EHang Holdings Limited (EH) 18 Nov 242024 Q3 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the EHang Third Quarter of 2024 Earnings Conference Call. Please note that the 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. original the the the please to line. Chinese listen remarks management by join To

Chinese lines proceed. will and questions the Relations. Ji, both Additionally English of Director call call to Investor being EHang's the Senior and Anne, are is recorded. turn I please now Ms. over Anne today's for open

on third call the company's company's available financial [Interpreted] Hello, for company's all release discuss you the XXXX. joining us earnings for audio on Please to conference the quarter will website. everyone. Thank on of The the today's recorded, be posted website. note, conference is call IR results replay and is IR the the being

Zhao Mr. Hu, and we the Officer; Chairman Financial Wang, Mr. today, Conor On Yang, Mr. and our Board. Chief Huazhi the call Director of Chief Operating and have Founder, Officer Officer; Chief Executive

today's please XXXX. the pursuant harbor the continue, safe note we Litigation Before Act will Securities that made statements contain to Private Reform of forward-looking provisions discussion U.S. of

Forward-looking statements and uncertainties. involve inherent risks

as such, Hu. to call may in obligation go Please stated company forward-looking expressed actual required otherwise. the the that, Mr. all RMB uncertainties under except With public Mr. third turn The different with included that and applicable of CEO, assume this are law. over unless XXXX, Also, me Huazhi and not in materially results presented any ahead, risks the numbers please note is other quarter are for our let Hu. now filings be company's information regarding expectations the today. Further SEC. the to company's from update does any As the statements, and

high hit joining financial quarter the our this [Interpreted] order deliveries record Hello, of for performance EHang's call. earnings Since Thank again. third everyone. very you year, and a much

next-generation air application operator We have ecosystem, overseas of markets. well expansion the R&D certification in the development such also aspects, and of and as certificate the technology products of review, exciting progress as multiple as low-altitude made

capabilities and towards EHang's mobility underscore urban achievements air these in commitment operations. commercial pace accelerating of All our

and equipment. of strategic development. establish Technology and local X segments governments pilotless and In the is of airworthiness have operational different for Guangdong Currently, which for leadership another in a the of Industry Civil to plenary industry have established, low-altitude for fostering EHXXX-S the first advancing We the the of related expected development and which zones Zhuhai as This provide low-altitude are OC of plans review commercial our growth is application July, the aircraft, highlighting their customers standards OC world's industry, the as this applications high-quality Information by pilotless Aviation China the first we resources engine. economic economy, Guangzhou, role the will industry's in National cities. intelligent central economy across for the for the carrying dedicated and have emphasizing passenger aim operations be Wenzhou are with China. EHang importance for strategic world's bureau development in mass the about Aviation. enhanced the across a become for issued Reform and pilotless capabilities emerging deliveries. more of and of General certificates Since assisting that to China's outlining to their signifying and obtain for Hefei group coordinate accepted first development, production In submitted better OC actively and economy low-altitude Aviation convened and safety Ministry of Administration low-altitude preparing speed the nationwide Commission Shenzhen, EHXXX-S the will key the Development the operations aircraft, electric the low-altitude meeting commercial first Simultaneously, and up officially demonstration its to progressing an well, promote China November, by project OC industry QX, demonstrating to tasks eVTOL Heyi support OC company for partners Wuxi, be is we assurance year. end the well. further the

EHang As with a global national leading UAM technology actively company, aligns policies.

and a our development robust market closely XXX for aerial and This for continues Our record delivered reached strong recognition with QX, RMB of of units and the advocacy deliveries the equipment. high product low-altitude EHXXX-S. revenues government's again. to demand innovation million. reached demonstrates quarterly and in our and support, We domestic the XX Under in-depth revenues China EHXXX-S, customer In demand philosophy the broad grow. resonate pilotless in policy vehicles

deliveries. course, Of aircraft our focus extends beyond

priority system, focusing Our a low-altitude support as operational operations and as accelerating operational we're enhancing ensure to of on safety the comprehensive ecosystem. top well establishment is sales as both the

achieved a the have in progress operational We aspects. X significant following

hub With from UAM in Firstly, in aircraft, is pilotless passenger the second for the was government, also as hub pilotless hub, established on serves Hefei municipal aircraft and infrastructure. model this passenger a Luogang Park strong support tailor-made it the officially operations. UAM EHXXX Hefei, Ascend for

we of system. carry partnership training the of out to on to Aviation with talents related China EHang's pilotless aircraft have and formed establish and a Civil a of operations, jointly talent strategic training, management to the Secondly, standardized Flight maintenance University

flourishing that the maintenance EHang to our interest. of leadership. an can products believe we will continue increase repair extensive in Thirdly, sustained our future only economy, work. aftersales investment building We system upcoming market and truly maintain support to a low-altitude attract R&D a to competitive a operational are

on on aspects. We focus the EHXXX-S of will long-range product following performance and a enhancement the commercialization the of

flight have Regarding partnership significant continuous systems new test strategically XX%. motor EHang's a This to With in minutes, EHXXX-S high-energy invested exceeding development weight this pioneer power the controllers our tailored for have XX EHXXX-S into an battery improving in a endurance we features solid-state and and flight lighter Inx a a of vehicle eVTOL. density. Meanwhile, joint energy entered battery, co-develop integration by electric of in significantly power higher achieved with Enpower, new breakthrough enhancements, and motors solution completed a a strategic technology. we performance solid-state the

further endurance milestone operational XX broadening for to even is Next the scope and year, This products. in to we aim our application the eVTOL critical flight minutes. improve achievement

to and on long-range commercial development have of conducted and for cross-mountain EHXXX-S's a the complements our intra-city our Building Lift-and-Cruise product product UAM upgrade Extending This by design the we inter-city, long-range the model prototype, VT-XX. routes. like product. beyond on coverage. our portfolio scenarios VT-XX Moving eVTOL cross-bay, existing targeting application to

Civil In Japan EHXXX making certificate our September, the and globe. With We're Aviation for strides Brazil's footprint have to an we also extending and achieve in will granted to markets, flight overseas we categories VT-XX, low-altitude certification in authorization demo the the countries flights Thailand, in X the and Agency, XX Brazil Brazil, QX, full of pilotless past urban air and Phuket the XXXX. for the coverage progress we flights. launch States, in the Thailand in Thailand a EHXXX-S. local plan decade, industry. by passenger aim airworthiness across was Series scenario tests Civil areas flights United becoming first of conduct facilitate flight with National in experimental from Aviation to more Reflecting regions operations The overseas test open for range In airworthiness mobility in-depth aircraft EHXXX-S the conducted multiple our planning the world's eVTOLs global Samui EHang plans over EHXXX to our to the certification. pioneer in commercial some of flight flight in has launched certified of also to on We're Authority expand of Thailand.

certification. pioneered pilotless vehicle and airworthiness technology and area driven have in breakthroughs We

air operational such of launch of to urban UAM the With fruition. EHang's hubs others, the come as Hub will mobility and truly long-held dream Hefei

Moving advance ensuring industry forward, we as steadily to the sustainable top will achieve development. safety priority

society. partners our greater value We the to also and strive create for shareholders,

the our on over operational to elaborate COO, Next, performance. call Thank turn to I'll Wang, our QX you. Mr. more

everyone. you, Mr. Thank hello, Hu, [Interpreted] and

product In we delivery me provide as received for from well repeat customers. an new status of overview third the Let customers quarter. QX, first existing orders as our

the Specifically, unit of reaching completed client. quarter, deliveries a third this to of units the client we in to Shanxi total the XX deliveries XX

in province also the Zhejiang Wenzhou, Wencheng to of third in X quarter, We XX delivered. units a reaching delivered client total units our

Additionally, EHXXX-S to Furthermore, Shenzhen the secured their Zhuhai Hefei. orders in we than at and and for Luogang in and also their order clients this quarter. the Park deliveries our expanded the center delivered site of delivered domestic Hefei repeat X book hub Heyi established quarter. newly in a we orders in more quarter third we in operations and Boling series in the Guizhou, new Tianjin, XX units. completed is of Luohu District, X,XXX to deployed each Fujian, UAM units Shenzhen Shanxi summary, total of units Currently, be In at Chongqing, third the customers for UAM

the for responsible is aircraft. As an sales only manufacturer, aircraft of EHang and the not production

assisting Due We approvals to the related customers for maintenance, regions customers of aircraft, to repair with are in CAAC striving applications, and services. the nature possible. preparing operational special are soon certification also as obtain from our from the various as their providing also consulting we

with planning. Before design, route business operational and including also customers assisting services, site are that, we process planning

operation them meet CAAC. OC applications improvements have we For are that in and provide companies those submitted safety the to under their the support of operation to requirements assist safety technical full regulatory review,

This system well, will aim place UAM our the service moving building and also foundation to diligently, stably, their a Our and customers steadily lay We for proceed aircraft company's on focus forward our enable talent robust and customers long-term to training operate continuously returns emphasis improving commercial quality. achieve development. be operational mechanisms. company's and will greater serving solid to a

operating the our operators aircraft, maintenance the with personnel better trained training, XX personnel customers. to of clients of terms total maintaining assist for we and and in our In have aim XX a

partners we of will cooperation some service cities. infrastructure and with and infrastructure the construction have such low-altitude hangars several as infrastructure strategic initiative in agreements the Regarding takeoff providers. signed construction, take landing to undertake platforms These

energy facilities or have numerous the these We bases production vehicles second quarter, Since will infrastructure use batteries. visited new leasing new we through domestic for energy agreements. and cooperation

in aviation specializing manufacturing we visited components. European facilities Additionally, October, safety in some

of cooperation. in are factories these with discussions about potential We currently some

Shanxi, expand ventures Guangxi in to to Anhui, our and and QX, industrial to our from quality Yunfu. will Starting production our lines solutions cooperation upgrade improve and industrial Our [indiscernible] reduce goal costs. Currently, and aircraft layout manufacturing. in of the management is produced through facility delivered in production for to integrate and production order we facilities and are expertise joint and manufacturing ideas Beijing contract various integration all in plan technique provide of our and strengthen

Aerial and and park first East areas flight for phase test are the North China collaborating industrial For emergency the we Manufacturing of China and area. In selection delivery demonstration our actively plan cooperation site and in the exploring EHang economy to begun Hefei, manufacturing, have Xishan located, where establish capital education rescue instance, are Tourism, we in with environmental like local the the cooperation government completed In Vehicle testing, response, in the Industrial firefighting headquarters in and leveraging our applications we the And North already center factory Beijing, have a the Anhui, we establish already missions. to is and the Park work. with low-altitude Taiyuan. training on research China, R&D

start continue in upgrades area visited test customers, for quarter. to factory, of As component quarter, we'll number a with the and flight XXXX, production have existing to we partners technical capacity aircraft investors, and third supply our the factories, production commissioning media. will our overseas By the of Yunfu overall new fourth expand. Since the line and

allowed the in and domestic Expo, we to International Urban the Innovation Through China and World the communicated have activities International of among industry including have Smart Industry bring the Thailand the development Economy we ministries Drone various and every [indiscernible] and Additionally, [indiscernible] and economy thoughts fly further enhanced and large and in In Global Medium EHang and aircraft international International Technology, actively Conference, Mobility number others. Italy and experts. Low Fair including customers. activities been China, such and in these forum many and Aviation and Expo, on organized Exhibition, These the from National to a invited of industry CAAC, the and actively the with the or China Congress, Altitude has and Expo City future almost participated GTAX demonstrations. Information expectations attendees with Import the economy-related also by exhibitions, strategies, Reform Development China Air Enterprises Development EHang forums, Forum. as Aerospace to conferences of operational with commissions, reputation conferences participated us conferences connect potential EHang's international various the resonating Ministry and have its and our Small and for low-altitude has low-altitude display earning Commission actively recognition

and significantly quarter, flight international flights. has in flights have countries. permits demo Brazil in Since special has date, series To carried third completed obtained EHXXX Our out and improved. the have reputation XX also Thailand the we

commercialization forward, continue economy footprint. our will and low-altitude to promote Looking industry expanding while of EHang lead the the

will our due as collaboration on growth and We innovation initiative. and this the stay to focus sustainable by and commercialization fueled committed of we sales operations emerging support

you to Now the I'll hand performance Chief it our financial Financial through Thank quarter. over for walk third Officer, to you. Conor, the

This Thank you, Mr. is Wang. Hello, everyone. Conor.

the Before IR by I the key points. some on and in unless dive third recorded please I operating steady presented analysis also in the commercial QX, and are flow RMB cash In now revenue are our for upcoming progress are our exceeded numbers details, second otherwise quarter. press We positive Detailed net release adjusted that all our front fourth stated. have maintained our note for as OC highlight We're XXXX, we available quarter will results. quarter consecutive making robust earnings delivered again for into gear row on of operations. website. the for income guidance efforts up a once X%, the in

our the in to operating units were to Series driven period, higher prior XXX.X% a total million In and of operating in were from the our gross of mainly representing Turning RMB million, EHXXX prior sales products. XX.X QX, the various adjusted year-over-year a higher XX.X% RMB an expansion advantage and XX.X exclude we compensation, increase eVTOL quarter primarily margin XXX.X sector. for million volume XX.X% units XX compared million due in in RMB to our is the delivered was channels XXXX and employee by adjusted remained to products, XX.X% expenses, eVTOL The X quarter. revenues achieved this to this high, XXXX a the QX This RMB next-generation our were XX development cash, from specifics in the year. of QX of gross in XX scale QX QX of investment Adjusted X,XXX.X an balances the position sales adjusted quarter's operating that, to reaching models. activities. RMB million share-based XX.X% loss in in reflecting over a million increase quarter. the RMB investment and increase expenses, up quarterly of compared record an establish USD investments and competitive East. quarter XX.X% EHXXX compensation, QX The and and XXXX including deliveries margin expanded This XXXX. phase decrease, operating of RMB financing million, was year-to-date RMB recorded of which operating our quarter. team, third XX.X from capacity, over year and new income pipe sales-related RMB short-term will to XX.X% operating Despite achieved XXXX and million institutional from XX increased XX series continue also in increase and impressive for announced X.X loss week, corporate compared units our from for in high loss short-term proceeds modest brings a production balance, investor adjusted second a in increase for Furthermore, be headquarters improvement short-term X.X nearly the financing quarter. total cash XX.X equivalents, XXX Enpower an top million prior was general the prior eVTOL financial an advance On period million net deposits of used in positive we generating the quarter. significant We restricted we cash investors, This our flow Middle last QX our fourth marks strategic RMB consecutive deposits, products, our consecutive strategic the end billion. and and and cash At second QX, sites growth. the adjusted and next XX.X million. investment net QX XXXX, million last for The strategic a new in RMB from income technology enhancing including support USD expand

our focusing operations quarter, possible. fine-tuning move for we our pilotless both model nearly and sales. on certification At expected into low-altitude even orders market policies low-altitude achieve market. further aircraft, stable as is safe fourth growth with to improvement and and time, to same demand reach, in to driving boost increased we the for adding the eVTOL government our steady approval final As process are within in are commercialization ongoing the quick as more the customers and momentum support OC to complete economy enhance the This

for XXX revenue of expected XXX Given our increase these to expecting increase year with XXX.X%. The a RMB in XXXX full year-on-year year-on-year trends, of remarks. of representing million we a QX are reach total concludes prepared the RMB revenue is our XXX.X%. is million, That

now call Let's open the go Operator, please [Audio Gap] ahead. questions. for

comes first question from Stanley. Cindy Your Morgan instructions] Huang [Operator from

on when Congratulations share management battery for more XQ expect first to produce with Inx? My do to we key And now? hurdle regarding results. battery solid-state Could commercialize what's remarkable details is mass to the development And Gap] question on solid-state it? [Audio battery.

in batteries, to these for [Interpreted] progress. our requiring especially battery, combining from a X your On reach to to typically Advanced mass Center, technological complex early our support Zhao. Inx of collaborated have question. it many first years new progress. Promotion and batteries, strengths Thank requiring technology Application the our cycle [indiscernible]. With we about Hefei perfect and impressive takes International your like with but for Technology joint increasing mass question, and I Developing develop technologies mature significant breakthrough development new development with on. battery Energy production life, battery and for safety also the Currently, maintainability solid-state commercialization. Inx one not are battery enhancing investing battery a capacity It Wang is companies am solid-state only X you to with density, involves significant began a a R&D features, resources

the And We just is as and have beginning. significantly seconds. flight the minutes this increased to XX XX EHXXX endurance

We to next of XXX been watt to minutes year. battery from expect let been degrees to are kilogram further that energy has its Celsius during per solid-state XX per XXX course, twice small currently, energy of increased the XX But in flight has only testing and sometime extend batch the reduced density you this should are batteries. kilogram. costs degrees rise density that the And entire XX additionally, has this these the batteries Celsius. I And temperature from of to watt existing doubled. know

I will produce we think the production costs as them. decrease gradually mass

to is solid-state achieve goal EHXXX-S sometime for by Our XXXX. of mass certification batteries of these and production the the end

And is progress regarding the question my operator certificate. second of

more year? into that can OC this EHang the in-depth enter expect review end we As we of can receive phase, still by

in Well, [Interpreted] you the course, the question, your of should of closely that response is know watched -- yes, second OC by progress to application industry.

OC Civil the the still we Therefore, on the that refer OC of the is for approval on are there Aviation Administration feedback standards. And for also from submitted setting and we're recently of Therefore, it innovations the current necessary can been waiting process readily standards feedback from the we And and has up requires most no a based adjustments, work process However, further on regulations. improvements review completed. available OC review. them. of have also China, the

Our company quick to adjustments. make and has been also respond

as this within all Civil the the first Aviation goes Administration of OC be our soon operational year. issued to requirements as well, So to is possible. If the goal safety expected is meet

to also hope and operational understands responsibility is everyone that this which a we certifying requires a rigorous work process However, of of passengers. the lot safety,

for tuned stay please updates. further So

Laura from comes at Deutsche question Bank. Lee next Your

production. question my the about is So first

X,XXX about additional per year quarter, So I units think year. last by talked will capacity be we next there

partners, you factory? any mainly the next that include does as on the capacity or Yunfu year? update like this the of or from mentioned on there Also, is CapEx third-party today like manufacturer it's So the

[Interpreted] your First, on CapEx question.

USD in So and Meanwhile, ventures. new also products question technical may joint upgrades year. Yunfu, factories prioritize the million it this manufacturing in And with start only bring we Hefei next and partners Guangxi. existing will province models to your and is production ramp-up, in management be QX. XX will the on may production involve These the experience USD their constructing to Guangdong factories for and year, in so around in we leverage better with and CapEx will for new our delivery. our XX aircraft our new factory Guangzhou, We million, industry

you. Got Okay.

quick a Just follow-up.

for about So influence XQ. this that the in no? or technical Will in the or upgrades the kind cause factory cadence downtime think of any Yunfu year delivery

[Interpreted] this disruption impact I way delivery We or impact considered potential have expect QX. technical would upgrade the from actually the to on production QX the deliveries and be the of the minimal. all to

minimize we -- the the the upgrade we capacity. mitigate want and However, impact to as

if also the offset believe the we facilities. by However, the the are short-term Meanwhile, later we production were be of increased actually to construction scheduling there on. other considering disruption, any production, may

well So additional with the minimize future between as production the we ensure facilities, synergies and smooth to deliveries. as impact able the upgrade might be

from question next comes Your UBS. [indiscernible] James at

is growing will My kind question our lowering since at at breakeven kind of scale scale is what and prices the we expecting are our period? time or battery when regarding be up, what are of that

we Yes, the see that [Interpreted] can quarter, have. . . third you in

bit go Sorry, you to was or? mute. [Interpreted] I Would on for Conor, like this

Please finished. ahead. I'm [Interpreted] go

Yes. [Interpreted]

the well the down, up trend. definitely that's production, ramp as components we price as of come the as batteries key So will

constantly these profit know push potentially However, models we margin that these level. costs are our will a of you gross is and aircraft. new up This introducing But should some features. of healthy at also iterating the

faster me achieved positive Let quarter, a a in we'll for expense. see revenue past our than the our and we that profit growth point you to net have definitely adjusted

profitability. are So stronger for other in efficiency we operational better capacity and stronger words, having

chain the our solid-state electric strategy research the adopting in investment and and we kind battery? regarding and of is are development question supply strategy. second What My motor

your you one. take for Thank this question. [Interpreted] I'll

enhance product we'll us, strategy, certification, in air areas, chosen economy. that let over continually AI the taxis me on critical the as EHXXX-S the technological on to our key joint technologies airworthiness maintain and role development, And industry, strategic emerging propellers, have and to in a investments components motor, UAM well saying as is focused based leadership. core communication future a start so And the technologies. through batteries, upgrade by venture. and are on for materials set its And this based we key and play So low-altitude including and composite this XX collaborative core to

So active and chain. cooperation we suppliers this maintain in industry communication top-level these with

We are also patents new constantly exploring and directions. technological new

in So EHXXXS endurance solid-state this batteries extend on innovation example, This sector. in components might aim we flight in to perhaps technology in future. industry. the recently, the in we peers breakthrough industry marks with developed some this a developed test the future, that high-energy our using completed we offer key minutes to XX-minute for even to forward to actually We this in a lithium Inx the Energy. push And XX the significant

Additionally, we to power developing improve new are of systems a generation efficiency.

current On product strong than the VT-XX to our product the side, the also be lineup. complement a other will series, EHXXX

at comes question Zhao Tianfeng from Gareth Securities. next Your

the have gross I one questions. X So regarding My margin. first is

saw a decline this slight we quarter. So there's in gross margin in the

how the the the company does So future? in potential reduction cost for view

very [Interpreted] quarter, we existing customers. delighted third repeat some In from orders are to our the see

but Therefore, it therefore, in margin, gross small However -- caused on slightly and at over decrease it year's contract last them actually average selling our affected based our we remains sell still XX%. price prices. a minor

some motors the increase expect impact other enhance economies will time, the out. which could to performance we At same of These on factors So likely some And costs batteries, and of minimal. we cost cost as due continue to is reductions production, extent. up core the we to scale. components the will each side, like balance scale

the XX% That's maintaining future. around a margin of answer. So anticipate we gross in my

Okay.

is question regarding So my progress. VTC second the

about more you insights VTC market? the overseas in So progress of could provide certification

certification XX aviation conducted countries understand in of programs advancing these process airworthiness the aircraft. bilateral and types get we the to that abroad as has engaged Administration Therefore, a with us, as across areas, while cautious soon are through EHang experience some overseas the [Interpreted] exploring were We take so operational Aviation eVTOL approach channels also to systems. we various and world. for regulators of certification new pilot certifying also flights has our national internationally, lack in they countries China, Civil And worldwide with possible. actively our

Brazil's an September, flight aviation EHXXX-S experimental conduct permit, us in extensively our Brazil. granted tests and flight instance, to For authority in trials allowing

So And also VTC a you. with this selected the to regions gather begin Authority. aiming in for certification. sandbox operations Thank data actively Thailand, moving are Thai commercial year. we exploring pilot help some would to us flight future model Aviation next We're to

Your at Guosen Securities. next Ling comes question from Liu

[Interpreted] Could share Congratulations Hefei future the announcement of results. on on Hefei? recent We noticed the insights strong the in completion. management plans Hub some the operational

eVTOL operations. landing question. [Interpreted] Park. municipal with over site This for question. is at is X years. XX operational is hub Wang announced Hefei transportation your points operations OC your extensive in Zhao. Thank quite you build Hefei Hefei I'll has with The sites major operational and plans in standards, existing built air sites The to take a over integrated The the takeoff government Luogang plan size to complementing next existing to various pilot its

air as very an qualifications Once serve transport obtained, will operations ticketed soon. are it will start operational So hub.

Gap] question [Audio Your China Wang at next comes from Renaissance. Yiming

is [Interpreted] technical question our is capacity to increasing My going much existing the upgrades. system our ramp-up you to going our on help to or help how is lend orders? the capacity? to delivery And following How much think do it

as [Interpreted] skills chain efficiency. well and Current supply through production of as enhanced worker being optimization capacity means improved is

to capacity. technical further a upgrade requires factory the increase However,

exceeded capacity out expectations. aircraft demand were we has for our increase significantly, build the we the if our like that to new need means Additionally, to looks factories. It

factories. now Existing stable and we The and new sites selecting relatively the is are complex. So of designing being aircraft in pace. are a testing delivered process new of time-consuming at right orders

aircraft current ensure is stability the safety. focus maintaining to thorough So testing on and

centers such landing infrastructures training as other require and points, Additionally, takeoff maintenance personnel for operational also and operators and time.

So pick factories and mature year, speed centers is new in infrastructure once next are the operational locations for and up. delivery various test will the operational sites

from comes question next [indiscernible] Your at Citic.

on we taking were regard new in is the in question. on the this ownership we the collaboration collaboration the to forms solid-state solid-state X is that's CapEx rights my questions. going are of future it? got battery, battery. other So first property this what solid-state generated of so in one One battery. If are split And investment expectations I the how

the as coordination in is of government to it incubation supportive First in implementing Municipal year, and Battery supported time. of breakthrough [Interpreted] breakthrough us the investment Center Low-Altitude EHXXX-S the are R&D economy. manufacturing. completed to with And of Energy Hefei And on Hefei The have National with teams Government. Inx and we'll our tested increase recorded promote These last solid-state proactively batteries. the continue expenses charging a development primarily and over Inx both we in Institute, R&D and collaborate these technical in allowing October, low-altitude July the is to The and good projects solid-state R&D also, local and research by not we also Energy successfully investment battery costs participated have doing Economy Government, very As expenditures. we contract a year, included And Energy. technical development responsiveness, have Research and Municipal installed Last strategic breakthroughs. capital as the continued technical under fluid. goals fast very short on successfully are the low-altitude the we reached the in Hefei phased early agreement And the to past the continuously in also relatively cooperation Hefei achieve

and for of aren't you. batteries. for the Q&A there the end also Thank And will jointly our the the included by these session. And of core production the owned any CapEx components be technologies and intellectual that's property partners. EHang So

like session. hand to question-and-answer for to the the concludes Ms. call Anne That I'd you. closing back remarks. Thank

all you, operator, conference you thank Thank call. and joining for today's Okay.

have look contact any you your If please IR by the We earnings to in investor further participating team events e-mail our Thank interest questions, company's forward our or following information you. next and call. provided through our website. on current IR appreciate our

you Thank all again.

present you. transcript the were call.] Thank You marked may are this of now interpreter by spoken [Interpreted] an disconnect. [Portions on that live