EHang Holdings Limited

Good day, ladies and gentlemen. Thank you for standing by and welcome to the Yihang Third Quarter 2022 Earnings Conference Call. As a reminder, we are recording today's call. Now I will turn the call over to Anne Chee, Yihang Senior Director of Investor Relations. Ms. Chee, please proceed.

Hello, everyone. Thank you for joining us on today's conference call to discuss the company's financial results. for the third quarter of 2022. The earnings release is available on the company's IR website. Please note, the conference call is being recorded, and the audio replay will be posted on the company's IR website. Today, the Yihang Management team, which include Mr. Hua Zhihu, Chief Executive Officer, and Mr. Xin Fang, Chief Operating Officer, and Mr. Richard Liu, Chief Financial Officer, will successfully give prepared remarks. Remarks delivered in Chinese will be followed by English translations. All translation is for convenience purpose only. In case of any discrepancy, the management team statement in a regional language will prevail. A Q&A session will follow afterwards. Before we continue, please note that today's discussion will contain forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, forward-looking statements involving 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 filings 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 all numbers presented are in RMB and are for the third quarter of 2022, unless stated otherwise. With that, now let me turn the call over to our CEO, Mr. Huang Zhihu. Please go ahead, Mr. Huang.

Hello, everyone. Thank you for attending our business call meeting today. Since the end of 2020, E-H2O has submitted E-H216's audit application to the Chinese Civil Aviation Bureau. In the past two years, we have been actively promoting the audit process of E-H216. E-H2O certification is not only a safe certification and a necessary premise for the aviation industry to officially invest in commercial operation, but also a necessary path for E-H2O to move towards the strategic path of urban air traffic platform operators. It is a key catalyst and driving force for the growth of our company's performance. We would like to thank our investors, customers, regulators, and long-term attention and support from various partners. Every bank person feels a great sense of responsibility and will certainly not let their hopes and dreams go to waste. Despite the many challenges faced by innovators in the market review process and the continued impact of the epidemic, our technology, products, and verification teams We are working hard day and night. We are working hard day and night. We are working hard day and night. We are working hard day and night. We are working hard day and night. We are working hard day and night. We have completed the most important part of the work, sold the most difficult card, and learned a lot of uncertainties. Next, What we are doing is to complete our planned plan one by one. Not only that, we are full of confidence in the final stage of the inspection of the market. The specific work of this stage is to conduct verification and inspection by the approved CP by the inspection team and Yihang, including lab tests, ground tests, and inspection flight tests, data analysis, etc. Yihang 216 has accumulated more than 30,000 safety flights and data records over the years, can be used as a valid proof of compatibility. These self-driving test flight records in high altitudes, typhoons, deserts, and heavy rain in extreme weather conditions accelerate the process of compatibility verification. Based on this, we are currently working on some supplementary tests and trial and error tests to complete the TC test. We are full of confidence in the world's first unmanned aerial vehicle test flight. This confidence Not only from our pilot hardware innovation strength and advancedness, but also from the opening and innovation spirit of the Chinese government, the Civil Aviation Bureau, and the aviation industry, as well as their high attention, support, and guidance, let the innovation, breadth, depth, and speed of the EH216 inspection project go ahead in the new industry, go ahead in the world. In September and November of this year, the bank was very honored to receive an invitation from the International Civil Aviation Organization to attend the 41st Congress of the International Civil Aviation Organization in Montreal, Canada, for the Innovation and Achievement Exhibition and Special Discussion Conference, and to share with the world's civil aviation agencies the exploration and implementation of EH216 in the field of market aviation audit. and innovative results, especially at the International Civil Aviation Organization Conference. The Civil Aviation Bureau of China, as one of the leading countries, focused on introducing the first manned unmanned aerial vehicle system, TC, designed by China, and the standards of the test and navigation of the test and navigation of the test and navigation of the test and navigation of the test and navigation of the test and navigation of the test and navigation of the test and navigation of the test to make everyone enjoy safe, automatic, and environmentally friendly air traffic. For this reason, we have always been boldly innovative, carefully analyzed, and carefully evaluated. With our own experience, we have made our own contribution to the creation of relevant industry standards and regulations, leading to the healthy development and continuous improvement of the global e-vito new industry. At the same time, we are very happy to see China has more and more new policies and new policies to support and promote the development of urban air traffic and civilian unmanned aerial vehicles. In August this year, the Chinese Civil Aviation Bureau released the Civilian Unmanned Aerial Vehicle Development Guideline 1.0, clarifying the short, medium, and long-term development stages and goals of 2025, 2030, and 2035. It pointed out the direction for the development of new industries. At the same time, the Civil Aviation Bureau of China has also issued the second batch of 7 new Civil Aviation Air Test Areas, plus the first batch of 13 test areas. Currently, China has a total of 20 test cities, and the policy will be implemented to 10 places. In the test area of the batch, Yihang has received a lot of support from the local government and customers, actively building UNM operating test and flight bases and supporting basic facilities, and providing a large number of pre-order orders to bring air travel, air logistics, smart cities, and other multi-industry integration development, and provide groundwork for the operation and actual application of E-AV. Our industry is different from other industries. We need to create our own rules to establish this industry, and then we can produce explosive growth. But we did it. Under the background of such internal and external supervision, we have reason and confidence to gradually achieve a large-scale growth in E-AV's performance after the completion of TC certification. This is the English translation of the CEO's remarks. Hello, everyone. Thank you for joining our earnings conference call today. Since Yi Hang submitted the EH216