The company discusses its financial results for the first quarter of 2025, with statements from the CEO, COO, and CFO, noting risks and forward-looking projections.

Eon General Aviation and its subsidiary have received the first air operator certificates for human-carrying pilotless aerial vehicles in China, marking the beginning of commercial services and a significant step toward becoming a comprehensive urban air mobility platform operator. The company emphasizes safety, taking a phased approach to commercial operations focusing initially on pilot cities and low-risk scenarios.

The VT-35, a next-generation long-range human-carrying eVITO, has completed assembly and is undergoing flight testing. With industry-leading autonomous flight control and propulsion systems, it aims to set a new standard in medium and long-range vital products. The CAAC has accepted the type certification application, and the aircraft is expected to leverage Eon's previous certification experience for accelerated approval. Eon, holding numerous patents and with a strong RD team, collaborates with Tsinghua University and other institutions to drive innovation in autonomous aviation technologies. A joint low-altitude flight safety lab with the University of Saragosa and Guangzhou University further advances research and talent development in Europe.

In Q1 2025, delivered 11 E216 units, generating $26.1 million in revenue amid seasonal slowdowns and procurement delays. Initiated factory expansion doubling main facility capacity to 1,000 units annually, with additional assembly facilities in Hefei and Weihai. Notably, operators received operational certificates for autonomous human-carrying aircraft, marking a significant milestone in commercial operations and industry recognition.

Despite a temporary decline, robust demand sees a significant increase in consumer inquiries and order volumes. Major orders from various provinces in China are converting into deliveries, with a focus on safe and compliant flight operations through enhanced standards and phased rollout. Operators have entered the human carrying trial phase in designated cities, with plans to offer public flight ticket sales upon accumulating sufficient safety data.

The company is enhancing customer service infrastructure for scaled commercial operations, including standardized flight planning, customized vertiport designs, and training programs. Significant milestones include the establishment of the world's largest UAM center in Wencheng, Zhejiang Province, and the launch of a UAM demonstration center in Shenzhen. Strategic partnerships with Jac Motors, Goshen Holdings, and CCIT aim to develop next-generation eVTOL manufacturing bases and multi-dimensional infrastructure networks, focusing on low-altitude tourism, smart intercity transportation, and emergency response networks. Efforts also include international expansion and establishing testing sites for aircraft performance under extreme conditions, promoting a globally connected low altitude economy ecosystem.

Eon is broadening its business into logistics and emergency rescue, with successful drone flights between Guangzhou and Zhuhai and interest from China's emergency management bodies. The company is also collaborating with the general aviation sector for integrated trial operations in various airports.

Eon, a leader in urban air mobility, has gained significant international recognition, featuring in major media outlets and expanding its flight operations in Spain, Mexico, and Thailand.

Despite a Q1 revenue decline attributed to reduced sales of a specific product series, the company remains confident in achieving its full-year revenue target of 900 million RMB for 2025. This confidence stems from observed improvements in potential orders and deliveries, strong market competitiveness, and a focus on cost control and efficiency optimization. The CFO highlights a significant increase in gross margin and maintains the annual revenue guidance, emphasizing the company's solid capital reserves and plans for continued RD investment and commercial deployment.

The company provides guidance on expected revenue growth in millions of RMB, highlighting potential increases in sales and deliveries in specific portals. Performance decline in Qi is attributed to seasonal impacts, budget finalization periods, and delays due to awaited OC certification.

After OCC certification, the company sees improvements in Qi delivery volumes and sales, maintaining full-year revenue guidance at 900 million RMB. The certification process for unmanned civilian aircraft operators is accelerating, with several operators expected to receive approval for commercial operations this year.

The discussion highlights the importance of design and economic strategies in maintaining competitiveness within the urban air mobility sector. It contrasts the unique requirements of urban and intercity air transport, emphasizing the non-direct competition between them. Instead, the real competition is identified as traditional ground transportation. The dialogue underscores the advantages of the multicopter configuration, including its small footprint, lightweight nature, and minimal infrastructure requirements, making it particularly suitable for urban environments. Additionally, the economic benefits, such as lower sales prices and cost reductions through autonomous flight and continued airworthiness programs, are highlighted as key factors in strengthening the competitive position.

The company is leveraging its first mover advantage by continuously developing technology and products, including more efficient motors, fast charging batteries, and solid-state battery solutions for long-range products, ensuring superior pricing and competitiveness.

An inquiry addresses expected sales growth timing, order guidance details as of May 2025, and the anticipated start of commercial operations by an operator, given the readiness of infrastructure.

Despite Q1 sales being affected by seasonal factors and OC certification progress, the company sees a recovery in Q2 with strong BCE and maintains its full year revenue guidance of 900 million R and B. Large orders are progressing, and contracts with clients will be disclosed upon finalization.

The operator in Hefei has initiated operations, currently in Phase 1, restricting flight experiences to internal employees and invited passengers with bookings via a ticketing platform. Phase 2 will open to the public on May 27, 2025.

Operators in Guangzhou and Hefei have commenced trial operations, focusing on safety and sustainable development; public sales will begin after sufficient operational experience is gained, negating the need for inaugural flight ceremonies. Several clients, including one in Wencheng, are actively preparing OC applications, with some applications already under review by regional administrations.

The company discusses the trial operations following OCE receipt, focusing on accumulating operational experience, testing the booking platform, and anticipating increased fleet size and operators in Q2, leading to higher daily revenues and passenger flows.

The company discusses the progress of the VT35's airworthiness certification, expecting accelerated approval due to prior successful certifications. They also highlight successful international demos and plans for commercial operations in Thailand.

A significant increase in sales and deliveries is anticipated for Q2, leading to a substantial revenue boost in the second half of the year. Gross margin improvement in Q1 is attributed to higher ASPs from retail customer sales and cost reduction due to increased procurement volumes.

Gulf Coast Securities provides updates on the expansion of their Indian food facility and the establishment of a low altitude aircraft manufacturing base in Hefei, aiming to increase production capacity. Additionally, the company maintains a focus on stringent expense management, aiming to keep the SG&A expense growth at 40% for the full year.

The management discusses adherence to NDRC's principles for expanding low altitude economy applications, emphasizing safety, phased operations, and extensive research in aircraft development.

The speaker concludes a call, inviting further questions via email or upcoming investor events listed on the IR website, expressing gratitude for participation and anticipation for the next earnings call.