 |
|
40 |
|
Unrecognized tax benefit |
|
5,480 |
|
|
5,480 |
|
751 |
|
Lease liabilities |
|
69,913 |
|
|
76,161 |
|
10,439 |
|
Deferred income |
|
2,928 |
|
|
1,902 |
|
261 |
|
Other non-current
liabilities |
|
1,389 |
|
|
2,272 |
|
311 |
|
Total non-current liabilities |
|
123,848 |
|
|
136,799 |
|
18,749 |
|
|
|
|
|
|
|
|
Total liabilities |
|
406,189 |
|
|
335,594 |
|
45,997 |
|
|
|
|
|
|
|
|
Shareholders’
equity: |
|
|
|
|
|
|
Ordinary shares |
|
75 |
|
|
80 |
|
|
11 |
|
Additional paid-in
capital12 |
|
1,558,356 |
|
|
1,901,997 |
|
|
260,690 |
|
Statutory reserves |
|
1,191 |
|
|
1,191 |
|
|
163 |
|
Accumulated deficit9 13 |
|
(1,450,374 |
) |
|
(1,682,230 |
) |
|
(230,569 |
) |
Accumulated other
comprehensive income |
|
15,010 |
|
|
19,604 |
|
|
2,687 |
|
Total EHang Holdings
Limited shareholders’ equity |
|
124,258 |
|
|
240,642 |
|
|
32,982 |
|
Non-controlling interests |
|
420 |
|
|
625 |
|
|
86 |
|
Total shareholders’
equity |
|
124,678 |
|
|
241,267 |
|
|
33,068 |
|
Total liabilities and shareholders’ equity |
|
530,867 |
|
|
576,861 |
|
|
79,065 |
|
____________________
11 In December 2022, the Company received interim funding from
an investor who has subscribed for certain number of Class A
ordinary shares of the Company in a private placement. The funds
amounted to US$10 million in total and were made available for use
by the Company pending the closing of the private placement. We
accounted for a significant portion of the funds as short-term debt
and the remaining portion as additional paid-in capital. The
closing of the private placement has occurred by the end of first
quarter of 2023. The Company has repaid the interim funding in full
and concurrently received US$10 million as purchase price of
3,466,204 Class A ordinary shares.12 The changes in Additional
paid-in capital included the impacts from transactions with
non-controlling shareholder.Please refer to section of subsequent
events in annual report on Form 20-F for the year ended December
31, 2022 for more details. 13 The changes in Accumulated deficit
included the impacts from adoption of ASU 2016-13, Financial
Instruments — Credit Losses (Topic 326) since January 1, 2023.
Please refer to the annual report on Form 20-F for the year ended
December 31, 2022 for more details.
EHANG HOLDINGS LIMITEDUNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Amounts in thousands of Renminbi (“RMB”) and US dollars
(“US$”) except for per share data and per ADS data) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30,2022 |
|
June 30,2023 |
|
September 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
|
RMB |
|
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Total revenues |
|
8,226 |
|
|
10,006 |
|
|
28,615 |
|
3,922 |
|
|
28,634 |
|
|
60,822 |
|
8,336 |
|
Costs of revenues |
|
(2,801 |
) |
|
(3,986 |
) |
|
(10,136 |
) |
(1,389 |
) |
|
(9,780 |
) |
|
(22,129 |
) |
(3,033 |
) |
Gross
profit |
|
5,425 |
|
|
6,020 |
|
|
18,479 |
|
2,533 |
|
|
18,854 |
|
|
38,693 |
|
5,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses |
|
(12,669 |
) |
|
(13,526 |
) |
|
(13,677 |
) |
(1,875 |
) |
|
(37,609 |
) |
|
(39,677 |
) |
(5,438 |
) |
General and administrative expenses |
|
(36,555 |
) |
|
(31,061 |
) |
|
(38,409 |
) |
(5,264 |
) |
|
(99,628 |
) |
|
(94,466 |
) |
(12,948 |
) |
Research and development expenses |
|
(31,257 |
) |
|
(37,414 |
) |
|
(37,686 |
) |
(5,165 |
) |
|
(97,985 |
) |
|
(129,175 |
) |
(17,705 |
) |
Total operating
expenses |
|
(80,481 |
) |
|
(82,001 |
) |
|
(89,772 |
) |
(12,304 |
) |
|
(235,222 |
) |
|
(263,318 |
) |
(36,091 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating income |
|
1,393 |
|
|
676 |
|
|
1,284 |
|
176 |
|
|
4,595 |
|
|
3,565 |
|
489 |
|
Operating
loss |
|
(73,663 |
) |
|
(75,305 |
) |
|
(70,009 |
) |
(9,595 |
) |
|
(211,773 |
) |
|
(221,060 |
) |
(30,299 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and investment income |
|
984 |
|
|
966 |
|
|
2,196 |
|
301 |
|
|
3,493 |
|
|
4,145 |
|
568 |
|
Interest expenses |
|
(543 |
) |
|
(816 |
) |
|
(718 |
) |
(98 |
) |
|
(1,458 |
) |
|
(2,248 |
) |
(308 |
) |
Amortization of debt discounts |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
|
(12,023 |
) |
(1,648 |
) |
Foreign exchange (loss) gain |
|
(801 |
) |
|
(1,028 |
) |
|
821 |
|
113 |
|
|
(2,242 |
) |
|
(303 |
) |
(42 |
) |
Other non-operating (expenses) income, net |
|
(2,522 |
) |
|
2,075 |
|
|
974 |
|
133 |
|
|
(7,290 |
) |
|
3,700 |
|
508 |
|
Total other (expense)
income |
|
(2,882 |
) |
|
1,197 |
|
|
3,273 |
|
449 |
|
|
(7,497 |
) |
|
(6,729 |
) |
(922 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income tax
and income (loss) from equity method investment |
|
(76,545 |
) |
|
(74,108 |
) |
|
(66,736 |
) |
(9,146 |
) |
|
(219,270 |
) |
|
(227,789 |
) |
(31,221 |
) |
Income tax expenses |
|
(73 |
) |
|
(13 |
) |
|
(118 |
) |
(16 |
) |
|
(72 |
) |
|
(132 |
) |
(18 |
) |
Loss before income
(loss) from equity method investment |
|
(76,618 |
) |
|
(74,121 |
) |
|
(66,854 |
) |
(9,162 |
) |
|
(219,342 |
) |
|
(227,921 |
) |
(31,239 |
) |
Income (loss) from equity method investment |
|
71 |
|
|
(1,607 |
) |
|
(262 |
) |
(36 |
) |
|
114 |
|
|
(1,959 |
) |
(269 |
) |
Net loss |
|
(76,547 |
) |
|
(75,728 |
) |
|
(67,116 |
) |
(9,198 |
) |
|
(219,228 |
) |
|
(229,880 |
) |
(31,508 |
) |
EHANG HOLDINGS LIMITEDUNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONT’D)
(Amounts in thousands of Renminbi (“RMB”) and US dollars
(“US$”) except for per share data and per ADS data) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30,2022 |
|
June 30,2023 |
|
September 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
|
RMB |
|
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Net loss |
|
(76,547 |
) |
|
(75,728 |
) |
|
(67,116 |
) |
(9,198 |
) |
|
(219,228 |
) |
|
(229,880 |
) |
(31,508 |
) |
Net loss attributable to
non-controlling interests |
|
422 |
|
|
165 |
|
|
68 |
|
9 |
|
|
889 |
|
|
444 |
|
61 |
|
Net loss attributable
to ordinary shareholders |
|
(76,125 |
) |
|
(75,563 |
) |
|
(67,048 |
) |
(9,189 |
) |
|
(218,339 |
) |
|
(229,436 |
) |
(31,447 |
) |
Net loss per ordinary
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
(0.66 |
) |
|
(0.63 |
) |
|
(0.54 |
) |
(0.07 |
) |
|
(1.91 |
) |
|
(1.91 |
) |
(0.26 |
) |
Shares used in net
loss per ordinary share computation (in thousands of
shares): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
114,734 |
|
|
120,159 |
|
|
123,866 |
|
123,866 |
|
|
114,503 |
|
|
120,167 |
|
120,167 |
|
Loss per ADS (2 ordinary
shares equal to 1 ADS)Basic and diluted |
|
(1.32 |
) |
|
(1.26 |
) |
|
(1.08 |
) |
(0.14 |
) |
|
(3.82 |
) |
|
(3.82 |
) |
(0.52 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustments net of nil tax |
|
10,812 |
|
|
4,968 |
|
|
348 |
|
48 |
|
|
22,142 |
|
|
4,594 |
|
630 |
|
Total other
comprehensive income (loss), net of tax |
|
10,812 |
|
|
4,968 |
|
|
348 |
|
48 |
|
|
22,142 |
|
|
4,594 |
|
630 |
|
Comprehensive
loss |
|
(65,735 |
) |
|
(70,760 |
) |
|
(66,768 |
) |
(9,150 |
) |
|
(197,086 |
) |
|
(225,286 |
) |
(30,878 |
) |
Comprehensive loss
attributable to non-controlling interests |
|
422 |
|
|
165 |
|
|
68 |
|
9 |
|
|
889 |
|
|
444 |
|
61 |
|
Comprehensive loss
attributable to ordinary shareholders |
|
(65,313 |
) |
|
(70,595 |
) |
|
(66,700 |
) |
(9,141 |
) |
|
(196,197 |
) |
|
(224,842 |
) |
(30,817 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
EHANG HOLDINGS LIMITEDUNAUDITED
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands of Renminbi (“RMB”) and US dollars
(“US$”) except for per share data and per ADS data) |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30,2022 |
|
June 30,2023 |
|
September 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
|
RMB |
|
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Gross profit |
|
5,425 |
|
|
6,020 |
|
|
18,479 |
|
2,533 |
|
|
18,854 |
|
|
38,693 |
|
5,303 |
|
Plus: Share-based
compensation |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
|
- |
|
- |
|
Adjusted gross profit |
|
5,425 |
|
|
6,020 |
|
|
18,479 |
|
2,533 |
|
|
18,854 |
|
|
38,693 |
|
5,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
|
(12,669 |
) |
|
(13,526 |
) |
|
(13,677 |
) |
(1,875 |
) |
|
(37,609 |
) |
|
(39,677 |
) |
(5,438 |
) |
Plus: Share-based
compensation |
|
4,797 |
|
|
4,656 |
|
|
4,767 |
|
653 |
|
|
13,694 |
|
|
14,373 |
|
1,970 |
|
Adjusted sales and marketing
expenses |
|
(7,872 |
) |
|
(8,870 |
) |
|
(8,910 |
) |
(1,222 |
) |
|
(23,915 |
) |
|
(25,304 |
) |
(3,468 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses |
|
(36,555 |
) |
|
(31,061 |
) |
|
(38,409 |
) |
(5,264 |
) |
|
(99,628 |
) |
|
(94,466 |
) |
(12,948 |
) |
Plus: Share-based
compensation |
|
7,779 |
|
|
10,693 |
|
|
22,327 |
|
3,060 |
|
|
28,758 |
|
|
42,183 |
|
5,782 |
|
Adjusted general and
administrative expenses |
|
(28,776 |
) |
|
(20,368 |
) |
|
(16,082 |
) |
(2,204 |
) |
|
(70,870 |
) |
|
(52,283 |
) |
(7,166 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development expenses |
|
(31,257 |
) |
|
(37,414 |
) |
|
(37,686 |
) |
(5,165 |
) |
|
(97,985 |
) |
|
(129,175 |
) |
(17,705 |
) |
Plus: Share-based
compensation |
|
8,235 |
|
|
8,607 |
|
|
8,679 |
|
1,190 |
|
|
23,608 |
|
|
44,611 |
|
6,114 |
|
Adjusted research and
development expenses |
|
(23,022 |
) |
|
(28,807 |
) |
|
(29,007 |
) |
(3,975 |
) |
|
(74,377 |
) |
|
(84,564 |
) |
(11,591 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
(80,481 |
) |
|
(82,001 |
) |
|
(89,772 |
) |
(12,304 |
) |
|
(235,222 |
) |
|
(263,318 |
) |
(36,091 |
) |
Plus: Share-based
compensation |
|
20,811 |
|
|
23,956 |
|
|
35,773 |
|
4,903 |
|
|
66,060 |
|
|
101,167 |
|
13,866 |
|
Adjusted operating
expenses |
|
(59,670 |
) |
|
(58,045 |
) |
|
(53,999 |
) |
(7,401 |
) |
|
(169,162 |
) |
|
(162,151 |
) |
(22,225 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
(73,663 |
) |
|
(75,305 |
) |
|
(70,009 |
) |
(9,595 |
) |
|
(211,773 |
) |
|
(221,060 |
) |
(30,299 |
) |
Plus: Share-based
compensation |
|
20,811 |
|
|
23,956 |
|
|
35,773 |
|
4,903 |
|
|
66,060 |
|
|
101,167 |
|
13,866 |
|
Adjusted operating loss |
|
(52,852 |
) |
|
(51,349 |
) |
|
(34,236 |
) |
(4,692 |
) |
|
(145,713 |
) |
|
(119,893 |
) |
(16,433 |
) |
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30,2022 |
|
June 30,2023 |
|
September 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
|
RMB |
|
RMB |
|
RMB |
US$ |
|
RMB |
|
RMB |
US$ |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Net loss |
|
(76,547 |
) |
|
(75,728 |
) |
|
(67,116 |
) |
(9,198 |
) |
|
(219,228 |
) |
|
(229,880 |
) |
(31,508 |
) |
Plus: Share-based
compensation |
|
20,811 |
|
|
23,956 |
|
|
35,773 |
|
4,903 |
|
|
66,060 |
|
|
101,167 |
|
13,866 |
|
Plus: Amortization of debt
discounts |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
|
12,023 |
|
1,648 |
|
Plus: Certain non-operational
expenses |
|
636 |
|
|
- |
|
|
- |
|
- |
|
|
6,439 |
|
|
- |
|
- |
|
Adjusted net loss |
|
(55,100 |
) |
|
(51,772 |
) |
|
(31,343 |
) |
(4,295 |
) |
|
(146,729 |
) |
|
(116,690 |
) |
(15,994 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to ordinary shareholders |
|
(76,125 |
) |
|
(75,563 |
) |
|
(67,048 |
) |
(9,189 |
) |
|
(218,339 |
) |
|
(229,436 |
) |
(31,447 |
) |
Plus: Share-based
compensation |
|
20,811 |
|
|
23,956 |
|
|
35,773 |
|
4,903 |
|
|
66,060 |
|
|
101,167 |
|
13,866 |
|
Plus: Amortization of debt
discounts |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
|
12,023 |
|
1,648 |
|
Plus: Certain non-operational
expenses |
|
636 |
|
|
- |
|
|
- |
|
- |
|
|
6,439 |
|
|
- |
|
- |
|
Adjusted net loss attributable
to ordinary shareholders |
|
(54,678 |
) |
|
(51,607 |
) |
|
(31,275 |
) |
(4,286 |
) |
|
(145,840 |
) |
|
(116,246 |
) |
(15,933 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted basic and diluted net
loss per ordinary share |
|
(0.48 |
) |
|
(0.43 |
) |
|
(0.25 |
) |
(0.03 |
) |
|
(1.27 |
) |
|
(0.97 |
) |
(0.13 |
) |
Adjusted basic and diluted net
loss per ADS |
|
(0.96 |
) |
|
(0.86 |
) |
|
(0.50 |
) |
(0.06 |
) |
|
(2.54 |
) |
|
(1.94 |
) |
(0.26 |
) |
EHang (NASDAQ:EH)
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From Apr 2024 to May 2024
EHang (NASDAQ:EH)
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From May 2023 to May 2024