EHang Reports Second Quarter 2020 Unaudited Financial Results
EHang Holdings Limited (Nasdaq: EH) reported a remarkable 62.7% year-over-year revenue increase, totaling RMB35.7 million (US$5.1 million) for Q2 2020. Gross profit rose 60% to RMB20.6 million (US$2.9 million), despite a slight decline in gross margin to 57.6%. Operating loss widened to RMB19.2 million (US$2.7 million). The company achieved significant milestones, including the first commercial pilot operation approval for passenger-grade AAVs from the Civil Aviation Administration of China. EHang forecasts over 200% annual revenue growth for 2020, buoyed by expanding air mobility solutions.
- Total revenues increased by 62.7% year-over-year to RMB35.7 million (US$5.1 million).
- Gross profit rose by 60% to RMB20.6 million (US$2.9 million).
- Achieved the world's first commercial operation approval for passenger-grade AAVs.
- Forecasts over 200% annual revenue growth for 2020.
- Operating loss widened to RMB19.2 million (US$2.7 million) from RMB16.7 million year-over-year.
- Loss per share remained consistent at RMB0.17 (US$0.02).
- Continues Significant Growth Despite Pandemic Challenges
- Maintains High Gross Margin
GUANGZHOU, China, Aug. 25, 2020 (GLOBE NEWSWIRE) -- EHang Holdings Limited (“EHang” or the “Company”) (Nasdaq: EH), the world’s leading autonomous aerial vehicle (AAV) technology platform company, today announced its unaudited financial results for the second quarter ended June 30, 2020.
Second Quarter 2020 Highlights
Financial and Operational Highlights
- Total revenues were RMB35.7 million (US
$5.1 million ), up62.7% year over year, driven by significant growth across all revenue streams. Air mobility solutions contributed63.5% of the total revenues in the second quarter of 2020.
- Gross margin was
57.6% , a slight decrease of 0.9 percentage point year over year due to change in revenue mix. Gross profit was RMB20.6 million (US$2.9 million ), an increase of60.0% year over year.
- Operating loss was RMB19.2 million (US
$2.7 million ), compared with operating loss of RMB16.7 million in the second quarter of 2019.
- Adjusted operating loss1 (non-GAAP) was RMB11.1 million (US
$1.6 million ), compared with adjusted operating loss of RMB11.8 million in the second quarter of 2019.
- Net loss was RMB19.7 million (US
$2.8 million ), compared with net loss of RMB16.3 million in the second quarter of 2019.
- Adjusted net loss2 (non-GAAP) was RMB11.7 million (US
$1.7 million ), compared with adjusted net loss of RMB11.4 million in the second quarter of 2019.
- Sales of the EHang 216, the Company’s flagship passenger-grade AAV, reached 16 units in the second quarter of 2020, versus 14 units in the second quarter of 2019.
Business Highlights
- Achieved the world’s first commercial pilot operation approval of passenger-grade AAVs for air logistics: In May 2020, EHang became the world’s first AAV company approved by a national aviation authority, the Civil Aviation Administration of China (“CAAC”), to carry out commercial pilot operation in the category of 150 kg plus heavy-lift air logistics uses. This approval was based on a pioneering regulation for specific unmanned aircraft under the globally-recognized Specific Operation Risk Assessment (“SORA”) framework of the Joint Authorities for Rulemaking of Unmanned Systems (“JARUS”). Starting from trial air logistics operations in Taizhou, China, the Company intends to gradually expand this use case to more locations in China.
- Deployed a new command-and-control center for smart city management in China: EHang completed deployment of a command-and-control center for smart city management in the city of Hezhou, China. This was the third of its kind after those in the cities of Shaoguan and Lianyungang. This deployment demonstrates EHang’s capability in sophisticated centralized command-and-control systems that are designed ultimately for Urban Air Mobility (“UAM”) uses.
- Entered into a strategic partnership for air tourism: In May 2020, EHang partnered with LN Holdings, a Shenzhen-listed (000524.SZ) tourism platform company to announce the world’s first UAM-themed hotel at the LN Garden Hotel in Guangzhou, China. A variety of air tourism services using EHang AAVs are planned for the hotel, such as aerial sightseeing, transportation, air logistics, and aerial media light shows.
- Implemented smart city management solutions for flood emergency response: In April 2020, EHang conducted large-scale AAV flight operations efficiently and autonomously to air drop relief supplies and perform remote air inspection in a flood response exercise in Shaoguan, China.
- Appointed Mr. Dongming Wu, CEO of DHL Express China, as an independent director: Mr. Wu is the CEO of DHL Express China and a Global Management Board Member of DHL Express. With over 30 years of experience in the global delivery and logistics industry, Mr. Wu helps facilitate the Company’s strategic development, especially in air logistics, and helps enhance the Company’s corporate governance.
Mr. Huazhi Hu, EHang’s Founder, Chairman and Chief Executive Officer, commented: “During the second quarter of 2020, we significantly grew revenues and strengthened our core business of air mobility solutions, despite the ongoing COVID-19 pandemic challenges in China and overseas. We set a significant regulatory milestone for the industry by achieving the world’s first commercial operation approval of passenger-grade AAVs for air logistics from the CAAC. We are well-prepared and confident that we can accelerate growth by deploying our AAV solutions for more practical uses and expect to roll out more new products including the ones with the flight range exceeding 100 kilometers. We are proud of our continued progress in global markets.”
Second Quarter 2020 Financial Results
Total Revenues
Total revenues were RMB35.7 million (US
Costs of revenues
Costs of revenues were RMB15.1 million (US
Gross profit
Gross profit was RMB20.6 million (US
Gross margin was
Operating expenses
Total operating expenses were RMB43.4 million (US
- Sales and marketing expenses were RMB9.2 million (US
$1.3 million ), up21.8% from RMB7.6 million in the second quarter of 2019. It was mainly due to the operation expansion in European markets.
- General and administration expenses were RMB16.3 million (US
$2.3 million ), up77.4% from RMB9.2 million in the second quarter of 2019. The increase was mainly due to the additional expenses related to being a public company and the additional provisions to take a prudent position in light of COVID-19 evolvement.
- Research and development expenses were RMB17.9 million (US
$2.5 million ), up38.2% from RMB12.9 million in the second quarter of 2019. The increase was mainly due to continued investment in new model development, as the Company prepares new versions of passenger-grade AAV and non-passenger-grade AAV products such as the newly-announced firefighting version of EHang 216, “EHang 216F”, as well as related operating systems with enhanced functionalities.
Adjusted operating expenses3 (non-GAAP)
Adjusted operating expenses were RMB35.4 million (US
Operating loss
Operating loss was RMB19.2 million (US
Adjusted operating loss (non-GAAP)
Adjusted operating loss was RMB11.1 million (US
Net loss
Net loss was RMB19.7 million (US
Adjusted net loss (non-GAAP)
Adjusted net loss was RMB11.7 million (US
Adjusted net loss attributable to EHang’s ordinary shareholders was RMB10.6 million (US
Loss per share and per ADS
Basic and diluted net loss per ordinary share were both RMB0.17 (US
Basic and diluted net loss per ADS were both RMB0.34 (US
Business Outlook
The Company maintains its forecast of at least
The above outlook is based on information available as of the date of this press release and reflects the Company’s current and preliminary expectations, which are subject to change in light of uncertainties and situations related to how COVID-19 develops.
Conference Call
EHang’s management team will host an earnings conference call at 8:00 AM on Tuesday, August 25, 2020, U.S. Eastern Time (8:00 PM on August 25, 2020, Beijing/Hong Kong Time).
To join the conference, please register in advance using the link below. Conference access information will be provided upon registration.
Participant Online Registration: http://apac.directeventreg.com/registration/event/6470385
A replay of the conference call may be accessed by phone at the following numbers until September 1, 2020. To access the replay, please reference the conference ID 6470385.
| Phone Number | |
| International | +61 2 8199-0299 |
| United States | +1 (646) 254-3697 |
| Hong Kong | +852 800963117 |
| Mainland China | +86 4006322162 +86 8008700205 |
A live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.ehang.com/.
About EHang
EHang (Nasdaq: EH) is the world's leading autonomous aerial vehicle (AAV) technology platform company. EHang’s mission is to make safe, autonomous, and eco-friendly air mobility accessible to everyone. EHang provides customers in various industries with AAV products and commercial solutions: air mobility (including passenger transportation and logistics), smart city management, and aerial media solutions. As the forerunner of cutting-edge AAV technologies and commercial solutions in the global Urban Air Mobility (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. 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.
Non-GAAP Financial Measures
The Company uses adjusted operating loss, adjusted net loss, adjusted operating expenses, adjusted basic and diluted net loss per ordinary share and adjusted basic and diluted net loss per ADSs (the “Non-GAAP Financial Measures”) in evaluating its operating results and for financial and operational decision-making purposes. There was no income tax impact on the Company’s non-GAAP adjustments because the non-GAAP adjustments are usually recorded in entities located in tax-free jurisdictions, such as the Cayman Islands.
The Company believes that the Non-GAAP Financial Measures help identify underlying trends in its business that could otherwise be distorted by the effects of items such as share-based compensation expenses that are included in their comparable GAAP measures. The Company believes that the Non-GAAP Financial Measures provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management members in their financial and operational decision-making.
Each of the Non-GAAP Financial Measures should not be considered in isolation or construed as an alternative to its comparable GAAP measure, operating profit margin and net margin or any other measure of performance or as an indicator of the Company’s operating performance. Investors are encouraged to review the Company’s most directly comparable GAAP measures in conjunction with the Non-GAAP Financial Measures. The Non-GAAP Financial Measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
Exchange Rate
This press release contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.0651 to US
Statement Regarding Preliminary Unaudited Financial Information
The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.
Investor Contact:
ir@ehang.com
In the U.S.: Julia@blueshirtgroup.com
In China: Susie@blueshirtgroup.com
Media Contact:
pr@ehang.com
_________________________
1 Adjusted operating loss is a non-GAAP financial measure, which is defined as operating loss excluding share-based compensation expenses. See “Non-GAAP Financial Measures” at the end of this press release.
2 Adjusted net loss is a non-GAAP financial measure, which is defined as net loss excluding share-based compensation expenses. See “Non-GAAP Financial Measures” at the end of this press release.
3 Adjusted operating expenses is a non-GAAP financial measure, which is defined as operating expenses excluding share-based compensation expenses. See “Non-GAAP Financial Measures” at the end of this press release.
4 Adjusted basic and diluted net loss per ordinary share is a non-GAAP financial measure, which is defined as basic and diluted net loss per ordinary share excluding share-based compensation expenses and accretion to redemption value of redeemable convertible preferred shares. See “Non-GAAP Financial Measures” at the end of this press release.
5 Adjusted basic and diluted net loss per ADS is a non-GAAP financial measure, which is defined as basic and diluted net loss per ADS excluding share-based compensation expenses and accretion to redemption value of redeemable convertible preferred shares. See “Non-GAAP Financial Measures” at the end of this press release.
| EHANG HOLDINGS LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)) | ||||||
| As of | As of | |||||
| December 31, 2019 | June 30, 2020 | |||||
| RMB | RMB | US$ | ||||
| (Unaudited) | (Unaudited) | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | 321,662 | 228,189 | 32,298 | |||
| Short-term investments | 7,674 | 29,542 | 4,181 | |||
| Accounts receivable, net | 41,103 | 76,575 | 10,838 | |||
| Unbilled revenue | 4,807 | 2,800 | 396 | |||
| Cost and estimated earnings in excess of billings | 14,212 | 3,722 | 527 | |||
| Inventories | 18,490 | 47,846 | 6,772 | |||
| Prepayments and other current assets | 20,565 | 20,175 | 2,855 | |||
| Total current assets | 428,513 | 408,849 | 57,867 | |||
| Non-current assets: | ||||||
| Property and equipment, net | 16,272 | 13,534 | 1,916 | |||
| Intangible assets, net | 1,209 | 1,295 | 183 | |||
| Long term loans receivable | - | 44,616 | 6,315 | |||
| Long-term investments | 2,983 | 2,931 | 415 | |||
| Deferred tax assets | 184 | 184 | 26 | |||
| Other non-current assets | 252 | 209 | 30 | |||
| Total non-current assets | 20,900 | 62,769 | 8,885 | |||
| Total assets | 449,413 | 471,618 | 66,752 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Short-term bank loans | 5,000 | 10,000 | 1,416 | |||
| Accounts payable | 27,285 | 40,678 | 5,758 | |||
| Contract liabilities | 9,918 | 6,405 | 907 | |||
| Accrued expenses and other liabilities | 53,310 | 41,675 | 5,899 | |||
| Deferred government subsidies | 80 | 80 | 11 | |||
| Income taxes payable | 5 | - | - | |||
| Total current liabilities | 95,598 | 98,838 | 13,991 | |||
| Non-current liabilities: | ||||||
| Long-term loans | 32,534 | 31,078 | 4,398 | |||
| Mandatorily redeemable non-controlling interests | - | 40,000 | 5,662 | |||
| Deferred tax liabilities | 292 | 292 | 41 | |||
| Unrecognized tax benefit | 5,494 | 5,314 | 752 | |||
| Deferred government subsidies | 140 | 100 | 14 | |||
| Total non-current liabilities | 38,460 | 76,784 | 10,867 | |||
| Total liabilities | 134,058 | 175,622 | 24,858 | |||
| EHANG HOLDINGS LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONT’D) (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)) | |||||||||
| As of | As of | ||||||||
| December 31, 2019 | June 30, 2020 | ||||||||
| RMB | RMB | US$ | |||||||
| (Unaudited) | (Unaudited) | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
| Shareholders’ equity: | |||||||||
| Class A ordinary shares | 44 | 44 | 6 | ||||||
| Class B ordinary shares | 28 | 28 | 4 | ||||||
| Additional paid-in capital | 1,020,691 | 1,036,390 | 146,691 | ||||||
| Statutory reserves | 1,035 | 1,035 | 146 | ||||||
| Accumulated deficit | (720,419 | ) | (758,586 | ) | (107,371 | ) | |||
| Accumulated other comprehensive income | 10,195 | 13,248 | 1,875 | ||||||
| Total EHang Holdings Limited shareholders’ equity | 311,574 | 292,159 | 41,351 | ||||||
| Non-controlling interests | 3,781 | 3,837 | 543 | ||||||
| Total shareholders’ equity | 315,355 | 295,996 | 41,894 | ||||||
| Total liabilities and shareholders’ equity | 449,413 | 471,618 | 66,752 | ||||||
| EHANG HOLDINGS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Amounts in thousands of Renminbi (“RMB”) and US dollars (“USD”) except for number of shares and per share data) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, 2019 | March 31, 2020 | June 30, 2020 | June 30, 2019 | June 30, 2020 | |||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
| Total revenues | 21,946 | 18,818 | 35,700 | 5,053 | 32,385 | 54,518 | 7,717 | ||||||||||||
| Costs of revenues | (9,101 | ) | (7,664 | ) | (15,147 | ) | (2,144 | ) | (13,434 | ) | (22,811 | ) | (3,229 | ) | |||||
| Gross profit | 12,845 | 11,154 | 20,553 | 2,909 | 18,951 | 31,707 | 4,488 | ||||||||||||
| Operating expenses: | |||||||||||||||||||
| Sales and marketing expenses | (7,570 | ) | (5,776 | ) | (9,218 | ) | (1,305 | ) | (12,536 | ) | (14,994 | ) | (2,122 | ) | |||||
| General and administrative expenses | (9,213 | ) | (10,608 | ) | (16,348 | ) | (2,314 | ) | (17,892 | ) | (26,956 | ) | (3,815 | ) | |||||
| Research and development expenses | (12,931 | ) | (16,660 | ) | (17,870 | ) | (2,529 | ) | (27,576 | ) | (34,530 | ) | (4,887 | ) | |||||
| Total operating expenses | (29,714 | ) | (33,044 | ) | (43,436 | ) | (6,148 | ) | (58,004 | ) | (76,480 | ) | (10,824 | ) | |||||
| Other operating income | 163 | 769 | 3,724 | 527 | 1,143 | 4,493 | 636 | ||||||||||||
| Operating loss | (16,706 | ) | (21,121 | ) | (19,159 | ) | (2,712 | ) | (37,910 | ) | (40,280 | ) | (5,700 | ) | |||||
| Other income/(expense): | |||||||||||||||||||
| Interest income | 417 | 1,412 | 974 | 138 | 496 | 2,386 | 338 | ||||||||||||
| Interest expenses | (158 | ) | (488 | ) | (488 | ) | (69 | ) | (299 | ) | (976 | ) | (138 | ) | |||||
| Foreign exchange gain/(loss) | 104 | (271 | ) | 278 | 39 | 36 | 7 | 1 | |||||||||||
| Other income | 100 | 81 | 244 | 35 | 153 | 325 | 46 | ||||||||||||
| Other expense | - | - | (1,689 | ) | (239 | ) | (26 | ) | (1,689 | ) | (239 | ) | |||||||
| Total other income/(expense) | 463 | 734 | (681 | ) | (96 | ) | 360 | 53 | 8 | ||||||||||
| Loss before income tax and share of net loss from an equity investee | (16,243 | ) | (20,387 | ) | (19,840 | ) | (2,808 | ) | (37,550 | ) | (40,227 | ) | (5,692 | ) | |||||
| Income tax (expenses)/benefits | (52 | ) | - | 145 | 21 | (78 | ) | 145 | 21 | ||||||||||
| Loss before share of net loss from an equity investee | (16,295 | ) | (20,387 | ) | (19,695 | ) | (2,787 | ) | (37,628 | ) | (40,082 | ) | (5,671 | ) | |||||
| Share of net loss from an equity investee | (5 | ) | (19 | ) | (33 | ) | (5 | ) | (10 | ) | (52 | ) | (7 | ) | |||||
| Net loss | (16,300 | ) | (20,406 | ) | (19,728 | ) | (2,792 | ) | (37,638 | ) | (40,134 | ) | (5,678 | ) | |||||
| EHANG HOLDINGS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONT’D) (Amounts in thousands of Renminbi (“RMB”) and US dollars (“USD”) except for number of shares and per share data) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, 2019 | March 31, 2020 | June 30, 2020 | June 30, 2019 | June 30, 2020 | |||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
| Net loss | (16,300 | ) | (20,406 | ) | (19,728 | ) | (2,792 | ) | (37,638 | ) | (40,134 | ) | (5,678 | ) | |||||
| Net loss attributable to non-controlling interests | 1,137 | 856 | 1,111 | 157 | 1,418 | 1,967 | 278 | ||||||||||||
| Net loss attributable to EHang Holdings Limited | (15,163 | ) | (19,550 | ) | (18,617 | ) | (2,635 | ) | (36,220 | ) | (38,167 | ) | (5,400 | ) | |||||
| Accretion to redemption value of redeemable convertible preferred shares | (1,559 | ) | - | - | - | (3,034 | ) | - | - | ||||||||||
| Net loss attributable to ordinary shareholders | (16,722 | ) | (19,550 | ) | (18,617 | ) | (2,635 | ) | (39,254 | ) | (38,167 | ) | (5,400 | ) | |||||
| Net loss per ordinary share: | |||||||||||||||||||
| Basic and diluted | (0.29 | ) | (0.69 | ) | |||||||||||||||
| Net loss per Class A and Class B ordinary share: | |||||||||||||||||||
| Basic and diluted | (0.18 | ) | (0.17 | ) | (0.02 | ) | (0.35 | ) | (0.05 | ) | |||||||||
| Shares used in net loss per share computation (in thousands of shares): | |||||||||||||||||||
| Basic and diluted | 56,792 | 56,792 | |||||||||||||||||
| Shares used in net loss per Class A and Class B ordinary share computation (in thousands of shares): | |||||||||||||||||||
| Basic and diluted | 109,066 | 109,227 | 109,227 | 109,189 | 109,189 | ||||||||||||||
| Loss per ADS (2 ordinary shares equal to 1 ADS) | |||||||||||||||||||
| Basic and diluted | (0.36 | ) | (0.34 | ) | (0.04 | ) | (0.70 | ) | (0.10 | ) | |||||||||
| EHANG HOLDINGS LIMITED CONDENSED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, 2019 | March 31, 2020 | June 30, 2020 | June 30, 2019 | June 30, 2020 | |||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
| Gross profit | 12,845 | 11,154 | 20,553 | 2,909 | 18,951 | 31,707 | 4,488 | ||||||||||||
| Plus: Share-based compensation | 116 | - | - | - | 294 | - | - | ||||||||||||
| Adjusted gross profit | 12,961 | 11,154 | 20,553 | 2,909 | 19,245 | 31,707 | 4,488 | ||||||||||||
| Adjusted gross margin | 59.1 | % | 59.3 | % | 57.6 | % | 57.6 | % | 59.4 | % | 58.2 | % | 58.2 | % | |||||
| Operating expenses | (29,714 | ) | (33,044 | ) | (43,436 | ) | (6,148 | ) | (58,004 | ) | (76,480 | ) | (10,824 | ) | |||||
| Plus: Share-based compensation | 4,742 | 1,936 | 8,012 | 1,134 | 9,618 | 9,948 | 1,408 | ||||||||||||
| Adjusted operating expenses | (24,972 | ) | (31,108 | ) | (35,424 | ) | (5,014 | ) | (48,386 | ) | (66,532 | ) | (9,416 | ) | |||||
| Adjusted operating expenses percentage | 113.8 | % | 165.3 | % | 99.2 | % | 99.2 | % | 149.4 | % | 122.0 | % | 122.0 | % | |||||
| Operating loss | (16,706 | ) | (21,121 | ) | (19,159 | ) | (2,712 | ) | (37,910 | ) | (40,280 | ) | (5,700 | ) | |||||
| Plus: Share-based compensation | 4,858 | 1,936 | 8,012 | 1,134 | 9,912 | 9,948 | 1,408 | ||||||||||||
| Adjusted operating loss | (11,848 | ) | (19,185 | ) | (11,147 | ) | (1,578 | ) | (27,998 | ) | (30,332 | ) | (4,292 | ) | |||||
| Adjusted operating margin | (54.0 | %) | (102.0 | %) | (31.2 | %) | (31.2 | %) | (86.5 | %) | (55.6 | %) | (55.6 | %) | |||||
| Net loss | (16,300 | ) | (20,406 | ) | (19,728 | ) | (2,792 | ) | (37,638 | ) | (40,134 | ) | (5,678 | ) | |||||
| Plus: Share-based compensation | 4,858 | 1,936 | 8,012 | 1,134 | 9,912 | 9,948 | 1,408 | ||||||||||||
| Adjusted net loss | (11,442 | ) | (18,470 | ) | (11,716 | ) | (1,658 | ) | (27,726 | ) | (30,186 | ) | (4,270 | ) | |||||
| Adjusted net margin | (52.1 | %) | (98.2 | %) | (32.8 | %) | (32.8 | %) | (85.6 | %) | (55.4 | %) | (55.4 | %) | |||||
| EHANG HOLDINGS LIMITED CONDENSED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (CONT’D) (Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, 2019 | March 31, 2020 | June 30, 2020 | June 30, 2019 | June 30, 2020 | |||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
| Net loss attributable to ordinary shareholders | (16,722 | ) | (19,550 | ) | (18,617 | ) | (2,635 | ) | (39,254 | ) | (38,167 | ) | (5,400 | ) | |||||
| Plus: Share-based compensation | 4,858 | 1,936 | 8,012 | 1,134 | 9,912 | 9,948 | 1,408 | ||||||||||||
| Plus: Accretion to redemption value of redeemable convertible preferred shares | 1,559 | - | - | - | 3,034 | - | - | ||||||||||||
| Adjusted net loss attributable to ordinary shareholders | (10,305 | ) | (17,614 | ) | (10,605 | ) | (1,501 | ) | (26,308 | ) | (28,219 | ) | (3,992 | ) | |||||
| Adjusted net income attributable to ordinary shareholders margin | (47.0 | %) | (93.6 | %) | (29.7 | %) | (29.7 | %) | (81.2 | %) | (51.8 | %) | (51.8 | %) | |||||
| Adjusted basic and diluted net loss per share | (0.18 | ) | - | - | - | (0.46 | ) | - | - | ||||||||||
| Adjusted basic and diluted net loss per Class A and Class B ordinary share | - | (0.16 | ) | (0.10 | ) | (0.01 | ) | - | (0.26 | ) | (0.04 | ) | |||||||
| Adjusted basic and diluted net loss per ADS | - | (0.32 | ) | (0.20 | ) | (0.02 | ) | - | (0.52 | ) | (0.08 | ) | |||||||
| EHANG HOLDINGS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of Renminbi (“RMB”) and US dollars ("USD")) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, 2019 | March 31, 2020 | June 30, 2020 | June 30, 2019 | June 30, 2020 | ||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||||
| Net loss | (16,300 | ) | (20,406 | ) | (19,728 | ) | (2,792 | ) | (37,638 | ) | (40,134 | ) | (5,678 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||||
| Depreciation and Amortization | 1,366 | 1,570 | 1,620 | 229 | 2,797 | 3,190 | 451 | |||||||||||
| Share-based compensation | 4,858 | 1,936 | 8,012 | 1,134 | 9,912 | 9,948 | 1,408 | |||||||||||
| Loss on disposal of property and equipment | - | - | 228 | 32 | - | 228 | 32 | |||||||||||
| Share of net loss from an equity investee | 5 | 19 | 33 | 5 | 10 | 52 | 7 | |||||||||||
| (Reversal) allowance for doubtful accounts | 5 | 142 | 3,727 | 528 | (210 | ) | 3,869 | 548 | ||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||||
| Accounts receivable | (7,122 | ) | (9,091 | ) | (30,900 | ) | (4,375 | ) | (10,508 | ) | (39,991 | ) | (5,661 | ) | ||||
| Unbilled revenue | - | 1,481 | - | - | - | 1,481 | 210 | |||||||||||
| Cost and estimated earnings in excess of billings | - | 10,490 | - | - | 3,247 | 10,490 | 1,485 | |||||||||||
| Inventories | (2,841 | ) | (11,153 | ) | (18,868 | ) | (2,671 | ) | (4,804 | ) | (30,021 | ) | (4,249 | ) | ||||
| Prepayments and other current assets | 1,471 | (1,761 | ) | 1,388 | 196 | (2,050 | ) | (373 | ) | (53 | ) | |||||||
| Other non-current assets | 14 | 22 | 21 | 3 | 29 | 43 | 6 | |||||||||||
| Accounts payable | 2,231 | 2,696 | 11,446 | 1,621 | 2,468 | 14,142 | 2,002 | |||||||||||
| Contract liabilities | (7,014 | ) | (3,343 | ) | (170 | ) | (24 | ) | (4,292 | ) | (3,513 | ) | (497 | ) | ||||
| Income taxes payable | (26 | ) | (5 | ) | - | - | - | (5 | ) | (1 | ) | |||||||
| Deferred government subsidies | (20 | ) | (20 | ) | (20 | ) | (3 | ) | (40 | ) | (40 | ) | (6 | ) | ||||
| Unrecognized tax benefits | - | (29 | ) | (151 | ) | (21 | ) | - | (180 | ) | (26 | ) | ||||||
| Accrued expenses and other liabilities | 2,147 | (1,603 | ) | (1,387 | ) | (196 | ) | 1,188 | (2,990 | ) | (422 | ) | ||||||
| Net cash used in operating activities | (21,226 | ) | (29,055 | ) | (44,749 | ) | (6,334 | ) | (39,891 | ) | (73,804 | ) | (10,444 | ) | ||||
| EHANG HOLDINGS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT’D) (Amounts in thousands of Renminbi (“RMB”) and US dollars ("USD")) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, 2019 | March 31, 2020 | June 30, 2020 | June 30, 2019 | June 30, 2020 | ||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||||
| Purchase of property and equipment | (217 | ) | (292 | ) | (866 | ) | (123 | ) | (862 | ) | (1,158 | ) | (165 | ) | ||||
| Disposal of property and equipment | - | - | 192 | 27 | - | 192 | 27 | |||||||||||
| Acquisition of intangible assets | - | (9 | ) | (269 | ) | (38 | ) | - | (278 | ) | (39 | ) | ||||||
| Proceeds from maturity of short-term investments | 11,100 | 13,000 | 2,500 | 354 | 14,400 | 15,500 | 2,194 | |||||||||||
| Purchase of short-term investments | (10,000 | ) | (17,200 | ) | (19,899 | ) | (2,817 | ) | (22,900 | ) | (37,099 | ) | (5,252 | ) | ||||
| Loans to third parties | - | (53,900 | ) | - | - | - | (53,900 | ) | (7,629 | ) | ||||||||
| Repayment of loan receivable from a third party | - | 10,000 | - | - | - | 10,000 | 1,416 | |||||||||||
| Loan to a related party | - | - | - | - | (425 | ) | - | - | ||||||||||
| Repayment of loan from a related party | - | - | - | - | 425 | - | - | |||||||||||
| Others | - | (54 | ) | - | - | - | (54 | ) | (8 | ) | ||||||||
| Net cash flow provided by/(used in) investing activities | 883 | (48,455 | ) | (18,342 | ) | (2,597 | ) | (9,362 | ) | (66,797 | ) | (9,456 | ) | |||||
| EHANG HOLDINGS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT’D) (Amounts in thousands of Renminbi (“RMB”) and US dollars ("USD")) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, 2019 | March 31, 2020 | June 30, 2020 | June 30, 2019 | June 30, 2020 | |||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
| Proceeds from short-term bank loans | - | 5,000 | 5,000 | 708 | 5,000 | 10,000 | 1,416 | ||||||||||
| Repayment of a short-term bank loan | - | (5,000 | ) | - | - | (5,000 | ) | (5,000 | ) | (708 | ) | ||||||
| Proceeds from issuance of mandatorily redeemable non-controlling interests of a subsidiary | - | - | 40,000 | 5,662 | - | 40,000 | 5,662 | ||||||||||
| Proceeds from issuance of subsidiaries’ equity to non-controlling interest holders | - | - | 2,023 | 286 | - | 2,023 | 286 | ||||||||||
| Proceeds from issuance of Class A ordinary shares pursuant to underwriters’ exercise of over-allotment option | - | 7,313 | - | - | - | 7,313 | 1,035 | ||||||||||
| Proceeds from issuance of Series C redeemable convertible preferred shares | - | - | - | - | 47,436 | - | - | ||||||||||
| Payment of issuance of Class A ordinary shares pursuant to underwriters’ exercise of over-allotment option’s issuance costs | - | (516 | ) | - | - | - | (516 | ) | (73 | ) | |||||||
| Payment of issuance costs for initial public offering | - | (9,119 | ) | (304 | ) | (43 | ) | - | (9,423 | ) | (1,335 | ) | |||||
| Net cash (used in)/provided by financing activities | - | (2,322 | ) | 46,719 | 6,613 | 47,436 | 44,397 | 6,283 | |||||||||
| EHANG HOLDINGS LIMITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT’D) (Amounts in thousands of Renminbi (“RMB”) and US dollars ("USD")) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, 2019 | March 31, 2020 | June 30, 2020 | June 30, 2019 | June 30, 2020 | ||||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 1,018 | 3,185 | (454 | ) | (64 | ) | 451 | 2,731 | 387 | |||||||||
| Net decrease in cash and cash equivalents | (19,325 | ) | (76,647 | ) | (16,826 | ) | (2,382 | ) | (1,366 | ) | (93,473 | ) | (13,230 | ) | ||||
| Cash and cash equivalents at the beginning of the period/year | 79,478 | 321,662 | 245,015 | 34,680 | 61,519 | 321,662 | 45,528 | |||||||||||
| Cash and cash equivalents at the end of the period | 60,153 | 245,015 | 228,189 | 32,298 | 60,153 | 228,189 | 32,298 | |||||||||||
| Unpaid issuance cost for Series C redeemable convertible preferred shares included in Accrued expenses and other liabilities | 743 | 743 | 743 | 105 | 743 | 743 | 105 | ||||
| Unpaid issuance costs for initial public offering included in Accrued expenses and other liabilities | - | 5,608 | 5,304 | 751 | - | 5,304 | 751 | ||||
| Unpaid issuance costs for issuance of Class A ordinary shares pursuant to underwriters’ exercise of over-allotment option included in Accrued expenses and other liabilities | - | 1,046 | 1,046 | 148 | - | 1,046 | 148 |
FAQ
What were EHang's Q2 2020 financial results?
What is EHang's growth outlook for 2020?
What milestone did EHang achieve in Q2 2020?
How did EHang's operating loss change in Q2 2020?
What was the gross margin reported by EHang for Q2 2020?
