EHang Holdings Limited

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the IHANG fourth quarter and fiscal year of 2025 earnings conference call. Please note that the management's prepared remarks and the subsequent Q&A session will primarily be conducted in Chinese, and the corresponding simultaneous or consecutive interpretation can be accessed on the English line. As a reminder, all translations are for convenient purposes only. In case of any discrepancy, the management's statements in the original language will prevail. To listen to the original remarks by the management, please join the Chinese line. Additionally, both the Chinese and English lines are open for questions. And today's call is being recorded. Now I'll turn the call over to Lee E. Hang, Senior Director of Investor Relations. Ms. Ann, please proceed.

Hello, everyone. Thank you all for joining us on today's conference call to discuss the company's financial results for the fourth quarter and the fiscal year of 2025. 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. On the call today, we have Mr. Huai-Zhi Hu, our founder, chairman, and chief executive officer. Mr. Shuai Feng, chief technology officer. Mr. Zhao Wang, chief operating officer. And Mr. Connor Yang, chief financial officer. 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 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 filings with 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 fourth quarter and the fiscal year of 2025, unless stated otherwise. With that, let me now turn the call over to our CEO, Mr. Hua Zhihu. Please go ahead, Mr. Hu. Hello, everyone, and thank you for joining our call today. 2025 was a pivotal year for Ehan as we strengthened our business foundation and made a meaningful progress toward commercialization. In Q4, we delivered a strong set of results. Quarterly eVito sales volume reached 100 units for the first time. Revenues grew significantly both year over year and sequentially. And we achieved our first ever quarterly GAAP profitability. For the full year, we delivered 221 units of Vito aircraft, setting a new record and successfully meeting our annual revenues guidance. We also achieved a non-gap profitability for the second consecutive year. These results reflect years of sustained investment and disciplined execution across product innovation, regulatory certification, industrial ecosystem development, and market expansion, laying a solid foundation for our commercialization progress in 2026. I am pleased to announce that the commercial operation of our flagship product, the EH216S, is entering the final countdown. Following comprehensive preparation across our commercial operation system, we're about to officially open our commercial flight services to the public. After nearly a year of internal trial operations, we have established standardized procedures across the entire operational chain, from route planning and fleet management to boarding services. At the same time, we have optimized our maintenance systems and safety assurance mechanisms while actively supporting the Cebu Aviation Administration of China in advancing the training and certification program for our ground operating crew. Our two OC-certified operators, Ehon General Aviation and Hui Aviation, both plan to begin offering ticketed EH216S flight services to the public this month at their operational sites in Ehon Future City, our new headquarters in Guangzhou and Luogang Park in Hefei. This launch is expected to mark the world's first commercial service of pilotless human-carrying veto aircraft. It also represents the completion of EHA's full lifecycle ecosystem from technology development and airworthiness certification to manufacturing and commercial operations. Going forward, we are evolving from being an aircraft manufacturer into a comprehensive provider of integrated advanced air mobility solutions. 2026 marks the first year of China's 15th five-year plan period. As the national strategic emerging pillar industry, the low-altitude economy is embracing unprecedented strategic development opportunities. Supported policy direction is now shifting from encouraging exploration to systematic advancement. With the continued progress in aerospace management reform, airworthiness certification frameworks, and infrastructure development, Together, these initiatives are creating a favorable policy environment for industry development. With that in mind, Ehan's core strategies for this year are to move forward with its plan execution, strengthening our foundation while steadily advancing commercialization, operational ecosystem development, and global expansion. First, it has been nearly a year since Ehan obtained OC for EH216S. Over the past year, we have been working intensively to expand our customer and partner base. At the same time, we built the operational systems required to support commercial flights. This year, our top priority is to launch routine and skilled commercial operations of human-carrying vehicle aircraft to the public, delivering reliable flight services and continuously improving the flight experience. Our goal is to transform scenes in science fiction into everyday reality for people. This is the milestone many people have been waiting for, and so have we. But aviation has always been an industry that moves forward with patience and responsibility, especially when safety and human lives are involved. Second, we'll continue advancing our global expansion strategy, taking the Thailand AAM Cinebox initiative as an example. We're steadily moving toward commercial flight operations and established benchmark projects. I'm also pleased to share good news that Ehan is suspected to obtain the first commercial operation license four pilotless passenger EVTO aircraft from the Civil Aviation Authority of Thailand, paving the way for regular urban air mobility services in the country. Third, we'll accelerate the commercialization readiness of the VT-35. In 2026, our focus will be on advancing its time certification and conducting extensive flight tests in more diverse and complex environments to fully validate its passenger flight capabilities. At the same time, we'll continue improving the performance of the EH216 series and expanding the deployment of non-passenger products and applications, including firefighting and logistics, further broadening our market reach. Fourth, we'll further strengthen our AI. end-to-end industrial chain integration capabilities. By coordinating our R&D manufacturing supply chain and quality management systems, we aim to improve operational efficiency across the entire value chain, reinforce our long-term competitive advantages, and contribute to the establishment of industry standards. EHON remains committed to the principles of safety-first, innovation-driven growth and collaborative development. We will continue advancing our technology and product innovation, expanding multi-scenario commercial operations and establishing AAM operational models in more regions around the world. At the same time, we're building a comprehensive business model combining technology R&D, intelligent manufacturing, commercial operation services, infrastructure collaboration, and industry education integration. We believe the low altitude economy industry will evolve from demonstration programs to scaled commercial operations and then to public accessible services. It will become a vital engine for activating three-dimensional aerospace resources and cultivating new forms of consumption, truly transforming the industry of values into economic and social benefits. At this important starting point of a pivotal year, our newly appointed Chief Technology Officer Feng Chui is also joining today's earnings calls. Under my leadership, he will oversee our technology R&D, supply chain management, manufacturing, and quality system development, driving a more integrated end-to-end management approach from technology innovation to product delivery. By strengthening coordination and integration across the entire industry chain, we believe our innovation capability, product competitiveness, and overall execution will continue to improve. With that, I would like to hand the call over to Feng Shui. Thank you. Thank you, Mr. Hu. Hello, everyone. I'm Feng Shui, CTO of Yihan. It is a great honor to join today's earnings call for the first time. I am pleased to share our progress in four key areas during the fourth quarter, R&D, production and manufacturing, quality management, and supply chain assurance, which we refer to as the RPQS Center. We'll also briefly outline our priorities for 2026. The RPQS Center is the core engine of our technology and industrial execution. We focus on technology innovation as the foundation, production capacity as the driver, quality control as the bottom line, and supply chain as the cornerstone. Together, these capabilities support the development, commercialization, and scale delivery of our products. Let me walk through the key highlights in each area. Starting with R&D, the fourth quarter of 2025 marked major breakthroughs across our core products. Our flagship passenger-carrying aircraft, VT35, completed multiple critical tests, including multi-copter protective transition flights and lock-to-prop fixed-wing flights. The aircraft also successfully completed its first public demonstration flight in Hefei after its grand debut in October. During the quarter, we held the first type certification team meeting with the CAAC. marking a key step forward in the airworthiness certification progress. We are currently conducting flight envelope testing and aim to obtain the type certification in China within the next two years. For the non-passenger business, we are also developing and deploying product and system lines under multiple application scenarios. Our new GE 4.0 formation drones set a Guinness World Record with 22,580 units flying simultaneously at the China Spring Festival Gala. significantly enhancing our brand of visibility and generating strong demand for both drone product and performance services. In the firefighting aircraft program, we are upgrading the current models while advancing the next generation R&D to support emergency response scenarios. For logistics, we are accelerating the development and first flight of the VT series lift and cruise cargo aircraft, developing laundry endurance aerial logistic applications. At the same time, our proprietary command and control system continues to evolve. As a city-level digital infrastructure platform for a low-attitude economy, it's now being trial operations in Hefei and Guangzhou, providing solid tech support for future scaled commercial operations and air traffic management. On manufacturing, we continue to expand our production capability and enhance the smart manufacturing capabilities during the fourth quarter. The Phase 2 expansion of our Yunfu production facility was successfully completed, bringing our total planned annual capacity to 1,000 units of the B2 aircraft and components. The automated production lines have entered a trial product stage, and our smart manufacturing systems will further improve production efficiency and supply chain management. Meanwhile, additional facilities in Hefei, Weihai, and Beijing are progressing as planned. Our nationwide manufacturing footprint is steadily taking shape. We follow a manufacturing-to-order approach, ensuring stable production planning while preparing large-scale deliveries in the future. On quality control, we maintain strict end-to-end quality control across the entire product lifecycle. Throughout 2025, our quality management system delivers strong performance, With steady improvements across all key indicators, the post-certification airworthiness review for RPC achieved as a third zero-defect pass, and the EN9100 audit continues to pass. On supply chain, during the fourth quarter, we further expanded our supplier network and strengthened our supply chain resilience. Our core supplier system remained stable, with a 100% on-time delivery rate for key components, fully supporting our production and deliveries. Going forward, we will continue our strategy of maintaining strong partnerships while introducing additional high-quality suppliers. This approach will strengthen our stable and scalable supply chain, providing support for future capacity expansion and new model development. The low-altitude economy represents a new frontier for technological and digital innovation. Strong R&D and smart manufacturing capabilities are the foundation of our long-term competitiveness. As CTO, I'll continue leading the RPQS team to drive technology innovation, advanced product development and certification, expanded manufacturing capacity, and smart production capabilities, maintain strict quality standards, and strengthen supply chain resilience. Our goal is to efficiently translate technological innovation into real commercial deployment and provide solid technical and industrial support for the company's long-term growth. With that, I would like to turn the call over to our COO, Mr. Wang Jiao, for our sales and operations update in more detail. Thank you. Thank you, Mr. Hu and Mr. Feng. In 2025, we advanced our business across three key priorities, safety operations and commercialization. For the full year, we generated 509 million RMB in revenues and delivered 221 units of the Vito aircraft, including 215 units of EH216 series and 6 units of VT35 series. Our Q4 performance reached a new high. We delivered 95 units of EH216 series and 5 units of VT35 series, generating 240 million RMB in revenues. In China, we continue to deepen our presence in key cities and beautiful flagship partnerships. In Hefei, our collaboration with the local government expanded from a single product to a full product portfolio. The corporation now covers multiple applications, including the EH216 series human carrying and firefighting versions, the VP35, and the DD4.0 formation drone. We also continue to strengthen our partnership with Anshun in Guizhou Province and Guizhou Tourism Group. In Q4, 30 units of EH216S were delivered to the local market, bringing total deliveries to 50 units to this customer, supporting the development of local low-altitude economy applications. Building operational capability has been a major strategic focus throughout the year. After Ehan General Aviation and Hawaii Aviation obtained their operator certificates in March 2025, we began to conduct extensive internal testing and operational optimization across the entire service process, from ticket booking and on-site verification to boarding and flight operations to ensure a seamless user experience. In the same time, we have established a comprehensive set of standard operating procedures covering battery charging, maintenance, and fault troubleshooting to ensure the continued airworthiness and operational stability of the fleet. Based on the safety and operational experience we have accumulated, we plan to officially launch commercial operations with the EH216S in this month. IHON General Aviation and Hawaii Aviation will begin selling flight tickets to the public, offering EH216S, pilotless aerial flight-seeing flights in our headquarters in Guangzhou and Luogang Park in Hefei. The public will be able to book flights through the YonTrip and the Heyevi Aviation Mini programs with an early bird discount price of 299 RMB per person. This will be the world's first ticketed commercial service for pilotless human-carrying Vito in the urban air mobility industry. transforming the low-altitude economy from a concept into a reality that is accessible to the general public. Over the past year, we have carefully refined every aspect of the operation. Our approach has always been safety-first, experience-focused, and sustainability-driven. Delivering a high-quality flight experience for our passengers in the initial phase is crucial to building public trust and supporting long-term market adoption. Looking ahead, we will leverage the experience from our OC certification and operations, to develop a comprehensive operational solution covering vertiport planning, route state line, ground crew team training, and operational system setup. We plan to replicate this model across more locations in China and overseas to support our customers and partners in launching commercial operations. It is worth noting that we are building a core mode for our operational capabilities, a professional talent system. We're actively working with the CAAC on the trial project for the administration of licenses for the ground operating crew of large civil unmanned aerial vehicles. We have completed multiple rounds of validation and refinement of training courses. Recently, the CAAC has expanded the number of special approval license to ground operating crew for us, providing additional talent support for our upcoming commercial operations. Beyond meeting immediate operational needs, This initiative is helping establish a long-term industry talent training system. Together with RegoLitter, we are converting our frontline operational experience into standardized training procedures. This helps establish professional stances for a new generation of aviation talents and strengthens the safety foundation of the industry. Over time, this training framework will enable us to support partners and export our operational capabilities as commercial operation expands. On the international front, the Thailand AAM sandbox program remains our key focus. Since its launch in October last year, we have completed a series of verification flights and ongoing trial operations. We are now working closely with the Civil Aviation Authority of Thailand to obtain the first commercial operation license under the sandbox initiative. If approved, this could become the first overseas commercial operation of a pilotless human-carrying vehicle. The initial center box areas are planned near the Impact Challenger International Convention Center in Bangkok, which will also host the ICAO Second Advanced Air Mobility Symposium, or AAM, 2026. The CAAT and our local partners have set a clear goal of operating up to 100 Avito aircraft across 20 center box areas by the end of 2026. Our plan is to establish Calend as a model for overseas operations and gradually replicated this model in Southeast Asia and other Belt Road markets. Overall, in 2025, we maintain a disciplined approach to growth, focusing on strengthening our product manufacturing and operational systems under a strict framework of safety and regulatory compliance. We believe that building these foundational capabilities is essential to support sustainable growth and scalable international expansion in the years ahead. At the same time, the low-altitude economy industry is entering an important policy window. China's 15 five-year plan has elevated the low-altitude economy to a level of strategic emerging pillar industry. This signals a transition from early demonstration programs to a new phase of national-level industry development. The low-altitude economy has also been formally incorporated to the newly amended Civil Aviation Law of China, which took effect in 2026. Looking ahead to 2026, we believe the company is entering a new stage of development. Over the past several years, we have been systematically building the key capabilities required for the urban air mobility industry, including aircraft R&D, airworthiness certification, smart manufacturing, and commercial operation readiness. As these financial capabilities continue to mature and integrate, we see three important shifts in our business model. First, our revenue streams will gradually become more diversified. Applications beyond passenger transportation, including logistics, area fire fighting solutions, and command and control systems are progressing steadily and could become additional growth drivers as the market evolves. Second, We are evolving from an aircraft provider to a one-stop, low-altitude operation solution provider, leveraging the operational experience of VHON General Aviation and HIA Aviation, along with our standardized operating systems. We will offer integrated solutions to customers. These include aircraft deliveries, vertical construction, route planning team, build-up and training, and operational guidance. Third, We're establishing a clear pathway for overseas expansion that combines regulatory center box programs, partnerships with the local operators, and systematic deployment of our technology and operational capabilities. Thailand is the first market where this model is taking shape, and we expect it to gradually expand to other regions, including Southeast Asia, Central Asia, and the Middle East as global regulatory framework continue to evolve. Overall, we remain committed to a strategy of safety first and disciplined execution. For 2026, we are targeting 600 million RMB of annual revenues while continuing to scale the business at a more steady pace. As the industry is still in its early stages, we'll continue to work closely with regulators, partners, and local governments to help move the low-attitude economy from demonstration programs to a broader commercial adoption. unlocking the long-term potential of urban air mobility as a new form of transportation. Now, I'll turn it over to our CFO, Connor, to walk us through the financial results. Hello, everyone. Before I go into the details, please note that all numbers presented are in RMB unless otherwise stated. A detailed analysis is available in our earnings price release on the IR site. Now, I'll present some key financial data. In Q4 2025, revenues were 243.8 million RMB up, 48.4% year-over-year, and 163.6% sequentially. The quarterly increase was primarily driven by higher sales volume of our products, including 95 units of EH216 series and 5 units of VT35 delivered this quarter. For the full year, the total EBITDA deliveries reached 221 units, Revenues totaled 509.5 million RMB, representing 11.7% increase year-over-year, surpassing our annual guidance. This growth reflects a sustained market demand for our products, as well as our effective execution and delivery management, customer support, and commercial operation readiness. Gross margin in Q4 was 62.1%, improving from 60.7% in Q4 of 2024 and 68.2%. 8% in Q3 of 2025. For the full year of 2025, gross margin was 62%, improving from 61.4% in 2024. As production scale expanded, overall cost efficiency continued to improve. Overall, the company maintained a gross margin above 60%, reflecting our strong product competitiveness, scaling production capability, and displaying cost management in the eVito sector. Turning to operating expenses, in Q4, adjusted operating expenses defined as operating expenses excluding share-based compensation were 99.3 million RMB, representing a 26% year-over-year increase from 78.8 million RMB in Q4 2024 and an 11.4% increase from 89.1 million RMB in Q3 2025. For 2025, adjusted operating expenses were 348.9 million RMB, representing a 20% increase from 290.1 million in 2024. The increase in operating expenses was primarily driven by the continued R&D innovation, expansion of our product sales, and the company's commercialization efforts. As we scale our business, we have strategically expanded our sales network, strengthened our operations team, and added key R&D talents. While maintaining ongoing investments in the development and iteration of new EVITO models like VT35 and EH216F series and etc., and related technologies to enrich our product pipeline and lay the groundwork for future revenue streams. As the company's revenue continues to grow with operating expenses increasing modestly, operating efficiency has been steadily improving, particularly in the fourth quarter, where overall profitability saw a significant improvement. In the fourth quarter, we achieved our first quarter of cap profitability with net income reaching 10.5 million RMB. Adjusted operating income for the fourth quarter reached 54.3 million RMB, representing a year-over-year increase of 99.5% and a substantial sequential turnaround from a loss. Adjusted net income for the fourth quarter was 71.5 million RMB, up 96.4% year-over-year, also achieving a sequential return to profitability. On a full-year basis, the company recorded its second consecutive year of profitability under non-GAAP measures, with adjusted net income of 29.4 million RMB in 2025. This not only underscores that we have captured the right direction for profitable growth, but also demonstrates our ability to transfer the operating leverage into sustainable financial returns. Looking ahead to 2026, the company will continue to advance the commercial operations and sales of the EH216S, expand its non-passenger business, and further penetration into international markets. Full-year total revenues are expected to reach 600 million RMB, representing a year-over-year increase of approximately 18%. As our manufacturing and operational systems continue to mature, overseas sandbox projects progress, global market expansion accelerates, and ongoing investment in next-generation products, the foundation for our long-term growth continues to solidify. This requires us to strike a balance between strategic execution and financial display in our resource allocations, ensuring that every investment translates into sustainable long-term value. We will remain committed to controlling risks and enhancing efficiency amid our expansion, solidifying the financial foundation for the next phase of high-quality and sustainable growth, and delivering long-term and stable value to our shareholders. Thank you.

Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question. We'll now pause a short moment while questions register.

Thank you.

Your first question comes from Peggy Wong with MS. Please go ahead.

Hi, this is Peggy from . Thank you for taking my questions, and congratulations on good post-graduate results. So I have two questions today. First, it's about the license for ground operating crew since we now expect to begin commercial operation in China soon. So could management team please share some more color on the progress of getting those required license for the crew team? And the second one is about the project in Thailand. Since we're also close to obtain license for commercial operation, What is the expected timing of revenue contribution? And how will the volume ramp up going forward? So these are my questions. Thank you.

I'm Peggy from Morgan Stanley.

Thank you for accepting my question.

Congratulations on our long-term fourth quarter performance. I have two questions. The first question is about our ground personnel. 我的第二个问题是关于泰国的进展情况 我知道我们即将在泰国拿到首张商业运行的执照 那么请管理层能不能给更多的介绍一下关于我们的时间线以及什么时候能够 What is the trend of the corresponding performance contribution and future growth?

Can you share it?

Hello everyone, I am Wang Zhao. I will answer the first question. We are still continuing to promote the training project of the manipulator. All training materials have been submitted to the Civil Aviation Bureau for review. There are also many batch courses available. It is expected that the first batch manipulator can be opened in the first half of the year.

This is Wang Zhao. I'll take your first question.

As mentioned previously, we are still moving forward with the operator training program. All training materials have been submitted to the CAAC for approval, and several courses have already been authorized. We expect the first class for operators to begin in the first half of the year.

The good news is that to encourage qualified operators to conduct early commercial operations, the authorities have

the number of specially authorized operators for Ehan. In the short term, we can conduct commercial operations through these operators. In the long term, we will replenish our talent pool through the operator training program. Thank you.

This is Connor. I will take your second question.

Ever since last October, we have been conducting extensive test flights and trial operations in Thailand. The civil aviation authorities of China and Thailand have communicated thoroughly, and they have reached a consensus on neutral airworthiness recognition. This work is now nearing completion.

We expected to obtain the first overseas commercial operation license for the EH216-S pilotless EVTO aircraft following final approval.

from the Civil Aviation Authority of Thailand. So this would mean that we would truly achieve a normalized urban air mobility services.

具体的商业运营点在陆续规划当中, 在我们将获得泰国沙盒运行许可证之后, 当地的客户计划进行采购的订单和批量交付。 如果进展顺利的话, 有机会在二季度, With the specific to the commercial operation sites, they are still under planning.

So it will be through the sandbox initiative. So once obtaining the sandbox commercial operation permit, the local customers will start to move forward with the purchase orders. and deliveries, so we are expecting that to start in Q2. If the progress goes smoothly, there could be dozens of units for the full year of 2026.

Thank you. Thank you.

Your next question comes from Wei Shen with UBS.

Please go ahead. First of all, congratulations to the company for achieving a good result. I have two questions to ask. One is to ask, is there any change in the domestic air-to-air policy? Because we saw that there are more words about the air-to-air economy in the meeting. The second is to ask about the overseas market. Does the company have a general sales guide? Thank you.

This is from UBS. Thank you, management, for taking my question, and congratulations on strong results. So I've got two questions. One is on the current policy changes in the domestic low-altitude industries, because we saw more colors mentioning about this industrial sector in the two sessions meetings. And my second question is on the overseas market sales guidance, whether management could share any. Thank you.

My name is Wang Zhao. Let me answer the first question. We believe that the overall red light environment in the year of 2026 is better than the one in 2025. The wrong planning has already implanted the low-income economy into this new infrastructure industry. The resource cleaning and policy support of the future low-income industry will be greatly enhanced. The development of the low-income economy has also contributed to the development of the new Civil Aviation Act this year, which will take effect in July this year.

This is Wang Jie. I'll take your first question.

Generally, we believe the overall macro environment in 2026 will be better than in 2025. As you know, the 15 to five-year plan has lifted the low-altitude economy to emerging pillar industry or strategic pillar industry. And the level of or intensity of resource allocation and policy support for this industry will be greatly enhanced in the future. And also, the development of the low-altitude economy was included in the newly issued civil aviation law, which will take effect this July.

This means that the industry will enter the legalization stage. So this means the industry is entering a new stage where it's

are going to be ruled by law, governed by law, and regulations and standard systems at all levels will be gradually established. This is a necessary path for the new aviation industry. For Ehan, we are at the forefront of this industry, and we are contributing firsthand experience to the standard construction. And also, we expect the overall market environment to improve. Thank you.

I'm Connor, and I'll answer the second question. In 2026, our revenue was only 6 billion RMB. In 2025, the overall overseas income ratio is the lowest. And this year, with overseas and Thai businesses falling, it is expected that overseas income will increase significantly last year, and there will be a chance to reach this two-digit ratio.

This is Connor. I'll take your second question.

On the overseas revenue, so the overall revenue guidance for 2026 is 600 million RMB. The overseas revenue in 2025 was in low single digit as a percentage. Looking ahead to this year, as the overseas commercial operations take place in countries like Thailand, The overseas revenue is expected to increase significantly compared to last year. If things progress well, we may expect to see the revenue contribution move into the double digit as a percentage of the overall revenue.

This is it. Your next question comes from Laura Lee with Deutsche Bank. Please go ahead.

Hey, thank you for taking that question. So I want to ask about revenue guidance. So what are the assumptions and the opinion that, because you talk about diversifying the revenue through different models or the service revenue versus aircraft delivery or the OEM model versus operator model or the overseas market. So how do you see this play out during this and next year? Thank you.

I'm from... You... So, Laura Lee, right? Yes. Okay.

I'm from the bank of Beijing, Laura Lee. First of all, I'd like to thank the management for accepting my question. And congratulations on your long-term performance. My question here is mainly about the value-added interest we gave this year. We gave 600 million yuan in revenue. Then I would like to ask if the management can do some further disassembly of this target. For example, we have previously mentioned that through different product models or configurations, as well as through diversification, through providing commercialized services and OEM and other forms to diversify our income.

So how do you see us implementing some of these plans this year?

This is the conference operator. We have temporarily lost connection with the speaker line. Please continue to hold. The conference will recommence shortly.

请大家短暂的等待一下我们的主线暂时的中更。 我们稍等管理层接近了。 谢谢。

Thank you. The speaker line has rejoined the call. You may now proceed. Apologies, we have lost connection with the speaker line. Once again, we will pause shortly and proceed once they rejoin.

Please wait patiently. Thank you. Thank you.

Thank you for holding.

The speaker line has rejoined the call. You may now proceed.

刚才有听到问题吗?

可以麻烦重复一下吗?谢谢。 飞鸡银行,洛尔利,这边提问。 我们今年给出的业绩指引目标是6亿人民币。 Hello, I'm Wang Zhao. Let me answer this question.

In addition to the disaster relief business, we will indeed develop non-disaster relief plans this year, such as emergency fire, logistics, and GD 4.0, and the command and control system of the drone. As you can see, we have delivered eight firefighters in December. At the same time, during the Chinese Spring Festival this year, 22,580 drone team performances were held, which also gave the industry a new Guinness World Record.

This is Wang Jiao. I'll take your question. Well, in addition to the human-carrying eVeto business, we will proactively develop the non-passenger segment this year, such as emergency firefighting, logistics, GD4.0 drone formations, and command and dispatch systems. You can see that actually we delivered eight firefighting aircraft in December 2025. Meanwhile, during the Chinese Spring Festival Gala, our formation performance of 22,580 drones earned Yihong a new Guinness World Record and attracted significant attention.

This, like I said, attracted significant attention for Yihan, leading to a surge in inquiries for this business.

These are all achievements from our diversified aircraft models and non-passenger business.

随着我们三月份开放商业化运营对公众售票, 一行通行会产生一定的运营服务收入, 当然初期对整体运营的贡献不会很大, 但是它是一个非常好的开端,谢谢。

With our opening of commercial operations and ticket sales to the public in March, Ehang General Aviation will generate some operational service revenue. But of course, the initial contribution to the overall revenue won't be large. But nevertheless, this is a good start. Thank you.

Thank you. Our next question comes from Fiona Liang with Bank of America. Please go ahead.

Hi. Thank you for taking my questions. I have two questions for the management. The first one is about our commercial operation plan in this month in China. So initially, how do we expect the fixed size of our commercial operation in the two cities in China? And given the current fair price, how do we think about the unit economy model And what's the profit margin of this operation?

I'm from Bank of America, Fianna.

What I want to ask is, we are about to start commercialization in the main core city of China. I want to ask how much is our current price? And how much is the profit rate brought by our business model?

Thank you.

Oh, apologies. How much is the profit rate brought by our business model?

Initially, there will be around 6 to 10 aircraft

and we will gradually increase the number of evitos to be used for the commercial operations. And the early bird ticket price for each passenger is set at 299 RMB per person, which will basically cover the flight costs. With the specific data, I think we'll have to give it a period of time before we can disclose further details to the public.

Thank you. My second question is about our cost control. Yihang had a very good OTAX control in the last quarter in 2025. So what's the reason behind that? Looking at 2026, how do we expect the OTAX and also the OTAX to sales ratio?

我的第二个问题是关于我们的费用率,那我们明显在过去一年当中的OPEX控制的非常好,那比预期要低一点,那我想问一下背后的原因是什么? 那么另外展望今年的OPEX,那这个和我们的营收增速相比会有什么样的一个预期呢?谢谢。

My name is Connor. I will answer this question. In terms of the overall cost in 2025, especially the SPC, which is the total cost of blood donation, it is a little lower in 2024, so the overall RPEX is a little lower than the previous one. In the year of 2026, in the year of 2026, the overall RPEX is expected to be lower than the previous one. Thank you. This is Connor.

I'll take your second question. Yes, you're right.

Overall, the SBC expenses in 2025 were lower in that of 2024. So that resulted in a smaller than expected increase in OPEX. Looking ahead to 2026, the year-over-year growth rate for OPEX is expected to be lower than our revenue growth rate. We are setting our revenue growth year-over-year at 18, and our OPEX is going to be definitely lower than that.

Thank you. That's all of my questions.

Okay. That's all of my questions.

Thank you. Your next question comes from Alan Lau with Jefferies. Please go ahead.

Hello. Thank you for taking my questions. And congratulations to the company for the strong results in 4Q and also achieving commercial operation in March. So my first question is regarding to the the strong delivery in fourth quarter. So we saw the company deliver 100 units on a single quarter. So we'd like to know who are the major clients contributing to such strong delivery, and do you expect further orders from the same clients? Thank you.

I'm Alan from Jefferies. Thank you for accepting my question.

Congratulations to the company for its strong performance in the fourth quarter and good operating progress. My question is, considering that our fourth quarter has a significant increase in delivery, I would like to ask which are the clients that we are forced to contribute to, and will we expect these clients to purchase or place more orders?

Thank you.

I'm Wang Zhang. Let me answer this question. Then the sales growth of the fourth quarter is mainly the result of 25 years of market promotion throughout the year. Many customers are not the new customers of the fourth quarter, but the previous few quarters have been discussing specific operation plans and business scenarios.

This is Wang Jiao.

The growth in the Q4 deliveries was primarily the result of the year-long marketing effort in 2025. Many of them were not new Q4 customers, but actually customers who we have been discussing specific operational plans and scenarios over the previous quarters with. And that finally resulted in the deliveries.

And like I said, so the

Engagement with these clients finally lead to the deliveries in Q4. Some of them were repeat customers, and the key contributions come from clients from Hefei, Wencheng, Xiamen, Guizhou, Sichuan, and Guangzhou, and we expect some repeat orders or purchases from repeat customers as well in the future.

Thank you. That's very clear. And then my second question is regarding to the commercial operation in March. So we'd like to know some specifics. Firstly, do we have an exact date on when the app will be launched or the public can book their flights in Logan? And then is it 0.8 to 0.8 flight and each time it's one or two persons? Thank you.

The second question is about the commercialization operation that we are about to start in March. I would like to ask if we currently have a specific date, that is, the public can book tickets through the platform, that is, at the location of our Luogang Park. The other specific flight is from point A to point B. Such a form has been developed, and the number of passengers per time is one or two people.

Thank you.

Yes, our commercial operations will be launched in March. We haven't yet disclosed the exact date as we are still fine-tuning the booking platform, the mini program. But operational readiness-wise, we are ready. And as for the route, the flight is for tourism purposes. and it's from point A to point B, carrying one passenger. We believe this is enough to fulfill the needs of the customer.

Thank you.

Your next question comes from Chen Yu with Guangfa Securities. Please go ahead.

Okay. Thank you, Mr. Guan. I have one more question to ask. About the progress of this OC, I want to know how far the progress of the OC of other customers has come. Or how does the company promote and support the OC of other customers, including whether there is such a time schedule. And then this is the first question. The second question, I'm not sure if the teacher asked before, because I got in too late. Thank you, management, for taking my question.

So my question is on the OC application for the existing customers or clients. So what is the company doing? On the company side, what initiatives or efforts is the company putting in to facilitate the OC application? Are there any timelines that can be shared on the OC application for these existing clients? And my second question, I'm not sure whether any other analysts have already asked same question um are there any updates on the qc or airworthiness application for vt 35 what's the current plan are there any adjustments changes or updates on that thank you foreign

This is Wang Zhou. I'll take your first question.

There will be two customers that have obtained the OC. And their commercial operation will start to accumulate very valuable experience and become a demo project for the rest of the clients. And we expect the training for the ground crew to begin in the first half of the year. So this will start to build a solid foundation for the expertise that's needed to conduct the commercial operation. And this would also increase the talent pool required to support the commercial operations of the other clients.

很多客户包括贵州的贵美集团,他们的OK材料都已经准备上报。

and particularly our client from Guizhou has already submitted their materials for the OC and furthermore the policy environment is much more favorable compared to that in 2025 And we have done a lot of work and we are ready. So we believe as we make more progresses on these applications, there will be more customers that can apply and obtain their OCs in this upcoming year.

Thank you. At the end of the multi-selection meeting, I first talked about the right and wrong of fixed-wing flight. Then in Hefei, the key test of the public first flight was carried out. Then it was released successfully and held the first TCT meeting of our market inspection, which took a key step for the market to get evidence.

This is Feng Shui. I'll take your second question on VT35 certification progress. In Q4, our VT35 completed key tests, including multi-rotor protective transition and shutdown and locked propeller fixed wing lights. Additionally, we've also held a first TCT meeting for airworthiness review

我们目前正在开展包线试飞,目标是争取在两年内在中国取得TC认证。 And we are currently conducting flight envelope tests.

We are aiming to obtain the type certification in China within two years.

谢谢。

Thank you all. Given that time is limited, let me turn the call back to Ms.

Anne for closing remarks. Thank you very much for your time today. We look forward to our next phone call. Thank you.