EHang Holdings Limited

Good day, ladies and gentlemen, and thank you for standing by. Welcome to Ehan's second quarter 2023 earnings conference call. As a reminder, we are recording today's call. I will now turn the call over to Angie, Ehan's senior director in investor relations. Ms. Ehan, you may begin.

Hello, everyone. Thank you for joining us on today's conference call to discuss the company's financial results for the second quarter of 2023. The earnings release is available on the company's IR website. Please note the conference call is being recorded, and audio replay will be posted on the company's IR website. On the call today, we have Mr. Hua Zhihu, our founder, chairman, and chief executive officer, Mr. Xin Fang, chief operating officer, and Mr. Richard Liu, chief financial officer. The management team will successfully give prepared remarks. Remarks delivered in Chinese will follow by English translations. All translation is for the convenience purpose only. In case of any discrepancy, an announcement statement in an original 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 involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding this 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 second quarter of 2023, unless stated otherwise. With that, let me now turn the call over to our CEO, Mr. Hua Zhihu. Please go ahead, Mr. Hu.

Thank you, Anni. Hello, everyone. Thank you for attending our telephone meeting today. Today, I am very happy to share with you a good news that is exciting. Our Yihang 216-S unmanned aerial vehicle model qualification assessment final compatibility verification stage has been successfully completed according to the plan. All test and test work has been completed, and the final model qualification assessment has been completed. This is the final milestone of the final milestone of the final milestone of the final milestone of the final milestone of the final milestone of the final milestone of the final milestone of the final milestone from battery, environment, material, strength, electronic hardware, software, data network, to ground control software. Through a scientific method system, multi-angle verification, rigorous experiments, and continuous optimization, we have fully proven the safety standards and market requirements of the 216-S model in line with the requirements of the Chinese Civil Aviation Bureau. This is not only an important milestone for E-Hang, but also a milestone for the entire EVTO industry, to take a new step forward in the field of market identification. And unlike other unmanned aircraft carriers, we are the world's first unmanned aircraft carrier. I would like to thank the various leaders of the Chinese Civil Aviation Bureau and the inspection team for their unwavering efforts. I would also like to thank the insistence of the company's market team for their unwavering persistence and never giving up. It is our professional upbringing, excellent technology and joint cooperation Let us achieve today's results. At the same time, I also want to thank the investors of the bank and the patience of many supporters. I believe that the formal programmatic work of the government will be completed soon. This will pave the way for our next commercial operation. In the second quarter of the upcoming money-making, comprehensive internal and external opinions of all parties. We have a controlled management of product delivery rhythm. In the second quarter, we delivered five EH216-S autonomous pilot aircraft with a revenue of RMB10 million. The net profit is still at 60% level. I believe that our performance will be very bright after the approval. During the approval period, after the strategic investment of US$10 million in Qingdao West Coast New District in the first quarter of this year, We completed a round of $23 million strategic investment in July, which further enhanced our liquidity. Finally, I take this opportunity to happily tell you that the chairman of the board of directors of the board of directors of the board of directors of the board of directors of the board of directors of the board of directors of the board of directors of the board of directors of the board of directors of the board of directors of the board of directors of the board of directors of travel to the same city, and other well-known companies. In financial management and investor relations, the capital market and company governance have more than 30 years of rich experience. In the three years of being a board member, I have a very in-depth understanding of the company and full of confidence. I warmly welcome Kona to further join the management team. Its arrival will definitely lead the bank to a new height. Our original CFO, Richard Liu, Due to personal reasons, he took the position of CFO at the end of August. He will continue to serve as a senior consultant for the company to develop the company's strategy. Here, on behalf of the board and management, I would like to thank Richard for his great contribution to the development of the industry in the past eight years. In addition, we also invited a new independent board member, Mr. Liu Yongji, to join the board, to be the chairman of the audit committee and the member of the new committee. Mr. Liu Yongji has more than 30 years of professional experience and professional knowledge in financial management and accounting. He has served as CFO and financial manager in many listed companies and leading industries, including RoboSense, Perfect World, and Aomei Media. He also has 10 years of technical experience in Puhuayongdao. I look forward to working with Mr. Kona and Mr. Liu to lead the industry into a new stage. Next,