EHang Delivers 27 Units of EH216-S to Wencheng County and Completes First Passenger-Carrying Flight in Wencheng

Rhea-AI Summary

EHang announced the delivery of 27 EH216-S pilotless aircraft to Wencheng County, Zhejiang. The company received full payment for an initial batch of 30 units. The EH216-S completed its inaugural passenger flight on June 22, 2024, at the Baizhangji Fall & Feiyun Lake Scenic Resort. This initiative is part of Wencheng's low-altitude tourism and economy development.

EHang and Wencheng County plan to establish a comprehensive urban air mobility (UAM) infrastructure and explore commercial operations in tourism, transportation, logistics, and emergency services. The collaboration aims to make Wencheng a model for low-altitude economic growth, contributing to broader regional development goals.

EHang's COO, Zhao Wang, highlighted the market's strong response, citing increased global orders following recent certifications. The Wencheng project is expected to set a benchmark for UAM operations in East China.

Positive

• EHang delivered 27 EH216-S units to Wencheng County.
• Full payment received for the initial batch of 30 units.
• Successful inaugural passenger flight of EH216-S on June 22, 2024.
• Collaboration with Wencheng County to develop comprehensive UAM infrastructure.
• Strong market demand indicated by increased global orders.
• Potential to set a benchmark for UAM operations in East China.

Negative

• None.

Financial Analyst

EHang's delivery of 27 units of its EH216-S to Wencheng County marks a significant milestone for the company in terms of revenue recognition and market penetration. The receipt of full payment for the initial batch of 30 units implies a healthy cash inflow, positively impacting the balance sheet and liquidity. EHang’s successful delivery can be perceived as an endorsement of its technology and reliability, which could stimulate further orders. This is particularly vital as the company scales its operations and seeks to affirm its market leader position.

Short-term, investors might see a positive impact on the stock price due to the addition to revenue and increasing confidence in the company's growth trajectory. Long-term, the commitment to developing a low-altitude economy with Wencheng County highlights a potential for recurring revenue through public service ecosystem initiatives and diverse commercial operations, such as tourism and logistics. However, it remains essential to monitor the company's ability to maintain operational efficiency and manage costs amidst this expansion.

Market Research Analyst

The partnership between EHang and Wencheng County emphasizes the increasing viability and acceptance of urban air mobility (UAM) solutions. The completion of the first passenger-carrying flight signifies not only technical achievement but also regulatory progress, as such operations require stringent regulatory compliance. This move can attract other regions and municipalities to consider similar collaborations, bolstering EHang's market presence.

Wencheng's dedication to developing a low-altitude economy aligns with global trends toward green, efficient transportation solutions. The establishment of supporting infrastructure further solidifies the region's commitment to UAM, potentially generating synergies with local tourism and public services. For retail investors, this signifies a growing market for eVTOL solutions, offering a potential upside as more territories adopt similar systems. However, investors should be cautious of the industry’s nascent stage and the inherent risks such as regulatory hurdles, technological challenges and competitive pressures.

Tech Expert

The EH216-S is a notable example of an eVTOL aircraft designed for passenger use, tapping into the urban air mobility market. The aircraft’s successful flight with passengers in Wencheng underscores its operational maturity and readiness for real-world applications. The technical accomplishment of safe passenger flights highlights the robustness of EHang's autonomous control systems and electric propulsion technology, vital metrics for evaluating product reliability in this sector.

In the context of EHang’s technological roadmap, this delivery and operational debut serve as a validation point, potentially enhancing customer trust and market interest. For investors, the ability to frequently deliver and operate these aircraft safely is a fundamental indicator of technological leadership and market viability. Nevertheless, continuous innovation and maintaining high safety standards will be critical for sustaining long-term growth and competitiveness in the rapidly evolving UAM landscape.

GUANGZHOU, China, June 25, 2024 (GLOBE NEWSWIRE) -- EHang Holdings Limited (“EHang” or the “Company”) (Nasdaq: EH), the world’s leading urban air mobility (“UAM”) technology platform company, announced it has received full payment for the initial batch of 30 units of EH216-S passenger-carrying pilotless aircraft and has delivered 27 units to Wencheng County Transportation Development Group Co., Ltd. in Wenzhou, Zhejiang Province. It drives Wencheng’s comprehensive layout in the low-altitude economy industry.

(Picture: EHang delivers 27 units of EH216-S to Wencheng)

On June 22, the EH216-S pilotless electric vertical takeoff and landing (“eVTOL”) aircraft completed its passenger-carrying debut flight in Wencheng, marking the launch of the cultural tourism initiative of "Low-Altitude Tourism in Wencheng". During the flight event, EH216-S carried multiple passengers for a low-altitude sightseeing tour over the renowned Tianding Lake at the Baizhangji Fall & Feiyun Lake Scenic Resort, a location offering breathtaking views of Wencheng's natural beauty. A dedicated takeoff and landing site and supporting amenities for the EH216-S has been basically established at the Scenic Resort. The UAM operation center and supporting infrastructure will be gradually established in other areas in Wencheng as preparation for launching EH216-S aerial sightseeing services and a benchmark for low-altitude cultural tourism.

(Picture: EH216-S passenger-carrying debut flight in Wencheng)

According to the cooperation agreement between EHang and the Wencheng County Government, both parties will jointly develop UAM and supporting public service ecosystem for the low-altitude economy and explore various low-altitude commercial operations for tourism, transportation, logistics, emergency response, and other scenarios, thereby generating a combined effect in low-altitude economy. Wencheng County plans to set up aerial sightseeing routes in scenic attractions such as Tianding Lake and Baizhangji Fall within this year and to launch pilotless eVTOL aerial sightseeing services.

Mr. Zhaozheng Luo, Secretary of Wencheng County Government, remarked, “This year marks an important beginning of Wencheng's low-altitude economy development. Wencheng will fully leverage its advantages, including its clean airspace, rich terrain, and unique locations, to vigorously develop the low-altitude economy. By innovating with this emerging industry, we will jointly explore new business models with EHang, accelerating the integration ecosystem of low-altitude applications, scenic attractions and the local culture. Bringing low-altitude scenarios forward to flourish across Wencheng will nurture low-altitude industries, empower diverse business models, and refine low-altitude service management for efficiency and safety. By achieving these goals, Wencheng aims to become a demonstration county for high-quality low-altitude economy development, contributing to Wenzhou's goal of reaching the GDP of over RMB1 trillion and a resident population of over RMB10 million, and Zhejiang's vision of becoming a pioneering civil aviation province.”

Mr. Zhao Wang, Chief Operating Officer of EHang, stated, “Following the obtainment of the Type Certificate, Standard Airworthiness Certificate and Production Certificate for our EH216-S, we've received a surge in bulk orders from customers and partners globally, which is a testament of the market recognition of our innovative pilotless eVTOL products and solutions, as well as the robust demand for UAM and low-altitude economy development worldwide. With the deliveries for the initial batch of orders to Wencheng and the local debut flight of the EH216-S, we will join with Wencheng to establish a benchmark for low-altitude economy operations in Zhejiang Province, driving the growth of the industry in the East China region and promoting the widespread adoption of the new productivity enabled by pilotless eVTOLs.”

Click the link for a video of the EH216-S pilotless eVTOL passenger-carrying debut flight in Wencheng:

https://www.youtube.com/watch?v=nnPkCYlNf1E

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’s EH216-S has obtained the world’s first type certificate, production certificate and standard airworthiness certificate for passenger-carrying pilotless eVTOL aircraft issued by the Civil Aviation Administration of China. 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.

Investor Contact: ir@ehang.com

Media Contact: pr@ehang.com

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/0109c918-849f-4d9c-b46f-095aa26845e4

https://www.globenewswire.com/NewsRoom/AttachmentNg/2944fe09-60bf-4729-8811-e530d1976085

FAQ

What significant event took place for EHang (EH) on June 22, 2024?

On June 22, 2024, EHang's EH216-S pilotless aircraft completed its inaugural passenger flight in Wencheng County.

How many EH216-S units did EHang deliver to Wencheng County?

EHang delivered 27 units of its EH216-S pilotless aircraft to Wencheng County.

What is the significance of EHang's delivery to Wencheng County?

The delivery marks the initiation of Wencheng's low-altitude tourism and economy development, with plans for comprehensive UAM infrastructure and commercial operations.

What are some planned uses for EHang's EH216-S in Wencheng?

Planned uses include tourism, transportation, logistics, and emergency services as part of the low-altitude economy development.

What has been the market response to EHang’s EH216-S following its certifications?

The market response has been positive, with a surge in bulk orders from global customers and partners.