EHang Holdings Limited (NASDAQ:EH) Q3 2023 Earnings Call Transcript

So 2024, we’ll see strong demand coming out from scenic spot in China. And the application for oversea validation of TC will be a lot shorter than the TC we have obtained from CAAC. We are expecting that roughly about — should not be — maybe 12 months more or less for the local — for the foreign government to get approval for validation TC. So, even though we have seen a strong demand from globally right now, but we expecting give a year of getting validation TC from different countries globally. We’re expecting that global demand will come in a great way in 2025. So, in 2025, the growth driver will be the domestic scenic spot demand as well as the international order in 2025. And then, coming to the later part of 2025, for transportation purpose demand of our 216 will start to contribute a meaningful portion of our business after one to two years build out for the infrastructure and in cooperation with local government in China.

So, in 2026, there’ll be three ways of revenue contribution orders. So, first one is again the domestic scenic spot; and secondly, global order; and thirdly, for transportation purpose of 216. So, all of these will be — will contribute a lot of our revenue in the next three years. And other than that, our logistic version of 216 as well as the firefighter version of 216 will also provide a strong growth driver for our revenues going forward. And regarding to ASP of 216, yes, we saw that there’s a slight increase on ASP third quarter versus second quarter. And especially after we obtain TC, we will have a stronger position in our pricing. So, 216 — sorry, RMB2.16 million per selling price, that’s a listed selling price and we sometimes give certain discount to our customers.

But after we obtain TC, we think the pricing will be stronger so we should expect a slightly increase on the ASP. And especially if those orders coming from overseas, we can even show a lot higher price. Yeah. So, we’re actually looking forward that there’s also upside on the ASP price for 216. Thank you.

Xuan Chen: Okay. Thank you for your color.

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

Anne Ji: Thank you, operator, and thank you all for participating on today’s call. If you have any further questions, please contact our IR firm by email or participating 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 your lines. Thank you.