GUANGZHOU - EHang Holdings Limited (NASDAQ:EH), a global leader in the Urban Air Mobility (UAM) sector, has announced the successful completion of inaugural passenger flights of its EH216-S pilotless electric vertical takeoff and landing (eVTOL) aircraft in Thailand. This event took place at the Queen Sirikit National Convention Center in Bangkok, marking the expansion of EHang's eVTOL operations to the 18th country worldwide.
With authorization from the Civil Aviation Authority of Thailand (CAAT), EHang has plans to carry out further flight tests in Thailand and aims to initiate commercial flight services in areas such as Phuket and Koh Samui by 2025. This initiative is part of a collaborative effort to open up Thailand's low-altitude airspace and advance the air mobility market in the region.
During the Thailand Drone Exhibition & Symposium 2024, EHang demonstrated its EH216-S for three days, granted by a Demonstration Flight Permit from the CAAT. The flights were attended by notable passengers, including Mr. Phasu Manipanti, CEO of Sky Image Tech, EHang's local partner, and Mr. Sorasit Thongjeen, First Officer of Bangkok Airways, as well as several high-ranking officials.
The EH216-S is designed to alleviate urban congestion by providing point-to-point air transportation within city centers without the need for traditional runways. Its potential for efficient island-hopping services in Thailand, which is known for its numerous islands and significant tourism industry, could revolutionize transportation in the sector.
Mr. Suttipong Kongpool, Director of the CAAT, expressed that the demonstration flights represent a substantial step forward in integrating UAM solutions into Thailand's aviation industry. He highlighted the EH216-S as the sole eVTOL globally to have obtained airworthiness certificates and anticipates its commercial operations to contribute to Thailand's UAM development plan.
Mr. Conor Yang, CFO of EHang, remarked on the importance of the EH216-S's debut flights in Thailand for EHang's international growth and the transformation of global urban air mobility. EHang aims to establish a regular UAM operational model in Thailand with CAAT's support, furthering the development of the urban air mobility market in Southeast Asia and beyond.
EHang is recognized for its innovative unmanned aerial vehicle (UAV) systems and solutions, serving various industries with its flagship product, the EH216-S, which has received multiple certifications from the Civil Aviation Administration of China.
This press release statement also contains forward-looking statements regarding anticipated demand, market acceptance, and the commercialization of UAM services, among other aspects of EHang's business strategy. These statements are subject to risks and uncertainties that could cause actual outcomes to differ materially.
In other recent news, EHang Holdings Limited has made significant strides in the autonomous aerial vehicle (AAV) industry. The company reported a nine-fold increase in both delivery volume and revenue year-over-year, with revenue reaching RMB 102 million. This robust growth is accompanied by a record delivery of 49 units of the EHang 216-S, marking a surge in market demand.
EHang's partnership with the Civil Aviation Flight University of China (CAFUC) aims to address the talent shortage in China's low-altitude economy and to establish a comprehensive ecosystem for safe UAV operation. This initiative is also expected to contribute to the formulation of regulations and standards for large civil UAVs.
In terms of analyst notes, EHang anticipates third-quarter revenue of RMB 123 million and aims for a positive cash flow in 2024 and adjusted net income in 2025. The company is also planning to enhance automation at its Yunfu factory and construct a new assembly plant in Hefei, aiming to add 1,000 units to its annual production next year.
In the face of rumors connecting the company to an investigation involving Chris Hu by the U.S. government, EHang has refuted these allegations and reaffirmed its commitment to uphold transparency and regulatory standards. The company plans to take legal action against those spreading false information potentially damaging to the company's reputation. These are the recent developments for EHang Holdings Limited.
InvestingPro Insights
EHang's successful inaugural passenger flights in Thailand mark a significant milestone in the company's global expansion strategy. This achievement aligns with EHang's impressive revenue growth, which InvestingPro data shows has surged by 343.66% over the last twelve months as of Q2 2024. The company's quarterly revenue growth is even more striking, at 919.58% in Q2 2024, indicating strong momentum in its business operations.
An InvestingPro Tip highlights that analysts anticipate sales growth in the current year, which is consistent with EHang's plans to initiate commercial flight services in popular Thai tourist destinations by 2025. This expansion could further boost the company's revenue trajectory.
Another relevant InvestingPro Tip notes EHang's impressive gross profit margins, which stand at 63.04% for the last twelve months as of Q2 2024. This high margin suggests that EHang has significant pricing power and efficiency in its operations, which could be crucial as it scales its UAM services globally.
While EHang shows strong growth potential, investors should be aware that the company is not yet profitable over the last twelve months, as indicated by another InvestingPro Tip. However, with its expansion into new markets like Thailand, EHang may be positioning itself for future profitability.
For readers interested in a deeper analysis, InvestingPro offers 11 additional tips for EHang, providing a more comprehensive view of the company's financial health and market position.
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