Q1 2026 EHang Holdings Ltd Earnings Call

June 9, 2026

Speaker #2: Good day, ladies and gentlemen. Thank you for standing by, and welcome to the EHang First Quarter 2026 Earnings Conference Call. Please note that management’s prepared remarks and the subsequent Q&A session will primarily be conducted in Chinese.

Operator: Good day, ladies and gentlemen. Thank you for standing by, welcome to the EHang Q1 2026 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 convenience purposes only. In case of any discrepancy, the management's statement in the original language will prevail. To listen to the original remarks by the management, please join the Chinese line. Both the Chinese and English lines are open for questions, and today's call is being recorded. Now I will turn the call over to Anne Ji, EHang Senior Director of Investor Relations. Ms. Anne, please proceed.

Speaker #2: And the corresponding simultaneous or consecutive interpretation can be accessed on the English line. As a reminder, all translations are for convenience purposes only. In case of any discrepancy, the management's statement in the original language will prevail.

Speaker #2: To listen to the original remarks by management, please join the Chinese line. Additionally, both the Chinese and English lines are open for questions, and today's call is being recorded.

Speaker #2: Now, I will turn the call over to Ann Gee, EHang's Senior Director of Investor Relations. Ms. Ann, please proceed.

Speaker #3: Hello, everyone. Thank you all for joining us on today's conference call. To discuss the company's financial results, for the first quarter of 2026. The earnings release is available on the company's IR website.

Anne Ji: Hello, everyone. Thank you all for joining us on today's conference call to discuss the company's financial results for the Q1 2026. The earnings release is available on the company's IR website. Please note that 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. Huazhi Hu, our Founder, Chairman, and Chief Executive Officer. Mr. Shuai Feng, Chief Technology Officer. Mr. Zhao Wang, Chief Operating Officer. Mrs. Xiaona Li, China General Manager, and Mr. Conor 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 US 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.

Speaker #3: Please note that 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. Hua Zhihu, our founder, chairman, and chief executive officer.

Speaker #3: Mr. Shuai Feng, chief technology officer. Mr. Zhao Wang, chief operating officer. Mrs. Xiao Na Li, China General Manager. And Mr. Connor Yang, chief financial officer.

Anne Ji: Mr. Zhao Wang, Chief Operating Officer. Mrs. Xiaona Li, China General Manager, and Mr. Conor 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 US 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.

Speaker #3: 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.

Speaker #3: 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 SEC.

Anne Ji: Further information regarding this 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 Q1 2026, unless stated otherwise. With that, let me now turn the call over to our CEO, Mr. Huazhi Hu. Please go ahead, Mr. Hu. Thank you.

Speaker #3: The company does not assume any obligation to update any forward-looking statement, except as required under applicable law. Also, please note that all members presented are in R&B.

Speaker #3: And are for the first quarter of 2026, as stated otherwise. With that, let me now turn the call over to our CEO, Mr. Hua Zhihu.

Speaker #3: Please go ahead, Mr. Hu. Thank you.

Speaker #4: Hello, everyone, and thank you for joining our earnings call. In the first quarter of 2026, EHang is navigating a critical transition from certification to commercial operation.

Huazhi Hu: Hello, everyone, and thank you for joining our earnings call. In Q1 2026, EHang is navigating a critical transition from certification to commercial operation. We are fully committed to launching the world's first pilotless human-carrying eVTOL into commercial service. Today, I would like to share updates from two perspectives, the fundamental shift in regulatory environment and progress on our four core strategies. First, policy and industry developments. The biggest change in Q1 was institutional. The low altitude economy now has a solid legal foundation and policy anchor. We are moving from a policy concept stage to one truly governed by law. On the legal front, the newly revised Civil Aviation Law was passed in January and will take effect on 1 July. Formally recognizing the low altitude economy for the first time. On the regulatory front, the CAAC has established a new Low Altitude Safety Bureau.

Speaker #4: We're fully committed to launching the world's first pilotless, human-carrying eVTOL into commercial service. Today, I would like to share updates from two perspectives: the fundamental shift in the regulatory environment and progress on our four core strategies.

Speaker #4: First, policy and industry developments. The biggest change in Q1 was institutional. The low-altitude economy now has a solid legal foundation and policy anchor. We're moving from a policy concept stage to one truly governed by law.

Huazhi Hu: The biggest change in Q1 was institutional. The low altitude economy now has a solid legal foundation and policy anchor. We are moving from a policy concept stage to one truly governed by law. On the legal front, the newly revised Civil Aviation Law was passed in January and will take effect on 1 July. Formally recognizing the low altitude economy for the first time. On the regulatory front, the CAAC has established a new Low Altitude Safety Bureau.

Speaker #4: On the legal front, the newly revised Civil Aviation Law was passed in January and will take effect on July 1st, formally recognizing the low-altitude economy for the first time.

Speaker #4: On the regulatory front, the CAAC has established a new Low-Altitude Safety Bureau, while the NDRC and CAAC have formed a two-tier governance model, with the NDRC providing top-level coordination and the CAAC handling industry-specific implementation.

Huazhi Hu: The NDRC and CAAC have formed a two-tier governance model, with the NDRC providing top-level coordination and the CAAC handling industry-specific implementation. Separately, China's State Administration for Market Regulation, together with 10 government departments in China, have jointly issued the Low Altitude Economy Standard System Development Guide, aiming to establish a basic standard system by 2027. Some worry that more regulations may slow the industry down. I believe the opposite. This is a positive development. A clear regulatory and standard framework helps everyone in the industry move faster and more properly. As a pioneer, EHang is turning our certification and talent development knowhow into building blocks for industry standards. These first-mover advantages not only contribute to industry development, but also strengthen our long-term competitive moat. Meanwhile, state-owned enterprises and local governments are accelerating their deployment.

Speaker #4: Separately, China's State Administration for Market Regulation together with 10 government departments in China have jointly issued the low-altitude economy standard system development guide, aiming to establish a basic standard system by 2027.

Speaker #4: Some worry that more regulations may slow the industry down. I believe the opposite. This is a positive development—a clear regulatory and standard framework helps everyone in the industry move faster and more properly.

Huazhi Hu: This is a positive development. A clear regulatory and standard framework helps everyone in the industry move faster and more properly. As a pioneer, EHang is turning our certification and talent development knowhow into building blocks for industry standards. These first-mover advantages not only contribute to industry development, but also strengthen our long-term competitive moat. Meanwhile, state-owned enterprises and local governments are accelerating their deployment.

Speaker #4: As a pioneer, EHang is turning our certification and talent development know-how into building blocks for industry standards. These first-mover advantages not only contribute to industry development, but also strengthen our long-term competitive moat.

Speaker #4: Meanwhile, state-owned enterprises and local governments are accelerating their deployment. The low-altitude economy has been featured in the Government Work Report for three consecutive years and is now designated as one of the six emerging strategic pillar industries under China's 15th five-year plan.

Huazhi Hu: The low altitude economy has been featured in the Government Work Report for three consecutive years and is now designated as one of the six emerging strategic pillar industries under China's 15th Five-Year Plan. More cities are actively planning airspace, building vertiports, and rolling out subsidy programs. The low altitude industry ecosystem is accelerating toward maturity. Now let me turn to progress on our four core strategies for this year. Routine commercial operations, global expansion, VT-35 certification, and industrial chain integration. First, routine and scaled commercial operations remain our top priority. We have cleared the certification hurdle and are now fully focused on the commercial operation hurdle. We have obtained PC, and AC, and our two operators hold OCs.

Speaker #4: More cities are actively planning airspace, building vertiports, and rolling out subsidy programs. The low-altitude industry ecosystem is accelerating toward maturity. Now, let me turn to progress on our four-core strategies for this year.

Speaker #4: Routine, commercial operations, global expansion, VT-35 certification, and industrial chain integration. First, routine and scaled commercial operations remain our top priority. We have cleared the certification hurdle and are now fully focused on the commercial operation hurdle.

Huazhi Hu: Routine commercial operations, global expansion, VT-35 certification, and industrial chain integration. First, routine and scaled commercial operations remain our top priority. We have cleared the certification hurdle and are now fully focused on the commercial operation hurdle. We have obtained PC, and AC, and our two operators hold OCs.

Speaker #4: We have obtained TC, PC, and AC, and our two operators hold OCs. Over the past year, we have continued to refine the entire operational chain: ticketing, insurance, aerospace approval, maintenance, charging, infrastructure, crew training, and command and control systems.

Huazhi Hu: Over the past year, we have continued to refine the entire operational chain, ticketing, insurance, aerospace approval, maintenance, charging infrastructure, crew training, and command and control systems to launch the world's first commercial pilotless human-carrying eVTOL service. We are now working closely with the regulator to fine-tune our operational capabilities and to make the final push from internal trial operations to public ticketed service. That day will not be far away. The market demand is real. Take our RMB 299 experience ticket as an example. We continue to receive a large volume of inquiries asking, When can I buy a ticket and take a flight? This reflects a strong public enthusiasm for eVTOL commercial flights. Importantly, our operational capabilities extend beyond passenger eVTOLs. Our formation drone fleet has years of proven experience. In February, our new GHOSTDRONE 4.0 drones completed 22,580 units of formation flights, setting a Guinness World Record.

Speaker #4: To launch the world's first commercial pilotless human-carrying eVTOL service. We're now working closely with the regulator to fine-tune our operational capabilities and to make the final push from the internal trial operations to public ticketed service.

Speaker #4: That day will not be far away. The market demand is real: take our 299 RMB experience ticket as an example. We continue to receive a large volume of inquiries asking, when can I buy a ticket and take a flight?

Huazhi Hu: That day will not be far away. The market demand is real. Take our RMB 299 experience ticket as an example. We continue to receive a large volume of inquiries asking, When can I buy a ticket and take a flight? This reflects a strong public enthusiasm for eVTOL commercial flights. Importantly, our operational capabilities extend beyond passenger eVTOLs. Our formation drone fleet has years of proven experience. In February, our new GHOSTDRONE 4.0 drones completed 22,580 units of formation flights, setting a Guinness World Record.

Speaker #4: This reflects a strong public enthusiasm for eVTOL commercial flights. Importantly, our operational capabilities extend beyond passenger VTOLs. Our formation drone fleet has years of proven experience.

Speaker #4: In February, our new GD-4.0 drones completed 22,580 units of formation flights, setting a Guinness World Record. In Q1, the proportion of revenue from the aerial media solution increased noticeably.

Huazhi Hu: In Q1, the proportion of revenue from the aerial media solution increased noticeably. The experience, processes, and teams we have built through these large-scale, highly reliable unmanned aircraft operations will directly benefit EH216-S commercialization. As the saying goes, the last leg of the journey marks the halfway point. Obtaining the four certificates was only the first half. The real second half is the commercial operation. In the global eVTOL industry, EHang remains the only company with the TC, PC, AC, and the license for commercial operations. The first-mover advantage here is not a short sprint nor a manufacturing race. It is an operational race. Who can run a safe, sustainable commercial model? Second, deepening our global footprint. We are making steady progress overseas. The Thailand AAM Sandbox program continues with the routine validation flights.

Speaker #4: The experience, processes, and teams we have built through these large-scale, highly reliable unmanned aircraft operations will directly benefit EH216S commercialization. As the saying goes, the last leg of the journey marks the halfway point.

Speaker #4: Obtaining the four certificates was only the first half. The real second half is the commercial operation. In the global eVTOL industry, EHang remains the only company with TC, PC, AC, and the license for commercial operations.

Huazhi Hu: In the global eVTOL industry, EHang remains the only company with the TC, PC, AC, and the license for commercial operations. The first-mover advantage here is not a short sprint nor a manufacturing race. It is an operational race. Who can run a safe, sustainable commercial model? Second, deepening our global footprint. We are making steady progress overseas. The Thailand AAM Sandbox program continues with the routine validation flights.

Speaker #4: The first-mover advantage here is not a short sprint, nor a manufacturing race. It is an operational race—who can run a safe, sustainable commercial model?

Speaker #4: Second, deepening our global footprint. We are making steady progress overseas. The Thailand AAM Sandbox program continues with the routine validation flights. To address hot weather conditions, we completed a battery cooling vehicle testing in Thailand and Gwangju this month, adding independent cooling systems that significantly improve charging efficiency in a passenger comfort.

Huazhi Hu: To address hot weather conditions, we completed a battery cooling vehicle testing in Thailand and Guangzhou this month, adding independent cooling systems that significantly improve charging efficiency and passenger comfort. We are also actively working with Civil Aviation Authority of Thailand to issue EH216-S' first overseas operating license. Our experience in Thailand Sandbox has become an important reference for our global expansion. Third, accelerating VT-35 certification and commercialization. Certification for VT-35, our new longer-range pilotless human-carrying eVTOL is progressing steadily. In Q1, we completed multiple system function and flight performance tests and held in-depth discussions with the CAAC on certification basis. Our VT-35 will support future intercity and regional air mobility, enriching our product portfolio. At the same time, we are developing non-human-carrying models, including firefighting and logistics for more application scenarios to further expand our addressable market. Fourth, strengthening industrial chain integration.

Speaker #4: We're also actively working with Civil Aviation Authority of Thailand to issue EH216S's first overseas operating license. Our experience in Thailand Sandbox is becoming an important reference for our global expansion.

Speaker #4: Third, accelerating VT-35 certification and commercialization. Certification for VT-35, our new longer-range pilotless human-carrying eVTOL, is progressing steadily. In Q1, we completed multiple system function and flight performance tests and held in-depth discussions with the CAAC on certification basis.

Huazhi Hu: Certification for VT-35, our new longer-range pilotless human-carrying eVTOL is progressing steadily. In Q1, we completed multiple system function and flight performance tests and held in-depth discussions with the CAAC on certification basis. Our VT-35 will support future intercity and regional air mobility, enriching our product portfolio. At the same time, we are developing non-human-carrying models, including firefighting and logistics for more application scenarios to further expand our addressable market. Fourth, strengthening industrial chain integration.

Speaker #4: Our VT-35 will support future inner-city and regional air mobility, enriching our product portfolio. At the same time, we are developing non-human-carrying models, including firefighting and logistics for more application scenarios, to further expand our addressable market.

Speaker #4: Fourth, strengthening industrial chain integration. We are turning our first-mover certification and ecosystem experience into industry consensus. EHang is not only China's leader in pilotless human-carrying eVTOL certification but also the earliest practitioner and contributor to national and industry standards for unmanned aircraft in China.

Huazhi Hu: We are turning our first-mover certification and ecosystem experience into industry consensus. EHang is not only China's leader in pilotless human-carrying eVTOL certification, but also the earliest practitioner and contributor to national and industry standards for unmanned aircraft in China. As the world's first mover about to enter routine commercial operation, we are taking steady steps to strengthen our operational capabilities and build a compliance mode. At the same time, we are integrating R&D, manufacturing, supply chain, and quality systems to improve end-to-end efficiency and scale delivered capability. In closing, I want to reiterate, the low altitude economy is a long-term strategic arena with deep potential. EHang will never lose sight of safety, compliance, and operational quality. We are committed to being long-term players who shape eVTOL industry standards with craftsmanship so that China-developed and China-operated pilotless eVTOLs will continue to lead the global low altitude mobility market.

Speaker #4: As the world's first mover about to enter routine commercial operation, we are taking steady steps to strengthen our operational capabilities and build a compliance moat.

Speaker #4: At the same time, we're integrating R&D, manufacturing, supply chain, and quality systems to improve and add efficiency and scaled delivery capabilities. In closing, I want to reiterate: the low-altitude economy is a long-term strategic arena with deep potential.

Huazhi Hu: At the same time, we are integrating R&D, manufacturing, supply chain, and quality systems to improve end-to-end efficiency and scale delivered capability. In closing, I want to reiterate, the low altitude economy is a long-term strategic arena with deep potential. EHang will never lose sight of safety, compliance, and operational quality. We are committed to being long-term players who shape eVTOL industry standards with craftsmanship so that China-developed and China-operated pilotless eVTOLs will continue to lead the global low altitude mobility market.

Speaker #4: EHang will never lose sight of safety, compliance, and operational quality. We're committed to being long-term players who shape eVTOL industry standards with craftsmanship. So that China developed and China operated a pilotless eVTOLs will continue to lead the global low-altitude mobility market.

Speaker #4: I will now turn the call over to our CTO, Shai Feng. Thank you.

Huazhi Hu: I will now turn the call over to our CTO, Xu Haifeng. Thank you. Thank you, Mr. Hu. Hello, everyone. I am Xu Haifeng. In Q1 2026, our work focused on three priorities, product R&D and upgrades, certification progress, and commercial operation support. On one hand, we accelerated VT-35 development and certification. On the other, we continued to optimize the EH216-S performance, operational efficiency, and passenger experience to support upcoming operations, strengthening the foundation for scaled deployment. Number one, VT-35 progress. VT-35 R&D and certification progressed steadily in Q1. The program has now entered the certification basis definition stage, where we are working closely with the CAAC to establish the safety evaluation framework. We are engaged in in-depth discussions on special conditions, safety objectives, and performance requirements. On the engineering side, critical ground and flight tests are advancing as planned to validate system functionality, flight performance, and safety redundancy.

Huazhi Hu: I will now turn the call over to our CTO, Xu Haifeng. Thank you.

Speaker #1: Thank you, Mr. Hu. Hello, everyone. I am Shai Feng. In Q1 2026, our work focused on three priorities: product R&D and upgrades, certification progress, and commercial operation support.

Shuai Feng: Thank you, Mr. Hu. Hello, everyone. I am Shuai Feng. In Q1 2026, our work focused on three priorities, product R&D and upgrades, certification progress, and commercial operation support. On one hand, we accelerated VT-35 development and certification. On the other, we continued to optimize the EH216-S performance, operational efficiency, and passenger experience to support upcoming operations, strengthening the foundation for scaled deployment. Number one, VT-35 progress. VT-35 R&D and certification progressed steadily in Q1.

Speaker #1: On one hand, we accelerated VT-35 development and certification. On the other, we continue to optimize the EH216S's performance, operational efficiency, and passenger experience to support upcoming operations.

Speaker #1: Strengthening the foundation for scaled deployment. Number one, VT-35 progress. VT-35 R&D and certification progressed steadily in Q1. The program has now entered the certification basis definition stage, where we are working closely with the CAAC to establish the safety evaluation framework.

Shuai Feng: The program has now entered the certification basis definition stage, where we are working closely with the CAAC to establish the safety evaluation framework. We are engaged in in-depth discussions on special conditions, safety objectives, and performance requirements. On the engineering side, critical ground and flight tests are advancing as planned to validate system functionality, flight performance, and safety redundancy.

Speaker #1: We're engaged in-depth discussions on special conditions, safety objectives, and performance requirements. On the engineering side, critical ground and flight tests are advancing as planned to validate system functionality, flight performance, and safety redundancy.

Speaker #1: Meanwhile, the VT-35 AVDOC system has entered the detailed design stage, preparing for certification prototype manufacturing and conformity verification. Building on the EH216S certification experience and our eVTOL technical expertise, we are advancing the VT-35 efficiently, laying the groundwork for future intercity and regional air mobility.

Shuai Feng: Meanwhile, the VT-35 AV DOC system has entered a detailed design stage, preparing for certification prototype manufacturing and conformity verification. Building on the EH216-S certification experience and our eVTOL technical expertise, we are advancing VT-35 efficiently, laying the groundwork for future intercity and regional air mobility. Number two, EH216-S performance upgrades. This quarter, we focused on hot weather operational efficiency and passenger experience through targeted upgrades to battery thermal management and cabin comfort systems. On operational efficiency, to address battery thermal management challenges during high-frequency takeoffs and landings, we developed a dedicated battery cooling vehicle. It has completed production testing and is undergoing further optimization. The cooling vehicle significantly shortens battery cool-down time from high temperatures to safe operating levels, increasing daily charging cycles and flight volume. In field tests, the cooling vehicle doubled EH216-S utilization, directly supporting higher-frequency commercial flights.

Speaker #1: Number two, EH216S performance upgrades. This quarter, we focused on hot weather operational efficiency and passenger experience through targeted upgrades to battery thermal management and cabin comfort systems.

Speaker #1: On operational efficiency, to address battery thermal management challenges during high-frequency takeoffs and landings, we developed a dedicated battery cooling vehicle. It has completed production testing and is undergoing further optimization.

Shuai Feng: On operational efficiency, to address battery thermal management challenges during high-frequency takeoffs and landings, we developed a dedicated battery cooling vehicle. It has completed production testing and is undergoing further optimization. The cooling vehicle significantly shortens battery cool-down time from high temperatures to safe operating levels, increasing daily charging cycles and flight volume. In field tests, the cooling vehicle doubled EH216-S utilization, directly supporting higher-frequency commercial flights.

Speaker #1: The cooling vehicle significantly shortens battery cool-down time, bringing high temperatures down to safe operating levels and increasing daily charging cycles and flight volume. In field tests, the cooling vehicle doubled EH216S utilization, directly supporting higher-frequency commercial flights.

Speaker #1: The unit can be quickly deployed across operation sites, providing flexible and reliable thermal management for large-scale, high-density operations. On passenger experience, we upgraded the cabin air conditioning system.

Shuai Feng: The unit can be quickly deployed across operation sites, providing flexible and reliable thermal management for large-scale, high-density operations. On passenger experience, we upgraded the cabin air conditioning system. The new independent cooling system is separate from flight control and avionics circuits, so it doesn't interfere with critical functions while improving comfort. In tests, the system quickly reduces cabin temperature after prolonged sun exposure and maintains a comfortable level throughout the flight. This upgrade directly addresses a key pain point in hot climates, improving passenger experience, commercial reputation, and market acceptance. Number three, digital infrastructure for low altitude operations. Our Guangzhou Command and Control Center is now fully operational, supporting passenger, firefighting, logistic, and formation drones. It provides integrated capabilities including aerospace management, flight planning, dispatch approval, real-time monitoring, operation records, and risk alerts.

Speaker #1: The new independent cooling system is separate from flight control and AVDOC circuits. So it doesn't interfere with critical functions while improving comfort. In tests, the system quickly reduces cabin temperature after prolonged sun exposure and maintains a comfortable level throughout the flight.

Speaker #1: This upgrade directly addresses a key pain point in hot climates, improving passenger experience, commercial reputation, and market acceptance. Number three: digital infrastructure for low-altitude operations.

Shuai Feng: This upgrade directly addresses a key pain point in hot climates, improving passenger experience, commercial reputation, and market acceptance. Number three, digital infrastructure for low altitude operations. Our Guangzhou Command and Control Center is now fully operational, supporting passenger, firefighting, logistic, and formation drones. It provides integrated capabilities including aerospace management, flight planning, dispatch approval, real-time monitoring, operation records, and risk alerts.

Speaker #1: Our Guangzhou Command and Control Center is now fully operational, supporting passenger, firefighting, logistics, and formation drones. It provides integrated capabilities, including aerospace management, flight planning, dispatch approval, real-time monitoring, operation records, and risk alerts.

Speaker #1: In Hefei, the Command and Control System has been deployed and is connected to the city's low-altitude sensing network and Hei Aviation's operational data. Together, these platforms establish a solid foundation for regional, scaled low-altitude operations management.

Shuai Feng: In Hefei, the command and control system has been deployed and is connected to the city's low altitude sensing network and Hefei Aviation's operational data. Together, these platforms establish a solid foundation for regional scaled low altitude operations management. Number four, new product development. We are also actively advancing the R&D and flight testing of new products, including logistics and firefighting aircraft, further expanding our product portfolio and low altitude economy applications. Under our CEO, Mr. Hu's leadership, I will continue to lead our team in advancing product iterations with aviation gray standards, translating technological progress into commercial value efficiently, and providing a strong foundation for EHang's long-term growth. I will now turn the call over to our COO, Zhao Wang, for sales and operations updates. Thank you. Thank you, Mr. Feng. Hello, everyone. I am Zhao Wang.

Speaker #1: Number four, new product development. We're also actively advancing the R&D and flight testing of new products, including logistics and firefighting aircraft, further expanding our product portfolio and low-altitude economy applications.

Speaker #1: Under our CEO, Mr. Hu's leadership, I will continue to lead our team in advancing product iterations with aviation-grade standards, translating technological progress into commercial value efficiently, and providing a strong foundation for EHang's long-term growth.

Shuai Feng: Under our CEO, Mr. Hu's leadership, I will continue to lead our team in advancing product iterations with aviation gray standards, translating technological progress into commercial value efficiently, and providing a strong foundation for EHang's long-term growth. I will now turn the call over to our COO, Zhao Wang, for sales and operations updates. Thank you.

Speaker #1: I will now turn the call over to our COO, Zhao Wan, for sales and operations updates. Thank you. Thank you, Mr. Feng. Hello, everyone.

Zhao Wang: Thank you, Mr. Feng. Hello, everyone. I am Zhao Wang.

Speaker #1: I am Zhao Wan. As EHang enters a new phase of commercial operations, I want to introduce a new member of our management team, Ms. Li Xiaonan, formerly our Vice President and General Manager of East China.

Zhao Wang: As EHang enters a new phase of commercial operations, I want to introduce a new member of our management team, Ms. Li Xiaona, formerly our vice president and general manager of East China, has been promoted to China general manager. She will lead our sales, operations, and marketing teams, overseeing business development and operations management in both China and overseas markets. Over the years, Xiaona has led our East China team to build our presence in Hefei from the ground up. She established a Hefei Aviation, secured its operator certificate, built a highly effective operation system and team with strategic industrial layout covering R&D, manufacturing, and commercial operations, and delivered outstanding results. I look forward to seeing the Hefei model scale further under her leadership. Now, let me walk you through our Q1 business results and strategic plans. In Q1 2026, we achieved revenues of RMB 25.7 million.

Speaker #1: She has been promoted to China General Manager. She will lead our sales, operations, and marketing teams, overseeing business development and operations management in both China and overseas markets.

Speaker #1: Over the years, Xiaonan has led our East China team to build our presence in Hefei from the ground up. She established Hei Aviation, secured its operator certificate, and built a highly effective operations system and team.

Zhao Wang: She established a Hefei Aviation, secured its operator certificate, built a highly effective operation system and team with strategic industrial layout covering R&D, manufacturing, and commercial operations, and delivered outstanding results. I look forward to seeing the Hefei model scale further under her leadership. Now, let me walk you through our Q1 business results and strategic plans. In Q1 2026, we achieved revenues of RMB 25.7 million.

Speaker #1: With strategic industrial layout covering R&D, manufacturing, and commercial operations, and delivering outstanding results, I look forward to seeing the Hefei model scale further under her leadership.

Speaker #1: Now, let me walk you through our Q1 business results and strategic plans. In Q1 2026, we achieved revenues of $25.7 million RMB. We delivered four units of the EH216S and 1,000 units of the GD4.0 formation drones, and completed 22 drone formation performances.

Zhao Wang: We delivered 4 units of the EH216-S and 1,000 units of the GD 4.0 formation drones and completed 22 drone formation performances. The year-over-year and sequential decline in eVTOL deliveries was mainly due to the seasonal impact of the Chinese New Year holiday and customer delivery timing. Look at our revenue mix. Our aerial media business grew faster and contributed approximately 40% of the total revenue in Q1. The parallel development of our multiple business lines is driving revenue diversification, reflecting continued demand growth across low-altitude application scenarios. Looking ahead to the full year, we remain confident in our 2026 revenue target of RMB 600 million. This will be supported by the progress we have made on three strategic initiatives. First, diversified revenue streams.

Speaker #1: The year-over-year and sequential decline in eVTOL deliveries was mainly due to the seasonal impact of the Chinese New Year holiday and customer delivery timing.

Speaker #1: Look at our revenue mix, our aerial media business grew faster and contributed approximately 40% of the total revenue in Q1. The parallel development of our multiple business lines is driving revenue diversification, reflecting continued demand growth across low-altitude application scenarios.

Zhao Wang: The parallel development of our multiple business lines is driving revenue diversification, reflecting continued demand growth across low-altitude application scenarios. Looking ahead to the full year, we remain confident in our 2026 revenue target of RMB 600 million. This will be supported by the progress we have made on three strategic initiatives. First, diversified revenue streams.

Speaker #1: Looking ahead to the full year, we remain confident in our 2026 revenue target of $600 million RMB. This will be supported by the progress we have made on three strategic initiatives.

Speaker #1: First, diversified revenue streams. Beyond passenger eVTOL sales and operations, our non-human-carrying businesses, including aerial media, firefighting solutions, and command-and-control systems, are expected to become new growth drivers.

Zhao Wang: Beyond passenger eVTOL sales and operations, our non-human carrying businesses, including aerial media, firefighting solutions, and command and control systems, are expected to become new growth drivers. Second, continued overseas expansion. We expect to replicate our overseas model that combines regulatory sandbox program, local partners, and our integrated operational capabilities to drive sales and operations in Thailand and other global markets. Third, advancing domestic commercial operations. Preparation for EH216-S commercial operations has entered the final stage. We are working with the CAAC on the last mile of commercial operation. We will continue to prioritize both sales and operations, ensuring steady and compliant commercialization progress. I will now turn the call over to Xiaona for a detailed review of our Q1 execution. Thank you. Thank you, Mr. Wang. Hello, everyone. I am Li Xiaona. I am pleased to join the earnings call for the first time.

Speaker #1: Second, continued overseas expansion. We expect to replicate our overseas model that combines a regulatory sandbox program, local partners, and our integrated operational capabilities to drive sales and operations in Thailand and other global markets.

Speaker #1: Third, advancing domestic commercial operations. Preparation for EH216S commercial operations has entered the final stage. We're working with the CAAC on the last mile of commercial operation.

Zhao Wang: Third, advancing domestic commercial operations. Preparation for EH216-S commercial operations has entered the final stage. We are working with the CAAC on the last mile of commercial operation. We will continue to prioritize both sales and operations, ensuring steady and compliant commercialization progress. I will now turn the call over to Xiaona for a detailed review of our Q1 execution. Thank you.

Speaker #1: We'll continue to prioritize both sales and operations, ensuring steady and compliant commercialization progress. I will now turn the call over to Xiaonan for a detailed review of our Q1 execution.

Speaker #1: Thank Hello, everyone. I am Li Xiaonan. I'm pleased to join the earnings call for the first time. Let me walk you through our Q1 results, operational strategy, and future plans.

Li Xiaona: Thank you, Mr. Wang. Hello, everyone. I am Li Xiaona. I am pleased to join the earnings call for the first time.

Li Xiaona: Let me walk you through our Q1 results, operational strategy, and future plans. In February, we featured 16 EH216-S aircraft and 22,580 GD 4.0 formation drones at the CMG 2026 Spring Festival Gala, Hefei segment. We completed a flawless performance and set a new Guinness World Record. This appearance significantly enhanced our brand awareness and industry visibility, helped reduce the concept of low-altitude mobility to a broad public audience, and demonstrated our leadership in fleet flights, remote dispatch, and communication integration, strengthening our brand foundation for commercial partnerships and market expansion, both at home and abroad. As of May 2026, the EH216 series has accumulated over 90,000 safe flights globally in 21 countries. This long-term, stable, safe track record is our core competitive advantage in global market expansion.

Speaker #1: In February, we featured 16 EH216S aircraft and 22,580 GD4.0 formation drones, and the CMG 2026 Spring Festival Gala Hefei segment. We completed a flawless performance and set a new Guinness World Record.

Speaker #1: This appearance significantly enhanced our brand awareness and industry visibility. It helped reduce the concept of low-altitude mobility to a broad public audience, and demonstrated our leadership in fleet flights, remote dispatch, and communication integration.

Speaker #1: Strengthening our brand foundation for commercial partnerships and market expansion both at home and abroad. As of May 2026, the EH216 series has accumulated over 90,000 safe flight globally.

Speaker #1: In 21 countries, this long-term, stable, safe track record is our core competitive advantage in global market expansion. Overseas, we have achieved multiple milestones: completed the first human-carrying flight in Mexico, Latin America, and child flight permits in Thailand, Japan, South Korea, the Middle East, and Spain.

Li Xiaona: Overseas, we have achieved multiple milestones, completed the first human-carrying flight in Mexico, Latin America, and trial flight permits in Thailand, Japan, South Korea, and Middle East and Spain. On overseas strategy, we made a strategic adjustment this year, making VTC our top priority to fully open the commercial pathway in overseas markets. Given how civil aviation regulations work, we plan to leverage China's existing bilateral airworthiness agreements with 32 countries for our certification applications. Thailand is our first flagship overseas market. Five vertiport locations have been identified, and the first route survey has been completed. We have adapted our hardware, including batteries and onboard air conditioning, for hot and humid tropical environment, and are pushing hard on commercial operation permit progress. We have formed a dedicated overseas team integrating R&D, commercial airworthiness, and communications functions.

Speaker #1: On overseas strategy, we made a strategic adjustment this year, making VTC our top priority to fully open the commercial pathway in overseas markets. Given how civil aviation regulations work, we plan to leverage China's existing bilateral airworthiness agreements with 32 countries for our certification applications.

Speaker #1: Thailand is our first flagship overseas market. Five vertiport locations have been identified, and the first approved survey has been completed. We have adapted our hardware, including batteries and onboard air conditioning, for hot and humid tropical environments.

Li Xiaona: Thailand is our first flagship overseas market. Five vertiport locations have been identified, and the first route survey has been completed. We have adapted our hardware, including batteries and onboard air conditioning, for hot and humid tropical environment, and are pushing hard on commercial operation permit progress. We have formed a dedicated overseas team integrating R&D, commercial airworthiness, and communications functions.

Speaker #1: In our push for progress on the commercial operation permit, we have formed a dedicated overseas team that integrates R&D, commercial airworthiness, and communications functions. Going forward, we will systematically map out our bilateral civil aviation policies globally and develop differentiated overseas deployment plans for human-carrying and cargo aircraft, targeting key markets one by one.

Li Xiaona: Going forward, we will systematically map out our bilateral civil aviation policies globally and develop differentiated overseas deployment plans for human-carrying and cargo aircraft, targeting key markets one by one. Our domestic human-carrying air mobility network continues to expand. To date, our customers have built over 40 eVTOL operational sites across China, some of which are already in routine operation. This year, we are shifting our business focus to high-demand tourism scenarios using light asset models such as equipment leasing, joint operations, and direct sales to lower the barrier for partners while putting the existing aircraft to fly. We are prioritizing locations with high foot traffic and natural commercial appeal, such as Dali, Huangshan, and Taishan, running small-scale trials to accumulate safety data, then progressively helping customers apply for operator certification.

Speaker #1: On domestic human carrying air mobility network continues to expand. To date, our customers have built over 40 eVTOL operational sites across China. Some of which are already in routine operation.

Speaker #1: This year, we are shifting our business focus to high-demand tourism scenarios using light asset models such as equipment leasing, joint operations, and direct sales to lower the barrier for partners while putting existing aircraft to fly.

Li Xiaona: This year, we are shifting our business focus to high-demand tourism scenarios using light asset models such as equipment leasing, joint operations, and direct sales to lower the barrier for partners while putting the existing aircraft to fly. We are prioritizing locations with high foot traffic and natural commercial appeal, such as Dali, Huangshan, and Taishan, running small-scale trials to accumulate safety data, then progressively helping customers apply for operator certification.

Speaker #1: We are prioritizing locations with high foot traffic and natural commercial appeal such as Dali, Longshan, and Taishan. Running small-scale trials to accumulate safety data, then progressively helping customers apply for operator certification.

Speaker #1: To improve project execution efficiency, we have set up a dedicated sales support team that works alongside frontline teams to develop customized, integrated operation plans based on local aerospace conditions, tourism resources, and the commercial landscape.

Li Xiaona: To improve project execution efficiency, we have set up a dedicated sales support team that works alongside frontline teams to develop customized integrated operation plans based on local airspace conditions, tourism resources, and commercial landscape. On commercial operation preparation, the CAAC has raised the requirements for the world's first pilotless human-carrying eVTOL commercial operation with higher and more detailed standards. At this stage, our two OC-certified operators in Hefei and Guangzhou continue to refine their operations systems, ground support, crew training, and emergency procedures while running internal trial operations routinely and accumulating flight data and service experience. Since obtaining their OCs in March 2025, both operators have maintained a perfect safe record, zero accidents, and zero violations. As domestic benchmarks, EHang General Aviation and Heli-Eastern have completed over 3,000 of EH216S flights.

Speaker #1: On commercial operation preparation, the CAAC has raised the requirements for the world's first pilotless human carrying eVTOL commercial operation, with higher and more detailed standards.

Speaker #1: At this stage, our two OC-certified operators in Hefei and Guangzhou continue to refine their operations systems, ground support, crew training, and emergency procedures, while running internal trial operations routinely and accumulating flight data and service experience.

Li Xiaona: At this stage, our two OC-certified operators in Hefei and Guangzhou continue to refine their operations systems, ground support, crew training, and emergency procedures while running internal trial operations routinely and accumulating flight data and service experience. Since obtaining their OCs in March 2025, both operators have maintained a perfect safe record, zero accidents, and zero violations. As domestic benchmarks, EHang General Aviation and Heli-Eastern have completed over 3,000 of EH216S flights.

Speaker #1: Since obtaining their OCs in March 2025, both operators have maintained a perfect safety record, with zero accidents and zero violations. As domestic benchmarks, EHang General Aviation and HEI Aviation have completed over 3,000 EH216S flights.

Speaker #1: We have built a complete end-to-end service system covering ticket pricing, online and offline ticketing channels, customer service, and complaint handling. Flight capacity is being expanded in phases.

Li Xiaona: We have built a complete end-to-end service system covering ticket pricing, online and offline ticketing channels, customer service, and complaint handling. Flight capacity is being expanded in phases. Going forward, we'll continue to refine our standardized SOPs for passenger services, ticketing management, and vertiport operations, and then exported these proven models. Crew training progress is on track. We have completed internal instructor training for the EH216S model and submitted all required materials. The plan has been reviewed by the Central and Southern Regional Administration of the CAAC, and once formally approved by the CAAC, official training will begin. After internal instructor training wraps up in late June, we'll begin full-scale crew training. Our non-human-carrying business is an important second growth driver. We focus on two areas, firefighting and inland waterway logistics. On the firefighting side, based on real-world operational scenarios, we have identified clear product iteration directions.

Speaker #1: Going forward, we'll continue to refine our standardized SOPs for passenger services, ticketing management, and vertiport operations, and then export these proven models. Crew training progress is on track.

Speaker #1: We have completed internal instructor training for the EH216S model and submitted all required materials. The plan has been reviewed by the Central and Southern Regional Administration of the CAAC, and once formally approved by the CAAC, officer training will begin.

Li Xiaona: The plan has been reviewed by the Central and Southern Regional Administration of the CAAC, and once formally approved by the CAAC, official training will begin. After internal instructor training wraps up in late June, we'll begin full-scale crew training. Our non-human-carrying business is an important second growth driver. We focus on two areas, firefighting and inland waterway logistics. On the firefighting side, based on real-world operational scenarios, we have identified clear product iteration directions.

Speaker #1: After internal instructor training wraps up in late June, we'll begin full-scale crew training. Our non-human-carrying business is an important second growth driver. We focus on two areas: firefighting and inland waterway logistics.

Speaker #1: On firefighting side, based on real-world operational scenarios, we have identified a clear product iteration direction. R&D of the new firefighting aircraft is on schedule, and it will be formally launched to the market upon product validation together with supporting maintenance and training systems.

Li Xiaona: R&D of the new firefighting aircraft is on schedule and will be formally launched to the market upon product validation together with supporting maintenance and training systems. In the H2 of the year, we will showcase product performance through firefighting drills at various levels while actively working to get our products included in fire equipment procurement catalogs, tapping into the emergency response market. On inland waterway logistics side, we have completed site selection for test routes at Guangzhou Port and the Pearl River main channel. The project will be rolled out in phases. Near term, continue test flights and routine safety reviews. Medium term, routine delivery services on the Pearl River and expansion of our new application scenarios. Long term, replication of the proven model, application for government funding, and building a benchmark inland waterway low-altitude logistics project in China.

Speaker #1: In the second half of the year, we'll showcase product performance through firefighting drills at various levels, while actively working to get our products included in fire equipment procurement catalogs and tapping into the emergency response market.

Speaker #1: On inland waterway logistics side, we have completed final selection for test routes at Guangzhou Port, and the Pearl River main channel. The project will be routed out in phases.

Li Xiaona: On inland waterway logistics side, we have completed site selection for test routes at Guangzhou Port and the Pearl River main channel. The project will be rolled out in phases. Near term, continue test flights and routine safety reviews. Medium term, routine delivery services on the Pearl River and expansion of our new application scenarios. Long term, replication of the proven model, application for government funding, and building a benchmark inland waterway low-altitude logistics project in China.

Speaker #1: Near term, continue test flights and routine safety reviews. Medium term, routine delivery services on the Pearl River and expansion of our new application scenarios.

Speaker #1: Long-term, replication of the proven model applies for government funding and building a benchmark inland waterway low-altitude logistics project in China. On formation drone performances, the industry is seeing increasingly intense low-price competition.

Li Xiaona: On formation drone performances, the industry is seeing increasingly intense low-price competition. We are avoiding price competition and have set a clear strategy to build benchmark projects, replicate profitable models, and expand both domestically and overseas. In overseas markets, we are simultaneously rolling out formation products, leveraging local tourism resources to create routine performance venues that complement our human-carrying business. Going forward, I'll lead the sales, marketing, and operation team to execute our strategic plan steadily with dedication, efficiency, and compliance, with safety as the first priority. I will now turn the call over to our CFO, Conor Yang. Thank you. 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 press release on the IR site. Now let me walk you through the key financial data.

Speaker #1: We are avoiding price competition and have set a clear strategy to build benchmark projects, replicate profitable models, and expand both domestically and overseas. In overseas markets, we are simultaneously rolling out formation products, leveraging local tourism resources to create a routine performance venue that complements our human-carrying business.

Speaker #1: Going forward, I'll lead the sales marketing and operation team to execute our strategic plans steadily with the dedication, efficiency, and compliance with safety as the first priority.

Speaker #1: I will now turn the call over to our CFO, Conor Young. Thank you.

Speaker #2: 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 press release on the IR site.

Conor Yang: 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 press release on the IR site. Now let me walk you through the key financial data.

Speaker #2: Now, let me walk you through the key financial data. In Q1 2026, revenues were $25.7 million, on par with $26.1 million in Q1 2025, but down from $177.6 million in Q4 2025.

Conor Yang: In Q1 2026, revenues were RMB 25.7 million, on par with RMB 26.1 million in Q1 2025, but down from RMB 177.6 million in Q4 2025. The decline was mainly due to lower eVTOL deliveries, partly offset by growth from our non-human carrying business. During the quarter, we delivered 4 units of the EH216 series, compared to 11 units in Q1 2025, and 61 units of EH216 series, plus 5 units of VT-35 in Q4 2025. The lower deliveries were primarily due to seasonal factors at the beginning of the year and customer delivery schedules. On a positive note, our revenue mix continues to diversify, benefiting from increased brand visibility and growing market demand. Our aerial media business grew faster and contributed approximately 40% of total revenue in Q1, highlighting the synergies across our diversified business lines.

Speaker #2: The decline was mainly due to lower eVTOL deliveries, partly offset by growth from our non-human carrying business. During the quarter, we delivered 40 units of the EH216 series, compared to 11 units in Q1 2025 and 61 units of EH216 series plus 5 units of VT35 in Q4 2025.

Speaker #2: The lower deliveries were primarily due to seasonal factors at the beginning of the year and customer delivery schedules. On a positive note, our revenue mix continues to diversify.

Speaker #2: Benefiting from increased brand visibility and growing market demand, our aerial AI media business grew faster and contributed approximately 40% of total revenue in Q1, highlighting the synergies across our diversified business lines.

Speaker #2: Gross margin in Q1 was $62.5%, stable compared to $62.4% in Q1 2025, and up slightly from $61.6% in Q4 2025. Our consistently strong margin profile reflects continued improvements in manufacturing efficiency and supply chain management.

Conor Yang: Gross margin in Q1 was 62.5%, stable compared to 62.4% in Q1 2025, and up slightly from 61.6% in Q4 2025. Our consistently strong margin profile reflects continued improvement in manufacturing efficiency and supply chain management. Turning to operating expenses. Adjusted operating expenses defined as total operating expenses excluding share-based compensation were RMB 101.1 million in Q1, up 59% from RMB 63.6 million in Q1 2025, and up 7.9% from RMB 93.7 million in Q4 2025. The increase was driven by our continued commercialization efforts, R&D team expansion, and increased technology investment. As our business scales, we have strengthened our operational, R&D, and global expansion teams while continuing to invest in EH216 series upgrades, VT-35 development, and future generation products and core technologies to enrich our product pipeline and reinforce our long-term competitive advantages.

Speaker #2: Turning to operating expenses, adjusted operating expenses, defined as total operating expenses excluding share-based compensation, were $101.1 million RMB in Q1, up 59% from $63.6 million RMB in Q1 2025, and up 7.9% from $93.7 million RMB in Q4 2025.

Speaker #2: The increase was driven by our continued commercialization efforts. R&D team expansion has increased technology investment. As our business scales, we have strengthened our operational R&D and global expansion teams, while continuing to invest in EH216 series upgrades.

Conor Yang: The increase was driven by our continued commercialization efforts, R&D team expansion, and increased technology investment. As our business scales, we have strengthened our operational, R&D, and global expansion teams while continuing to invest in EH216 series upgrades, VT-35 development, and future generation products and core technologies to enrich our product pipeline and reinforce our long-term competitive advantages.

Speaker #2: VT35 development and future generation products and core technologies to enrich our product pipeline and reinforce our long-term competitive advantages. As we continue to invest for future growth, our near-term profitability was impacted by lower revenue scale and higher R&D expenditure.

Conor Yang: As we continue to invest for future growth, our near-term profitability was impacted by lower revenue scale and higher R&D expenditure. Adjusted operating loss in Q1 was RMB 77.1 million, compared to RMB 42.6 million in Q1 2025. Adjusted net loss was RMB 75.6 million, compared to RMB 31.1 million in Q1 2025. As of 31 March 2026, our combined cash and cash equivalents, restricted short-term deposits, and short-term and treasury investment totaled RMB 1.03 billion. This healthy cash position provides a solid support for the continued execution of our commercialization strategy, global expansion plans, and technology development programs. While near-term financial performance was impacted by delivery timing and strategic investments, we remain committed to long-term growth strategy and maintain our 2026 annual revenue guidance of RMB 600 million.

Speaker #2: Adjusted operating loss in Q1 was $77.1 million, R&B compared to $42.6 million, R&B in Q1 2025. Adjusted net loss was $75.6 million, R&B compared to $31.1 million, R&B in Q1 2025.

Speaker #2: As of March 31, 2026, our combined cash and cash equivalents restricted to short-term deposits, short-term, and treasury investments totaled $1.03 billion, RMB. This healthy cash position provides solid support for the continued execution of our commercialization strategy, global expansion plans, and technology development programs.

Conor Yang: This healthy cash position provides a solid support for the continued execution of our commercialization strategy, global expansion plans, and technology development programs. While near-term financial performance was impacted by delivery timing and strategic investments, we remain committed to long-term growth strategy and maintain our 2026 annual revenue guidance of RMB 600 million.

Speaker #2: While near-term financial performance was impacted by delivery timing and strategic investments, we remain committed to our long-term growth strategy and maintain our 2026 annual revenue guidance of $600 million, R&B.

Speaker #2: Our confidence is supported by our diversified revenue mix, continued global market progress, including the commercial breakthrough in Thailand, and the advancement of EH216's commercial operations in China.

Conor Yang: Our confidence is supported by our diversified revenue mix, continued global market progress, including the commercial breakthrough in Thailand, and the advancement of EH216-S commercial operations in China. Meanwhile, we remain focused on improving operational efficiency and capital allocation as we scale our business. We believe these efforts will strengthen our foundation for long-term growth and create sustainable value for our shareholders. Based on our confidence in the company's future and healthy cash position, our board of directors has approved a share repurchase program. Over the next 12 months, the company may repurchase up to $30 million worth of its ADSs. Repurchases will be funded from existing cash reserves, and management will execute them flexibly based on market conditions. This initiative reflects our commitment to returning value to shareholders and demonstrating our long-term confidence. Thank you all.

Speaker #2: Meanwhile, we remain focused on improving operational efficiency and capital allocation as we scale our business. We believe these efforts will strengthen our foundation for long-term growth and create sustainable value for our shareholders.

Speaker #2: Based on our confidence in the company's future and healthy cash position, our board of directors has approved a share repurchase program. Over the next 12 months, the company may repurchase up to $30 million worth of its ADSs.

Conor Yang: Based on our confidence in the company's future and healthy cash position, our board of directors has approved a share repurchase program. Over the next 12 months, the company may repurchase up to $30 million worth of its ADSs. Repurchases will be funded from existing cash reserves, and management will execute them flexibly based on market conditions. This initiative reflects our commitment to returning value to shareholders and demonstrating our long-term confidence. Thank you all.

Speaker #2: Repurchases will be funded from existing cash reserves and management will execute them flexibly based on market conditions. This initiative reflects our commitment to returning value to shareholders and demonstrating our long-term confidence.

Speaker #2: Thank you all.

Speaker #1: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. We will now pause momentarily to allow questions to register. Once again, if you wish to ask a question, please press star one on your telephone. Thank you. Your first question comes from Peggy Wang with MS. Please go ahead.

Speaker #1: If you're on a speakerphone, please pick up the handset to ask your question. We will now pause momentarily to allow questions to register. Once again, if you wish to ask a question, please press star one on your telephone.

Speaker #1: Thank ank you. Your first question comes from Peggy Wang with MS. Please go ahead.

Peggy Wang: Hello, this is Peggy from MS. Can you hear me?

Speaker #3: Hello. This is Peggy from Mercedes. Can you hear me?

Anne Ji: Yes.

Speaker #4: Yes.

Peggy Wang: Hi. Thank you for taking my questions. I have two questions for the first quarter results. I think first, I think most investors are curious about what is the expected revenue mix for the main three quarters of 2026, because we have been exploring more revenue stream from products outside of eVTOL. Could the management team give more color on the revenue mix in the following quarters? This is my first question. The second question is about the overseas business. How should we look at the contribution from the overseas market in the coming months? Thank you.

Speaker #3: Hi. Thank you for taking my questions. And so I have two questions for the first quarter results. I think first, I think most investors are curious about what is the expected revenue mix for main three quarters of 2026 because we have been exploring more revenue stream from products outside of e-motor.

Speaker #3: To the management team, could you give more color on the revenue mix in the following quarters? This is my first question. My second question is about the overseas business.

Speaker #3: So how should we look at the contribution from the overseas market in the coming months? Thank you.

Speaker #4: Thank you. All right. Well,今年的一个重要的战略是产品收入的多元化。那一季度已经显示出来了。所以在非自然业务这边呢，比如空中媒体已经形成稳定的国内外项目的储备，比如说在长沙、厦门、重庆、泰国等，预计下半年呢，表演的场次和无人机销量也会环比提升。另外，消防还有这个物流产品也在稳步的展开研发和验证工作。今年都会投入市场产生收入。所以全年的这个收入的比例来讲，我们预计在这个载人产品就是216跟这个VD35的话，应该占比会在60%左右。那另外，非载人业务的话，刚刚提到这几项产品应该在40%上下。谢谢。我来回答第二个问题，有关海外收入这一块。今年2026年我们的海外收入占比应该会明显提升。现在呢，中国民航局呢，已经与海外的32个国家取得了双边互认。那么基于这个基础，我们会优先拓展这些国家的VTC的认证。那么今年我们将把在过去海外VTC作为今年的头号的攻坚任务，依托双边协议的这个认证通道。那么组建专项团队，尤其是泰国、墨西哥等新兴项目是进展顺利的。中长期来看，海外将或将持续发力。我问贡献营运收入。

Conor Yang: Thank you. All right.

Conor Yang: 我来回答一下我们产品的这个多元化的占比。我们今年也提过，今年的一个重要的战略是产品收入的多元化，那一季度已经显示出来了。所以在非载人业务这边，空中媒体已经形成稳定的国内外项目的储备，比如说在长沙、厦门、重庆、泰国等。预计下半年表演的场次和无人机销量也会环比提升。另外，消防还有物流产品也在逐步地展开研发和验证工作，今年都会投入市场产生收入。所以全年的收入的比例来讲，我们预期在载人产品，就是EH216跟VT-35的话，应该占比会在60%左右。那另外非载人业务的话，刚刚提到这几项产品应该在40%上下。谢谢。

Conor Yang: [Foreign language]

Li Xiaona: 我来回答第二个问题，有关海外收入这一块。今年2026年，我们的海外收入占比应该会明显提升。现在中国民航局已经与海外的三十二个国家取得了双边互认。那么基于这个基础，我们会优先扩展这些国家的AQS的认证。那么今年我们先把获取海外VTC作为今年的头号的攻坚任务，依托双边协议的这个认证通道，组建专项团队。尤其是泰国、墨西哥等先行项目是进展顺利的。中长期来看，海外或将持续发力，给我们贡献营业收入。谢谢。

Li Xiaona: [Foreign language]

Speaker #5: Hello, producer. Can you hear me?

[Company Representative] (EHang): Hello, operator. Can you hear me?

[Translator]: Hello, operator. Can you hear me?

Speaker #4: Yeah. Yes.

Anne Ji: Yes.

Speaker #5: Okay. Now I'll provide the translation for Connor. So the key strategy for the company is to execute revenue diversification strategy and the results have been shown in our Q1 results.

[Company Representative] (EHang): Okay, now I'll provide the translation for Conor. The key strategy for the company is to execute revenue diversification strategy, and the results have been shown in our Q1 results. We have our projects both at home and overseas for our human carrying business as well as our GD four aerial business. The projects are scattered across both China and overseas. Some of the typical examples are projects in Changsha, Xiamen, and an overseas example would be Thailand. We are going to increase the number of performances for these GD four drone performances in the upcoming two quarters. We are also advancing the R&D for our logistics and firefighting models, and they will be rolled out to the market later this year.

[Translator]: The English version here

Speaker #5: And we have a project both at home and overseas for our human carrying business as well as our GD4A rail business. The projects are scattered across both China and overseas.

Speaker #5: Some of them are some of the typical examples are projects in Changsha, Xiamen, and the overseas example would be Thailand. And we are going to increase the number of performances for these GD4 drone performances in the upcoming few quarters.

Speaker #5: We are also advancing the R&D for our logistics and firefighting models, and they will be rolled out to the market later this year. In terms of the revenue mix breakdown for our human-carrying business, specifically speaking, that would be revenue contributed by the sales and deliveries of EH216S and the VT35.

[Company Representative] (EHang): In terms of the revenue mix breakdown for our human carrying business, specifically speaking, that will be revenue contributed by the sales and deliveries of the EH216-S and the VT-35. Together, they will contribute 60% of our revenue. For non-human carrying businesses, they are going to contribute roughly 40% of our revenue. Now moving on to the second question. The proportion of overseas revenue will increase significantly. We have made obtaining overseas VTCs, i.e., Validation of Type Certificate, our top priority this year, relying on bilateral agreement channels, and have established a dedicated team. Pioneer projects in Thailand and Mexico are progressing smoothly. In the medium to long term, overseas markets are expected to continuously contribute to revenue. Thank you.

Speaker #5: Together, they will contribute 60% of our revenue. For non-human carrying businesses, they are going to contribute roughly 40% of our revenue. And now moving on to the second question.

Speaker #5: The proportion of overseas revenue will increase significantly. We have made obtaining overseas VTCs, i.e., validation of type certificates, our top priority this year.

Speaker #5: Relying on bilateral agreement channels, and have established a dedicated team pioneer projects in Thailand and Mexico are progressing smoothly. In the medium to long term, overseas markets are expected to continuously contribute to revenue.

Speaker #5: Thank you.

Speaker #6: The next question comes from Xinwei with UBS. Please go ahead.

Operator: The next question comes from Xin Wei with UBS. Please go ahead.

Speaker #3: Good morning. 我想问两个问题。一个是关于这个毛利率，我看到一季度我们的毛利率还是在一个比较高的位置。但是我也注意到一季度我们其实有40%的营收来自飞行就是无人机飞行一些媒体收入。想问一下这块业务的毛利率是怎么样的？怎么看这样一个市场和竞争情况？然后我第二个问题其实也是想追问一下关于这个出口业务，因为我记得在去年的业绩会上公司有讲到出口的订单今年估计大概有100台左右。我不知道这个数字有没有一个更新。谢谢。另外就是时间表如何？谢谢。

Xin Wei: 各位观众晚上好，我想问两个问题，一个是关于这个毛利率，我看到一季度我们的毛利率还是在一个比较高的位置。但是我注意到一季度我们其实有40%的营收来自无人机飞行一些媒体收入，想问一下这块业务的毛利率是怎么样的，怎么看这样一个市场和竞争情况？然后我第二个问题其实也是想追问一下关于这个出口业务，因为我记得在去年的业绩会上，公司有讲到出口的订单，今年估计大概有100台左右，我不知道这个数字有没有一个更新，谢谢。另外就是时间表如何，谢谢。

Xin Wei: [Foreign language]

Speaker #5: Thank you, management, for taking my question. My first question is on the gross profit margin. As we can see, it stayed elevated in Q1.

[Company Representative] (EHang): Thank you management for taking the question. My first question is on the gross profit margin. As we can see, it stayed elevated in Q1. I also noticed that 40% of revenue from Q1 was contributed by media business or non-human carrying related services. I was wondering what's the gross profit margin for this segment, and what is the market and competition outlook is like for this segment? My second question is on your overseas business. As we have heard from management, the potential orders from overseas markets was around 100 units. I was wondering if there's any update to this number, and if you can please also provide a timeline on that. Thank you.

[Translator]: The English version here

Speaker #5: I also noticed that 40% of revenue from Q1 was contributed by media business or non-human carrying related services. I was wondering what's the gross profit margin for this segment and what is the market and competition outlook like for this segment?

Speaker #5: My second question is on your overseas business. As we have heard from management, the orders and potential orders from overseas markets were around 100 units.

Speaker #5: I was wondering if there's any update to this number, and if you can, please also provide a timeline on that. Thank you.

Speaker #4: 有关毛利率的话，一季度整体来讲就是编队表演飞机现在有这个编队表演飞机的销售，加上编队表演。那整体以编队表演飞机加表演来讲，整体的毛利率应该在50上下。那这个另外的我们载人业务的这个飞机毛利率到目前来讲到去年有所改善，所以整体的这个组合还能够维持一季度就是60%以上。那全年的话，我们也是按照这样的一个毛利率目标来努力。这是有关毛利率问题。另外出口这边呢，当然。

Conor Yang: 有关毛利率的话，整体来讲就是编队表演飞机，现在有编队表演飞机的销售，加上编队表演。那整体以编队表演飞机加表演来讲，整体的毛利率应该在50%上下。那另外一个，我们载人业务的飞机毛利率到目前来讲较去年有所改善，所以整体的组合才能够维持一季度就是60%以上。那全年的话，我们也是按照这样的一个毛利率目标来努力，这是有关毛利率问题。因为出口这边呢——

Conor Yang: [Foreign language]

Speaker #5: On the gross profit margin, the gross profit margin is—so that specifically means the gross profit margin of the sales and performance of the flight performance of the GD4.0.

[Company Representative] (EHang): On the gross profit margin, the gross profit margin is that specifically means the gross profit margin of sales and performance of the flight performance of the GHOSTDRONE 4.0, that is around 50%. For our human carrying business, that's contributing higher and higher profit margin this year. Therefore, we are seeing the overall mix staying above 60% for Q1. We also keep that as our full year target. That's on the gross profit margin.

[Translator]: The English version here

Speaker #5: That is around 50%. And for our human-carrying business, that's contributing a higher and higher profit margin this year. Therefore, we are seeing the overall G mix staying above 60% for the first quarter.

Speaker #5: And we also keep that as our full-year target. So that's on the gross profit margin.

Speaker #4: 对，有关出口这边呢，公司预计就是说全年的这个出口占销售占比应该能够比去年有所增加，能够达到这个两位数以上。那具体是多少呢，目前当然跟泰国这边的商业化进展的程度有比较大的关系。那目前我们在全力努力中泰国这边的民航局这边也是跟我们密切的这个沟通，我们当目标最目标肯定是说在今年年底有一个这个国际民航组织ICAO在曼谷举办的先进空中交通大会，就是AAM Conference，目标是在那个之前能够展开正式的商业化运营。如果这个目标可以提前一些的话，那我们就是海外的贡献可能就会有所增加，但目前我们预计就是说海外的占比收入占比可以到超过10%。

Conor Yang: 对，有关出口这边呢，公司预期，就是说全年的出口占销售占比也应该能够比去年有所增加，能够达到两位数以上。那具体是多少呢？目前当然跟泰国这边的商业化进展的程度有比较大的关系。那目前我们在全力努力中，泰国民航局这边也是跟我们密切地沟通。我们目标肯定是说在今年年底，有一个国际民航组织ICAO在曼谷举办的先进空中交通大会，就是AAM Conference，目标是在那个之前能够展开正式的商业化运营。如果这个目标可以提前一些的话，那我们海外的贡献可能就会有所增加。但目前我们预计就是说海外的收入占比可以到超过10%。

Conor Yang: [Foreign Language]

Speaker #3: 好的。

Speaker #5: And with your question on the overseas orders, we are expecting the revenue contribution to rise up to 10% of the overall revenue.

[Company Representative] (EHang): With your question on the overseas orders, we are expecting the revenue contribution to rise up to 10% of the overall revenue. However, this specific contribution is closely tied to our commercial developments in Thailand. We have been spending every effort in our communication with the CAAC. Our overall target is to launch the official commercial operation by the end of the year. Before the AAM conference is going to be held in Bangkok by the end of this year. If the commercial operation could be achieved early, we are going to see a higher contribution to the revenue from the overseas market. Thank you.

[Translator]: The English version here

Speaker #5: However, the specific contribution is closely tied to our commercial developments in Thailand. We have been making every effort in our communication with the ECAAC. Our overall target is to launch the official commercial operation by the end of the year.

Speaker #5: Before the AAM Conference is going to be held in Bangkok in the end of by the end of this year, if that if the commercial operation could be achieved earlier, we are going to see a higher contribution to the revenue from the overseas market.

Speaker #5: Thank you.

Speaker #3: Your next question comes from Alan Lau with JFRAZE. Please go ahead.

Operator: Your next question comes from Alan Lau with Jefferies. Please go ahead.

Speaker #4: Thanks for taking my question. This is Alan. So, I'd like to follow up on the question we had regarding the gross margins. What are the major cost items for the non-EVTOL business?

Alan Lau: Thanks for taking my question. This is Alan. I'd like to follow up on the question regarding the gross margins. What are the major cost items for the non-eVTOL business? Because the margin is 50%, we'd like to know what are the key cost of goods sold in that business line. The second question is there any operation data that management can share to investors regarding the operations in Hefei? Thank you.

Speaker #4: Because the margin is 50%, we'd like to know what are the key cost of goods sold in that business line? And the second question is, is there any operation data that management is can share to investors regarding to the operations in Hefei?

Speaker #4: Thank you.

Speaker #5: Thank you. 我这边第一个问题是继续追问一下此前提到的 gross profit margin，就是我们的毛利率。那我们想我想了解的是我们这个EVTOL飞行器，它的毛利润在60%左右。那其中这个成本占比最大的部件或者组件是什么呢？这是第一个问题。第二个问题是管理层可否跟我们分享一下关于合肥已经取得OC的运营商是否有收到相关的运营数据可以跟我们重复一下。

[Company Representative] (EHang): 感谢管理层接受我的提问。我这边第一个问题是继续追问一下之前提到的gross profit margin，就是我们的毛利率。那我想了解的是我们这个eVTOL飞行器，它的毛利润在60%左右，那其中这个成本占比最大的部件或者组件是什么呢？这是第一个问题。第二个问题是管理层可否跟我们分享一下，关于合肥已经取得OC的运营商，是否有收到相关的运营数据可以跟我们同步一下。

[Translator]: [Foreign language]

Speaker #4: And sorry, we're not going to clarify my first question is regarding to the non-EVTOL part. The media aerial media part, what are the cost of goods sold in that business?

Alan Lau: Sorry, I would like to clarify. My first question is regarding the non-eVTOL part. The aerial media part, what are the cost of goods sold in that business? Thank you.

Speaker #4: Thank you.

Speaker #5: Well, I更正一下我的问题。我的问第一个问题是想问一下我们的非载人业务，也就是我们的编队无人机编队表演当中，这个的主要的成本构成最大项是什么？

[Company Representative] (EHang): 我来更正一下我的问题。我的第一个问题是想问一下我们的非载人业务，也就是我们的无人机编队表演当中，这个的主要的成本构成最大项是什么？

[Translator]: [Foreign language]

Speaker #4: 对，我觉得可能一开始他的问题是非载人业务吧。那我先讲一下这个编队的。编队的话，这个业务分为编队表演加上这个编队表演飞机的这个销售。那编队表演飞机的销售的话，主要就是硬件生产成本，还有这个电池组装等等。那这个加上整体的毛利率刚刚也解释过了。那如果以编队表演的这个方式的话，那我们是按场次按这个看多少价次的这个表演的规模来算。那最主要的当然就是说这些，因为编队飞机也是我们的这个固定资产，所以这个等于编队表演飞机的这个折旧。那还有这个人员服务的相关的这些差旅费、人员费用等等算在这个编队表演。所以两个加成的话，合计计算的话大概就是在50%的毛利率。那另外如果说非载人业务，非载人业务当然含了这个消防机，消防机的话我们在毛利率会整体会高一些。那它主要的这个当然这个它的成本的话就是跟这个EVTOL一样是，比如说1/3是在这个机身相关的这个碳纤相关的，然后有1/3是在这个动力系统，比如说电池、电机相关。另外1/3的话是在一些零部零配件，就是刚刚那两部分之外的一些组件。

Conor Yang: 对，我觉得一开始他的问题是非载人业务吧。那我先讲一下编队的。编队的话，这个业务分为编队表演，加上编队表演飞机的销售。那编队表演飞机的销售的话，主要就是硬件生产成本，还有电池组装等等。那这个加上整体的毛利率，刚刚也解释过了，那如果以编队表演的方式的话，那我们是按场次，按看多少架次和表演的规模来算。那最主要的当然就是说这些，因为编队飞机也是我们的固定资产，所以等于编队表演飞机的折旧，还有人员服务的相关的这些差旅费、人员费用等等，算在编队表演。所以两个加起来的话，合计计算的话，大概是在50%的毛利率。那另外如果说非载人业务，非载人业务当然含的这个消防机。消防机的话，我们在毛利率整体会高一些，那它主要的成本的话，就是跟这个eVTOL一样，比如说三分之一是在机身相关的碳纤。然后有三分之一是在动力系统，比如说电池、电机相关。另外三分之一是在一些零配件，就是刚刚那两部分之外的一些组件。

Conor Yang: [Foreign language]

[Company Representative] (EHang): Okay. Now the sales and the performance of the drone flights, it's contributing 50% profit margin. To break it down, majority of the costs for the sales comes of the drones is first of all, the boom costs, plus the battery, the costs used occurred in the assembly line. When it comes to performing, the majority cost of that depends on the size as well as the units of the drones to be deployed for the performance. Given that these drones are possessed by the company as a fixed assets, there is a cost of depreciation, plus the cost of sending personnel and staff to operate and fly these drones at different places. Together, these form the costs of the operation and the sales. Now moving on to the non-human carrying business, specifically, we're talking about the firefighting models.

[Translator]: The English version here

Speaker #5: Okay. Now, the sales and the performance of the drone flights are contributing a 50% profit margin. To break it down, the majority of the costs for the sales of the drones are, first of all, the own costs plus the battery, the costs incurred in the assembly lines, and when it comes to performance, the majority of the cost depends on the size as well as the units of drones to be deployed for the performance.

Speaker #5: And given that these drones are possessed by the company as a fixed asset, there is a cost of depreciation, plus the cost of sending personnel and staff to operate and fly these drones at different places.

Speaker #5: So, together, these form the costs of the operation and the sales. And now, moving on to the non-humanitarian business—specifically, we're talking about the firefighting models.

[Company Representative] (EHang): It has a higher gross margin. In terms of the cost, a third of it comes from the carbon fiber material used in building the model. Another one third of the cost comes from the powertrain as well as the battery, with the remaining one third coming from the components that are used to build the model.

Speaker #5: It has a higher, well, gross margin. In terms of the cost, a third of it comes from the carbon fiber material used in building the model.

Speaker #5: Another one-third of the cost comes from the powertrain as well as the battery, with the remaining one-third coming from the components that are used to build the model.

Speaker #4: What I said that the other one to you. I know that Guangzhou Hefei的运营点位。我们合肥的运营点位目前的商业化进程已经到了最后的阶段。那么民航局集合全球首个无人驾驶载人EVTOL商业运营的项目特殊性提出了更高更细致的运营标准。自3月份到现在已经与民航局展开了多次活动会议，每次会议都向着商业化运营能够前进一步。所以我们内部的试运营工作依然是常态化开展，不断累积安全的飞行经验。

Zhao Wang: 我来回答第二个问题。看到大家关注合肥的运营点位。我们合肥的运营点位呢，目前的商业化进程已经到了最后的阶段。那么民航局结合全球首个无人驾驶载人载物商业运营项目的特殊性，提出了更高、更细致的运营标准。自3月份到现在，已经与民航局展开了多次沟通会议，每次会议都向着商业化运营能够前进一步。所以我们内部试运营工作依然是常态化开展，不断累积安全的飞行经验。

Zhao Wang: [Foreign language]

Speaker #5: This is Wang Jiao, I'll take your second question. I know the market is keen keenly watching the progress of the operation sites in Hefei.

[Company Representative] (EHang): This is Wang Zhao. I'll take your second question. I know the market is keenly watching the progress of the operation site in Hefei. I would say it is right now in the final stage of official commercial operations. At the moment, the Hefei and Guangzhou operation sites are currently still in preparation for commercial operations. Given the unique nature of that site being the world's first pilotless human-carrying VTOL commercial operation project, the CAAC has proposed higher and stricter operational standards. Since obtaining the OC in March 2025, we have been maintaining close communications with the CAAC. We are accumulating precious and valuable trial flight data, making sure that there's no accidents or zero violations of the standards in place. Thank you.

[Translator]: The English version here

Speaker #5: I would say it is right now in the final stage of official commercial operations. At the moment, the Hefei and Guangzhou operation sites are currently still in preparation for commercial operations.

Speaker #5: And given the unique nature of that site being pilotless human-carrying VTOL commercial operation project, the CAAC has proposed a higher and stricter operational standards and since obtaining the OC in March 2025, we have been maintaining close communications with the CAAC, we are accumulating pressures and valuable trial flight data making sure that there is no accidents or zero violations of the standards in place.

Speaker #5: Thank you.

Zhao Wang: 自2025年3月份获得OC资质以来，除了合肥，也包括广州，我们合并数据是一直保持着零事故、零违规，飞行架次超过3000架次。合肥这边上次也公布过，我们定的票价是299元的往返票价。目前合肥已经准备好四架飞行器，每日飞行14个架次，相应的售票小程序也已上线。所以这些数据都是说明我们已经全面地做好了商业化公众飞行的准备。那么随着后面等民航局最终审定通过之后，我们会立即开展相应的商业飞行。谢谢。

Zhao Wang: [Foreign language]

Speaker #4: 2025年3月份获得OC资质以来，除了合肥，也包括广州，我们合并数据是一直保持着零事故、零违规。飞行架子超过3000架次，合肥这边上次也公布过我们订的票价是299元的房产票价，目前合肥已经准备好四架飞行器，每日飞行14个架次，相应的售票小程序也已上线。所以这些数据都是说明我们已经全面的做好了商业化公众飞行的准备。那么随着后面跟民航局最终敲定审定通过之后，我们会立即开展相应的商业飞行。谢谢。

Speaker #5: To supply some key data, since obtaining the OC in March 2025, the two partner or two operation sites have maintained a stable operations with a safe flight record of zero accidents and zero violations.

[Company Representative] (EHang): To supply some key data since obtaining the OC in March 2025, the two partner or two operation sites have maintained stable operations with a safe flight record of zero accident and zero violations, completing over 3,000 flights. As we have disclosed the price, early bird price we set for the Hefei operation site is RMB 299. Currently there are four units of the EH216 at this site, and they are scheduled to fly 14 flights per day. Related mini apps for ticket booking is now up and running. We are fully ready for commercial operations. Once we get to the approval from the CAAC, we will soon roll out the commercial operation. Thank you.

[Translator]: The English version here

Speaker #5: Completing over 3,000 flights, as we have disclosed, the early bird price we set for the Hefei operation site is 299 RMB. Currently, there are four units of EH216 at this site, and they are scheduled to fly 14 flights per day.

Speaker #5: Related mini apps for ticket booking are now up and running. We are fully ready for commercial operations. Once we get the approval from the CAAC, we will soon roll out the commercial operation.

Speaker #5: Thank you.

Speaker #1: Your next question comes from Loreleigh with Deutsche Bank. Please go ahead.

Operator: Your next question comes from Laura Lee with Deutsche Bank. Please go ahead.

Speaker #6: Hey, thank you for taking my question. So my first question would be, could you provide more color on the order intake so far in '26?

Laura Lee: Hey, thank you for taking my question. My first question would be could you provide more color on the order intake so far in 2026? Are the new orders mainly from existing customers or that you're seeing demand from new clients as well? My second question will be could you update the expected timeline for the operator training? Because once your program is approved, like how long it takes for the first group of the ground crew to complete the training. Thank you.

Speaker #6: Are the new orders mainly from existing customers, or are you seeing demand from new clients as well? And my second question would be: Could you update the expected timeline for the operator training?

Speaker #6: Because once your program is approved, how long does it take for the first group of the ground crew to complete the training? Thank you.

Speaker #5: 我这边有两个问题。第一个问题，管理层能否详细的说明一下2020年至今的订单的承接情况？那这些新订单主要是来自老客户还是有新的客户的潜在合作意向？我的第二个问题是关于我们的培训。那我们的首批人员培训完成多久之后可以进行相关的实际上的上岗？以上两个问题。

[Company Representative] (EHang): 我这边有两个问题。第一个问题，管理层能否详细地说明一下2020年至今的订单的承接情况，这些新订单主要是来自老客户，还是有新的客户的潜在合作意向？我的第二个问题是关于我们的培训，我们的首批人员培训完成多久之后可以进行相关的实际上的上岗？以上两个问题。

[Translator]: [Foreign language]

Speaker #4: 对，我们今年对这个全年6亿营收的这个目标保持信心。这个信心建立在这个目前已经实现了这个多元化的收入结构，还有海外突破的这个可预期性及国内商业化运营即将冲到最后冲刺的这个基础上。那所以我们预计当多数的这个最多的这个收入会在下半年体现出来。那目前有很多订单都是在同时在进行。那我们其实因为有很多订单在国内是来自于政府相关，所以它整体的这个经费的配置还有这个就是审批的程序一般来讲都在重点会在下半年。那目前我们看到当然这个有非常多的新客户有表达的这个兴趣，我们也预计今年应该会有一半以上的这个收入是来自于新开发的客户。谢谢。

Zhao Wang: 对，我们今年对全年6亿营收的这个目标保持信心。这个信心建立在这个目前已经实现了多元化的收入结构，还有海外突破的这个可预期性，及国内商业化运营即将冲到最后冲刺的这个基础上。所以我们预计当最多的这个收入会在下半年体现出来。目前有很多订单都是同时在进行。我们其实因为有很多订单在国内是来自于政府相关，对它整体的经费的配置，还有审批的程序，一般来讲重点会在下半年。目前我们看到，当然有非常多的新客户有表达的兴趣，我们也预计今年应该会有一半以上的收入是来自于新开发的客户。谢谢。

Zhao Wang: [Foreign language]

[Company Representative] (EHang): On the revenue question, we remain confident in our full-year revenue target of RMB 600 million. Actually, this confidence is based on the diversified revenue structure achieved in Q1, the predictability of overseas market breakthroughs, and domestic commercial operations entering the final sprint phase. Majority of the orders will be coming in H2. We have many orders moving in parallel. Given that a majority of the orders coming from government-related entities, institutions, or enterprises, the overall approval for the budget is primarily ready in H2. We also have seen a lot of new customers expressing strong interest in purchasing our models. We expect that over 50% of the revenue for this upcoming year is going to come from new customers.

[Translator]: The English version here

Speaker #5: On the revenue question, we remain confident in our full-year revenue target of 600 million RMB. Actually, this confidence is based on the diversified revenue structure achieving Q1.

Speaker #5: The predictability of overseas market operations is entering the final sprint phase. The majority of the orders will be coming in during the second half of the year.

Speaker #5: We have many orders moving in parallel. Given that the majority of the orders are coming from government-related entities, institutions, or enterprises, overall approval for the budget is primarily ready in the second half of the year.

Speaker #5: We have also seen a lot of new customers expressing strong interest in purchasing our models. We expect that over 50% of the revenue for this upcoming year will come from new customers.

Speaker #4: 我要回答有关操控员培训的问题。我详细解释一下整个的操控员的培训，我们大概是分为三个阶段。第一个阶段是我们把我们的所有的培训材料、课件、教材以及考试标准与民航局正式探讨，并且推进形成标准。那么今年民航局已于今年5月份正式实行大型民用无人驾驶航空器系统操控员训练要求。这份行业规范为大型无人航空器操控员的标准化培训划定了合规依据。在形成规范的过程中，一行的216S操控员试点前期的都参与了这前期的筹备与选择工作。为这项标准编制。

Li Xiaona: 我来回答有关操控员培训的问题。我详细解释一下。整个的操控员的培训，我们大概是分为三个阶段。第一个阶段，是我们把我们的所有的培训材料、课件、教材以及考试标准，与民航局正式探讨，并且推进形成标准。那么今年民航局已于今年五月份正式实行大型民用无人驾驶航空器系统操控员训练要求。这份行业规范为大型无人航空器操控员的标准化培训划定了合规依据。在形成规范的过程中，EHang的216航线操控员试点都参与了前期的筹备与现场工作。为这项标准编制大量。

Li Xiaona: [Foreign language]

Speaker #5: 抱歉，可以从头开始一下。我们刚才听的不是特别清楚。Sorry。

[Company Representative] (EHang): 抱歉，可以从头开始一下。我刚才听得不是特别清楚。Sorry。

[Translator]: [Foreign language]

Speaker #4: 好的。我详细解释一下操控员培训的过程。分为三个阶段。第一个阶段是我们与民航局共同建立大型无人机操控员培训的试点机制，并且把我们的所有的专业能力这种培训的要求形成专业的培训文件、教材、课件、标准以及相应的考试标准。今年民航局已经于5月份正式实施大型民用无人驾驶航空器系统操控员训练要求。这份行业规范为大型无人航空器操控员标准化培训划定了合规依据。在形成规范的过程中，一行EH216S操控员试点前期的筹备及审查工作都参与了。为该项标准编制输出了大量的一线实操经验。

Li Xiaona: 好的，我详细解释一下操控员培训的过程，分为三个阶段。第一个阶段是我们与民航局共同建立大型无人机操控员培训的试点机制，并且把我们所有的专业立这种培训的要求，形成专业的培训文件、教材、课件、标准以及相应的考试标准。今年民航局已经于五月份正式实施大型民用无人驾驶航空器系统操控员训练要求。这份行业规范为大型无人航空器操控员标准化培训划定了合规依据。在形成规范的过程中，EHang EH216航线操控员试点前期的筹备及现场工作都参与了，为该项标准编制输出了大量的一线实操经验。

Li Xiaona: [Foreign language]

Speaker #5: So let me explain. The crew training usually is broken down into three stages. In the very first stage, the CAAC has officially stipulated the large-scale civil pilot training or crew training mechanism.

[Company Representative] (EHang): Let me explain. The crew training usually is broken down into 3 stages. In the very first stage, the CAAC has officially stipulated the large-scale civil eVTOL pilot training or crew training mechanism. We have been deeply involved in this process. We actually supplement all the related documents, teaching materials, and everything. We also participate in making the related teaching materials and formulating the tests required to test all the training personnel. Actually, in May this year, the CAAC has already formally published the requirements for the civil eVTOL training related standards, and that actually provided a key compliant reference for the whole industry. We actually, EHang, has been deeply involved in that process, and we have actually lent our experience to this process in forming the standards.

[Translator]: The English version here

Speaker #5: And we have been deeply involved in this process. We actually supplement all the related documents, teaching materials, and everything. We also participate in making the related teaching materials and formulating the tests required to test all the training personnel.

Speaker #5: Actually, in May this year, the CAAC has already published the formally published the requirements for the civil eVTOL training related standards and that actually provided a key compliant reference for the whole industry.

Speaker #5: And we actually EHang has been deeply involved in that process and we have actually lent our experience to this process informing the standards。

Li Xiaona: 第二个阶段是内部的教员培训，也就是培训老师的培训。我们目前跟民航局这部分培训工作已经开展，并且即将结束，相关的方案已经通过了民航局的审核。这部分开展非常地顺利，已经在收尾阶段，预计在本月底完成收尾。那么第三个阶段，就是操控员试点培训的正式展开，这部分工作预计会持续到下个季度。那么这几部分工作完成之后，EHang即可进入到批量培训的这样一个过程中。我们一个培训班预计可以培训五到十名操控员，可以多个培训班同时开展，为市场提供大量的合格操控员。谢谢。

Li Xiaona: [Foreign language]

Speaker #4: 第二个阶段是内部的教员培训，也就是培训老师的培训。我们目前跟民航局这部分培训工作已经开展，并且即将结束。相关的方案已经通过了民航局的审核。这部分开展非常的顺利，已经在收尾阶段，预计在本月底完成收尾。那么第三个阶段就是操控员试点培训的正式展开。这部分工作预计会持续到下个季度。那么这几份工作完成之后，一行即可进入到批量培训的这样的一个过程中。我们一个培训班可以预计可以培训5到10名操控员，可以同时多个培训班同时开展，为市场提供大量的合格操控员。谢谢。

Speaker #5: And following the formulating the standards, is the internal training of the instructors? This process has kicked off and is about to wrap up. We have submitted associated plans which have been reviewed by the CAAC.

[Company Representative] (EHang): Following the formulation of the standards is the internal training of the instructors. This process has kicked off and is about to wrap up. We have submitted the associated plans, which has been reviewed by the CAAC. Right now, this has been progressing quite steadily. We are expecting the training of the instructor program to wrap up by the end of the month. The stage 3 is to kick off the official training of the ground crew, and that we expect it to start in the following quarters. Once all these stages have completed, EHang will be in a good position and ready to launch batch trainings. With each training group, we can train 5 to 10 personnel and with multiple classes, training groups moving in parallel. By that time, we will be ready to supply a sufficient number of qualified ground crew to the market. Thank you.

[Translator]: The English version here

Speaker #5: Right now, this has been progressing quite steadily. We're expecting the training of the instructor program to wrap up by the end of the month.

Speaker #5: And the third stage is to kick off the official training of the crew, ground crew, and that will expect it to start in the following quarters.

Speaker #5: Once all these stages have completed, EHang will be in a good position and ready to launch batch trainings with each training group. We can train 5 to 10 personnels and with multiple classes training groups moving in parallel.

Speaker #5: By that time, we will be ready to supply a sufficient number of qualified ground crew to the market. Thank you.

Speaker #2: Thank you all. Given the time is limited, let me turn the call back to Ms. Ann for closing remarks.

Operator: Thank you all. Given the time is limited, let me turn the call back to Ms. Anne for closing remarks.

Speaker #6: Okay. Thank you operator and thank you all for participating in our today's call. We understood that there are many elements and the investors still waiting on the line, but due to the time limit, if you have any further questions, please contact our IR team by email or participating in our following investor events through the calendar information provided on our IR site.

Anne Ji: Okay. Thank you, operator, and thank you all for participating on today's call. We understood that there are many analysts and investors still waiting on the line, but due to the time limits, if you have any further questions, please contact our IR team by email or participating in our following investor events through the calendar information provided on our IR website. We appreciate your interest and look forward to our next earnings call. Thank you.

Speaker #6: And we appreciate your interest and look forward to our next earnings call. Thank you.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.

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