EHang Holdings Limited (NASDAQ:EH) Q3 2022 Earnings Call Transcript

De Lu: Thank you management team for taking my question. My first question is recently, we see that U.S. has issued a series of export bans on the high end trips. I’m just wondering, will there’ll be any potential impact on EHang supply chain? And my second question is, we noticed that China’s domestic epidemic prevention policy is experiencing some softening, especially in Guangzhou. If these policy continue to ease in the future, what will be our new outlook on the future, for example, like TC approval and market demand and et cetera? Thank you so much.

Richard Liu: This is Richard. Let me take your questions. First of all, we are not using those U.S. ban chips in our products. That’s as you can imagine, there will be no potential impact on our supply chain. But we will be mindful of this when we further implement our R&D and supply chain strategies. Additionally, we adopt a strict mechanism to review any sure quality and stability of our supply chain. And we always seek to fully engage with our qualified suppliers to establish long standing and strong partnerships. In respect to your second question, yes, we have been experiencing the optimization or even the easing of COVID prevention and control measures recently. As you mentioned Guangzhou, where we have headquarter has initiated doing so since just two days ago.

And it seems more cities gradually following the suit. So this is a very good sign to the market. Given the COVID prevention measures can be further loosened, travel can be back to normal. So when this challenges are ease or is further eliminated, it is expected to have positive impacts on the business. For example, in respect of type certification, the inspectors will be able to travel without difficulties to allocations to conveying and check on-site thus facilitating the process. In respect of markets, you will help the tourism industry, which we initially target back to normal. Thus facilitating the relevant tourism operating customers to complete orders. So coupled with TC soon to be obtained, it is expected our business would rebound next year and we believe our efforts will allow us to capture this market growth opportunities going forward.

Thank you.

Operator: Thank you for the questions. Seeing no more questions in the queue, let me turn the call back to Ms. Chi (ph) for closing remarks.

Unidentified Company Representative: Thank you, operator, and thank you all for participating on our today’s call. If you have further questions, please contact our IR team by e-mail or participate our following investor events through the calendar information provided on our IR website. We appreciate your interest and look forward to our next earnings call. Thank you.

Operator: Thank you, all again. This concludes the call. You may now disconnect.