First Batch of EHang’s EH216-S Delivered to Xishan Tourism and Completed Debut Passenger-Carrying Flights in Taiyuan

Rhea-AI Summary

EHang Holdings (Nasdaq: EH) has delivered the first batch of 10 EH216-S pilotless eVTOL aircraft to Xishan Tourism in Taiyuan, China. The company completed debut passenger-carrying flights on July 28, 2024, showcasing the potential for aerial sightseeing services. Two EH216-S aircraft took off simultaneously with four passengers onboard, demonstrating autonomous flying and cluster management capabilities.

Xishan Tourism has ordered 50 units of EH216-S, with plans to acquire an additional 450 units over the next two years. The company aims to deploy these aircraft for local low-altitude sightseeing and tourism services, establishing flight routes at various locations in Taiyuan. This initiative aligns with Shanxi Province's efforts to develop its low-altitude economy and general aviation industry.

EHang has also applied for the EH216-S Air Operator Certificate (AOC) from the Civil Aviation Administration of China, marking a significant milestone for the global eVTOL industry. The company is gradually delivering EH216-S to multiple cities and assisting local partners in creating application scenarios to obtain OC.

Positive

• Delivered first batch of 10 EH216-S pilotless eVTOL aircraft to Xishan Tourism
• Completed debut passenger-carrying flights in Taiyuan, demonstrating autonomous flying capabilities
• Received order for 50 units of EH216-S from Xishan Tourism, with potential for 450 more over next two years
• Applied for EH216-S Air Operator Certificate from Civil Aviation Administration of China
• Expanding deliveries to multiple cities and assisting partners in creating application scenarios

Negative

• None.

Insights

Aviation Industry Analyst

The delivery of EHang's EH216-S eVTOL aircraft to Xishan Tourism and the completion of debut passenger-carrying flights in Taiyuan mark a significant milestone for the urban air mobility (UAM) industry. This development has several important implications:

• Market Validation: The successful delivery and operation of 10 EH216-S units demonstrate real-world demand for eVTOL technology, potentially accelerating market adoption.
• Regulatory Progress: EHang's application for the Air Operator Certificate (AOC) indicates progress in regulatory acceptance, which could pave the way for broader commercial operations.
• Scalability: The planned acquisition of 500 units over two years suggests significant scaling potential for EHang's production capabilities.
• Economic Impact: The development of a "low-altitude economy" in Shanxi Province could create new revenue streams and job opportunities in tourism and related sectors.

However, investors should consider potential challenges:

• Competition: As the eVTOL market matures, EHang may face increased competition from both domestic and international players.
• Regulatory Hurdles: Despite progress, full regulatory approval for widespread commercial operations may still take time.
• Infrastructure Development: The success of UAM will depend on the development of supporting infrastructure, which requires significant investment and coordination.

Overall, while this news is positive for EHang and the broader UAM industry, investors should closely monitor regulatory developments and EHang's ability to execute on its ambitious delivery plans.

Financial Analyst

The delivery of 10 EH216-S units to Xishan Tourism and the commitment to purchase 500 units over two years represent significant revenue potential for EHang. Let's break down the financial implications:

• Revenue Growth: Assuming an estimated price of 300,000 per unit (based on industry averages), the total contract value could reach 150 million over two years.
• Production Scaling: To meet the demand of 500 units, EHang will need to significantly scale its production capabilities, potentially leading to economies of scale and improved margins.
• Market Expansion: The successful deployment in Taiyuan could lead to similar contracts in other cities, further driving revenue growth.
• Recurring Revenue: Beyond initial sales, EHang could generate recurring revenue through maintenance contracts and software updates.

However, investors should consider the following financial risks:

• Capital Requirements: Scaling production may require significant capital investment, potentially impacting short-term profitability or leading to dilution through equity raises.
• Execution Risk: Failure to deliver on time or meet performance expectations could result in contract cancellations or penalties.
• Margin Pressure: As competition intensifies, EHang may face pressure on pricing and margins.

While the news is undoubtedly positive for EHang's financial outlook, investors should closely monitor the company's ability to scale production efficiently and maintain strong margins as it grows.

Urban Planning Expert

The introduction of EHang's eVTOL aircraft in Taiyuan represents a significant shift in urban mobility and planning. Here are key considerations:

• Infrastructure Integration: The deployment of eVTOLs will require the development of vertiports and charging stations, potentially reshaping urban landscapes.
• Traffic Decongestion: Aerial mobility could alleviate ground traffic congestion, particularly in tourist areas, improving overall urban efficiency.
• Land Use: The adoption of eVTOLs may influence land use patterns, potentially reducing the need for extensive road infrastructure and parking facilities.
• Noise and Visual Impact: Urban planners must consider the noise levels and visual impact of eVTOL operations on local communities.
• Safety Considerations: Integrating low-altitude air traffic into urban areas will require robust safety measures and potentially new zoning regulations.

The development of a "low-altitude economy" in Shanxi Province presents both opportunities and challenges for urban planners:

• Economic Development: New tourism routes and services could stimulate local economies and create jobs.
• Sustainability: Electric eVTOLs align with sustainability goals, potentially reducing urban carbon footprints.
• Public Acceptance: Planners must work to ensure public acceptance of this new form of urban mobility through education and community engagement.

As this technology becomes more widespread, urban planners will need to adapt existing frameworks to accommodate the unique requirements of eVTOL operations while balancing the needs of all urban stakeholders.

GUANGZHOU, China, July 29, 2024 (GLOBE NEWSWIRE) -- EHang Holdings Limited (“EHang” or the “Company”) (Nasdaq: EH), the world’s leading urban air mobility (“UAM”) technology platform company, today announced that it has delivered the first batch of 10 units of EH216-S pilotless electric vertical takeoff and landing (“eVTOL”) aircraft to Taiyuan Xishan Ecological Tourism Investment Construction Co., Ltd. (“Xishan Tourism”) in the second quarter of this year, and completed debut passenger-carrying flights of EH216-S in Taiyuan, Shanxi on July 28, 2024.

(Picture: Attendees witness two units of EH216-S pilotless eVTOL taking off simultaneously with four passengers onboard.)

Tao Wei, Member of the Standing Committee of Shanxi Provincial Committee and Secretary of Taiyuan Municipal Committee, along with other government officials, experts, scholars and enterprise representatives, attended the inaugural flight ceremony of EHang’s pilotless passenger-carrying aircraft, a milestone for the development of Shanxi's low-altitude economy.

The ceremony took place at the Paddy Field Park in Taiyuan, where two units of EH216-S eVTOL aircraft took off simultaneously with four passengers onboard for an aerial view of the vast paddy fields. The flights showcased the potential of pilotless eVTOL in providing aerial sightseeing services in Taiyuan, and demonstrated the EH216-S's advantages in autonomous flying, cluster management, and safe and stable operations, earning both acknowledgement and praise from the guests and passengers.

During the event, EHang also showcased its VT-30 long-range pilotless passenger-carrying eVTOL, the EH216-F for firefighting use, and the EH216-L for logistics use, demonstrating EHang’s comprehensive eVTOL product portfolio and solutions for the low-altitude economy ecosystem.

(Picture: Tao Wei, Member of the Standing Committee of Shanxi Provincial Committee and Secretary of Taiyuan Municipal Committee, discussed with Zhao Wang, Chief Operating Officer of EHang, regarding air mobility solutions led by the EH216-S and VT-30 pilotless eVTOLs)

Shanxi is a national demonstration province for the development of general aviation industry, and the Shanxi Provincial Government issued the Measures to Accelerate the Development of the Low-Altitude Economy and the Construction of General Aviation Demonstration Province in May 2024. These measures facilitate regular low-altitude flights, subsidize short-range logistics and low-altitude tourism, and accelerate the development of general aviation infrastructure and operational service capabilities.

Jicheng Yang, Member of the Standing Committee of Taiyuan Municipal Committee and Executive Vice Mayor, stated, “As a national strategic emerging industry, the low-altitude economy is not only a typical representative of new productive force but also an important direction for cultivating new growth drivers, with vast development prospects. Its application scenarios have gradually extended from passenger transportation, aerial sightseeing, and emergency rescue to various sectors of the society. The new low-altitude application scenarios are continuously expanding, and a new landscape of the low-altitude industry chain is further taking shape. Taiyuan is a national civil unmanned aerial vehicle test zone, with the foundation and advantages to develop the aviation industry, and will actively seize the lead in the emerging low-altitude economy industry. Taiyuan will enhance policy support, essential guarantees, and innovation capabilities, and promote the deep integration of technological innovation and the low-altitude economy. We will continue to enrich general aviation application scenarios and, with a more open and inclusive attitude, to achieve mutual benefits and win-win results through deep cooperation and strive to write a new chapter in the construction of commercial air routes.”

(Picture: Jicheng Yang, Member of the Standing Committee of Taiyuan Municipal Committee and Executive Vice Mayor, delivered a speech at the event.)

In May this year, Xishan Tourism and EHang signed a memorandum of understanding and a purchase order for 50 units of EH216-S, with a plan to acquire an additional 450 units over the next two years. The first batch of delivered EH216-S aircraft will be deployed for local low-altitude sightseeing and tourism services. Xishan Tourism is currently advancing the regular operation of EH216-S flights and plans to launch eVTOL low-altitude sightseeing routes at Yuquan Mountain, Paddy Field Park, and Juewei Mountain, among other locations in Taiyuan, to establish a series of trend-setting “low-altitude tourism” demonstration projects and contribute to the development of Shanxi Province's low-altitude economy demonstration zone.

Yaozong Chang, Chairman of Xishan Tourism, stated, “Xishan Tourism plans to collaborate with EHang and other partners on low-altitude scenarios of air mobility, tourism and public services to establish multiple flight camps or landing pads, alongside various low-altitude sightseeing routes for pilotless eVTOL within Taiyuan and nearby scenic areas. We aim to build an urban low-altitude tourism mobility network and a new urban air traffic management system, and to establish a low-altitude economy industrial park. We're poised to explore and demonstrate the development of low-altitude economy in Shanxi Province.”

Zhao Wang, Chief Operating Officer of EHang, remarked, “The Civil Aviation Administration of China has officially accepted our application for the EH216-S Air Operator Certificate (“AOC” or “OC”), which is a major breakthrough for the global eVTOL industry. At present, we have gradually delivered EH216-S by batches to Taiyuan, Hefei, Wuxi, Wencheng, Zhuhai, and other places, and are actively assisting our local partners who are creating application scenarios to obtain OC. As we delivered EH216-S and completed debut passenger-carrying flights in Taiyuan, we will work together with Xishan Tourism in establishing a benchmark for low-altitude economy in the region, gradually rolling out this innovative technology across North China and bringing a new aerial flight experience to more people, and making UAM accessible to the public.”

Click the link for a video of the EH216-S pilotless eVTOL passenger-carrying debut flight in Taiyuan: https://youtu.be/6UTv9jUTiPA

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.

Media Contact: pr@ehang.com

Investor Contact: ir@ehang.com

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FAQ

How many EH216-S aircraft did EHang deliver to Xishan Tourism in Taiyuan?

EHang delivered the first batch of 10 EH216-S pilotless eVTOL aircraft to Xishan Tourism in Taiyuan, China.

When did EHang complete the debut passenger-carrying flights of EH216-S in Taiyuan?

EHang completed the debut passenger-carrying flights of EH216-S in Taiyuan, Shanxi on July 28, 2024.

What is the total order size for EH216-S aircraft from Xishan Tourism?

Xishan Tourism has ordered 50 units of EH216-S, with plans to acquire an additional 450 units over the next two years, totaling a potential 500 units.

What regulatory milestone has EHang achieved for the EH216-S?

EHang has applied for the EH216-S Air Operator Certificate (AOC) from the Civil Aviation Administration of China, which is a significant step for the global eVTOL industry.

Where does EHang (EH) plan to deploy the EH216-S aircraft for tourism services?

EHang plans to deploy the EH216-S aircraft for low-altitude sightseeing routes at Yuquan Mountain, Paddy Field Park, and Juewei Mountain, among other locations in Taiyuan, China.