- Continues Significant Growth Despite Pandemic Challenges 
- Maintains High Gross Margin

GUANGZHOU, China, Aug. 25, 2020 (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 second quarter ended June 30, 2020.

Second Quarter 2020 Highlights

Financial and Operational Highlights

  • Total revenues were RMB35.7 million (US$5.1 million), up 62.7% year over year, driven by significant growth across all revenue streams. Air mobility solutions contributed 63.5% of the total revenues in the second quarter of 2020.
     
  • Gross margin was 57.6%, a slight decrease of 0.9 percentage point year over year due to change in revenue mix. Gross profit was RMB20.6 million (US$2.9 million), an increase of 60.0% year over year.
     
  • Operating loss was RMB19.2 million (US$2.7 million), compared with operating loss of RMB16.7 million in the second quarter of 2019.
     
  • Adjusted operating loss1 (non-GAAP) was RMB11.1 million (US$1.6 million), compared with adjusted operating loss of RMB11.8 million in the second quarter of 2019.
     
  • Net loss was RMB19.7 million (US$2.8 million), compared with net loss of RMB16.3 million in the second quarter of 2019.
     
  • Adjusted net loss2 (non-GAAP) was RMB11.7 million (US$1.7 million), compared with adjusted net loss of RMB11.4 million in the second quarter of 2019.
     
  • Sales of the EHang 216, the Company’s flagship passenger-grade AAV, reached 16 units in the second quarter of 2020, versus 14 units in the second quarter of 2019.             

Business Highlights

  • Achieved the world’s first commercial pilot operation approval of passenger-grade AAVs for air logistics: In May 2020, EHang became the world’s first AAV company approved by a national aviation authority, the Civil Aviation Administration of China (“CAAC”), to carry out commercial pilot operation in the category of 150 kg plus heavy-lift air logistics uses. This approval was based on a pioneering regulation for specific unmanned aircraft under the globally-recognized Specific Operation Risk Assessment (“SORA”) framework of the Joint Authorities for Rulemaking of Unmanned Systems (“JARUS”). Starting from trial air logistics operations in Taizhou, China, the Company intends to gradually expand this use case to more locations in China.
     
  • Deployed a new command-and-control center for smart city management in China: EHang completed deployment of a command-and-control center for smart city management in the city of Hezhou, China.  This was the third of its kind after those in the cities of Shaoguan and Lianyungang. This deployment demonstrates EHang’s capability in sophisticated centralized command-and-control systems that are designed ultimately for Urban Air Mobility (“UAM”) uses.
     
  • Entered into a strategic partnership for air tourism: In May 2020, EHang partnered with LN Holdings, a Shenzhen-listed (000524.SZ) tourism platform company to announce the world’s first UAM-themed hotel at the LN Garden Hotel in Guangzhou, China.  A variety of air tourism services using EHang AAVs are planned for the hotel, such as aerial sightseeing, transportation, air logistics, and aerial media light shows.
     
  • Implemented smart city management solutions for flood emergency response: In April 2020, EHang conducted large-scale AAV flight operations efficiently and autonomously to air drop relief supplies and perform remote air inspection in a flood response exercise in Shaoguan, China.
     
  • Appointed Mr. Dongming Wu, CEO of DHL Express China, as an independent director: Mr. Wu is the CEO of DHL Express China and a Global Management Board Member of DHL Express. With over 30 years of experience in the global delivery and logistics industry, Mr. Wu helps facilitate the Company’s strategic development, especially in air logistics, and helps enhance the Company’s corporate governance.

Mr. Huazhi Hu, EHang’s Founder, Chairman and Chief Executive Officer, commented: “During the second quarter of 2020, we significantly grew revenues and strengthened our core business of air mobility solutions, despite the ongoing COVID-19 pandemic challenges in China and overseas.  We set a significant regulatory milestone for the industry by achieving the world’s first commercial operation approval of passenger-grade AAVs for air logistics from the CAAC.  We are well-prepared and confident that we can accelerate growth by deploying our AAV solutions for more practical uses and expect to roll out more new products including the ones with the flight range exceeding 100 kilometers. We are proud of our continued progress in global markets.”

Second Quarter 2020 Financial Results

Total Revenues

Total revenues were RMB35.7 million (US$5.1 million), up 62.7% year over year, growing across all revenue streams.  Air mobility solutions represented 63.5% of total revenues in the second quarter of 2020.  Sales of the EHang 216, the Company’s flagship passenger-grade AAV, reached 16 units compared with 14 units in the same period of 2019.

Costs of revenues

Costs of revenues were RMB15.1 million (US$2.1 million), up 66.4% year over year. The increase tracked growth in revenues.

Gross profit

Gross profit was RMB20.6 million (US$2.9 million), up 60.0% from RMB12.8 million in the second quarter of 2019.

Gross margin was 57.6%, down 0.9 percentage points from 58.5% in the second quarter of 2019. The slight decrease in gross margin was mainly due to changes in revenue mix.

Operating expenses

Total operating expenses were RMB43.4 million (US$6.1 million), up 46.2% from RMB29.7 million in the second quarter of 2019. Operating expenses as a percentage of total revenues were 121.7%, 13.7 percentage points lower when compared with 135.4% in the second quarter of 2019. The increase in operating expenses were primarily due to higher research and development expenses related to continuous product development and increased general and administrative expenses.

  • Sales and marketing expenses were RMB9.2 million (US$1.3 million), up 21.8% from RMB7.6 million in the second quarter of 2019. It was mainly due to the operation expansion in European markets.
     
  • General and administration expenses were RMB16.3 million (US$2.3 million), up 77.4% from RMB9.2 million in the second quarter of 2019. The increase was mainly due to the additional expenses related to being a public company and the additional provisions to take a prudent position in light of COVID-19 evolvement.
     
  • Research and development expenses were RMB17.9 million (US$2.5 million), up 38.2% from RMB12.9 million in the second quarter of 2019. The increase was mainly due to continued investment in new model development, as the Company prepares new versions of passenger-grade AAV and non-passenger-grade AAV products such as the newly-announced firefighting version of EHang 216, “EHang 216F”, as well as related operating systems with enhanced functionalities.

Adjusted operating expenses3 (non-GAAP)

Adjusted operating expenses were RMB35.4 million (US$5.0 million), representing an increase of 41.9% from RMB25.0 million in the second quarter of 2019. Adjusted operating expenses as a percentage of total revenues were 99.2%, compared with 113.8% in the second quarter of 2019.

Operating loss

Operating loss was RMB19.2 million (US$2.7 million), compared with operating loss of RMB16.7 million in the second quarter of 2019. Operating margin was negative 53.7%, compared with negative 76.1% in the second quarter of 2019. 

Adjusted operating loss (non-GAAP)

Adjusted operating loss was RMB11.1 million (US$1.6 million) compared with adjusted operating loss of RMB11.8 million in the second quarter of 2019. Adjusted operating margin was negative 31.2%, compared to negative 54.0% in the second quarter of 2019.
             
Net loss

Net loss was RMB19.7 million (US$2.8 million) compared with net loss of RMB16.3 million in the second quarter of 2019. Net margin was negative 55.3%, compared with negative 74.3% in the second quarter of 2019.

Adjusted net loss (non-GAAP)

Adjusted net loss was RMB11.7 million (US$1.7 million) compared with adjusted net loss of RMB11.4 million in the second quarter of 2019. Adjusted net margin was negative 32.8%, compared to negative 52.1% in the second quarter of 2019.

Adjusted net loss attributable to EHang’s ordinary shareholders was RMB10.6 million (US$1.5 million) with an adjusted net margin of negative 29.7%, compared to negative 47.0% in the second quarter of 2019.

Loss per share and per ADS

Basic and diluted net loss per ordinary share were both RMB0.17 (US$0.02). Adjusted basic and diluted net loss per ordinary share4 (non-GAAP) were both RMB0.10 (US$0.01).

Basic and diluted net loss per ADS were both RMB0.34 (US$0.04). Adjusted basic and diluted net loss per ADS5 (non-GAAP) were both RMB0.20 (US$0.02).

Business Outlook

The Company maintains its forecast of at least 200% growth in annual revenues in 2020 based on the current momentums in economic recovery and the expectations of no further major interruptions impacted by COVID-19. The Company is confident in its long-term growth outlook given the growing number of practical uses for AAVs in the global UAM market, especially in China.

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, which are subject to change in light of uncertainties and situations related to how COVID-19 develops.

Conference Call

EHang’s management team will host an earnings conference call at 8:00 AM on Tuesday, August 25, 2020, U.S. Eastern Time (8:00 PM on August 25, 2020, Beijing/Hong Kong Time).

To join the conference, please register in advance using the link below. Conference access information will be provided upon registration.

Participant Online Registration: http://apac.directeventreg.com/registration/event/6470385  

A replay of the conference call may be accessed by phone at the following numbers until September 1, 2020. To access the replay, please reference the conference ID 6470385.

 Phone Number
International+61 2 8199-0299
United States+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 investor 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: 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 operating loss, adjusted net loss, adjusted operating expenses, adjusted basic and diluted net loss per ordinary share and adjusted basic and diluted net loss per ADSs (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.

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 RMB7.0651 to US$1.00, the noon buying rate in effect on June 30, 2020 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

_________________________

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 net loss per ordinary share is a non-GAAP financial measure, which is defined as basic and diluted net loss per ordinary share excluding share-based compensation expenses and accretion to redemption value of redeemable convertible preferred shares. See “Non-GAAP Financial Measures” at the end of this press release.

5 Adjusted basic and diluted net loss per ADS is a non-GAAP financial measure, which is defined as basic and diluted net loss per ADS excluding share-based compensation expenses and accretion to redemption value of redeemable convertible preferred shares. See “Non-GAAP Financial Measures” at the end of this press release.


 EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))
     
  As of As of
  December 31,
2019
 June 30,
2020
  RMB RMB US$
    (Unaudited) (Unaudited)
ASSETS      
Current assets:      
Cash and cash equivalents 321,662 228,189 32,298
Short-term investments 7,674 29,542 4,181
Accounts receivable, net 41,103 76,575 10,838
Unbilled revenue 4,807 2,800 396
Cost and estimated earnings in excess of billings 14,212 3,722 527
Inventories 18,490 47,846 6,772
Prepayments and other current assets 20,565 20,175 2,855
Total current assets 428,513  408,849  57,867
       
Non-current assets:      
Property and equipment, net 16,272 13,534 1,916
Intangible assets, net 1,209 1,295 183
Long term loans receivable -   44,616 6,315
Long-term investments 2,983 2,931 415
Deferred tax assets 184 184 26
Other non-current assets 252 209 30
Total non-current assets 20,900  62,769  8,885
       
Total assets 449,413  471,618  66,752
       
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Current liabilities      
Short-term bank loans 5,000 10,000 1,416
Accounts payable 27,285 40,678 5,758
Contract liabilities 9,918 6,405 907
Accrued expenses and other liabilities 53,310 41,675 5,899
Deferred government subsidies 80 80 11
Income taxes payable 5 -   -  
Total current liabilities 95,598  98,838  13,991
       
Non-current liabilities:      
Long-term loans 32,534 31,078 4,398
Mandatorily redeemable non-controlling interests -   40,000 5,662
Deferred tax liabilities 292 292 41
Unrecognized tax benefit 5,494 5,314 752
Deferred government subsidies 140 100 14
Total non-current liabilities 38,460  76,784  10,867
       
Total liabilities 134,058  175,622  24,858


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,
2019
 June 30,
2020
  RMB RMB US$
    (Unaudited) (Unaudited)
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Shareholders’ equity:      
Class A ordinary shares 44  44  6 
Class B ordinary shares 28  28  4 
Additional paid-in capital 1,020,691  1,036,390  146,691 
Statutory reserves 1,035  1,035  146 
Accumulated deficit (720,419) (758,586) (107,371)
Accumulated other comprehensive income 10,195  13,248  1,875 
Total EHang Holdings Limited shareholders’ equity 311,574   292,159   41,351  
Non-controlling interests 3,781  3,837  543 
Total shareholders’ equity 315,355   295,996   41,894  
Total liabilities and shareholders’ equity 449,413   471,618   66,752  


EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“USD”) except for number of shares and per share data)
 
  Three Months Ended Six Months Ended
  June 30,
2019
 March 31,
2020
 June 30,
2020
 June 30,
2019
 June 30,
2020
  RMB RMB RMBUS$ RMB RMBUS$
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Total revenues 21,946   18,818   35,700  5,053   32,385   54,518  7,717  
Costs of revenues (9,101) (7,664) (15,147)(2,144) (13,434) (22,811)(3,229)
Gross profit 12,845   11,154   20,553  2,909   18,951   31,707  4,488  
             
Operating expenses:            
 Sales and marketing expenses (7,570) (5,776) (9,218)(1,305) (12,536) (14,994)(2,122)
 General and administrative expenses (9,213) (10,608) (16,348)(2,314) (17,892) (26,956)(3,815)
 Research and development expenses (12,931) (16,660) (17,870)(2,529) (27,576) (34,530)(4,887)
Total operating expenses (29,714) (33,044) (43,436)(6,148) (58,004) (76,480)(10,824)
             
 Other operating income 163  769  3,724 527  1,143  4,493 636 
Operating loss (16,706) (21,121) (19,159)(2,712) (37,910) (40,280)(5,700)
             
Other income/(expense):            
 Interest income 417  1,412  974 138  496  2,386 338 
 Interest expenses (158) (488) (488)(69) (299) (976)(138)
 Foreign exchange gain/(loss) 104  (271) 278 39  36  7 1 
 Other income 100  81  244 35  153  325 46 
 Other expense -    -    (1,689)(239) (26) (1,689)(239)
Total other income/(expense) 463   734   (681)(96) 360   53  8  
             
Loss before income tax and share of net loss from an equity investee (16,243) (20,387) (19,840)(2,808) (37,550) (40,227)(5,692)
 Income tax (expenses)/benefits (52) -    145 21  (78) 145 21 
Loss before share of net loss from an equity investee (16,295) (20,387) (19,695)(2,787) (37,628) (40,082)(5,671)
 Share of net loss from an equity investee (5) (19) (33)(5) (10) (52)(7)
Net loss (16,300) (20,406) (19,728)(2,792) (37,638) (40,134)(5,678)


EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONT’D)
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“USD”) except for number of shares and per share data)
 
  Three Months Ended Six Months Ended
  June 30,
2019
 March 31,
2020
 June 30,
2020
 June 30,
2019
 June 30,
2020
  RMB RMB RMBUS$ RMB RMBUS$
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net loss (16,300) (20,406) (19,728)(2,792) (37,638) (40,134)(5,678)
Net loss attributable to non-controlling interests 1,137  856  1,111 157  1,418  1,967 278 
Net loss attributable to EHang Holdings Limited (15,163) (19,550) (18,617)(2,635) (36,220) (38,167)(5,400)
Accretion to redemption value of redeemable convertible preferred shares (1,559) -    -   -    (3,034) -   -   
Net loss attributable to ordinary shareholders (16,722) (19,550) (18,617)(2,635) (39,254) (38,167)(5,400)
Net loss per ordinary share:            
Basic and diluted(0.29)      (0.69)   
Net loss per Class A and Class B ordinary share:            
Basic and diluted   (0.18) (0.17)(0.02)   (0.35)(0.05)
Shares used in net loss per share computation (in thousands of shares):            
Basic and diluted56,792       56,792    
Shares used in net loss per Class A and Class B ordinary share computation (in thousands of shares):            
Basic and diluted   109,066  109,227 109,227    109,189 109,189 
Loss per ADS (2 ordinary shares equal to 1 ADS)                 
Basic and diluted   (0.36) (0.34)(0.04)   (0.70)(0.10)


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 Six Months Ended
  June 30,
2019
 March 31,
2020
 June 30,
2020
 June 30,
2019
 June 30,
2020
  RMB RMB RMBUS$ RMB RMBUS$
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Gross profit 12,845   11,154   20,553  2,909   18,951   31,707  4,488  
Plus: Share-based compensation 116  -    -   -    294  -   -   
Adjusted gross profit 12,961   11,154   20,553  2,909   19,245   31,707  4,488  
Adjusted gross margin 59.1% 59.3% 57.6%57.6% 59.4% 58.2%58.2%
             
Operating expenses (29,714) (33,044) (43,436)(6,148) (58,004) (76,480)(10,824)
Plus: Share-based compensation 4,742  1,936  8,012 1,134  9,618  9,948 1,408 
Adjusted operating expenses (24,972) (31,108) (35,424)(5,014) (48,386) (66,532)(9,416)
Adjusted operating expenses percentage 113.8% 165.3% 99.2%99.2% 149.4% 122.0%122.0%
             
Operating loss (16,706) (21,121) (19,159)(2,712) (37,910) (40,280)(5,700)
Plus: Share-based compensation 4,858  1,936  8,012 1,134  9,912  9,948 1,408 
Adjusted operating loss (11,848) (19,185) (11,147)(1,578) (27,998) (30,332)(4,292)
Adjusted operating margin (54.0%) (102.0%) (31.2%)(31.2%) (86.5%) (55.6%)(55.6%)
             
Net loss (16,300) (20,406) (19,728)(2,792) (37,638) (40,134)(5,678)
Plus: Share-based compensation 4,858  1,936  8,012 1,134  9,912  9,948 1,408 
Adjusted net loss (11,442) (18,470) (11,716)(1,658) (27,726) (30,186)(4,270)
Adjusted net margin (52.1%) (98.2%) (32.8%)(32.8%) (85.6%) (55.4%)(55.4%)
             


EHANG HOLDINGS LIMITED
CONDENSED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (CONT’D)
(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data)
 
  Three Months Ended Six Months Ended
  June 30,
2019
 March 31,
2020
 June 30,
2020
 June 30,
2019
 June 30,
2020
  RMB RMB RMBUS$ RMB RMBUS$
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net loss attributable to ordinary shareholders (16,722) (19,550) (18,617)(2,635) (39,254) (38,167)(5,400)
Plus: Share-based compensation 4,858  1,936  8,012 1,134  9,912  9,948 1,408 
Plus: Accretion to redemption value of redeemable convertible preferred shares 1,559  -    -   -    3,034  -   -   
Adjusted net loss attributable to ordinary shareholders (10,305) (17,614) (10,605)(1,501) (26,308) (28,219)(3,992)
Adjusted net income attributable to ordinary shareholders margin (47.0%) (93.6%) (29.7%)(29.7%) (81.2%) (51.8%)(51.8%)
             
Adjusted basic and diluted net loss per share (0.18) -    -   -    (0.46) -   -   
Adjusted basic and diluted net loss per Class A and Class B ordinary share -    (0.16) (0.10)(0.01) -    (0.26)(0.04)
Adjusted basic and diluted net loss per ADS -    (0.32) (0.20)(0.02) -    (0.52)(0.08)


EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of Renminbi (“RMB”) and US dollars ("USD"))
 
 Three Months Ended Six Months Ended
 June 30,
2019
 March 31,
2020
 June 30,
2020
 June 30,
2019
 June 30,
2020
 RMB RMB RMBUS$ RMB RMBUS$
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES           
Net loss(16,300) (20,406) (19,728)(2,792) (37,638) (40,134)(5,678)
Adjustments to reconcile net loss to net cash used in operating activities:           
Depreciation and Amortization1,366  1,570  1,620 229  2,797  3,190 451 
Share-based compensation4,858  1,936  8,012 1,134  9,912  9,948 1,408 
Loss on disposal of property and equipment-    -    228 32  -    228 32 
Share of net loss from an equity investee5  19  33 5  10  52 7 
(Reversal) allowance for doubtful accounts5  142  3,727 528  (210) 3,869 548 
            
Changes in operating assets and liabilities:           
Accounts receivable(7,122) (9,091) (30,900)(4,375) (10,508) (39,991)(5,661)
Unbilled revenue-    1,481  -   -    -    1,481 210 
Cost and estimated earnings in excess of billings-    10,490  -   -    3,247  10,490 1,485 
Inventories(2,841) (11,153) (18,868)(2,671) (4,804) (30,021)(4,249)
Prepayments and other current assets1,471  (1,761) 1,388 196  (2,050) (373)(53)
Other non-current assets14  22  21 3  29  43 6 
Accounts payable2,231  2,696  11,446 1,621  2,468  14,142 2,002 
Contract liabilities(7,014) (3,343) (170)(24) (4,292) (3,513)(497)
Income taxes payable(26) (5) -   -    -    (5)(1)
Deferred government subsidies(20) (20) (20)(3) (40) (40)(6)
Unrecognized tax benefits-    (29) (151)(21) -    (180)(26)
Accrued expenses and other liabilities2,147  (1,603) (1,387)(196) 1,188  (2,990)(422)
Net cash used in operating activities(21,226) (29,055) (44,749)(6,334) (39,891) (73,804)(10,444)


EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT’D)
(Amounts in thousands of Renminbi (“RMB”) and US dollars ("USD"))
 
 Three Months Ended Six Months Ended
 June 30,
2019
 March 31,
2020
 June 30,
2020
 June 30,
2019
 June 30,
2020
 RMB RMB RMBUS$ RMB RMBUS$
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
CASH FLOWS FROM INVESTING ACTIVITIES           
Purchase of property and equipment(217) (292) (866)(123) (862) (1,158)(165)
Disposal of property and equipment-    -    192 27  -    192 27 
Acquisition of intangible assets-    (9) (269)(38) -    (278)(39)
Proceeds from maturity of short-term investments11,100  13,000  2,500 354  14,400  15,500 2,194 
Purchase of short-term investments(10,000) (17,200) (19,899)(2,817) (22,900) (37,099)(5,252)
Loans to third parties-    (53,900) -   -    -    (53,900)(7,629)
Repayment of loan receivable from a third party-    10,000  -   -    -    10,000 1,416 
Loan to a related party-    -    -   -    (425) -   -   
Repayment of loan from a related party-    -    -   -    425  -   -   
Others-    (54) -   -    -    (54)(8)
Net cash flow provided by/(used in) investing activities883   (48,455) (18,342)(2,597) (9,362) (66,797)(9,456)


EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT’D)
(Amounts in thousands of Renminbi (“RMB”) and US dollars ("USD"))
 Three Months Ended Six Months Ended
 June 30,
2019
 March 31,
2020
 June 30,
2020
 June 30,
2019
 June 30,
2020
 RMB RMB RMBUS$ RMB RMBUS$
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
CASH FLOWS FROM FINANCING ACTIVITIES           
Proceeds from short-term bank loans-   5,000  5,000 708  5,000  10,000 1,416 
Repayment of a short-term bank loan-   (5,000) -   -    (5,000) (5,000)(708)
Proceeds from issuance of mandatorily redeemable non-controlling interests of a subsidiary-   -    40,000 5,662  -    40,000 5,662 
Proceeds from issuance of subsidiaries’ equity to non-controlling interest holders-   -    2,023 286  -    2,023 286 
Proceeds from issuance of Class A ordinary shares pursuant to underwriters’ exercise of over-allotment option-   7,313  -   -    -    7,313 1,035 
Proceeds from issuance of Series C redeemable convertible preferred shares-   -    -   -    47,436  -   -   
Payment of issuance of Class A ordinary shares pursuant to underwriters’ exercise of over-allotment option’s issuance costs-   (516) -   -    -    (516)(73)
Payment of issuance costs for initial public offering-   (9,119) (304)(43) -    (9,423)(1,335)
Net cash (used in)/provided by financing activities-    (2,322) 46,719  6,613   47,436   44,397  6,283  


EHANG HOLDINGS LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT’D)
(Amounts in thousands of Renminbi (“RMB”) and US dollars ("USD"))
 
 Three Months Ended Six Months Ended
 June 30,
2019
 March 31,
2020
 June 30,
2020
 June 30,
2019
 June 30,
2020
 RMB RMB RMBUS$ RMB RMBUS$
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
            
Effect of exchange rate changes on cash and cash equivalents1,018  3,185  (454)(64) 451  2,731 387 
Net decrease in cash and cash equivalents(19,325) (76,647) (16,826)(2,382) (1,366) (93,473)(13,230)
Cash and cash equivalents at the beginning of the period/year79,478  321,662  245,015 34,680  61,519  321,662 45,528 
Cash and cash equivalents at the end of the period60,153   245,015   228,189  32,298   60,153   228,189  32,298  


Unpaid issuance cost for Series C redeemable convertible preferred shares included in Accrued expenses and other liabilities743 743 743105 743 743105
Unpaid issuance costs for initial public offering included in Accrued expenses and other liabilities- 5,608 5,304751 - 5,304751
Unpaid issuance costs for issuance of Class A ordinary shares pursuant to underwriters’ exercise of over-allotment option included in Accrued expenses and other liabilities- 1,046 1,046148 - 1,046148