亿航 (EH.US) 2025年第二季度业绩电话会
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会议摘要
The company has adjusted its strategy with safety as the core, slowing down order growth, focusing on improving existing customer service quality, and ensuring the safe operation of products. Actively expanding overseas markets, especially in Thailand and the United Arab Emirates, to promote commercial operations. Obtained the approval of the CAAC for the VT35 model, and signed a 500 million support agreement with the Hefei government. Battery research and development made progress through various channels, with achievements in solid-state battery research. Adjusted the business model to "aircraft manufacturer + operation service provider" to drive market development in a positive direction. Strong performance in the second quarter, delivering 680 EH216 series aircraft, with revenue of 147 million yuan, an increase of 44.2% year-on-year. The full-year revenue target has been adjusted to 5 billion yuan, demonstrating commitment to safety and civil aviation agreements. Deepening cooperation with upstream partners and local governments to promote research and standard setting for key technologies in the low-altitude economy. Financial status is good, with sufficient cash reserves to support future investments and business expansion.
会议速览
Financial performance report and management discussion for the second quarter of 2025.This conference call aims to discuss the financial performance of the company in the second quarter of 2025. The meeting will be conducted in both Chinese and English, with management's official remarks primarily in Chinese and English translation provided for international participants to reference. The conference emphasized that all forward-looking statements carry risks and uncertainties, and actual results may differ significantly from expectations. Additionally, the meeting presented financial data and featured in-depth interpretations by relevant personnel on the company's operations, financial condition, and future outlook.
EH216 series unmanned aerial vehicle commercial operation milestone and supply chain cooperation progressThe report highlights the strong sales performance and market response of the EH216 series unmanned aerial vehicles in this quarter, with over 150 new orders and over 10,000 completed safe flights. Guangzhou and Hefei have already started manned flight trials, with plans to launch public services within the year. In terms of the supply chain, deeper collaboration with upstream partners has been achieved, such as custom battery system development with high-tech companies, cooperation with Mint Group for high-security wing solutions, and advancement in the research and development of the VT35 long-range electric vertical take-off and landing aircraft.
Deepen cooperation to promote the construction of a low-altitude economic ecosystem, and accelerate the industrialization process of eVTOL.The dialogue focuses on deepening cooperation with local governments and academic institutions, promoting the construction of the low-altitude economic ecosystem, and accelerating the industrialization process of eVTOL (electric vertical take-off and landing aircraft). By signing strategic cooperation agreements, establishing joint research institutions, strengthening technological innovation and talent cultivation, and actively participating in the formulation of industry standards, safety compliance and sustainable development are ensured. Companies emphasize safety, compliance, and innovation as core values, striving to build a scalable business model and lead the industry towards scalability and sustainable commercialization.
Company operations update: Delivery and order growth, expanding low-altitude economic applications.The company successfully converted orders from the first quarter into actual deliveries in the second quarter, achieving a strong rebound. It added over 150 units in orders, serving customers in China and Japan, covering multiple application scenarios. The company is accelerating product upgrades, particularly in the field of emergency rescue, while optimizing commercial services to enhance flight safety and efficiency, with the goal of officially launching commercial manned services within the year.
Revenue targets for 2025 adjusted and global business expansion strategy.The company has adjusted its 2025 revenue target to 500 million RMB, emphasizing safety and compliance, accelerating global market expansion, establishing strategic alliances with multiple enterprises, promoting the expansion of logistics applications and manufacturing bases, and ensuring safe and efficient commercial operations.
The company has adjusted its full-year revenue guidance, focusing on safe and sustainable operations.The dialogue discussed the reasons for the company adjusting its full-year revenue guidance to 500 million RMB, emphasizing that the adjustment is not due to insufficient market demand, but based on a safety-oriented development strategy, and not blindly pursuing short-term scale expansion. The company is confident in achieving its full-year revenue target and plans to adopt a more stable development strategy in the second half of the year, focusing on collaborative services for existing customers, ensuring the safe and orderly operation of products, rather than speeding up order delivery.
Progress of OC evidence collection and update of customer operations modelThe management shared the progress of the phased operation mode of OC certification after obtaining evidence, including crew adaptation optimization and commercial exploration, emphasizing the role of OC certification in enhancing market confidence. At the same time, two operation modes for customers to choose from were introduced: self-declaration and commissioned operation, both of which have made good progress.
Bank of America Securities researcher delves deeper into order conversion rate and VT20 model business planning.The conversation revolves around the company's order conversion rate and the commercialization of the VT20 model. It is mentioned that the current hand orders are mainly distributed in the domestic market, while overseas demand is significantly increasing, and negotiations for large orders are in progress. Regarding the VT20 model, small logistics aircraft do not require test flight certification, while large logistics aircraft do require certification. The company is actively preparing to achieve safety and commercial operational goals and plans to transition from small to large logistics aircraft to advance the commercialization process.
Geely Group's 2023 strategic adjustment and progress in overseas commercial operations.Discussed the strategic adjustments made by Geely Group for its full-year revenue guidance for 2023, with significant growth expected to be achieved in 2024; shared the latest progress in the commercial operation of Thailand and the United Arab Emirates, including cooperation with local regulatory agencies, pilot testing, and future expansion plans, emphasizing the promoting effect of successful overseas experiences on the domestic market.
Discussion on the expansion plan of production capacity and capital expenditure guidelines for 2025.The discussion revolved around the capacity expansion plan and the capital expenditure guidance for 2025, confirming that the annual production capacity plan of 1000 units will continue to be implemented, aimed at meeting long-term demand and diversified production of various models. The capital expenditure guidance for 2025 remains unchanged, expected to be $40 million, reflecting proactive preparation for capacity expansion and future demand.
Company strategic adjustment and business model upgrade: The transformation from aircraft sales to service provider.The dialogue revolved around the company's strategic adjustment, discussing the importance of transitioning from aircraft sales to service providers. It emphasized the need for the company to timely adjust its strategy in the face of the new stage of low-altitude economic development, not only focusing on aircraft testing and sales, but also dedicating efforts to providing technical support and services to achieve the normalization of commercial operations. In the future, the company will adopt a dual-drive model of manufacturer plus service provider, gradually upgrading the business model by solving customer problems and promoting positive market development, ensuring the safe operation of aircraft and market expansion.
The VT35 project received comprehensive support of 500 million from the Hefei government, covering orders, investments, and collaboration in the industrial chain.The dialogue discussed the market approval progress of the new VT35 model and strategic cooperation with the government of Hefei. The Hefei government's 500 million yuan support includes orders, investments, and industry chain cooperation, aiming to accelerate the progress of the VT35 project. Management revealed that VT35 has been accepted by the Civil Aviation Administration of China, and is progressing with approvals, and plans to establish its headquarters in Hefei, serving as the base for the new model.
Performance conference call: Sharing updates on aircraft delivery and battery research and development.The performance conference call discussed the 68 aircraft delivered in the second quarter, with 67 being the manned version 216S and 1 being the logistics version 216L. The main customers are from domestic markets, with only one customer from Japan. Of the new 150 orders, 90% are from domestic markets and 10% are from overseas. Additionally, the meeting also shared the company's progress in battery development, including fast charging technology, universal batteries, semi-solid state batteries, and solid state batteries. The solid state batteries have been successfully applied to aircraft and completed a 65-minute flight test, with certification expected to be completed by the end of the year.
要点回答
Q：What are the financial results for the second quarter of 2025 mentioned in the speech?
A：The company reported revenues of one hundred forty seven million RMB from the sale of sixty eighty units of the EH 216 series, marking a forty-four point two percent year-over-year growth and a four point six times rebound from the previous quarter.
Q：What is the significance of the new orders received in the second quarter?
A：The new orders received in the second quarter for over one hundred and fifty units of the EH 216 series reflect robust market interest and confidence in the company's products, with deliveries expected to be fulfilled in batches in the coming quarters.
Q：How has the EH 216 series performed in terms of safety and reliability?
A：The EH 216 series completed over ten thousand safe flights in the first half of 2025 without any incidents, underscoring its proven safety and reliability, which reinforces the company's reputation and lays a solid foundation for future commercial operations scaling.
Q：What is the focus of the company's efforts for 2025?
A：The company's focus for 2025 is on setting standards, building operational models, and cultivating talent. It aims to drive long-term sustainable growth through these foundational approaches.
Q：What are the collaborations mentioned for enhancing the company's aircraft performance?
A：The company has deepened partnerships for developing customized cylindrical battery solutions with GoES and High Tech for the EH 216 series, and entered into strategic partnerships with the MINT Group for high safety airframe solutions and with Ocean High Tech for power solutions in the area of airframe systems.
Q：What is the significance of the strategic cooperation agreement with the HeFei municipal government?
A：The strategic cooperation agreement with the HeFei municipal government aims to establish a product hub for the VT35 series in HeFei, integrating R&D, manufacturing, airworthiness certification, supply chain management, sales, operations, and training. The government plans to support the company with approximately five hundred million RMB through aircraft orders, investments, and industry ecosystem development.
Q：What is the company's strategic approach for the second half of the year?
A：In the second half of the year, the company is refining its strategy to prioritize customer support services to ensure that the acquired EVita aircraft can enter safe, orderly, and regular commercial operations, emphasizing long-term value creation over short-term gains.
Q：How does the company view safety, regulatory compliance, and innovation in the context of its operations?
A：The company views safety, regulatory compliance, and innovation as the cornerstones of leadership in the rapidly developing market. It aims to establish a scalable business model that defines a new chapter for pilot EVita and sets the foundation for enduring success.
Q：What were the operational highlights for the second quarter?
A：Operational highlights for the second quarter include turning backlogs into deliveries, expanding the customer base to thirteen enterprise clients across China and an international client in Japan, and receiving new orders for over one hundred and fifty units of the EH 216 series, reflecting a strong demand and the company's competitive edge.
Q：What approach have the operators in Guangzhou and Hefei adopted following the issuance of VRAO?
A：Following the issuance of VRAO, the operators in Guangzhou and Hefei have adopted a safety-first, steady expansion approach, transitioning from trial commercial operations to safe, stable, and regular commercial operations. To date, they have completed over seven hundred pilot list flights without any incident or regulatory violations.
Q：What testing and enhancement are being conducted by the operators?
A：The operators are internally testing their ticketing system to optimize boarding processes and improve passenger experience. They are also exploring ways to enhance efficiency through drone operations and conducting operator training programs under a CAAC authorized trial program for large single unmanned aerial vehicles.
Q：What is the goal for commercial illegal services and what is being done to achieve it?
A：The goal is to officially launch commercial illegal services to the public within the year. To achieve this, both operators are increasing flights to collect valuable operational data and are in close dialogue with relevant authorities.
Q：What progress is being made with route operations and customer support?
A：Route operations from point A to point B are progressing steadily with both ferry flights and blast tests already underway. The team has completed the operator training needs assessment, and the training outline has been approved by the regulator. Course development is fully under way to finalize teaching materials for operator training and assessment.
Q：What is the impact of the revenue guidance adjustment on the company's strategy?
A：The revenue guidance adjustment to approximately five hundred million RMB for 2025 reflects the company's commitment to safety and alignment with civil aviation protocols. It is not due to weak demand but rather an investment in optimizing commercial operations and managing risks to ensure high-quality and scalable demonstration flights for customers.
Q：How is the company planning to expand its operations and partnerships?
A：The company is planning to add more verticals to build up capabilities for cross-regional and managed operations. It is partnering with top-tier ecosystem allies like China Communications Information and Technology Group and others to launch demonstration projects in tourism, urban air mobility, and emergency response, with plans to deploy integrated land, water, air mobility solutions across south east and south Asia.
Q：What recent successes have been achieved in the logistics sector?
A：In the logistics sector, the 'VT20' series completed the first long-range inter-city cargo flight in the Greater Bay Area, reducing transport time by up to an hour compared to road transportation. This demonstrates a significant improvement in logistics efficiency. The company is also expanding its global presence by establishing a drone logistics network and plans to run trial flights in Thailand and other regions, pending regulatory approval.
Q：What financial performance and strategic decisions are highlighted in the recent quarter?
A：In the recent quarter, total revenues were 147.2 million RMB, up 44% year over year and 4.6 times sequentially. Gross profit was 92.07 million RMB, with a gross margin of 62.6%, stable compared to prior periods. Expenses increased due to business expansion and higher R&D investment, while adjusted net income was 9.4 million RMB, a substantial increase from the prior year. The company raised capital through an at-the-market offering to fund research and development, production expansion, and commercial operations.
Q：Regarding the adjustments made to Geely throughout this year, is there a forecast for a significant growth next year?
A：This year, we have slowed down the pace of delivery strategically in order to create more demonstration operation points. After half a year of preparation, the growth rate next year is expected to be much higher than the year-on-year growth rate this year.
Q：Could you please share some updates and comments about the progress in overseas countries, such as Japan or Thailand?
A：In terms of overseas operations, we see significant demand, with the goal of officially launching commercial operations within six months. In Thailand, we have made significant progress in commercial operations with regulatory agencies, and plan to conduct a three-way trial in Pattaya and Bangkok for a few months. We hope to obtain licenses in the three major commercial areas of the Civil Aviation Authority of Thailand, leading the way in overseas commercial operations and gradually expanding to more tourist destinations in Thailand, such as Phuket and Koh Samui. This not only demonstrates a model for Southeast Asian countries, but also promotes the promotion of domestic commercial operations.
Q：What we mentioned before was the need to set a production model. This year, the guidelines have been revised and will the capacity expansion plan of producing 1000 units per year continue to be implemented?
A：Currently, the cloud service production base is still following the original plan, and by the end of this year, it will be able to reach an annual production capacity of 1000 units, enough to ensure future deliveries. In the future, expansion will continue according to estimates, adhering to the "production based on sales" strategy, while also making forward-looking preparations for the VD35 and other new models.
Q：Will there be any changes to the capital expenditure (capex) guidelines in 2025?
A：The capital expenditure guidance for the year 2025 has not changed, and is still expected to be 40 million US dollars.
Q：As a service provider, how should we view the company's business model?
A：The recent strategic adjustments are made timely based on different operational stages and the development of the low-altitude economy. In the past year or even the year before last, our main focus was on obtaining certification through test flights to prove the safety of the aircraft and bring them to market. This year, we are more focused on having the aircraft accepted and trusted by the market in a commercialized and normalized manner.
Q：What difficulties did our first aircraft encounter during the test flight approval process, and what challenges still need to be faced in normal operation?
A：The successful trial flight approval of the first aircraft took a huge amount of time and was extremely difficult, but even after success, commercial operation still faces many challenges. However, we believe that every breakthrough will have a strong driving force on the market.
Q：How will our business model evolve in the future and what support services will be provided to customers to ensure the safe operation of aircraft?
A：The future business model will be upgraded to a dual-drive strategy of EVT manufacturers and operation service providers, dedicated to solving problems faced by customers such as entrusted operations, pilot training, etc., while also providing a large amount of support services to ensure the safe takeoff of customer aircraft.
Q：In what form does the support from the Hefei Municipal Government for the VT35 project manifest?
A：The Hefei municipal government has provided comprehensive support of approximately 500 million yuan for the VT35 project, including orders, investment, and cooperation in the industrial chain, which will help accelerate the progress of the VT35 project.
Q：What is the specific distribution of the 68 aircraft delivered in Q2 and the additional 150 aircraft? And how is the research and development progress of the EHR6 solid-state battery?
A：Among the 68 aircraft delivered in Q2, 67 were purchased by domestic customers and 1 was purchased by foreign customers. Of the newly added 150 aircraft orders, over 90% are from domestic customers, with the remaining orders coming from overseas. In terms of the development of EHR6 solid-state batteries, the company has adopted a strategy of dual battery research and development, collaborating with multiple battery manufacturers to continuously explore optimization opportunities for power systems. At the same time, significant progress has been made in the development of solid-state batteries, with the global first application of solid-state batteries in real aircraft test flights.
EHang Holdings Ltd.
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