EHang Holdings Limited (NASDAQ:EH) Q2 2023 Earnings Call Transcript

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Verena Jeng: Thank you, Richard. It’s very clear. Thank you.

Operator: Thank you. One moment for our next question please. Next question will come from the line of [Wei Wu] (ph) from Tianfeng Securities. Your line is now open.

Unidentified Participant: Hi. Can you hear my voice?

Operator: Yes, we can hear you. Thank you.

Unidentified Participant: Thank you. I have two questions. The first one is, we noticed recently China has published an enforcement stating that certain unmanned aircraft are facing some export prohibition. Will there be any implication for our aircraft or [indiscernible] TC process? And the second question is, can the management team shed more light on potential application scenario that could be implemented in the near future? Thank you so much.

Richard Liu: This is Richard again. I will take your question. So basically, for your first question, I would like to say, first of all, EHang as an internationally listed company, we have always been strictly following the [indiscernible] related loss and regulations in China and other countries where we do business and adhering to the principle of legality and the compliance in respect of [indiscernible] activities. In the recent new UAV-related [indiscernible] control policy in China basically has no significant impact on our business or our TC process, because we have already been complying with the relevant export licensing requirements for [indiscernible] products. It has been going smoothly. In addition, the spokesperson of the Ministry of Commerce has stated that [indiscernible] control does not mean [indiscernible].

So as long as the UAV products exported are for legitimate civilian uses and the company follow the relevant procedures, it is understood that exporting activities can be conducted normally. And we are dedicated to leveraging our innovative technologies and products to serve the people around the world. The company had been taking strict and prudent measures in compliance management and customer restrictions in order to make sure our products are only used for legal civil users. In respect to your second question, as you know, after our EH216-S gets its TC our first priority will be focusing on the so-called low-altitude tourism market. We will continue to team up with tourism operators and partners as many as possible in China for operations in scenarios like aerial sightseeing, flight experiencing, et cetera.

Location-wise, initial ones, such as the [indiscernible] scenic areas, [indiscernible] scenic areas, The Lake of Heaven of Tianshan scenic area and our Shenzhen OH Bay area, which we announced previously. Furthermore, we will continue to leverage our EH216 Series product platform to explore other use cases, such as aerial logistics, emergency response, medical deliveries, aerial firefighting, et cetera. Thank you.

Unidentified Participant: Thank you, Richard.

Operator: Thank you. There are no more questions in the queue at this time. Let me turn the call back to Ms. Anne for closing remarks.

Anne Ji: Thank you, operator, and thank you all for participating on today’s call. If you have further questions, please contact our IR firm. E-mail who are participating in our following investor events through the calendar information provided on our website. And we appreciate your interest and look forward to our next earnings call. Thank you.

Operator: Thank you all again. This concludes today’s conference call. You may now disconnect. Everyone, have a wonderful day.

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