EHang Holdings Limited

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Ehang Third Quarter 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we'll conduct a question-and-answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objection, you may disconnect at this time. Now, we'll turn the call over to Julia Chan, Managing Director of the Blue Shirt Group Asia. Ms. Chan, please proceed.

Hello, everyone. Thank you all for joining us on today's conference call to discuss the company's financial result for the third quarter of 2020. We released the result early today. The press release is available on the company's website as well as from Newswire Services. On the call with me today are Mr. Hu Huazhi, Chief Executive Officer, Mr. Edward Shi, Chief Strategy Officer, and Mr. Richard Liu, Chief Financial Officer. Before we continue, Please note that today's discussion will contain forward-looking statements made under the Safe Harbor provision of the U.S. Private Security Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public filing with the SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Also, please note that unless otherwise stated, all the figures mentioned during the conference call are in Chinese R&B. With that, let me now turn the call over to our CEO, Mr. Hu Huazhi. Mr. Hu will speak in Chinese, then our CSO Edward will translate his comments into English. Please go ahead, Mr. Hu.

Hello, everyone. I am Huazhi Hu, founder of Yihang. As a pioneer in the global UAM industry, in the past few years, we have accumulated and delivered more than 100 Yihang 216 self-driving aircraft in the world, and completed tens of thousands of safe flights. There has never been a single accident. This is an amazing achievement for a innovative manned self-driving aircraft. A large number of actual flights have fully verified our unique full backup security system. Now, We have come from providing professional product technology to the development stage of establishing a commercial operating system. For this, we still have a lot of homework to do. Countless safe flights have set the foundation for us to enter the mass production stage. Yihang has just completed the verification and display flight of UAM in South Korea. On the basis of the original order, the new order of South Korea has been added. The quality of the aircraft is always our first priority. The current factories are unable to meet the large production needs. In order to ensure the production of high-quality products, we have built a new production base of 40,000 square meters in Yunfu City, Guangdong, that can produce 600 units per year. More importantly, we have to establish a set of industrial standards and systems from design, production, to operation. Chen Xiaxin came to do the design and construction of basic facilities, including automated airport facilities, etc. gradually form a perfect operating system like the current Minghang Airport. This is also an important measure to ensure the safe operation of Yihang 216. Now, we have formed a whole set of AAV technology platforms with independent intellectual property rights, and we will be able to generate and accumulate in the hardware and software supply chain field. We will release more AAV models that are suitable for mid- and long-distance flights, and we will be able to generate and accumulate in the hardware and software supply chain field. We will release more AAV models that are suitable for mid- and long-distance flights, The scope of operation is gradually expanding. In terms of new products, while Yihang 216F fire version is constantly getting one-off orders, we are accelerating its fire equipment certification. The State Council also announced that it will accelerate the industrial upgrade and practical application of fire drones. It will also become a strong driving force for our income growth in the next few years with Yihang 216 fire version and logistics version. In terms of policy regulations, we are accelerating the promotion. In China, in 2018, we achieved the pilot test of the Civil Aviation Bureau. Recently, the Civil Aviation Bureau has just announced 13 policies for civilian unmanned aircraft test areas. The State Council also announced last week the plan to include urban air traffic into the national strategy. With the government's promotion, the basic facilities are gradually completed. In addition, we will officially obtain the pilot license of the E-air 216 in 2021. Well, I'll do the translation for Mr. Hu. Hello, everyone. I'm Huazhi Hu, founder and CEO of EHAM. As the first mover in the global UAM industry,