EHang Holdings Limited (NASDAQ: EH) experienced a 2.66% ascent in its stock value on Wednesday, concluding trading at $15.80. This upward trajectory in EHang’s stock price closely followed the release of the quarterly results by the premier Urban Air Mobility (“UAM”) technology platform company globally.
EHang (EH) disclosed its unaudited financial outcomes for the third quarter concluding on September 30, 2023. During this period, EHang witnessed a substantial surge in total revenues, marking a noteworthy increase of 247.9% to reach $3.9 million. The augmented gross margin, elevated by 64.6%, was attributed to the heightened average selling price of EH216 series products.
Throughout the quarter, there was a 5.0% betterment in the operating loss, totaling $9.6 million. Simultaneously, the adjusted operating loss saw a more notable advancement of 35.2%, stabilizing at $4.7 million. The net loss, pegged at $9.2 million, displayed a 12.3% improvement, while the adjusted net loss witnessed a remarkable 43.1% enhancement, reaching $31.3 million.
As the reporting period concluded, EHang showcased a sturdy financial stance, holding $40.5 million in a combination of cash, cash equivalents, short-term investments, and restricted short-term deposits balances.
During Q3, EHang witnessed a notable surge in sales and deliveries of its self-developed passenger-carrying unmanned aerial vehicle (“UAV”) system EH216 series products, amounting to 13 units. This marked a substantial increase compared to the 4 units sold in the third quarter of 2022 and the 5 units sold in the second quarter of 2023.
In October 2023, the EH216-S model achieved the type certificate (“TC”) from the Civil Aviation Administration of China (the “CAAC”). This accreditation underscores the EH216-S model’s full compliance with safety standards and airworthiness requirements established by the CAAC, qualifying it for commercial operations involving passenger-carrying UAVs.
As the inaugural TC for unmanned electric vertical take-off and landing aircraft (“eVTOL”), the EH216-S TC not only establishes a benchmark for the airworthiness certification of innovative eVTOLs in China and abroad but also serves as a pivotal milestone for commercial UAM operations.
The first batch of certified EH216-S units is slated to roll off the production line in the fourth quarter of 2023. Concurrently, the Company is diligently pursuing Production Certification with the CAAC, solidifying its eligibility for the mass production of EH216-S.
