• Q4 Revenue: RMB164.3 million, a 190% year-over-year increase.
• Full-Year 2024 Revenue: RMB456.2 million, up 289% year-over-year.
• Q4 Deliveries: 78 units of EH216 series, a 239% year-over-year increase.
• Full-Year 2024 Deliveries: 216 units, up 315% from 2023.
• Q4 Gross Margin: 60.7%, slightly down from 64.7% in Q4 2023.
• Full-Year 2024 Gross Margin: 61.4%, down from 64.1% in 2023.
• Q4 Adjusted Operating Expenses: RMB78.2 million, up 22% year-over-year.
• Full-Year 2024 Adjusted Operating Expenses: RMB290.1 million, up 28.2% from 2023.
• Q4 Adjusted Operating Income: RMB27.9 million, improved from a loss of RMB24.9 million in Q4 2023.
• Q4 Adjusted Net Income: RMB36.4 million, improved from a loss of RMB22.1 million in Q4 2023.
• Full-Year 2024 Adjusted Net Income: RMB43.1 million, improved from a loss of RMB139 million in 2023.
• Cash and Cash Equivalents: RMB1,155 million as of end of Q4.
• Full-Year 2024 Positive Operating Cash Flow: Approximately RMB160 million.
• 2025 Revenue Guidance: Expected to reach RMB900 million, a 97% year-over-year increase.

• Warning! GuruFocus has detected 3 Warning Signs with EH.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• EHang Holdings Ltd (NASDAQ:EH) achieved record-breaking deliveries and revenues in Q4 2024, with a 239.1% year-over-year increase in quarterly deliveries.
• The company reached a significant milestone by achieving positive adjusted net income and positive operating cash flow for the first time in 2024.
• EHang Holdings Ltd (NASDAQ:EH) became the first eVTOL company in the global urban air mobility industry to achieve non-GAAP profitability.
• The company is actively expanding its production capacity, with plans to increase the Yunfu production base's capacity to 1,000 units annually by 2025.
• EHang Holdings Ltd (NASDAQ:EH) is collaborating with multiple partners to advance AI technology integration, enhancing its eVTOL lifecycle and operational capabilities.

Negative Points

• Gross margin slightly decreased to 60.7% in Q4 2024, down from 64.7% in the same period of 2023, due to changes in revenue mix and higher unit costs.
• The company anticipates a significant increase in operating expenses, with a projected 40% year-over-year growth in 2025.
• EHang Holdings Ltd (NASDAQ:EH) is still awaiting final regulatory approval for operator certificates, which is crucial for commercial eVTOL operations.
• The company faces challenges in achieving full-year GAAP profitability, which is expected to occur sometime in 2026.
• EHang Holdings Ltd (NASDAQ:EH) plans to seek additional financing in 2025 to support its growth initiatives, indicating potential financial pressure.

Q & A Highlights

Q: What is the expected production capacity for the Hefei facility by the end of 2025 and 2026, and what will be the utilization rate? A: Huazhi Hu, CEO, explained that the Yunfu Phase 2 expansion will complete this year, reaching an annual capacity of 1,000 units. The Hefei facility, in partnership with JAC Motors and Hefei Guoxian Holdings, is expected to complete expansion in 1.5 to 2 years. The company is adopting a manufacturing-to-order strategy across different regions in China.

Q: Can you provide an update on the timeline for obtaining the Operator Certificate (OC) and achieving GAAP profitability? A: Huazhi Hu, CEO, stated that the Civil Aviation Administration of China (CAAC) has completed inspections for the OC, and they are awaiting final approval. Conor Yang, CFO, mentioned that they expect to achieve quarterly GAAP profitability in the second half of 2024, with full-year GAAP profitability anticipated in 2026.

Q: What is the gross margin outlook and financing plans for 2025? A: Huazhi Hu, CEO, indicated a target gross margin of around 60%, with plans to diversify product offerings and adopt a distribution model. Conor Yang, CFO, noted that the company plans to seek additional financing to support growth initiatives, including new technology development and market expansion.

Q: What is the timeline for air taxi operations and related infrastructure development? A: Zhao Wang, COO, stated that air taxi services are a long-term goal, with initial operations focusing on domestic tourism areas. Infrastructure development, including vertiports and digital systems, is underway, with many cities planning extensive networks over the next three years.

Q: What are the plans for diversifying revenue streams beyond manufacturing? A: Huazhi Hu, CEO, explained that EHang is focusing on both operations and sales, building a complete lifecycle value system for customers. This includes product sales, customer service, and operational services. The company is also expanding into logistics and firefighting to broaden revenue sources.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.