Q2 2026 EHang Holdings Ltd Earnings Call

August 25, 2026

Operator: Good day, ladies and gentlemen. Thank you for standing by and welcome to the EHang Q2 2026 earnings conference call. Please note that management's prepared remarks and the subsequent Q&A session will be primarily 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 statement in the original language will prevail. 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. Now I will turn the call over to Anne Ji, Senior Director of Investor Relations. Ms. Anne, please proceed.

Speaker #1: 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 statement in the original language will prevail.

Speaker #1: 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 #1: Now I will turn the call over to Angie Ehang, Senior Director of Investor Relations. Ms. Anne, please proceed.

Speaker #2: Hello, everyone. Thank you all for joining us on today's conference call to discuss the company's financial results for the second 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 Q2 of 2026. The earnings release is available on the company's IR website. Please note the conference call is being recorded and the audio replay will be posted on the company's IR website. On the call today, we have Mr. Hu Huazhi, our Founder, Chairman, CEO, Mr. Feng Chun, CTO, Mr. Wang Jia, COO, and Conor Yang, CFO. Before we continue, please note that today's discussion may 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. Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC.

Speaker #2: Please note the conference call is being recorded, and the audio replay will be posted on the company's IR website. On the call today, we have Mr. Huazhi Hu, our founder, chairman, and CEO; Mr. Feng Song, CTO; Mr. Wang Jia, COO; and Connor Yang, CFO.

Speaker #2: Before we continue, please note that today's discussion may contain forward-looking statements made pursuant to the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Speaker #2: Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties is included in the company's public filings with the SEC.

Speaker #2: The company does not assume any obligation to update any forward-looking statements, except as required by law. Also, please note that all numbers presented are in RMB for the second quarter of 2026, unless stated otherwise. With that, I'll turn the call over to our CEO, Mr. Huazhi.

Anne Ji: The company does not assume any obligation to update any forward-looking statements, except as required by law. Also, please note that all numbers presented in RMB are for the Q2 of 2026, unless stated otherwise. With that, I'll turn the call to our CEO, Mr. Hu Huazhi. Please go ahead. Good day, everyone. Thank you for joining our Q2 earnings call. Since Q2, EHang has entered a vital strategic transition, moving beyond the certification toward operational readiness, scenario validation, capability development, and global expansion. Certification is just the entry ticket into commercial operations. What really determines whether a company can sustain flights and scale commercial operations is not just about having an aircraft or a certificate. It's about having an end-to-end operational capability, replicable solutions, a solid product pipeline, and the ability to deliver standardized solutions to global markets.

Speaker #2: Please go ahead. Good day, everyone. Thank you for joining our Q2 earnings call. Since Q2, EHang has entered a vital strategic transition, moving beyond certification toward operational readiness, scenario validation, capability development, and global expansion.

Hu Huazhi: Good day, everyone. Thank you for joining our Q2 earnings call. Since Q2, EHang has entered a vital strategic transition, moving beyond the certification toward operational readiness, scenario validation, capability development, and global expansion. Certification is just the entry ticket into commercial operations. What really determines whether a company can sustain flights and scale commercial operations is not just about having an aircraft or a certificate. It's about having an end-to-end operational capability, replicable solutions, a solid product pipeline, and the ability to deliver standardized solutions to global markets.

Speaker #2: Certification is just the entry ticket into commercial operations. What really determines whether a company can sustain flights and scale commercial operations is not just having an aircraft or a certificate.

Speaker #2: It's about having an end-to-end operational capability, replicable solutions, a solid product pipeline, and the ability to deliver standardized solutions to global markets. We have been investing in these areas and have made meaningful progress.

Anne Ji: We have been investing in these areas and have made meaningful progress. Of course, all of these rely on a sound regulatory environment. That is the foundation that enables qualified, capable companies to grow. In late June, a serious accident involving a piloted light sport aircraft in China has led regulators to adopt a more cautious approach to safety oversight. While unrelated to EHang's pilotless vehicles, this has affected our human-carrying commercial operations approval process in Hefei, and the timeline remains uncertain. To be clear, this is a temporary industry-wide timing issue. It reflects no change in the delivery of EHang's products, nor does it indicate any issue with our technology or safety record. Recent accidents highlight that safety, regulation, and traceability are baselines for low altitude commercialization. EHang operates with a pilotless aircraft, pre-set fixed routes, intelligent fleet dispatching, centralized monitoring.

Hu Huazhi: We have been investing in these areas and have made meaningful progress. Of course, all of these rely on a sound regulatory environment. That is the foundation that enables qualified, capable companies to grow. In late June, a serious accident involving a piloted light sport aircraft in China has led regulators to adopt a more cautious approach to safety oversight. While unrelated to EHang's pilotless vehicles, this has affected our human-carrying commercial operations approval process in Hefei, and the timeline remains uncertain. To be clear, this is a temporary industry-wide timing issue. It reflects no change in the delivery of EHang's products, nor does it indicate any issue with our technology or safety record. Recent accidents highlight that safety, regulation, and traceability are baselines for low altitude commercialization. EHang operates with a pilotless aircraft, pre-set fixed routes, intelligent fleet dispatching, centralized monitoring.

Speaker #2: Of course, all of these rely on a sound regulatory environment. That's the foundation that enables qualified, capable companies to grow. In late June, a serious accident involving a piloted light sport aircraft in China has led regulators to adopt a more cautious approach to safety oversight.

Speaker #2: While unrelated to EHang's pilot listing videos, this has affected our humanitarian commercial operations approval process in Hefei, and the timeline remains uncertain. To be clear, this is a temporary, industry-wide timing issue.

Speaker #2: It products, nor does it indicate any issue with our technology or safety record. Recent accidents highlight that safety regulation and traceability are baselines for low-altitude commercialization.

Speaker #2: EHang operates with a pilotless aircraft, pre-sets a fixed route, intelligent fleet dispatching, and centralized monitoring. Our goal is to make urban air mobility safer, more transparent, and easier to regulate.

Anne Ji: Our goal is to make urban air mobility safer, more transparent, and easier to regulate. Pilotless passenger carrying aviation fundamentally changes in how we travel. We fully understand the regulators' caution, and we respect that. It is a responsible commitment to the public safety. However, technology innovation and regulation must evolve together. More than a century ago, when automobiles first appeared, people had similar concerns about this new form of transportation. The UK passed the Red Flag Act, which required a person to walk in front of a motor vehicle carrying a red flag to warn pedestrians and limiting vehicle speed. The law was essentially old rules over-regulating new technology. History shows that safety validation, operational rules, and regulatory frameworks for disruptive transportation technologies all take time to mature. History shows technology and regulation eventually align. New forms of transport do not mature overnight.

Hu Huazhi: Our goal is to make urban air mobility safer, more transparent, and easier to regulate. Pilotless passenger carrying aviation fundamentally changes in how we travel. We fully understand the regulators' caution, and we respect that. It is a responsible commitment to the public safety. However, technology innovation and regulation must evolve together. More than a century ago, when automobiles first appeared, people had similar concerns about this new form of transportation. The UK passed the Red Flag Act, which required a person to walk in front of a motor vehicle carrying a red flag to warn pedestrians and limiting vehicle speed. The law was essentially old rules over-regulating new technology. History shows that safety validation, operational rules, and regulatory frameworks for disruptive transportation technologies all take time to mature. History shows technology and regulation eventually align. New forms of transport do not mature overnight.

Speaker #2: Pilotless, passenger-carrying aviation fundamentally changes how we travel. We fully understand the regulators' caution, and we respect that. It is a responsible commitment to public safety.

Speaker #2: However, technology innovation and regulation must evolve together. More than a century ago, when automobiles first appeared, people had similar concerns about this new form of transportation.

Speaker #2: The UK passed the Red Flag Act, which required a person to walk in front of a motor vehicle carrying a red flag to warn pedestrians and limited vehicle speed.

Speaker #2: The law was essentially old rules overregulating new technology. History shows that safety validation, operational rules, and regulatory frameworks for disruptive transportation technologies all take time to mature.

Speaker #2: History shows technology and regulation eventually align. New forms of transport don't mature overnight. EHang's role isn't to sit and wait, but to proactively provide regulators with real safety data, proven operations, and reliable technology.

Anne Ji: EHang's role is not to sit and wait, but to proactively provide regulators with real safety data, proven operations, and reliable technology. The EH216-S and its operating system have obtained all key certificates under China Civil Aviation regulatory framework, TC, PC, Airworthiness Certificate, and an Air Operator Certificate. Our end-to-end system in Guangzhou and Hefei are fully operational. Within our internal trial operations, both sites have been operating continuously and safely for around 1.5 years with a 4.94 out of 5 passenger satisfaction score. The EH216-S series have accumulated nearly 100,000 safety flights. With the demand of product certification and safety records in place, we only await regulatory approval for public ticket sales. Despite this critical transition point, we are confident that commercialization window will eventually open. Amidst uncertainty, EHang is not sitting still. We are tackling challenges head-on and finding new opportunities. Since Q2, we have been pushing hard on three things.

Hu Huazhi: EHang's role is not to sit and wait, but to proactively provide regulators with real safety data, proven operations, and reliable technology. The EH216-S and its operating system have obtained all key certificates under China Civil Aviation regulatory framework, TC, PC, Airworthiness Certificate, and an Air Operator Certificate. Our end-to-end system in Guangzhou and Hefei are fully operational. Within our internal trial operations, both sites have been operating continuously and safely for around 1.5 years with a 4.94 out of 5 passenger satisfaction score.

Speaker #2: The EH216S and its operating system have obtained all key certificates under the China Civil Aviation Regulatory Framework: TCPC, airworthiness certificate, and A air operator certificate.

Speaker #2: Our entry and assistant in Guangzhou and Hefei are fully operational. Within our internal trial operations, both sites have been operating continuously and safely for around one and a half years, with a 4.94 out of 5 passenger satisfaction score.

Speaker #2: The EH216 series has accumulated nearly 100,000 safety flights. With the demand for product certification and strong safety records in place, we only await regulatory approval for public ticket sales.

Hu Huazhi: The EH216-S series have accumulated nearly 100,000 safety flights. With the demand of product certification and safety records in place, we only await regulatory approval for public ticket sales. Despite this critical transition point, we are confident that commercialization window will eventually open. Amidst uncertainty, EHang is not sitting still. We are tackling challenges head-on and finding new opportunities. Since Q2, we have been pushing hard on three things.

Speaker #2: Despite this critical transition point, we are confident that the commercialization window will eventually open. Amidst uncertainty, EHang isn't sitting still. We're tackling challenges head-on and finding new opportunities.

Speaker #2: Since Q2, we've been pushing hard on three things. First, expanding globally on one of our fronts, strengthening domestic readiness while accelerating overseas deployment. In China, we continue to strengthen our end-to-end operations to develop standardized, replicable operating models and solutions.

Anne Ji: First, expanding globally on multiple fronts, strengthening domestic readiness while accelerating overseas deployment. In China, we continue to strengthen our end-to-end operations, develop standardized replicable operating models and solutions. We have completed the preparations across full operating cycle, including personal training, maintenance, insurance services, airspace coordination, and emergency response in Guangzhou and Hefei, accumulating practical operating experience. We initiated a point-to-point trial operations to build experience in advance. Once the regulatory window opens, we will rapidly deploy and help customers operate to standard. Overseas, our footprint expanded to 23 countries, adding Mexico and Switzerland since Q2. Thailand is running validating flights via sandbox, and the Civil Aviation Authority of Thailand has established a clear path forward. We are targeting a commercial approval in 2026. We were also selected for Hong Kong's Low-Altitude Economy Regulatory Sandbox X trial project with flight validation underway and a public demo coming soon.

Hu Huazhi: First, expanding globally on multiple fronts, strengthening domestic readiness while accelerating overseas deployment. In China, we continue to strengthen our end-to-end operations, develop standardized replicable operating models and solutions. We have completed the preparations across full operating cycle, including personal training, maintenance, insurance services, airspace coordination, and emergency response in Guangzhou and Hefei, accumulating practical operating experience. We initiated a point-to-point trial operations to build experience in advance. Once the regulatory window opens, we will rapidly deploy and help customers operate to standard. Overseas, our footprint expanded to 23 countries, adding Mexico and Switzerland since Q2. Thailand is running validating flights via sandbox, and the Civil Aviation Authority of Thailand has established a clear path forward. We are targeting a commercial approval in 2026. We were also selected for Hong Kong's Low-Altitude Economy Regulatory Sandbox X trial project with flight validation underway and a public demo coming soon.

Speaker #2: We have completed preparations across four operating cycles, including personnel training, maintenance, insurance services, airspace coordination, and emergency response, in Guangzhou and Hefei, accumulating practical operating experience.

Speaker #2: We initiated point-to-point trial operations to build experience in advance. Once the regulatory window opens, we will rapidly deploy and help customers operate to standard.

Speaker #2: Overseas, our footprint extended to 23 countries, adding Mexico and Switzerland since Q2. Thailand is running validating flights via sandbox, and the Civil Aviation Authority of Thailand has established a clear path forward.

Speaker #2: We're targeting commercial approval in 2026. We were also selected for Hong Kong's Low-Altitude Economy Regulatory Sandbox X trial project, with the demo coming soon.

Speaker #2: Furthermore, we advanced our global fast track program. Many countries want to bring in pilotless CVs, but lack the regulatory framework on how to build a complete path from safety validation to operational standards to commercial deployment. Drawing on a decade of experience, as well as our engagement with the civil aviation authorities in multiple countries, EHang is turning this experience into a standardized market entry framework.

Anne Ji: Furthermore, we advanced our Global Fast Track Program. Many countries want to bring in pilotless eVTOLs but lack the regulatory framework on how to build a complete path from safety validation to operational standards to commercial deployment. Drawing on a decade experience as well as our engagement with the civil aviation authorities in multiple countries, EHang is turning this experience into a standardized market entry framework. This is the basis of our Global Fast Track Program. It is not simply about selling an aircraft. EHang is providing a standardized methodology from validation to operational preparation to commercial deployment, helping local regulators and partners move more efficiently. Sri Lanka has become the first country to join our Fast Track Program, and we are also engaging with multiple other countries regarding framework. This shifts our global strategy from merely selling products to exporting experience, standards, and capabilities.

Hu Huazhi: Furthermore, we advanced our Global Fast Track Program. Many countries want to bring in pilotless eVTOLs but lack the regulatory framework on how to build a complete path from safety validation to operational standards to commercial deployment. Drawing on a decade experience as well as our engagement with the civil aviation authorities in multiple countries, EHang is turning this experience into a standardized market entry framework. This is the basis of our Global Fast Track Program. It is not simply about selling an aircraft. EHang is providing a standardized methodology from validation to operational preparation to commercial deployment, helping local regulators and partners move more efficiently. Sri Lanka has become the first country to join our Fast Track Program, and we are also engaging with multiple other countries regarding framework. This shifts our global strategy from merely selling products to exporting experience, standards, and capabilities.

Speaker #2: This is the basis of our global fast track program. It's not simply about selling an aircraft. EHang is providing a standardized methodology, from validation to operational preparation to commercial deployment.

Speaker #2: Helping local regulators and partners move more efficiently. Sri Lanka has become the first country to join our Fast Track program, and we are also engaging with multiple other countries regarding the framework.

Speaker #2: This shifts our global strategy from merely selling products to exporting experience, standards, and capabilities. Second, revenue diversification: keeping passenger transportation as our strategic focus while developing non-passenger-carrying businesses and a broader product portfolio.

Anne Ji: Second, revenue diversification, keeping passenger transportation as our strategic focus while developing non-passenger carrying business and a broader product portfolio. Passenger mobility remains our strategic focus while domestic passenger commercialization is still pending regulatory approval. We are actively developing logistics, firefighting, and aerial media to build additional revenue streams. We are developing and validating logistics and firefighting aircraft based on our passenger-grade safety technology. These products address real needs such as forest firefighting, portal logistics, and emergency response. They are moving through testing, certification, and customer validation with the potential for faster market deployment. Alongside steady progress on the EH216 platform and the VT-30 certification and flight test, EHang is building a multi-scenario product matrix rather than relying on a single aircraft. Meanwhile, aerial media revenue surged over 270% year-over-year in Q2, and now expanding to Europe, Japan, Thailand, and other overseas countries.

Hu Huazhi: Second, revenue diversification, keeping passenger transportation as our strategic focus while developing non-passenger carrying business and a broader product portfolio. Passenger mobility remains our strategic focus while domestic passenger commercialization is still pending regulatory approval. We are actively developing logistics, firefighting, and aerial media to build additional revenue streams. We are developing and validating logistics and firefighting aircraft based on our passenger-grade safety technology. These products address real needs such as forest firefighting, portal logistics, and emergency response. They are moving through testing, certification, and customer validation with the potential for faster market deployment. Alongside steady progress on the EH216 platform and the VT-30 certification and flight test, EHang is building a multi-scenario product matrix rather than relying on a single aircraft. Meanwhile, aerial media revenue surged over 270% year-over-year in Q2, and now expanding to Europe, Japan, Thailand, and other overseas countries.

Speaker #2: Passenger air mobility remains our strategic focus, while domestic passenger commercialization is still pending regulatory approval. We're actively developing logistics, firefighting, and air media to build additional revenue streams.

Speaker #2: We're developing and validating logistics and firefighting aircraft based on our passenger-grade safety technology. These products address real needs such as forest firefighting, portal logistics, and emergency response.

Speaker #2: They are moving through testing, certification, and customer validation, with the potential for faster market deployment. Alongside steady progress on the EH216 platform and the VT-35 certification and flight test, EHang is building a multi-scenario product matrix rather than relying on a single aircraft.

Speaker #2: Meanwhile, aerial media revenue surged over 270% year-over-year in Q2, and is now expanding to Europe, Japan, Thailand, and other overseas countries. We're expanding one-off event performances to regular onsite shows for sustainable revenue and replicable business models.

Anne Ji: We are expanding one-off event performances to regular on-site shows for sustainable revenue and replicable business models. Third, improving cost efficiency and focusing our resources on long-term competitiveness. Since Q2, we streamlined the organization, refreshing talent structure, cutting non-essential complex, improving efficiency. The outcomes will be visible in H2. We are focusing resources on things that matter most: core product development, certification capability, operating system, overseas commercialization, and business that can generate revenue, deliveries, and cash flow. Over the past decade, EHang's core strength has been getting aircraft flying and operations running. Now we are turning that into standardized scalable capabilities. Customers value our ability to guide them from zero to commercial operations, not just the aircraft itself. We are validating our developed capabilities in China and scaling them overseas, two tracks reinforcing each other. The demand is real, and the path is proving out.

Hu Huazhi: We are expanding one-off event performances to regular on-site shows for sustainable revenue and replicable business models. Third, improving cost efficiency and focusing our resources on long-term competitiveness. Since Q2, we streamlined the organization, refreshing talent structure, cutting non-essential complex, improving efficiency. The outcomes will be visible in H2. We are focusing resources on things that matter most: core product development, certification capability, operating system, overseas commercialization, and business that can generate revenue, deliveries, and cash flow. Over the past decade, EHang's core strength has been getting aircraft flying and operations running. Now we are turning that into standardized scalable capabilities. Customers value our ability to guide them from zero to commercial operations, not just the aircraft itself. We are validating our developed capabilities in China and scaling them overseas, two tracks reinforcing each other. The demand is real, and the path is proving out.

Speaker #2: Third, improving cost efficiency and focusing our resources on long-term competitiveness. Since Q2, we have streamlined the organization, refreshed our talent structure, cut non-essential components, and improved efficiency. The outcomes will be visible in the second half.

Speaker #2: We are focusing resources on things that matter most: core product development, certification, capability, operating system, overseas commercialization, and business data. These can generate revenue, deliveries, and cash flow.

Speaker #2: Over the past decade, EHang's core strength has been getting aircraft flying and operations running. Now, we are turning that into standardized, scalable capabilities.

Speaker #2: Customers value our ability to guide them from zero to commercial operations, not just the aircraft itself. We are validating our capabilities in China and scaling them overseas to tracks, reinforcing each other.

Speaker #2: The demand is real, and the path is proving out. Now we're focused on execution—converting operational capability into orders, deliveries, and cash. Finally, EHang is building a long-term business.

Anne Ji: Now we are focused on execution, converting operational capability into orders, deliveries, and cash. Finally, EHang is building a long-term business. We are breaking technology barriers and help shape industry rules. While navigating evolving regulatory frameworks requires careful management, our long-term vision remains unchanged. The end game for low altitude mobility remains pilotless flight. But regulation and ecosystems take time to mature. Short-term friction won't alter our direction. When the window opens, EHang will be the first one through with the credentials, capabilities, and readiness. The moat we are building through standardized operations will only get deeper. The strategic direction of the low-altitude economy will not be disrupted by short-term volatility. For 12 years, EHang has focused on making safe flights accessible. We will maintain a pioneer's discipline and execute what needs to be done. Thank you.

Hu Huazhi: Now we are focused on execution, converting operational capability into orders, deliveries, and cash. Finally, EHang is building a long-term business. We are breaking technology barriers and help shape industry rules. While navigating evolving regulatory frameworks requires careful management, our long-term vision remains unchanged. The end game for low altitude mobility remains pilotless flight. But regulation and ecosystems take time to mature. Short-term friction won't alter our direction. When the window opens, EHang will be the first one through with the credentials, capabilities, and readiness.

Speaker #2: We are breaking technology barriers and helping shape industry rules. While navigating evolving regulatory frameworks requires careful management, our long-term vision remains unchanged. The end game for low-altitude mobility remains pilotless flight, but regulation and ecosystems take time to mature.

Speaker #2: Short-term friction won't alter our direction. With the window open, EHang will be the first to walk through, with the credentials, capabilities, and the readiness.

Speaker #2: And the moat we're building through standardized operations will only get deeper. The strategic direction of the low-altitude economy will not be disrupted by short-term volatility.

Hu Huazhi: The moat we are building through standardized operations will only get deeper. The strategic direction of the low-altitude economy will not be disrupted by short-term volatility. For 12 years, EHang has focused on making safe flights accessible. We will maintain a pioneer's discipline and execute what needs to be done. Thank you. I would like to invite our CTO, Feng Shuai, to introduce our latest progress in technology and R&D.

Speaker #2: For 12 years, EHang has focused on making safe flights accessible. We will maintain a pioneer's spirit and execute what needs to be done. Thank you.

Speaker #2: I would like to invite our CTO from Shanghai to introduce our latest progress in technology and R&D. Thank you, Mr. Hu, and hello everyone.

Anne Ji: I would like to invite our CTO, Feng Shuai, to introduce our latest progress in technology and R&D. Thank you, Mr. Hu, and hello everyone. In Q2, our R&D focused on three aspects. First, we continue to upgrade existing products and validate operations for current customers and scenarios. Second, accelerated R&D for new products and new applications. Third, deepen core underlying system capabilities. These three aspects together build a more completed technology foundation for scaled commercial operations. First, upgrading the existing products and operational validation. This quarter, we completed a series of upgrades and validations for EH216-S route operations. We established our first point-to-point test route at our Guangzhou headquarters, continuously accumulating trial data. This marks a meaningful step, moving EH216-S operations from a single point takeoff and landing toward a regular route-based operations. On passenger experience, we completed several key updates.

Shuai Feng: Thank you, Mr. Hu, and hello everyone. In Q2, our R&D focused on three aspects. First, we continue to upgrade existing products and validate operations for current customers and scenarios. Second, accelerated R&D for new products and new applications. Third, deepen core underlying system capabilities. These three aspects together build a more completed technology foundation for scaled commercial operations. First, upgrading the existing products and operational validation. This quarter, we completed a series of upgrades and validations for EH216-S route operations. We established our first point-to-point test route at our Guangzhou headquarters, continuously accumulating trial data. This marks a meaningful step, moving EH216-S operations from a single point takeoff and landing toward a regular route-based operations. On passenger experience, we completed several key updates.

Speaker #2: In Q2, our R&D focused on three aspects. First, we continued to upgrade existing products and validate operations for current customers and scenarios. Second, we accelerated R&D for new products and new applications.

Speaker #2: Third, deepen core underlying system capabilities. These three aspects together build a more complete technology foundation for scaled commercial operations. First, upgrading existing products and operational validation.

Speaker #2: This quarter, we completed a series of upgrades and validations for EH216 as route operations. We established our first point-to-point test route at our Guangzhou headquarters, continuously accumulating trial data.

Speaker #2: This marks a meaningful step, moving the EH216's operations from single-point takeoff and landing toward more regular, route-based operations. On passenger experience, we completed several key updates.

Speaker #2: We validated the operational capability of our new battery cooling vehicle. Under test conditions, it increases daily sorters per aircraft from about 6 to 12–15.

Anne Ji: We validated the operational capability of our new battery swapping vehicle. Under test conditions, it increases daily orders per aircraft from about 6 to 12 to 15. A meaningful boost for daily capacity. With the same fleet infrastructure, each aircraft can handle significantly more flights per day, which matters a lot for operational efficiency and unit economics. Additionally, our new independent air conditioning system rapidly reduced cabin temperature by 10 to 15 degrees Celsius, enhancing passenger comfort. Second, new product development and scenario expansion. For the VT-30, we completed transonic wind tunnel testing and the Lightning Direct Effects, LDE production testing for key components, alongside multiple flight tests in China to support aerodynamic collaboration and airworthiness validation. Meanwhile, we are extending our technology into new applications. For forest firefighting, we are testing airburst delivery system with our existing product to enable early-stage crown fire response.

Shuai Feng: We validated the operational capability of our new battery swapping vehicle. Under test conditions, it increases daily orders per aircraft from about 6 to 12 to 15. A meaningful boost for daily capacity. With the same fleet infrastructure, each aircraft can handle significantly more flights per day, which matters a lot for operational efficiency and unit economics. Additionally, our new independent air conditioning system rapidly reduced cabin temperature by 10 to 15 degrees Celsius, enhancing passenger comfort. Second, new product development and scenario expansion. For the VT-30, we completed transonic wind tunnel testing and the Lightning Direct Effects, LDE production testing for key components, alongside multiple flight tests in China to support aerodynamic collaboration and airworthiness validation. Meanwhile, we are extending our technology into new applications. For forest firefighting, we are testing airburst delivery system with our existing product to enable early-stage crown fire response.

Speaker #2: A meaningful boost for daily capacity. With the same fleet and infrastructure, each aircraft can handle significantly more flights per day, which matters a lot for operational efficiency and unit economics.

Speaker #2: Additionally, our new independent air conditioning system rapidly reduced cabin temperature by 10 to 15 degrees Celsius, enhancing passenger comfort. Second, new product development and scenario expansion.

Speaker #2: For the VT35, we completed a truck wind tunnel testing and lightning direct effects and LIE protection testing for key components, alongside multiple flight tests in China.

Speaker #2: To support aerodynamic calibration and airworthiness validation. Meanwhile, we're extending our technology into new applications. For forest firefighting, we're testing an air burst delivery system with our existing products to enable early-stage crown fire response.

Speaker #2: Based on the 35 EH216 platform, we're also developing a cargo version. Adapting this mature platform is expected to shorten development and certification timelines. Our prior work on the EH216L will also be integrated into this new configuration.

Anne Ji: Based on the EH216-S platform, we are also developing a cargo version. Adapting this mature platform is expected to shorten development and certification timelines. Our prior work on the EH216-L will also be integrated into this new configuration, ensuring logistic capability continuity. Third, deepening core systems. On the operational system front, we are building differentiated product capabilities for two key customer types. First, low-altitude operations control system for operators and aircraft consumers. Second, city-level low-altitude integrated supervision platform for government agencies. The latter covers aircraft use applications, plan filing and review, airspace designation, real-time monitoring, information publication. This quarter, we focus on two key areas. First, improving our platform situational awareness, tiered supervision, and emergency response efficiency. Second, deepening system integration with the Hefei Government Flight Service Center.

Shuai Feng: Based on the EH216-S platform, we are also developing a cargo version. Adapting this mature platform is expected to shorten development and certification timelines. Our prior work on the EH216-L will also be integrated into this new configuration, ensuring logistic capability continuity. Third, deepening core systems. On the operational system front, we are building differentiated product capabilities for two key customer types. First, low-altitude operations control system for operators and aircraft consumers. Second, city-level low-altitude integrated supervision platform for government agencies. The latter covers aircraft use applications, plan filing and review, airspace designation, real-time monitoring, information publication. This quarter, we focus on two key areas. First, improving our platform situational awareness, tiered supervision, and emergency response efficiency. Second, deepening system integration with the Hefei Government Flight Service Center.

Speaker #2: Ensuring logistic capability continuity. Third, deepening core systems. On the operational system front, we're building differentiated product capabilities for two key customer types. First, a low-altitude operations control system for operators and aircraft consumers.

Speaker #2: Second, city-level low-altitude integrated supervision platform for government agencies. The latter covers aircraft use applications, plan filing and review, airspace designation, real-time monitoring, and information publication.

Speaker #2: This quarter, we focus on two key areas. First, improving our platform situational awareness, tiered supervision, and emergency response efficiency. Second, deepening system integration with the Health Government Flight Service Center.

Speaker #2: We've developed a set of framework documents covering airspace destination, operational standards, and service processes, helping the Healthy Flight Service Center build a city-level low-altitude supervision system. Think of it as a software-plus-hardware foundation for future large-scale, high-density urban operations.

Anne Ji: We have developed a set of framework documents covering airspace designation, operational standards, and service process, helping the Hefei Flight Service Center build a city-level altitude supervision system. Think of it as a software plus hardware foundation for future larger scale, high-density urban operations. We will continue holding our product and system development to aviation-grade standards, translating technological breakthrough into a tested, validated, and deliverable commercial capability to sustain EHang's long-term leadership in global low-altitude mobility market. Next, I will turn the call over to our CEO for sales and operational updates. Thank you. Thank you, Mr. Feng, and hello, everyone. I will discuss our Q2 operational progress and how we are approaching lean operations, product diversification, overseas markets, and safety systems. In Q2, we delivered 35 units of EH216-S and one VT-30. On aerial media's site, we completed 22 aerial media shows and delivered 520 units of GD4.0 drones.

Shuai Feng: We have developed a set of framework documents covering airspace designation, operational standards, and service process, helping the Hefei Flight Service Center build a city-level altitude supervision system. Think of it as a software plus hardware foundation for future larger scale, high-density urban operations. We will continue holding our product and system development to aviation-grade standards, translating technological breakthrough into a tested, validated, and deliverable commercial capability to sustain EHang's long-term leadership in global low-altitude mobility market. Next, I will turn the call over to our COO for sales and operational updates. Thank you.

Speaker #2: We'll continue holding our product and system development to aviation-grade standards, translating technological breakthroughs into a tested, validated, and deliverable commercial capability to sustain EHang's long-term leadership in the global low-altitude mobility market.

Speaker #2: Next, I'll turn the call over to our COO for sales and operational updates. Thank you. Thank you, Mr. Phelan, and hello everyone. I'll discuss our Q2 operational progress and how we are approaching lean operations, product diversification versus markets, and safety systems.

Zhao Wang: Thank you, Mr. Feng, and hello, everyone. I will discuss our Q2 operational progress and how we are approaching lean operations, product diversification, overseas markets, and safety systems. In Q2, we delivered 35 units of EH216-S and one VT-30. On aerial media's site, we completed 22 aerial media shows and delivered 520 units of GD4.0 drones.

Speaker #2: In Q2, we delivered 35 units of EH216-S and one VT-35. On the aerial media side, we completed 22 aerial media shows and delivered 520 units of GD-4 drones.

Speaker #2: Beyond these numbers, we want to be transparent about our current environment. This year, China's low-altitude economy entered a more cautious phase across safety oversight, airworthiness management, and operational regulation.

Anne Ji: Beyond these numbers, I want to be transparent about our current environment. This year, China's low-altitude economy entered a more cautious phase across safety oversight, airworthiness management, and operational regulation. This has been reinforced by the new airworthiness frameworks and civil aviation laws. Recent industry safety incidents have heightened the regulation and public attention on low-altitude flight safety, leading to intensified safety inspections of general aviation and low-altitude economy operators, aircraft, and operational projects. As a result, a slowdown of progress, deliveries, acceptance, and commercial operations for some projects, and passenger-carrying commercial operations for low-altitude aircraft has also been affected. We are being more cautious about our operational expectations and resource allocations. Our CFO will address our adjusted full-year revenue guidance shortly. However, we firmly believe that in passenger aviation, safety and compliance must always precede commercial speed.

Zhao Wang: Beyond these numbers, I want to be transparent about our current environment. This year, China's low-altitude economy entered a more cautious phase across safety oversight, airworthiness management, and operational regulation. This has been reinforced by the new airworthiness frameworks and civil aviation laws. Recent industry safety incidents have heightened the regulation and public attention on low-altitude flight safety, leading to intensified safety inspections of general aviation and low-altitude economy operators, aircraft, and operational projects. As a result, a slowdown of progress, deliveries, acceptance, and commercial operations for some projects, and passenger-carrying commercial operations for low-altitude aircraft has also been affected. We are being more cautious about our operational expectations and resource allocations. Our CFO will address our adjusted full-year revenue guidance shortly. However, we firmly believe that in passenger aviation, safety and compliance must always precede commercial speed.

Speaker #2: This has been reinforced by the new airworthiness frameworks and civil aviation laws. Recent industry safety incidents have heightened regulation and public attention on low-altitude flight safety.

Speaker #2: leading to intensified safety inspections of general aviation and low-altitude economy operators, aircraft, and operational projects. As a

Speaker #1: Result , a slows down approach . Deliveries , acceptance and commercial operations . For some projects and a passenger carrying a commercial operations for low altitude aircraft has also been affected .

Speaker #1: So we are being more cautious about our operational expectations and resource allocations. Our CFO will address our adjusted full-year revenue guidance shortly. However, we firmly believe that in passenger aviation, safety and compliance must always come first.

Speaker #1: Commercial speed to be clear , only the local timeline for commercialization has shifted , not long term market demand or enhanced competitiveness going forward , we'll keep the market informed with a clear operational progress .

Anne Ji: To be clear, only the local timeline for commercialization has shifted, not long-term market demand or EHang's competitiveness. Going forward, we will keep the market informed with clear operational progress updates. Mr. Hu talked about our three strategic priorities, global expansion, revenue diversification, and cost efficiency. On the operational level, our approach covers the following areas. First, improving internal efficiency through leaner management and AI integration. During the period of external adjustment, we have not been waiting passively. We have been proactively streamlining our organization and focusing our resources. On R&D, we are concentrating our core talent, improving technology reuse across platforms. On the digital side, we are integrating AI tools into R&D, knowledge management, cross-functional workflow to shorten development cycles and boost productivity. Our rule is simple. Cost reduction will never compromise safety, product quality, or core R&D.

Zhao Wang: To be clear, only the local timeline for commercialization has shifted, not long-term market demand or EHang's competitiveness. Going forward, we will keep the market informed with clear operational progress updates. Mr. Hu talked about our three strategic priorities, global expansion, revenue diversification, and cost efficiency. On the operational level, our approach covers the following areas. First, improving internal efficiency through leaner management and AI integration. During the period of external adjustment, we have not been waiting passively. We have been proactively streamlining our organization and focusing our resources. On R&D, we are concentrating our core talent, improving technology reuse across platforms. On the digital side, we are integrating AI tools into R&D, knowledge management, cross-functional workflow to shorten development cycles and boost productivity. Our rule is simple. Cost reduction will never compromise safety, product quality, or core R&D.

Speaker #1: Updates, Mr. . Who talked about our three strategic priorities: global expansion, revenue diversification, and cost efficiency. On the operational level, our approach covers the following areas.

Speaker #1: First, improving internal efficiency through lean management and AI integration during the period of external adjustment, we haven't been waiting passively. We have been proactively streamlining our organization and focusing our resources on R&D.

Speaker #1: We're concentrating our core talent and improving technology reuse across platforms. On the digital side, we're integrating AI tools into our R&D knowledge management and cross-functional workflow to shorten development cycles and boost productivity. Our rule is simple: cost reduction will never compromise safety.

Speaker #1: Product quality , or core and D we won't sacrifice long term competitiveness for short term financials , but we're strictly scrutinizing expenses to strengthen cash reserves and ensure sustainable operations .

Anne Ji: We will not sacrifice long-term competitiveness for short-term financials, but we are strictly scrutinizing expenses to strengthen cash reserves and ensure sustainable operations. Second, strengthening our operational foundation for passenger commercialization. Our Guangzhou and Hefei sites continue to refine flight operations, ground support, emergency response, and regulatory data integration. Through internal trial operations, we are accumulating real operational data to ensure we are ready to start safe and stable commercial operations as soon as regulatory approved. We are also building pilot-to-point capabilities in events, including route planning, vertiport coordination, ground support, and more aircraft dispatch, contingency handling, and passenger services. These are full operational capabilities for future low-altitude transport. Take the Erhai Lake project. Ground trip across the lake takes an hour. Our planned route reduces the time to about 10 minutes. The Hainan Lingao Cross-Sea Low-Altitude Corridor Project has also broken ground.

Zhao Wang: We will not sacrifice long-term competitiveness for short-term financials, but we are strictly scrutinizing expenses to strengthen cash reserves and ensure sustainable operations. Second, strengthening our operational foundation for passenger commercialization. Our Guangzhou and Hefei sites continue to refine flight operations, ground support, emergency response, and regulatory data integration. Through internal trial operations, we are accumulating real operational data to ensure we are ready to start safe and stable commercial operations as soon as regulatory approved. We are also building pilot-to-point capabilities in events, including route planning, vertiport coordination, ground support, and more aircraft dispatch, contingency handling, and passenger services. These are full operational capabilities for future low-altitude transport. Take the Erhai Lake project. Ground trip across the lake takes an hour. Our planned route reduces the time to about 10 minutes. The Hainan Lingao Cross-Sea Low-Altitude Corridor Project has also broken ground.

Speaker #1: Second , strengthening our operational foundation for passenger commercialization . Our Guangzhou and Hefei sites continue to refine flight operations , grant support and emergency response , and regulatory data integration through internal trial operations or accumulating real operational data to ensure we're ready to start safe and stable commercial operations as soon as regulatory approved .

Speaker #1: We're also building pilot to point capabilities in advance , including route planning , vertical coordination , support , and aircraft , dispatch , continued contingency handling and passenger services .

Speaker #1: These are fully operational capabilities for future low altitude transport. Take the Arrowhead Lake project—ground trip across the lake takes an hour, over an hour.

Speaker #1: Our planned route reduces the time to about ten minutes. The Hainan Lingao Cross-Sea Low Altitude Corridor project has also broken ground.

Speaker #1: This is the first project under our strategic partnership with the China State Construction Engineering Corporation. Six View, the key first, the key flight station, the wing is currently under construction.

Anne Ji: This is the first project under our strategic partnership with the China State Construction Engineering Corporation Sixth Bureau. First key flight station, the Wanquang South Sea, is currently under construction. Together, we are building a closed-loop altitude economy that combines infrastructure and operations. For local governments and partners, EHang delivers more than just an EH216-S. We provide a comprehensive solution, including aircraft, command and control system, scenario planning, route design, vertiport infrastructure planning, and personal training, maintenance, regulatory coordination, and safety assurance. Third, we are leveraging the maturity safety architecture of the EH216-S to accelerate the non-passenger products and the specialized applications. Passenger-carrying operations are a core direction, but they are not our only growth path. We are leveraging the EH216-S mature aviation-grade safety architecture, including its flight control, powertrain, redundancy design, and command and control for logistics, firefighting, air remitting products, building a diversified portfolio that is reliant on passenger commercial approval.

Zhao Wang: This is the first project under our strategic partnership with the China State Construction Engineering Corporation Sixth Bureau. First key flight station, the Wanquang South Sea, is currently under construction. Together, we are building a closed-loop altitude economy that combines infrastructure and operations. For local governments and partners, EHang delivers more than just an EH216-S. We provide a comprehensive solution, including aircraft, command and control system, scenario planning, route design, vertiport infrastructure planning, and personal training, maintenance, regulatory coordination, and safety assurance.

Speaker #1: Together , we're building a closed loop out to the economy that combines infrastructure and operations for local governments and funders , Yihan delivers more than just an H1n1 success , will provide a comprehensive solution , including aircraft command and control systems , scenario planning , route design , Vertiport infrastructure planning , and personnel training , maintenance , regulatory coordination and safety assurance .

Speaker #1: Third , we're leveraging the mature safety architecture of the E 26 to accelerate the non-passenger products and specialized applications . Passenger carrying operations are a core direction , but they're not our only growth plan .

Zhao Wang: Third, we are leveraging the maturity safety architecture of the EH216-S to accelerate the non-passenger products and the specialized applications. Passenger-carrying operations are a core direction, but they are not our only growth path. We are leveraging the EH216-S mature aviation-grade safety architecture, including its flight control, powertrain, redundancy design, and command and control for logistics, firefighting, air remitting products, building a diversified portfolio that is reliant on passenger commercial approval.

Speaker #1: Our path . We're leveraging E 216 mature aviation grade safety architecture , including its flight control powertrain design and command and control for logistics , firefighting , aerial meeting products , building a diversified portfolio less reliant on passenger commercial approval , atrial media remains a key revenue driver in Q two .

Anne Ji: Air wheel media remains a key revenue driver. In Q2, we completed 22 shows and delivered 520 units of GD4 drones. The business is evolving from a one-time event to regular on-site services. Projects like Chongqing Broadcasting Group and Xinyi in Shanxi are helping us to build experience in continuous operations, content production, fleet management, and on-site support. Regular commercial shows improve equipment utilization, customer stickiness, and revenue predictability. Overseas, we also deployed GD4 drones across Japan, Thailand, and Europe, accelerating international expansion. On firefighting and logistic, we are working with the customers on product customization, advancing VT-30 firefighting drone prototypes and logistic aircraft, and trial flagship scenarios in forest firefighting and port logistics. Fourth, we are accelerating center of overseas commercial sandbox deployment to build a replicable international pathway. Overseas markets are a key part of EHang's long-term strategy and an important platform for validating adaptability, regulatory coordination, and business models.

Zhao Wang: Air wheel media remains a key revenue driver. In Q2, we completed 22 shows and delivered 520 units of GD4 drones. The business is evolving from a one-time event to regular on-site services. Projects like Chongqing Broadcasting Group and Xinyi in Shanxi are helping us to build experience in continuous operations, content production, fleet management, and on-site support. Regular commercial shows improve equipment utilization, customer stickiness, and revenue predictability.

Speaker #1: Completed 22 shows and delivered 520 units of GDE for joints. The business is evolving from a one-time event to regular onsite service projects. Clients like Chongqing Media Group and Xinyi in Shanghai are helping us build experience and continuous operations.

Speaker #1: Content production , fleet management and on site support regular commercial shows improved equipment utilization , customer thickness and revenue predictability overseas . We also deployed a GD four drones across Japan , Thailand and Europe , accelerating international , international expansion on firefighting and logistics .

Zhao Wang: Overseas, we also deployed GD4 drones across Japan, Thailand, and Europe, accelerating international expansion. On firefighting and logistic, we are working with the customers on product customization, advancing VT-30 firefighting drone prototypes and logistic aircraft, and trial flagship scenarios in forest firefighting and port logistics. Fourth, we are accelerating center of overseas commercial sandbox deployment to build a replicable international pathway. Overseas markets are a key part of EHang's long-term strategy and an important platform for validating adaptability, regulatory coordination, and business models.

Speaker #1: We're working with customers on product customization, advancing T30 firefighting drone prototypes and logistics aircraft, and trial flagship scenarios in forest firefighting and port logistics. Or we're accelerating overseas.

Speaker #1: Commercial deployments help build a reputable international pathway. Overseas markets are a key part of enhancing our long-term strategy and are an important platform for validating adaptability, regulatory coordination, and business models.

Speaker #1: In Hong Kong, we were selected as an early participant in the regulatory sandbox project. We've chosen this as our first set of flights. Test flights started this month with a public demo coming soon, and additional flight validation.

Anne Ji: In Hong Kong, we are selected as an early participant in the Regulatory Sandbox X trial project. We have chosen Sunny Port as our first sandbox site. Test flight started this month with a public demo coming soon. An additional flight validation and its now deployment will follow under regulatory oversight. In Thailand, we have established efficient communication coordination with the CAAT. We are targeting commercial operations certificate in 2026, and this work will proceed according to CAAT's review process with the final timeline subject to the regulatory schedule. Based on the sandbox experience, we launched the Global Fast Track Program, a four-stage framework of regulatory alignment, sandbox build-out, validation flights, and commercial launch designed to compress the timeline from market entry to commercial operations. Sri Lanka is the first country to formally adopt the program.

Zhao Wang: In Hong Kong, we are selected as an early participant in the Regulatory Sandbox X trial project. We have chosen Sunny Port as our first sandbox site. Test flight started this month with a public demo coming soon. An additional flight validation and its now deployment will follow under regulatory oversight. In Thailand, we have established efficient communication coordination with the CAAT. We are targeting commercial operations certificate in 2026, and this work will proceed according to CAAT's review process with the final timeline subject to the regulatory schedule. Based on the sandbox experience, we launched the Global Fast Track Program, a four-stage framework of regulatory alignment, sandbox build-out, validation flights, and commercial launch designed to compress the timeline from market entry to commercial operations. Sri Lanka is the first country to formally adopt the program.

Speaker #1: And as for now, deployment will follow under regulatory oversight. In Thailand, we have established a communication coordination with the city and are targeting a Commercial Operations Certificate in 2026.

Speaker #1: This work will proceed according to the safety review process, with the final timeline subject to the regulator's schedule. Based on the experience we launched at the Globe Fast Track Program, a four-stage framework of regulatory alignment, a sandbox buildout, validation flights, and commercial launch was designed to compress the timeline for market entry to commercial operations.

Speaker #1: Sri Lanka is the first country to formally adopt the program. Over the coming months, we will accept a project deployment in Sri Lanka.

Anne Ji: Over the coming months, we will accept the project deployment in Sri Lanka according to the Fast Track roadmap. Fast Track does not bypass local regulatory processes or lower safety or airworthiness standards. Instead, it reuses technical documentation, safety data, and our accumulated operational experience to reduce duplication and improve the efficiency of project preparation, regulatory engagement, and local operational setup. Beyond Sri Lanka, we are also exploring this program in Central Asia. Through the program, we aim to transform individual overseas projects into a standardized, replicable capability, providing a clear, compliant, and efficient implementation pathway for more countries and regions to introduce pilotless eVTOLs. Fifth, we are building operational centers and a safety foundation to convert our first-mover advantage into a sustainable competitive moat. Over the years, we have accumulated nearly 100,000 safe flight records.

Zhao Wang: Over the coming months, we will accept the project deployment in Sri Lanka according to the Fast Track roadmap. Fast Track does not bypass local regulatory processes or lower safety or airworthiness standards. Instead, it reuses technical documentation, safety data, and our accumulated operational experience to reduce duplication and improve the efficiency of project preparation, regulatory engagement, and local operational setup. Beyond Sri Lanka, we are also exploring this program in Central Asia. Through the program, we aim to transform individual overseas projects into a standardized, replicable capability, providing a clear, compliant, and efficient implementation pathway for more countries and regions to introduce pilotless eVTOLs. Fifth, we are building operational centers and a safety foundation to convert our first-mover advantage into a sustainable competitive moat. Over the years, we have accumulated nearly 100,000 safe flight records.

Speaker #1: According to the Fast Track Roadmap, Fast Track does not bypass local regulatory processes or lower safety or standards. Instead, it reduces technical documentation, safety data, and our accumulated operational experience to reduce duplication and improve the efficiency of a project.

Speaker #1: Collaboration , regulatory engagement and local operational setup . Beyond Lanka , we are also exploring this program in Central Asia through the program , we aim to transform individual overseas projects into a standardized , replicable capability , providing a clear , compliant and efficient implementation pathway for more countries and regions to introduce pilotless videos Since we are feeding operational standards and safety Foundation to convert our first mover advantage into a sustainable , competitive mode , over the years , we have accumulated nearly 100,000 safe flight records and these are flights span of diverse geographies , weather conditions , terrain , application scenarios , and operating environments .

Anne Ji: These flights span diverse geographies, weather conditions, terrain, application scenarios, and operating environments, providing a critical data foundation for continuous improvement in aircraft performance, operational procedures, and command and control systems. We are working with airworthiness and operational experts to advance Air Operator Certificate standards. The goal is to turn our accumulated flight experience and internal operational capabilities into standardized, verifiable, replicable operational benchmarks the industry can use. At the same time, we are building comprehensive after-sales support network covering delivery, personal training, spare parts, maintenance, data support, and emergency response. We need to have the organization, systems, and service capability in place to support scaled operations before commercial scale-up actually begins. While this may not immediately reflect in short-term revenue, establishing these scalable service capabilities now ensures we can rapidly capture market demand once the commercial window opens.

Zhao Wang: These flights span diverse geographies, weather conditions, terrain, application scenarios, and operating environments, providing a critical data foundation for continuous improvement in aircraft performance, operational procedures, and command and control systems. We are working with airworthiness and operational experts to advance Air Operator Certificate standards. The goal is to turn our accumulated flight experience and internal operational capabilities into standardized, verifiable, replicable operational benchmarks the industry can use. At the same time, we are building comprehensive after-sales support network covering delivery, personal training, spare parts, maintenance, data support, and emergency response. We need to have the organization, systems, and service capability in place to support scaled operations before commercial scale-up actually begins. While this may not immediately reflect in short-term revenue, establishing these scalable service capabilities now ensures we can rapidly capture market demand once the commercial window opens.

Speaker #1: Providing a critical data foundation for continuous improvement in aircraft performance, operational procedures, and command and control systems. We are working with airworthiness and operational experts to advance air operator certification standards.

Speaker #1: The goal is to turn our accumulated flight experience and internal operational capabilities into standardized, verifiable, replicable operational benchmarks that the industry can use.

Speaker #1: At the same time , we are building comprehensive . After sales support network covering delivery personnel , training , spare parts , maintenance data support , and emergency response .

Speaker #1: We need to have the organization systems and service capability in place to support scaled operations before commercial scale up . Actually begins . While this may not immediately reflect in short term revenue , establishing this scalable service capabilities now ensures we can rapidly capture market demand once the commercial window opens , we'll continue translating investments into efficiency , building quality products , and closing the loop on operations by enforcing lean management , diversifying revenue , and establishing robust safety standards , we will build a sustainable , competitive advantage and earn investor trust with verifiable results .

Anne Ji: We will continue translating investments into efficiency, building quality products, and closing the loop on operations by enforcing lean management, diversifying revenue, and establishing robust safety standards. We will build a sustainable competitive advantage and earn investor trust with verifiable results. Thank you. Next, I will pass the floor to our CFO for financial updates. Hello, everyone. I am Conor, CFO of EHang. Before I go into 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 website. Next, let me walk you through the key financial data for Q2. In Q2, revenues were RMB 77.9 million, down from RMB 113.3 million in Q2 2025, but up significantly by 203% from RMB 25.7 million in Q1 2026. The sequential increase was mainly driven by higher sales volume of EH216 series, and with additional contribution from VT-30 aircraft.

Zhao Wang: We will continue translating investments into efficiency, building quality products, and closing the loop on operations by enforcing lean management, diversifying revenue, and establishing robust safety standards. We will build a sustainable competitive advantage and earn investor trust with verifiable results. Thank you. Next, I will pass the floor to our CFO for financial updates.

Speaker #1: Thank you Next , I'll pass the floor to our CFO for financial updates . Hello everyone . I am Connor , CFO of Yihan .

Conor Chia-hung Yang: Hello, everyone. I am Conor, CFO of EHang. Before I go into 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 website. Next, let me walk you through the key financial data for Q2. In Q2, revenues were RMB 77.9 million, down from RMB 113.3 million in Q2 2025, but up significantly by 203% from RMB 25.7 million in Q1 2026. The sequential increase was mainly driven by higher sales volume of EH216 series, and with additional contribution from VT-30 aircraft.

Speaker #1: Before I go into details , please note that all numbers in presented are in RMB unless otherwise stated . A detailed analysis is available in our earnings press release on the IR website Next , let me walk you through the key financial data for Q2 in Q2 , revenues were 77.9 million , down from 113.3 million in Q2 2025 .

Speaker #1: But up significantly by $20.3 million from $25.7 million in Q1 2026. The sequential increase was mainly due to higher sales volume of 206 series, and with additional contribution from VTi 35 aircraft.

Speaker #1: The year over year decline was due to lower sales volume of the E 216 series , compared to the same period last year , gross margin in Q2 was 61.2% , compared with 61.5% in Q2 2025 .

Anne Ji: The year-over-year decline was due to lower sales volume of the EH216 series compared to the same period last year. Gross margin in Q2 was 61.2%, compared with 61.5% in Q2 2025 and 62.5% in Q1 2026. Overall, gross margin remained stable. Our stable margin profile reflects the competitiveness of our products, as well as our continuous strength in manufacturing efficiency and supply chain management, despite changes in quarterly revenue and product mix. Turning to operating expenses. Adjusted operating expenses defined as the total operating expenses, excluding share-based compensation, were RMB 112.7 million in Q2, representing a 16.9% increase year-over-year and an 11.5% increase quarter-over-quarter. The increase in operating expenses primarily reflects the combined effect of our phased strategic business investments and the transitioning costs associated with organizational optimization during the period. We continue to make targeted investments in commercialization, global expansion, and R&D to reinforce our long-term competitiveness.

Conor Chia-hung Yang: The year-over-year decline was due to lower sales volume of the EH216 series compared to the same period last year. Gross margin in Q2 was 61.2%, compared with 61.5% in Q2 2025 and 62.5% in Q1 2026. Overall, gross margin remained stable. Our stable margin profile reflects the competitiveness of our products, as well as our continuous strength in manufacturing efficiency and supply chain management, despite changes in quarterly revenue and product mix. Turning to operating expenses. Adjusted operating expenses defined as the total operating expenses, excluding share-based compensation, were RMB 112.7 million in Q2, representing a 16.9% increase year-over-year and an 11.5% increase quarter-over-quarter. The increase in operating expenses primarily reflects the combined effect of our phased strategic business investments and the transitioning costs associated with organizational optimization during the period. We continue to make targeted investments in commercialization, global expansion, and R&D to reinforce our long-term competitiveness.

Speaker #1: And 62.5% in Q1 2026. Overall, gross margin remained stable. Our margin profile reflects the competitiveness of our products as well as our continued strength in manufacturing efficiency and supply chain management.

Speaker #1: Despite changes in quarterly revenue and product mix Turning to operating expenses , adjusted operating expenses defined as total operating expenses excluding share based compensation were $112.7 million in Q2 , representing a 16.9% increase year over year and a 11.5% increase quarter over quarter .

Speaker #1: The increase in operating expenses primarily reflects the combined effect of our phase, the strategic business investments, and the transition costs associated with the organization.

Speaker #1: Optimization during the period: we continue to make targeted investments in commercialization, global expansion, and R&D to reinforce our long-term competitiveness.

Speaker #1: It's worth noting that the Q2 expenses haven't yet fully reflected the outcomes of our organizational optimization and CapEx control measures, as these initiatives were mostly rolled out during the quarter. We expect the outcomes to gradually show in the coming quarters going forward.

Anne Ji: It is worth noting that Q2 expenses have not yet fully reflected the outcomes of our organizational optimization and CapEx control measures. As these initiatives were mostly rolled out during the quarter, we expect the outcomes to gradually show in the coming quarters. Going forward, while protecting our core R&D airworthiness, operating and global expansion capabilities will continue to improve resource efficiency and reduce non-essential spending and maintain strict cash discipline. As we continue to invest in our future growth, our Q2 profitability was affected by both revenue scale and operating expenses. Adjusted operating loss in Q2 was RMB 62 million, compared to RMB 77.1 million in Q1 2026. Adjusted net loss was RMB 58.5 million, compared to RMB 75.6 million in Q1 2026. As of 30 June 2026, our combined cash and cash equivalents, short-term and treasury investments totaled RMB 929.4 million.

Conor Chia-hung Yang: It is worth noting that Q2 expenses have not yet fully reflected the outcomes of our organizational optimization and CapEx control measures. As these initiatives were mostly rolled out during the quarter, we expect the outcomes to gradually show in the coming quarters. Going forward, while protecting our core R&D airworthiness, operating and global expansion capabilities will continue to improve resource efficiency and reduce non-essential spending and maintain strict cash discipline. As we continue to invest in our future growth, our Q2 profitability was affected by both revenue scale and operating expenses. Adjusted operating loss in Q2 was RMB 62 million, compared to RMB 77.1 million in Q1 2026. Adjusted net loss was RMB 58.5 million, compared to RMB 75.6 million in Q1 2026. As of 30 June 2026, our combined cash and cash equivalents, short-term and treasury investments totaled RMB 929.4 million.

Speaker #1: While protecting our core R&D , airworthiness , operating and global expansion capabilities will continue to improve the resource efficiency and reduce non-essential spending and maintain strict cash discipline As we continue to invest in our future growth , our Q2 profitability was affected by both revenue scale and operating expenses .

Speaker #1: Adjusted operating loss in Q2 was $62 million, compared to $77.1 million in Q1 2026. Adjusted net loss was $58.5 million, compared to $75.6 million in Q1 2026.

Speaker #1: As of June 30th , 2026 , our combined cash and cash equivalents , short term and Treasury investments totaled 929.4 million RMB . This healthy cash position provides strong support for our continued commercialization efforts .

Anne Ji: This healthy cash position provides strong support for our continued commercialization efforts, core product development, global expansion, and day-to-day operations. Turning to our full-year guidance. Given that the regulatory policies and supporting mechanisms for low altitude human carrying commercial operations are still evolving, there remains uncertainty around the timing of domestic commercial operations. Accordingly, the company has decided to withdraw its previously issued 2026 annual revenue guidance of RMB 600 million. The company will not provide a replacement of full-year revenue guidance at this time. As the regulatory environment and business visibility become clear, we will provide an updated outlook to the market when appropriate. In the meantime, the company will continue to provide transparent and timely updates on key operating milestones.

Conor Chia-hung Yang: This healthy cash position provides strong support for our continued commercialization efforts, core product development, global expansion, and day-to-day operations. Turning to our full-year guidance. Given that the regulatory policies and supporting mechanisms for low altitude human carrying commercial operations are still evolving, there remains uncertainty around the timing of domestic commercial operations. Accordingly, the company has decided to withdraw its previously issued 2026 annual revenue guidance of RMB 600 million. The company will not provide a replacement of full-year revenue guidance at this time. As the regulatory environment and business visibility become clear, we will provide an updated outlook to the market when appropriate. In the meantime, the company will continue to provide transparent and timely updates on key operating milestones.

Speaker #1: Core product development , global expansion , and day to day operations Turning to our full year guidance . Given the regulatory policies and supporting mechanisms for low altitude human carrying , commercial operations are still evolving .

Speaker #1: There remains uncertainty around the timing of domestic commercial operations. Accordingly, the company has decided to withdraw its previously issued 2026 annual revenue guidance of RMB 600 million.

Speaker #1: The company will not provide a replacement of full-year revenue guidance at this time. As the regulatory environment and business visibility become clear, we will provide an updated outlook to the market when appropriate. In the meantime, the company will continue to provide transparent and timely updates on key operating milestones. These include preparation for and the approval process of domestic commercial operations, as well as progress in international markets.

Anne Ji: These includes preparation for and approval process of domestic commercial operations, processing international markets, product development orders and deliveries for non-passenger carrying business such as logistics, firefighting, and aerial media, as well as continuing improvements in operating efficiency and our cash position. Going forward, we will stay focused on driving commercialization and core tech development. We will continue to improve operating efficiency and resource allocation. We believe these efforts will strengthen our foundation for long-term growth and create sustainable value for our shareholders. Thank you all.

Conor Chia-hung Yang: These includes preparation for and approval process of domestic commercial operations, processing international markets, product development orders and deliveries for non-passenger carrying business such as logistics, firefighting, and aerial media, as well as continuing improvements in operating efficiency and our cash position. Going forward, we will stay focused on driving commercialization and core tech development. We will continue to improve operating efficiency and resource allocation. We believe these efforts will strengthen our foundation for long-term growth and create sustainable value for our shareholders. Thank you all.

Speaker #1: Product development, orders, and deliveries for non-passenger-carrying businesses such as logistics, firefighting, and aerial media, as well as continued improvements in operating efficiency and our cash position.

Speaker #1: Going forward, we'll stay focused on driving commercialization and core tech development, while continuing to improve operating efficiency and resource allocation. We believe these efforts will strengthen our foundation for long-term growth and create sustainable value for our shareholders.

Speaker #1: Thank you all

Speaker #2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced.

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. Your first question comes from Tim Hsiao with Morgan Stanley. Please go ahead.

Speaker #2: If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Tim Hysiol with Morgan Stanley.

Speaker #2: Please go ahead

Speaker #3: Hi , this is Tim from Morgan Stanley . Thanks for taking my questions I have two questions about commercialization . The first question is , is as we just discussed , I think the company target get a commercial operation permit in Thailand this year .

Tim Hsiao: Hi, this is Tim from Morgan Stanley. Thanks for taking my questions. I have two questions about commercialization. The first question, as we just discussed, I think the company targets to get a commercial operation permit in Thailand this year. Just want to get more details. When do you think that would happen, like in Q3, in Q4? If it happens, how many units of 216 do you think we are going to ship this year based on the contract? That is my first question. My second question is about the commercialization in China. For those, I think management just mentioned we are not going to provide update guidance and attributable to the uncertainty to the incidents that took place in June. As we remember, the incident was caused by human factors.

Speaker #3: So, just want to get more details. When do you think that would happen? Like in the third quarter, in the fourth quarter?

Speaker #3: And if it happens , how many units of two , one , six . You think we can we are going to ship this year based on the contract .

Speaker #3: So that's my first question. My second question is about the commercialization in China. Although I think the management just mentioned we are not going to provide updated guidance.

Speaker #3: And the to the uncertainty to the incidents that took place in June . But as we remember , the incident was caused by human factors and if there's any potential barrier , as we discussed with the management , I think previously management believe that that's that's would favor yuan because it the products are designed to follow the scheduled route .

Tim Hsiao: If there is any potential barrier, as we discussed with management, I think previously management believed that would favor EHang, because EHang's drone products are designed to follow the scheduled route and will fly autonomously and can be under system control. Just wondering what really changed management's view on the impact and to the OC's schedule? Just what happened over the past few months. Those are my two questions. Thank you.

Speaker #3: And which fly autonomously and can be under system control. So, just wondering what really changed management's view on the impact and the schedule.

Speaker #3: Just what happened over the past few months? Yeah, those questions. Thank you.

Speaker #1: Is there For the Should I RL Liu Xiao Two . You can a so I think the The schedule Or the . You .

Wei Gu: 感谢管理层接受我的提问。我这边有两个问题，分别都是关于商业化的。首先是第一个，我们提到的泰国的商业化进程。我想问一下，我们预期什么时候能够在泰国获得相应的商业的许可？是在第三季度还是第四季度？如果我们在泰国的商业化成功落地，那这将根据现有的合同带来多少EH216的销售呢？预期今年能有多少出货量？那我的第二个问题同样是关于中国国内的商业化进程。那么就刚才我们所给出的一个未来性的指引，比如说我们确实提到了，因为6月份的这次事故造成了一些不确定性，那这个事故显然是由人造成的。而对于亿航来说，我们的无人驾驶系统完全是由事先固定的路线，完全的实现自动驾驶，由系统控制，其实对我们来说可能相对来说影响会比较小一点。那我想评估一下管理层是基于哪一些因素评估对于OC取证的真正落地会带来实际的影响的，背后的原因是什么？

Zhao Wang: [Foreign languge]

Speaker #1: Young, the... All. See to the... The.

Conor Chia-hung Yang: 好的，我来回答第一题。我们在泰国同步部署载人跟非载人业务。在载人运营方面，公司目前已经与泰国民航局进一步明确了飞行资质的审批路径，预计在三季度内可以先拿到实验性的飞行许可。这代表的就是说我们的eVTOL正式在泰国成为正式注册的飞行器，可以常态化载人。虽然还不能卖票，但这个可以让我们常态化载人。然后我争取在年底之前能够正式拿到商业运营合格证，并开启商业化运营。

Speaker #4: To The . Routine . A . To make The . Fishing On the The . The . Fishing . A And the Stream

Speaker #1: Let me take your first question . We are deploying both passenger carrying and non-passenger carrying operations in Thailand in parallel on the passenger carrying side , we have further clarified the approval pathway for flight qualifications with Thailand Civil Aviation Authority and we expect it to obtain an experimental flight permit in Q three and we also expect to secure a formal commercial operation certificate by the end of the year .

Tim Hsiao: Let me take your first question. We are deploying both passenger carrying and non-passenger carrying operations in Thailand in parallel. On the passenger carrying side, we have further clarified the approval pathway for flight qualifications with the Civil Aviation Authority of Thailand, and we expected to obtain an experimental flight permit in Q3. We also expected to secure a formal commercial operation certificate by the end of the year. By that milestone, it represents that our eVTOL will be officially registered within the Civil Aviation Authority of Thailand, though we may not be able to directly sell tickets to the public. That is indeed a milestone that we are hoping to achieve within the year.

[Translator]: Let me take your first question. We are deploying both passenger carrying and non-passenger carrying operations in Thailand in parallel. On the passenger carrying side, we have further clarified the approval pathway for flight qualifications with the Civil Aviation Authority of Thailand, and we expected to obtain an experimental flight permit in Q3. We also expected to secure a formal commercial operation certificate by the end of the year. By that milestone, it represents that our eVTOL will be officially registered within the Civil Aviation Authority of Thailand, though we may not be able to directly sell tickets to the public. That is indeed a milestone that we are hoping to achieve within the year.

Speaker #1: By then , we'll start . So by that milestone , it represents that our video will be officially registered within the Thailand's civil Aviation Authority , though we may not be able to directly sell tickets to the public .

Speaker #1: But that is indeed a milestone that we are hoping to achieve within the year.

Conor Chia-hung Yang: 在年底拿到运营合格证之后，在这个同时，我们跟民航局也沟通，至少在泰国规划10条以上的商业化载人的路线，会覆盖曼谷、芭提雅、普吉岛，还有苏梅岛、龟岛等。那所以真正的delivery会在明年。明年我们每一条商业化正式开展的话，至少每个地方是5台以上，所以整体的这个需求在明年会爆发。

Zhao Wang: [Foreign languge]

Speaker #4: Are the Thailand and Wichita autumn deliveries to the million?

Speaker #1: So we are striving to secure the operational certificate in Thailand by the end of the year, and we are working with the local civil aviation regulator to plan ten routes that will cover Bangkok, Phuket, some islands, and Pattaya.

Tim Hsiao: We are striving to secure the operational certificate in Thailand by the end of the year. We are working with the local civil aviation regulator to plan 10 routes that will cover Bangkok, Phuket, Koh Samui, and Pattaya. Official deliveries of our EH216 models will start sometime next year. According to the plans, each location will require at least 5 units of EH216-S. We are going to see a significant increase in our eVTOL deliveries next year.

[Translator]: We are striving to secure the operational certificate in Thailand by the end of the year. We are working with the local civil aviation regulator to plan 10 routes that will cover Bangkok, Phuket, Koh Samui, and Pattaya. Official deliveries of our EH216 models will start sometime next year. According to the plans, each location will require at least 5 units of EH216-S. We are going to see a significant increase in our eVTOL deliveries next year.

Speaker #1: Official deliveries of our 216 models will start sometime next year , according to the plans . Each location will require at least five units of H216S , so we are going to see a significant increase in our in deliveries in next year

Wang Jia: 然后在飞人业务方面，我们确实已经向泰国市场部署超过千架的GD4.0编队无人机，也在曼谷、芭提雅等展开常态化的无人机表演。

Zhao Wang: [Foreign languge]

Speaker #4: And the

Speaker #1: From the non-passenger side, the company has shifted over 1,000 GD formation drones by sea to the Thai market. We plan to launch regular drone light show operations in Bangkok and Pattaya.

Anne Ji: From the non-passenger side, the company has shipped over 1,000 GD4 formation drones by sea to the Thai market, and we plan to launch regular drone light show operations in Bangkok and Pattaya.

[Translator]: From the non-passenger side, the company has shipped over 1,000 GD4 formation drones by sea to the Thai market, and we plan to launch regular drone light show operations in Bangkok and Pattaya.

Wang Jia: 我要回答第二个问题。关于6月份国内有人驾驶的轻型运动飞机的事故，确实是由于人为因素导致的。那么随之而来的监管政策的收紧那是显而易见的，因为每次事故后都有相应的调查研究和完善新的法律法规。尤其是对有人驾驶航空器及其飞行员，这块是一个重点调查和审查的一个过程。我们依然坚持最初的观点，公司的是无人驾驶预设固定航线集群调度的运行模式，在安全性上具有本质优势。严格的安全监管长期看来对我们是一种利好。

Zhao Wang: [Foreign languge]

Speaker #4: Chiang

Speaker #1: This incident . You . Regarding the impact of the June flight incident . The incident you mentioned manned light sport aircraft incident accident in China at the end of June was indeed a .

Anne Ji: Regarding the impact of the June flight incident. The incident you mentioned, manned light sport aircraft accident in China at the end of June was indeed primarily caused by human factors. The subsequent regulatory tightening has been noticeable, particularly around manned aircraft and their pilots. We continue to hold our original view. Our unmanned pre-programmed fixed route fleet-oriented coordinated operating model has inherent safety advantage, and stricter safety regulation is a net positive for us in the long run.

[Translator]: Regarding the impact of the June flight incident. The incident you mentioned, manned light sport aircraft accident in China at the end of June was indeed primarily caused by human factors. The subsequent regulatory tightening has been noticeable, particularly around manned aircraft and their pilots. We continue to hold our original view. Our unmanned pre-programmed fixed route fleet-oriented coordinated operating model has inherent safety advantage, and stricter safety regulation is a net positive for us in the long run.

Speaker #1: Caused by human factors. The subsequent regulatory tightening has been noticeable, particularly around manned aircraft and their pilots. We continue to hold our original view.

Speaker #1: Our unmanned , pre-programmed , fixed route fleet oriented , coordinated operating model has inherent safety advantage and stricter safety regulation is a net positive for us in the long run

Wang Jia: 那么关于OC这一块，这次的事故从监管部门的角度来看，监管的实际反应超出了我们最初的一个预期。这起事故促使监管部门对整个低空行业采取了更加审慎的态度。尽管与我们无人驾驶eVTOL没有直接的关联，但是受到行业整体审慎监管造成的影响，国内载人商业化运营的审批进度有所延后，但不是停止。具体到合肥项目，其商业化的运营审批进度也因此会有些延迟。那么监管批复的时点目前存在一些不确定性。

Zhao Wang: [Foreign languge]

Speaker #4: In You The

Speaker #1: Regarding the change in our outlook on the OC operator certificate timeline, however, the regulatory response has been far more far-reaching than we initially anticipated.

Anne Ji: Regarding the change in our outlook on the OC operator certificate timeline. However, the regulatory response has been more far reaching than we initially anticipated. This incident has prompted regulators to adopt a more cautious stance toward the entire low altitude industry. Although it is not directly related to our unmanned eVTOLs, the overall cautious regulatory environment has indeed slowed the approval timeline for domestic carrying commercial operations. Specifically, the commercial operation approval process for the Hefei project has been delayed, and the timing of regulatory clearance remains uncertain.

[Translator]: Regarding the change in our outlook on the OC operator certificate timeline. However, the regulatory response has been more far reaching than we initially anticipated. This incident has prompted regulators to adopt a more cautious stance toward the entire low altitude industry. Although it is not directly related to our unmanned eVTOLs, the overall cautious regulatory environment has indeed slowed the approval timeline for domestic carrying commercial operations. Specifically, the commercial operation approval process for the Hefei project has been delayed, and the timing of regulatory clearance remains uncertain.

Speaker #1: This incident has prompted regulators to adopt a more cautious stance toward the entire low altitude industry . Although it is not directly related to our unmanned evidence , the overall cautious regulatory environment has indeed slowed the approval timeline for domestic carrying commercial operations , specifically , the commercial operation approval process for the project has been delayed , and the timing of regulatory clearance remains uncertain

Wang Jia: 但是这个监管实际执行层面的收紧，并非是对我们技术路线的否定，而是对整个行业审批节奏的阶段性影响。我们尊重并理解监管机构对公众安全高度负责的态度。同时我们把精力放在自己能掌控的事情上，比如运营能力输出，帮助客户构建运营系统。等窗口打开的时候，我们不需要从零开始。同时积极寻求海外市场机会，升级Fast Track计划，与当地民航监管方明确验证路径，缩短验证到运营的时间。谢谢。

Zhao Wang: [Foreign languge]

Speaker #4: Fast track

Speaker #1: So our assessment is that the actual regulatory tightening , you know , at the enforcement level , this is not a rejection of our technology pathway , but rather a periodic temporary impact on the approval cadence across the industry .

Anne Ji: Our assessment is that the actual regulatory tightening at the enforcement level, and this is not a rejection of our technology pathway, but rather a periodic temporary impact on the approval cadence across the industry. We respect and understand the regulators' strong commitment to public safety. At the same time, we hope that the regulators would provide reasonable policies while ensuring safety. For us, we are going to focus on executing what can be done from our side. In the meantime, we are proactively pursuing our global overseas initiatives so that we can move the industry forward. Just a quick add. We are working with the local civil aviation authorities to clarify validation pathways and shorten the time from validation to market access through our overseas fast track program. Thank you. Next question, please.

[Translator]: Our assessment is that the actual regulatory tightening at the enforcement level, and this is not a rejection of our technology pathway, but rather a periodic temporary impact on the approval cadence across the industry. We respect and understand the regulators' strong commitment to public safety. At the same time, we hope that the regulators would provide reasonable policies while ensuring safety. For us, we are going to focus on executing what can be done from our side. In the meantime, we are proactively pursuing our global overseas initiatives so that we can move the industry forward. Just a quick add. We are working with the local civil aviation authorities to clarify validation pathways and shorten the time from validation to market access through our overseas fast track program.

Speaker #1: We respect and understand the regulator's strong commitment to public safety And they hope at the same time , we hope that the , you know , the regulators would provide a reasonable policies while ensuring safety and for us , we're going to focus on executing what can be done from our side .

Speaker #1: In the meantime , we are proactively pursuing our global or overseas initiatives so that we can move the industry forward Just to just a quick add , we are working with the local civil aviation authorities to clarify validation pathways and shorten the time from validation to market access through our overseas fast Track program .

Speaker #1: That's the end. Next question, please.

Tim Hsiao: Thank you.

Hu Huazhi: Next question, please.

Speaker #2: Your next question comes from Wade Wu with Jefferies. Please go ahead.

Operator: Your next question comes from Wei Gu with Jefferies. Please go ahead.

Speaker #1: Hi .

Speaker #5: Thanks . From Jefferies Two two question , please . The first one being given the full year guidance on the revenue has been withdrawn and I understand it could be difficult to quantify , but do you mind ?

Wei Gu: Hi, thanks. I am from Jefferies. Two questions please. The first one being, given the full year guidance on the revenue has been withdrawn, and I understand it could be difficult to quantify, but do you mind give us a little bit color on the H2 run rate versus the Q2 kind of numbers? It would be great if you kind of split out between eVTOL and the non-passenger segments. My second question will be coming towards the accounting adjustment that we have mentioned in the Q1 call. Do you mind give us some sense on the numbers being delivered in this Q2? Any more to be delivered down the line. Thank you.

Speaker #5: Give us a little bit color on the kind of like the second half run rate versus the two Q kind of numbers ? It would be great if you kind of split it out between EBITDA and the non passenger segments .

Speaker #5: And my second question will be coming to towards the accounting adjustment that we mentioned in the one Q call . So do you might give us some sense on the numbers being delivered in this second second .

Speaker #5: Q: And are there any more to be delivered down the line? Thank you.

Speaker #1: Thanks . Can you repeat the second question ? I didn't quite . Oh , okay . Got it .

Anne Ji: I'm sorry, can you repeat the second question? I didn't quite. Oh, okay, got it.

Conor Chia-hung Yang: I'm sorry, can you repeat the second question? I didn't quite. Oh, okay, got it.

Speaker #5: Yep , yep .

Wei Gu: Yeah。

Wei Gu: Yeah. Got it. [Foreign languge]

Speaker #1: Got it .

Speaker #5: Perfect .

Anne Ji: Got it.

Wei Gu: 我这边有两个问题。我的第一个问题是，我们留意到我们撤回了全年的6亿营收的指引，从我这边能够理解，这比较难去量化，但可否请管理层在方向上面，比如说和第二季度的这个run rate交付量上面去做一个对比，是会更强还是会持平呢？如果可以的话，能否从细致的eVTOL载人业务和非载人的业务都去给出一些解释？然后我这边的第二个问题是关于我们一季度提到的这个会计调整，那我们想问一下这个第二季度实际交付了多少，然后还有多少待交付？这个调整能不能帮忙具体再讲一讲。谢谢。

Speaker #1: What do you mean ? And what 20 ? Sure Liu , you know To Listen you . The run rate be Is The 32 .

Wang Jia: 我来回答第一个问题。确实鉴于今年的情况有一些不确定性，所以公司决定暂不更新2026年的全年收入指引。那么相应的呢，公司也不再就载人与非载人业务收入比例提供具体的一个量化预期。但从已经实现的经营数据来看，第二季度空中交通收入占比是92%，非载人业务收入占比约8%。而非载人业务这一块主要是编队表演业务。

Conor Chia-hung Yang: [Foreign languge]

Speaker #4: Year

Speaker #1: Given the uncertainties, the company has decided not to update its full-year 2026 revenue guidance at this time, and neither do we.

Anne Ji: Given the uncertainties, the company has decided not to update its full year 2026 revenue guidance at this time, nor will we provide any specific quantitative expectations on the revenue mix between passenger carrying and non-passenger business. However, based on the actual operating data that has already been achieved, air mobility revenue accounted for around 92% of our total revenue, while non-passenger business, primarily GD4.0 formation drone performance, accounted for approximately 8%.

[Translator]: Given the uncertainties, the company has decided not to update its full year 2026 revenue guidance at this time, nor will we provide any specific quantitative expectations on the revenue mix between passenger carrying and non-passenger business. However, based on the actual operating data that has already been achieved, air mobility revenue accounted for around 92% of our total revenue, while non-passenger business, primarily GD4.0 formation drone performance, accounted for approximately 8%.

Speaker #1: Nor will we provide any specific quantitative expectations on the revenue mix between passenger carrying and non-passenger business . However , based on the actual operating data that has already been achieved , air mobility revenue accounted for around 92% of our Q2 revenue , while non passenger business primarily GD for formation drone performance accounted for approximately 8% .

Wang Jia: 那么非载人业务的收入和占比将在下半年呈上升趋势，预计会受到编队表演交付放量，还有其他非载人产品，包括物流和消防的交付的带动。那么载人业务呢，收入依然会占主导地位，这块主要取决于广州、合肥载人省内航线商业化运营，还有海外市场扩张推进节奏。那么公司将继续推进载人商业运营落地和非载人场景的扩张，双线并进。后面具体收入比例将随着业务线的推进动态变化。谢谢。

Conor Chia-hung Yang: [Foreign languge]

Speaker #4: So In

Speaker #1: Non passenger revenue is expected to trend upward . Both in percentage as a share of the total revenue as well as the absolute amount .

Anne Ji: Non-passenger revenue is expected to trend upward both in percentage as a share of the total revenue as well as the absolute amount in the H2 of the year, driven mainly by increased deliveries of formation drones, as well as a small number of other model deliveries such as firefighting series. Passenger business revenue will continue to dominate, largely depending on the pace of commercial operation launches on passenger routes in Guangzhou and Hefei, as well as overseas market expansion. The company will continue advance both passenger commercial operations and non-passenger use case expansion in parallel, with a specific revenue mix evolving dynamically as each business line progresses.

[Translator]: Non-passenger revenue is expected to trend upward both in percentage as a share of the total revenue as well as the absolute amount in the H2 of the year, driven mainly by increased deliveries of formation drones, as well as a small number of other model deliveries such as firefighting series. Passenger business revenue will continue to dominate, largely depending on the pace of commercial operation launches on passenger routes in Guangzhou and Hefei, as well as overseas market expansion. The company will continue advance both passenger commercial operations and non-passenger use case expansion in parallel, with a specific revenue mix evolving dynamically as each business line progresses.

Speaker #1: In the second half of the year , driven mainly by increased deliveries of formation drones as well as a number . A small number of other model deliveries such as firefighting series , passenger business revenue will continue to dominate , largely depending on the pace of commercial operation launches on passenger routes in Guangzhou and Hefei , as well as overseas market expansion .

Speaker #1: The company will continue to advance both passenger commercial operations and non-passenger use case expansion in parallel, with a specific revenue mix evolving dynamically as each business line progresses.

Conor Chia-hung Yang: 第二个问题，我来回答。2026年第二季度，公司确认了部分之前已经完成交付的EH216系列的航空器收入。那剩一部分未来随着相关收入确认的条件满足，公司会依据适用的会计准则，在相应季度确认相关收入。整体那样，公司并不披露详细的细节。

Conor Chia-hung Yang: [Foreign languge]

Speaker #4: The Hong Kong Key, Shanghai 20.

Speaker #1: In the second quarter , the company recognized revenue for a portion of the E 200 series aircraft that had been previously delivered and going forward , we will recognize revenue as the contract meet the certain criteria .

Anne Ji: In the second quarter, the company recognized revenue for a portion of the EH216 series aircraft that had been previously delivered. Going forward, we will recognize revenue as the contract meets the certain criteria according to applicable accounting policies, and the company will disclose them to the market in a timely fashion. Thanks. Thank you. Your next question comes from Laura Lee with Deutsche Bank. Please go ahead.

[Translator]: In the second quarter, the company recognized revenue for a portion of the EH216 series aircraft that had been previously delivered. Going forward, we will recognize revenue as the contract meets the certain criteria according to applicable accounting policies, and the company will disclose them to the market in a timely fashion. Thanks.

Speaker #1: According to applicable accounting policies , and the company will disclose them to the market in a timely , timely fashion . Thank you Question please .

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

Speaker #2: Thank you. Your next question comes from Laura Lee with Deutsche Bank. Please go ahead.

Speaker #6: Hey , thank you for taking my question . Two on the topics that you mentioned before . Firstly , on the regulation side , I think you mentioned there's a certain level of consciousness , but just trying to see like for this current sentiment , what kind of safety evidence or milestones will likely be needed for this approval phase to normalize ?

Laura Lee: Hey, thank you for taking my question. Two follow-ups on the topics that you mentioned before. Firstly, on the regulation side, I think you mentioned a certain level of cautiousness, but just trying to see for this current regulatory sentiment, what kind of safety evidence or milestones will likely be needed for this approval pace to normalize? My second question around the diversification about your revenue stream. Could you update us on the progress across the non-passenger businesses like the logistics or firefighting streams? Which area looks more promising in the near term? Or any contract or program you are pursuing? That is my two questions. Thanks.

Laura Li: Hey, thank you for taking my question. Two follow-ups on the topics that you mentioned before. Firstly, on the regulation side, I think you mentioned a certain level of cautiousness, but just trying to see for this current regulatory sentiment, what kind of safety evidence or milestones will likely be needed for this approval pace to normalize? My second question around the diversification about your revenue stream. Could you update us on the progress across the non-passenger businesses like the logistics or firefighting streams? Which area looks more promising in the near term? Or any contract or program you are pursuing? That is my two questions. Thanks.

Speaker #6: My second question is around the diversification of your revenue stream. Could you update us on the progress across the non-passenger businesses, like the logistics or firefighting teams? Which area looks more promising in the near term, or are there any contract programs you're pursuing?

Speaker #6: Yeah , question . Thanks

Wei Gu: 我这边有两个问题。您刚才也提到了中国监管部门对于无人驾驶行业的监管趋于谨慎的态度。那么我想问一下，如何评价中国针对载人电动垂直起降器eVTOL运营当前的监管态度？如果说要审批节奏趋于常态化的话，大致需要哪些安全佐证或者关键的里程碑？那我的第二个问题是关于我们的载人业务以外的非载人业务的进展，比如说物流、消防等业务，短期内哪个领域前景最可观？该业务何时能够开始创造可观的营收？以上两个问题，谢谢。

Hu Huazhi: [Foreign languge]

Speaker #1: For do you Do Are you woman . If the figure in the ginger Q1 . Okay . You should go Now , let me take your questions first .

Wang Jia: 这两个问题我来回答。第一个有关监管态度。当前的监管态度呢，首先是充分保证安全的审查与批准。那么这一块儿呢，但绝对不是停止，因为低空经济已经是全球趋势。再来呢，就是运营方的实际运营能力，所以我们仍然在推进我们的运营样板，尤其是合肥这边的一个审查与实际进度。

Anne Ji: Let me take your questions. First, the review and approvals are conducted with a strong emphasis on ensuring safety. There are still ongoing reviews. It does not mean that the review and approvals have completely come to a ground halt, because you know the low-altitude economy represents a worldwide trend. With regard to operations, we are still advancing our operation capabilities. The operational model will still need to be reviewed and approved. For approval to become normalized, our operational model needs to be passed regulatory review and enter regulatory operations.

[Translator]: Let me take your questions. First, the review and approvals are conducted with a strong emphasis on ensuring safety. There are still ongoing reviews. It does not mean that the review and approvals have completely come to a ground halt, because you know the low-altitude economy represents a worldwide trend. With regard to operations, we are still advancing our operation capabilities. The operational model will still need to be reviewed and approved. For approval to become normalized, our operational model needs to be passed regulatory review and enter regulatory operations.

Speaker #1: The review and approvals are conducted with a strong emphasis on ensuring safety . So there are still ongoing reviews . It doesn't mean that the review and approvals have completely come to a ground halt because , you know , the low altitude , low altitude economy represents a worldwide trend .

Speaker #1: And with regard to operations, we are still advancing our operational capabilities, and the operational model will still need to be reviewed and approved.

Speaker #1: And for approval to become normalized, our operational model needs to be passed regulatory review and enter regulatory operations.

Wang Jia: 那么如果实现这种审批节奏趋于常态化呢，那么也需要我们现在正在试运营的这个点位进入常态化运营，并成为一个标杆样板，能够为其他的运营方作为参考。所以同时呢，我们也已经在着手帮助这个客户相关的运营单位着手进行这些资料等准备。所以一旦这个监管有关安全检查完成，那么这个行业在继续推进的时候，那我们客户的审批就会得到极大的加速。

Zhao Wang: [Foreign languge]

Speaker #4: So

Speaker #1: I think to see a full-scale, back-to-normal review and approval condition, we need to see that the trial operations that we have in Hervey are moving into routine operations.

Anne Ji: I think to see a full scale back to normal review and approval condition, we need to see that the trial operations that we have in Hefei moving into routine operations. Then we will establish this routine operation, this site, as a role model for other operators, even industry benchmark. Currently, we are helping our customers putting together related documents and etc. As regulatory clearance clears its way, and the industry goes back to its normal cadence of review and approval, then our customers will be able to expedite their approval process and move into routine operations.

[Translator]: I think to see a full scale back to normal review and approval condition, we need to see that the trial operations that we have in Hefei moving into routine operations. Then we will establish this routine operation, this site, as a role model for other operators, even industry benchmark. Currently, we are helping our customers putting together related documents and etc. As regulatory clearance clears its way, and the industry goes back to its normal cadence of review and approval, then our customers will be able to expedite their approval process and move into routine operations.

Speaker #1: And then we will establish this routine operation, using this site as a role model for other operators, even as an industry benchmark. So currently, we are helping our customers by putting together related documents, etc.

Speaker #1: as regulatory clearance clears . This way . And the industry goes back to its normal review and approval . And then our customers will be able to expedite their approval process and move into routine operations

Wang Jia: 那么对于第二个问题，关于我们非载人业务这一块。首先呢，这些领域都是存在实际需求的。EHang在无人机方面具有大量的技术储备，而且我们是可以把载人的这种安全性过渡到我们的非载人产品上。今年将在短程应急物流、长航程物流、无人化的指挥调度方面和巡检方面。尤其是以。

Zhao Wang: [Foreign languge]

Speaker #4: Phase

Anne Ji: There is real demand.

[Translator]: There is real demand.

Speaker #1: There is a real demand Well , there is clear and genuine demand across all of these areas . And Ihan has a deep tech reserve and we are reusing some of our technologies from the human caring products onto the non-human carrying products .

Wang Jia: 还有今年下半年的消防产品的订单都是具备非常可观的潜力。请翻译。

Zhao Wang: [Foreign languge]

Anne Ji: Well, there is clear and genuine demand across all of these areas, and EHang has a deep tech reserve, and we are reusing some of our technologies from the human carrying products onto the non-human carrying products. To give you some examples, there are some short-range emergency logistics and long-range logistics, etc. Those are some of the critical use cases where we can use our products. Looking into the H2 of the year, we are also going to ship firefighting products. There is quite a promising prospect for the orders of these products.

[Translator]: Well, there is clear and genuine demand across all of these areas, and EHang has a deep tech reserve, and we are reusing some of our technologies from the human carrying products onto the non-human carrying products. To give you some examples, there are some short-range emergency logistics and long-range logistics, etc. Those are some of the critical use cases where we can use our products. Looking into the H2 of the year, we are also going to ship firefighting products. There is quite a promising prospect for the orders of these products.

Speaker #1: And to give you some examples , there are some short range emergency logistics and long range logistics and etc. and those are some of the critical use cases where again , use our products and looking into the second half of the year , we are also going to ship firefighting products .

Speaker #1: And there's quite a very, quite promising prospect for our—for the orders of these products. And this is exactly where our strategy is this year.

Wang Jia: 因此我们今年的战略依然是丰富多场景，尤其是收入构成多元化方面。可以看到非载人业务刚才发布的数据，它的占比已经到了8%，根据业务的推进，还要继续上升和扩大。谢谢。

Zhao Wang: [Foreign languge]

Anne Ji: This is exactly where our strategy is. This year, we are going to continue to focus on diversifying use cases, particularly in terms of the revenue mix. As you are already seeing, non-passenger business has already reached 80% of the total revenue. We expect this to further expand and the share to continue to grow as our business progresses. Thank you.

[Translator]: This is exactly where our strategy is. This year, we are going to continue to focus on diversifying use cases, particularly in terms of the revenue mix. As you are already seeing, non-passenger business has already reached 80% of the total revenue. We expect this to further expand and the share to continue to grow as our business progresses. Thank you.

Speaker #1: We're going to continue to focus on diversifying use cases , particularly in terms of the revenue mix , as you already seen non-passenger business has already reached 80% of the total revenue , and we expected this to further expand .

Speaker #1: And the share will continue to grow as our business progresses. Thank you.

Speaker #2: Thank you, all. Given that time is limited, let me turn the call back to Miss 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.

Anne Ji: 好，感谢主持人，也非常感谢今天在线的各位投资人和分析师参加我们的业绩会。如果后续大家有更多的问题，欢迎通过我们的IR邮箱与公司取得联系。后续我们也会在线下的投资者会议上有分组，再有更进一步的交流。非常感谢大家的关注，我们期待下一次的电话会议再与各位相见。好，感谢，谢谢。

Anne Ji: [Foreign languge]

Speaker #6: You Can

Speaker #1: Thank you once again for joining us today. If you have any further questions, you can reach out to us through the email on our website.

Anne Ji: Thank you once again for joining us today. If you have any further questions, you can reach out to us through the email on our IR website. Additionally, we are going to host some offline sessions where we are going to have more in-depth communications with you. We look forward to seeing you in our next earnings call. Thank you once again. Bye.

[Translator]: Thank you once again for joining us today. If you have any further questions, you can reach out to us through the email on our IR website. Additionally, we are going to host some offline sessions where we are going to have more in-depth communications with you. We look forward to seeing you in our next earnings call. Thank you once again. Bye.

Speaker #1: IR website . Additionally , we are going to host some offline sessions where we are going to have more in-depth communications with you , and we look forward to seeing you in our next earnings call .