EHang Reports First Quarter 2021 Unaudited Financial Results

Guangzhou, CHINA


- Achieved Quarterly Positive Operating Cash Flow Again
- Maintained High Quarterly Gross Margin

GUANGZHOU, China, Aug. 25, 2021 (GLOBE NEWSWIRE) -- EHang Holdings Limited (“EHang” or the “Company”) (Nasdaq: EH), the world’s leading autonomous aerial vehicle (“AAV”) technology platform company, today announced its unaudited financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Financial and Operational Highlights

  • Total revenues were RMB23.0 million (US$3.5 million), up 22.1% year-over-year, with growth mainly in air mobility solutions. Revenues from air mobility solutions contributed 98.4% of the total revenues in the first quarter of 2021.

  • Gross margin was 63.2%, an increase of 3.9 percentage points year-over-year, driven by continuous optimization of cost structure of air mobility products and the change in revenue mix.

  • Operating loss was RMB66.2 million (US$10.1 million), compared with operating loss of RMB21.1 million in the first quarter of 2020. The change in operating loss was mainly due to the increase in share-based compensation expenses charged to operating expenses.

  • Adjusted operating loss1 (non-GAAP) was RMB17.3 million (US$2.6 million), compared with adjusted operating loss of RMB19.2 million in the first quarter of 2020.

  • Net loss was RMB62.5 million (US$9.5 million), compared with net loss of RMB20.4 million in the first quarter of 2020.

  • Adjusted net loss2 (non-GAAP) was RMB13.7 million (US$2.1 million), compared with adjusted net loss of RMB18.5 million in the first quarter of 2020.

  • Net cash from operating activities was RMB16.2 million (US$2.5 million), a significant growth compared to negative RMB29.1 million in the first quarter of 2020.

  • Cash and cash equivalents and short-term investments amounted to RMB480.5 million (US$73.3 million) as of March 31, 2021, mainly due to the US$40 million investment from Carmignac and the positive net cash from operating activities achieved.

  • Sales of the EHang 216 series of passenger-grade AAVs, were 15 units, compared with 9 units in the first quarter of 2020.

First Quarter 2021 Business Highlights

  • Trial Flights to Initiate an Urban Air Mobility (“UAM”) Plan in the Hengqin New Area in Southern China

In January, EHang announced strategic partnerships with local partners to jointly initiate trial air mobility operations in the Hengqin New Area (“Hengqin”), the largest of the islands surrounding Zhuhai city in the Guangdong-Hong Kong-Macao Greater Bay Area of China. A total of 36 passengers experienced trial flights for aerial sightseeing in Hengqin on the announcement date. In February, the local partner further carried out the first trial flights of the EHang 216 over the sea of southern China from Hengqin to Dong’ao Island, a tourist destination island, showcasing its potential application in air mobility use cases such as aerial sightseeing.

  • Trial Flights of Passenger-grade AAVs for the First Time in Beijing

In February, EHang completed trial flights of the EHang 216 in Beijing in a cold weather at an air temperature of minus 14 degrees Celsius to demonstrate the safety, reliability and environmental adaptability of its cutting-edge AAV technologies. This was also the first time that passenger-grade AAVs flew in Beijing, the capital city of China.

  • Participation in a Series of UAM Projects Supported by the European Union

In January and February, as a pioneer of cutting-edge AAV products and technological solutions, EHang was selected to participate in a series of UAM projects supported by the European Union to demonstrate ways to achieve safe, sustainable, socially acceptable, and effective UAM. These projects include: 1) the Air Mobility Urban - Large Experimental Demonstration (“AMU-LED”) project in Spain, the United Kingdom and the Netherlands; 2) the Re-Invent Air Mobility initiative in France; 3) the Safe and Flexible Integration of Advanced U-Space Services for Medical Air Mobility (“SAFIR-Med”) project in Belgium, Germany, the Netherlands, Greece and Czech Republic; and 4) the GOF 2.0 Integrated Urban Airspace VLD.

  • Partnership with Giancarlo Zema Design Group to Build an Eco-sustainable Vertiport in Italy

In March, EHang entered into a partnership with Giancarlo Zema Design Group (“GZDG”), a leading Italian architecture firm. GZDG has designed and intends to build an eco-sustainable vertiport in Italy using EHang’s passenger-grade AAV technologies and air mobility solutions. The vertiport will use green design and construction materials and can generate energy to recharge the EHang 216 AAVs.

  • Partnership with Dongfeng USharing to Co-develop a Solution for Seamlessly-Connected Mobility Services Leveraging AAV Technologies

In March, EHang entered into a partnership with Dongfeng USharing Technology Co., Ltd., a subsidiary of Dongfeng Motor Corporation (a Fortune Global 500 company and one of the largest auto makers in China) to co-develop a solution for Seamlessly Connected Mobility Services for logistics using EHang’s AAV technologies.

CEO Remarks

“We started the year of 2021 with a 22.1% year-over-year revenue growth in the first quarter, achieved again quarterly positive operating cash flow and maintained high quarterly gross margin at 63.2%. All of these reflected our growing competitive strengths,” said Mr. Huazhi Hu, EHang’s Founder, Chairman and Chief Executive Officer. “Upon entering 2021, we focused more on our core business in air mobility solutions through expanding our trial operation programs and industrywide partnerships for UAM powered by our cutting-edge AAV products and technologies to gain robust growth momentum into the near future.”

First Quarter 2021 Financial Results

Revenues

Total revenues were RMB23.0 million (US$3.5 million), up 22.1% year-over-year, with growth mainly in air mobility solutions. Revenues from air mobility solutions represented 98.4% of the total revenues in the first quarter of 2021. Sales of the EH216, the Company’s flagship passenger-grade AAV, were 15 units (including 1 unit of the customized EH216L) in the first quarter of 2021, compared with 9 units in the same period of 2020.

Costs of revenues

Costs of revenues were RMB8.5 million (US$1.3 million), up 10.3% year-over-year, primarily due to the change in the sales volume of AAV products.

Gross profit

Gross profit was RMB14.5 million (US$2.2 million), up 30.2% from RMB11.2 million in the first quarter of 2020.

Gross margin was 63.2%, up 3.9 percentage points from 59.3% in the first quarter of 2020. The increase in gross margin was mainly due to the continuous optimization of cost structure of air mobility products.

Operating expenses

Total operating expenses were RMB83.4 million (US$12.7 million), up 152.4% from RMB33.0 million in the first quarter of 2020. Operating expense as a percentage of total revenues was 363.0%, compared with 175.6% in the first quarter of 2020. The increase in operating expenses was primarily due to an increase of RMB46.9 million (US$7.2 million) in share-based compensation expenses and the charges to sales and marketing expenses, general and administration expenses and research and development expenses were RMB4.6 million (US$0.7 million), RMB34.9 million (US$5.3 million) and RMB7.4 million (US$1.2 million), respectively.

Adjusted operating expenses3 (non-GAAP)

Adjusted operating expenses were RMB34.5 million (US$5.3 million), representing an increase of 11.0% from RMB31.1 million in the first quarter of 2020. Adjusted operating expenses as a percentage of total revenues was 150.3%, compared with 165.3% in the first quarter of 2020.

  • Adjusted sales and marketing expenses were RMB4.9 million (US$0.8 million), down 15.9% from RMB5.8 million in the first quarter of 2020. The decrease was mainly due to the decrease in market promotion and professional expenses in the first quarter of 2021.

  • Adjusted general and administration expenses were RMB9.7 million (US$1.5 million), up 6.2% from RMB9.2 million in the first quarter of 2020.

  • Adjusted research and development expenses were RMB19.9 million (US$3.0 million), up 23.3% from RMB16.2 million in the first quarter of 2020. The increase was mainly due to increased R&D material and personnel expenses in the first quarter of 2021.

Operating loss

Operating loss was RMB66.2 million (US$10.1 million), compared with operating loss of RMB21.1 million in the first quarter of 2020. Operating loss as a percentage of total revenues was negative 288.1%, compared with negative 112.2% in the first quarter of 2020.

Adjusted operating loss (non-GAAP)

Adjusted operating loss was RMB17.3 million (US$2.6 million), compared with adjusted operating loss of RMB19.2 million in the first quarter of 2020. Adjusted operating loss as a percentage of total revenues was negative 75.4%, compared to negative 102.0% in the first quarter of 2020.

Net loss

Net loss was RMB62.5 million (US$9.5 million), compared with net loss of RMB20.4 million in the first quarter of 2020.

Adjusted net loss (non-GAAP)

Adjusted net loss was RMB13.7 million (US$2.1 million), compared with adjusted net loss of RMB18.5 million in the first quarter of 2020.

Adjusted net loss attributable to EHang’s ordinary shareholders was RMB13.3 million (US$2.0 million).

Loss per share and per ADS

Basic and diluted net loss per ordinary share were both RMB0.56 (US$0.09). Adjusted basic and diluted net loss per ordinary share4 (non-GAAP) were both RMB0.12 (US$0.02).

Basic and diluted net loss per ADS were both RMB1.12 (US$0.18). Adjusted basic and diluted net loss per ADS5 (non-GAAP) were both RMB0.24 (US$0.04). Each ADS represents two Class A ordinary shares.

Balance Sheet and Cash Flow

The cash, cash equivalents, restricted cash and short-term investments balances were RMB480.5 million (US$73.3 million) as of March 31, 2021, compared to RMB189.4 million as of December 31, 2020. The increases were mainly due to the US$40 million investment from Carmignac and the positive net cash from operating activities of RMB16.2 million (US$2.5 million), a significant growth compared to negative RMB29.1 million in the first quarter of 2020.

Business Outlook

The Company’s revenue forecast for 2021 remains between RMB130 million and RMB180 million, as the Company strategically transitions into a more operation platform-oriented model and the commercialization of the EHang 216F, the firefighting model, among other AAVs.  

The above outlook is based on information available as of the date of this press release and reflects the Company’s current and preliminary expectations regarding its business situation and market conditions. The outlook is subject to change, especially considering uncertainties and situations related to how the COVID-19 pandemic further develops.

Conference Call

EHang’s management team will host an earnings conference call at 8:00 AM on Wednesday, August 25, 2021, U.S. Eastern Time (8:00 PM on August 25, 2021, Beijing/Hong Kong Time).

Please register in advance for the conference using the link provided below and dial in 10 minutes before the conference is scheduled to begin. Conference access information will be provided upon registration.

Participant Online Registration: http://apac.directeventreg.com/registration/event/8598052.

A replay of the conference call may be accessed by phone at the following numbers until September 2, 2021. To access the replay, please reference the conference ID 8598052.

 Phone Number
International+61 2 8199 0299
United States+1 855 452 5696
+1 646 254 3697
Hong Kong+852 800963117
Mainland China+86 4006322162
+86 8008700205

A live and archived webcast of the conference call will be available on the company’s investors relations website at http://ir.ehang.com/.

About EHang

EHang (Nasdaq: EH) is the world's leading autonomous aerial vehicle (“AAV”) technology platform company. EHang’s mission is to make safe, autonomous, and eco-friendly air mobility accessible to everyone. EHang provides customers in various industries with AAV products and commercial solutions: urban air mobility (including passenger transportation and logistics), smart city management, and aerial media solutions. As the forerunner of cutting-edge AAV technologies and commercial solutions in the global Urban Air Mobility (“UAM”) industry, EHang continues to explore the boundaries of the sky to make flying technologies benefit our life in smart cities. For more information, please visit www.ehang.com.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management's control. These statements involve risks and uncertainties that may cause EHang's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

Non-GAAP Financial Measures

The Company uses adjusted gross profit, adjusted gross margin, adjusted operating loss, adjusted net loss, adjusted operating expenses, adjusted basic and diluted loss per ordinary share and adjusted basic and diluted loss per ADS (the “Non-GAAP Financial Measures”) in evaluating its operating results and for financial and operational decision-making purposes. There was no income tax impact on the Company’s non-GAAP adjustments because the non-GAAP adjustments are usually recorded in entities located in tax-free jurisdictions, such as the Cayman Islands.

The Company believes that the Non-GAAP Financial Measures help identify underlying trends in its business that could otherwise be distorted by the effects of items such as share-based compensation expenses that are included in their comparable GAAP measures. The Company believes that the Non-GAAP Financial Measures provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management members in their financial and operational decision-making.

Each of the Non-GAAP Financial Measures should not be considered in isolation or construed as an alternative to its comparable GAAP measure, operating profit margin and net margin or any other measure of performance or as an indicator of the Company’s operating performance. Investors are encouraged to review the Company’s most directly comparable GAAP measures in conjunction with the Non-GAAP Financial Measures. The Non-GAAP Financial Measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. For more information on the Non-GAAP Financial Measures, please see the table captioned "Condensed Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.

Exchange Rate

This press release contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.5518 to US$1.00, the noon buying rate in effect on March 31, 2021 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all.

Statement Regarding Preliminary Unaudited Financial Information

The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.

Investor Contact:
ir@ehang.com
In the U.S.: Julia@blueshirtgroup.com
In China: Susie@blueshirtgroup.com

Media Contact:
pr@ehang.com

 
EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
 
  As of As of
  December
31, 2020
 March
31, 2021
  RMB RMB US$
    (Unaudited) (Unaudited)
ASSETS      
Current assets:      
Cash and cash equivalents 137,840 462,474 70,587
Restricted cash 2,333 - -
Short-term investments 49,271 18,000 2,747
Accounts receivable, net 163,146 95,709 14,608
Cost and estimated earnings in excess of billings 717 717 109
Inventories, net 47,094 43,399 6,624
Prepayments and other current assets 21,421 26,862 4,100
Amount due from a related party 2,639 2,639 403
Total current assets 424,461  649,800  99,178
       
Non-current assets:      
Property and equipment, net 20,869 29,574 4,514
Intangible assets, net 1,062 963 147
Long term loans receivable 14,934 13,072 1,995
Long-term investments 2,919 2,919 446
Other non-current assets 20,304 21,762 3,322
Total non-current assets 60,088  68,290  10,424
       
Total assets 484,549  718,090  109,602
       
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Current liabilities      
Short-term bank loans 15,000 15,000 2,289
Accounts payable 53,147 35,358 5,397
Contract liabilities 7,492 21,705 3,313
Accrued expenses and other liabilities 81,578 51,092 7,798
Deferred income 750 756 115
Deferred government subsidies 80 1,969 301
Total current liabilities 158,047  125,880  19,213
       
Non-current liabilities:      
Long-term bank loans - 20,000 3,053
Mandatorily redeemable non-controlling interests 40,000 40,000 6,105
Deferred tax liabilities 292 292 45
Unrecognized tax benefit 5,480 5,480 836
Deferred income 2,970 2,805 428
Deferred government subsidies 60 40 6
Total non-current liabilities 48,802  68,617  10,473
       
Total liabilities 206,849  194,497  29,686
       


     
EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS (CONT’D)
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
     
  As of As of
  December
31, 2020
 March
31, 2021
  RMB RMB US$
    (Unaudited) (Unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY
(CONTINUED)
      
Shareholders’ equity:      
Class A ordinary shares 44  45  7 
Class B ordinary shares 28  28  4 
Additional paid-in capital 1,081,299  1,387,114  211,715 
Statutory reserves 1,035  1,035  158 
Accumulated deficit (808,038) (870,202) (132,819)
Accumulated other comprehensive income 1,950  4,552  695 
Total EHang Holdings Limited shareholders’ equity 276,318   522,572   79,760  
Non-controlling interests 1,382  1,021  156 
Total shareholders’ equity 277,700   523,593   79,916  
Total liabilities and shareholders’ equity 484,549   718,090   109,602  
          


   
EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data)
   
  Three Months Ended
  March 31,
2020
 December 31,
2020
 March 31,
2021
  RMB RMB RMBUS$
  (Unaudited) (Unaudited) (Unaudited)
Total revenues 18,818   54,595   22,977  3,507  
Costs of revenues (7,664) (22,145) (8,451)(1,290)
Gross profit 11,154   32,450   14,526  2,217  
        
Operating expenses:       
Sales and marketing expenses (5,776) (13,848) (9,486)(1,448)
General and administrative expenses (10,608) (18,613) (46,059)(7,030)
Research and development expenses (16,660) (50,945) (27,854)(4,251)
Total operating expenses (33,044) (83,406) (83,399)(12,729)
        
Other operating income 769  1,750  2,667 407 
Operating loss (21,121) (49,206) (66,206)(10,105)
        
Other income/(expense):       
Interest and investment income 1,412  671  1,957 299 
Interest expenses (488) (692) (394)(60)
Foreign exchange loss (271) (107) (306)(47)
Other income 81  224  2,876 439 
Other expense -  (1,382) (335)(51)
Total other income/(expense) 734   (1,286) 3,798  580  
        
Loss before income tax and share of net loss from an equity investee (20,387) (50,492) (62,408)(9,525)
Income tax expenses -  (351) (117)(18)
Loss before share of net loss from an equity investee (20,387) (50,843) (62,525)(9,543)
Share of net loss from an equity investee (19) -  - - 
Net loss (20,406) (50,843) (62,525)(9,543)
        
Net loss (20,406) (50,843) (62,525)(9,543)
Net loss attributable to non-controlling interests 856  1,657  361 55 
Net loss attributable to ordinary shareholders (19,550) (49,186) (62,164)(9,488)
Net loss per Class A and Class B ordinary share:       
Basic and diluted(0.18) (0.45) (0.56)(0.09)
Shares used in net loss per Class A and Class B ordinary share computation (in thousands of shares):       
Basic and diluted109,066  109,627  110,475 110,475 
Loss per ADS (2 ordinary shares equal to 1 ADS)
   Basic and Diluted
 (0.36) (0.90) (1.12)(0.18)
            


  
EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of Renminbi (“RMB”) and US dollars ("US$"))
  
 Three Months Ended
 March 31,
2020
 December 31,
2020
 March 31,
2021
 RMB RMB RMBUS$
 (Unaudited) (Unaudited) (Unaudited)(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss(20,406) (50,843) (62,525)(9,543)
Adjustments to reconcile net loss to net cash (used in)/
provided by operating activities:
      
Depreciation and amortization1,481  1,452  1,211 185 
Deferred income tax expenses89  184  108 16 
Share-based compensation1,936  38,571  48,871 7,459 
Gain on disposal of intangible assets-  (5) - - 
Loss on disposal of property and equipment-  228  - - 
Share of net loss from an equity investee19  -  - - 
Investment income from short-term investments-  -  (1,729)(264)
Allowance for doubtful accounts142  4,794  505 77 
       
Changes in operating assets and liabilities:      
Accounts receivable(9,091) (29,370) 54,542 8,325 
Unbilled revenue1,481  2,800  - - 
Cost and estimated earnings in excess of billings10,490  3,005  - - 
Inventories(11,153) 9,596  318 49 
Prepayments and other current assets(1,761) (2,206) (7,127)(1,088)
Other non-current assets22  (16,220) - - 
Amount due from a related party-  (2,639) - - 
Accounts payable2,696  660  (17,789)(2,716)
Contract liabilities(3,343) 986  1,613 246 
Income taxes payable(5) -  - - 
Deferred income-  (360) 1,730 264 
Deferred government subsidies(20) (20) (20)(3)
Unrecognized tax benefits(29) 166  - - 
Accrued expenses and other liabilities(1,603) 3,287  (3,534)(540)
Net cash (used in)/provided by operating activities(29,055) (35,934) 16,174  2,467  
           


  
EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT’D)
(Amounts in thousands of Renminbi (“RMB”) and US dollars ("US$"))
  
 Three Months Ended
 March 31,
2020
 December 31,
2020
 March 31,
2021
 RMB RMB RMBUS$
 (Unaudited) (Unaudited) (Unaudited)(Unaudited)
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchase of property and equipment(292) (7,414) (8,322)(1,270)
Acquisition of intangible assets(9) (59) (9)(1)
Proceeds from maturity of short-term investments13,000  35,596  49,271 7,520 
Purchase of short-term investments(17,200) (2,000) (18,000)(2,747)
Loans to third parties(53,900) -  - - 
Repayment of loan from a third party10,000  -  - - 
Others(54) -  - - 
Net cash flow (used in)/provided by investing activities (48,455) 26,123   22,940  3,502  
       
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from a short-term bank loan5,000  -  5,000 763 
Repayment of a short-term bank loan(5,000) -  (5,000)(763)
Proceeds from long-term bank loans-  -  20,000 3,053 
Repayment of loans from a third party-  (2,000) - - 
Proceeds from issuance of Class A ordinary shares pursuant to underwriters’ exercise of over-allotment option6,797  -  - - 
Proceeds from issuance of Class A ordinary shares pursuant to a private placement-  -  258,836 39,506 
Payment of issuance of Class A ordinary shares pursuant to underwriters’ exercise of over-allotment option’s issuance costs-  (35) - - 
Payment of issuance costs for initial public offering(9,119) (2,075) - - 
Net cash (used in)/provided by financing activities(2,322) (4,110) 278,836  42,559  
       
Effect of exchange rate changes on cash, cash equivalents and restricted cash3,185  (3,710) 4,351 664 
Net (decrease)/increase in cash, cash equivalents and restricted cash(76,647) (17,631) 322,301 49,192 
Cash, cash equivalents and restricted cash at the beginning of the period/year321,662  157,804  140,173 21,395 
Cash, cash equivalents and restricted cash at the end of the period/year245,015   140,173   462,474  70,587  
           


  
EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT’D)
(Amounts in thousands of Renminbi (“RMB”) and US dollars ("US$"))
  
 Three Months Ended
 March 31,
2020
 December 31,
2020
 March 31,
2021
 RMB RMB RMBUS$
 (Unaudited) (Unaudited) (Unaudited)(Unaudited)
Non-cash financing activities:
Unpaid Issuance costs for Series C redeemable convertible preferred shares included in Accrued expenses and other liabilities
743 48 487
Unpaid Issuance costs for initial public offering included in Accrued expenses and other liabilities5,608 821 821125
Unpaid issuance costs for issuance of Class A ordinary shares pursuant to underwriters’ exercise of over-allotment option included in Accrued expenses and other liabilities1,046 812 812124
Unpaid Issuance costs for issuance of Class A ordinary shares pursuant to a private placement included in Accrued expenses and other liabilities- - 1,891289
       


   
EHANG HOLDINGS LIMITED
CONDENSED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data)
   
  Three Months Ended
  March 31,
2020
 December 31,
2020
 March 31,
2021
  RMB RMB RMBUS$
  (Unaudited) (Unaudited) (Unaudited)
Gross profit 11,154   32,450   14,526  2,217  
Plus: Share-based compensation -  2,363  - - 
Adjusted gross profit 11,154   34,813   14,526  2,217  
Adjusted gross margin 59.3% 63.8% 63.2%63.2%
        
Sales and marketing expenses  (5,776) (13,848) (9,486)(1,448)
Plus: Share-based compensation -  5,601  4,626 706 
Adjusted sales and marketing expenses  (5,776) (8,247) (4,860)(742)
        
General and administrative expenses (10,608) (18,613) (46,059)(7,030)
Plus: Share-based compensation 1,445  5,390  36,331 5,545 
Adjusted general and administrative expenses (9,163) (13,223) (9,728)(1,485)
        
Research and development expenses (16,660) (50,945) (27,854)(4,251)
Plus: Share-based compensation 491  25,217  7,914 1,208 
Adjusted research and development expenses (16,169) (25,728) (19,940)(3,043)
        
Operating expenses (33,044) (83,406) (83,399)(12,729)
Plus: Share-based compensation 1,936  36,208  48,871 7,459 
Adjusted operating expenses (31,108) (47,198) (34,528)(5,270)
Adjusted operating expenses percentage 165.3% 86.5% 150.3%150.3%
        
Operating loss (21,121) (49,206) (66,206)(10,105)
Plus: Share-based compensation 1,936  38,571  48,871 7,459 
Adjusted operating loss (19,185) (10,635) (17,335)(2,646)
Adjusted operating margin (102.0%) (19.5%) (75.4%)(75.4%)
        
Net loss (20,406) (50,843) (62,525)(9,544)
Plus: Share-based compensation 1,936  38,571  48,871 7,459 
Adjusted net loss (18,470) (12,272) (13,654)(2,084)
Adjusted net margin (98.2%) (22.5%) (59.4%)(59.4%)
        
Net loss attributable to ordinary shareholders (19,550) (49,186) (62,164)(9,489)
Plus: Share-based compensation 1,936  38,571  48,871 7,459 
Adjusted net loss attributable to ordinary shareholders (17,614) (10,615) (13,293)(2,029)
Adjusted net loss attributable to ordinary shareholders margin (93.6%) (19.4%) (57.9%)(57.9%)
        
Adjusted basic and diluted net loss per Class A and Class B ordinary share (0.16) (0.10) (0.12)(0.02)
Adjusted basic and diluted net loss per ADS (0.32) (0.20) (0.24)(0.04)
            

______________________
1 Adjusted operating loss is a non-GAAP financial measure, which is defined as operating loss excluding share-based compensation expenses. See “Non-GAAP Financial Measures” at the end of this press release.
2 Adjusted net loss is a non-GAAP financial measure, which is defined as net loss excluding share-based compensation expenses. See “Non-GAAP Financial Measures” at the end of this press release.
3 Adjusted operating expenses is a non-GAAP financial measure, which is defined as operating expenses excluding share-based compensation expenses. See “Non-GAAP Financial Measures” at the end of this press release.
4 Adjusted basic and diluted loss per ordinary share is a non-GAAP financial measure, which is defined as basic and diluted loss per ordinary share excluding share-based compensation expenses. See “Non-GAAP Financial Measures” at the end of this press release.
5 Adjusted basic and diluted loss per ADS is a non-GAAP financial measure, which is defined as basic and diluted loss per ADS excluding share-based compensation expenses. See “Non-GAAP Financial Measures” at the end of this press release.