EHang Holdings Limited (NASDAQ:EH) Q1 2020 Earnings Conference Call - Final Transcript

May 29, 2020 • 08:00 am ET

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EHang Holdings Limited (NASDAQ:EH) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Our first question comes from the line with Vincent Yu of Needham & Company [Phonetic] -- Needham & Company, I beg your pardon. Please go ahead.

Analyst
Vincent Yu

Hi, management. Thanks for taking my question. I have a few questions. So the first question is for the commercial pilot operation, which is approved by CACC [Phonetic] in Taizhou. Is there a route specific approval or is that a blanket approval to carry out commercial pilots operation for logistic uses?

My second question is, can we expect to see accelerated approval from CACC for more routes after the approval in Taizhou? And my third question is about the demand in April and May. Can management give a sense of how demand recovery is on April to May? Thank you.

Executive
Richard Jian Liu

Thank you, Vincent. This is Richard. I will answer your first two questions, they are correlated. On, first of all, the approval is an area specific approval. It is not just route specific. So that means, EHang 216 can fly different groups for air logistic uses within that area. Is you refer to our press release, we described at least two use scenarios, which are between ground and hill top and between shore and islands, as a tighter -- as it is a coastal area of in the Taizhou city, where there are hills and islands. And there is a video attached to the release, and you are welcome to watch it. With that, you can get a more concrete idea.

And on your second question, also as we put in our press release, we intend to expand it to other areas in China. And we are working on applications for other areas or sites in different cities, such as at Guangzhou, we're headquartered, and [Technical Issues]. With the first one accomplished and the pattern established, the following ones would be less, you can imagine that will be less difficult, and it would be quicker to accomplish. Also the CAAC regulator has been very supportive along the way for this innovative AAV solutions.

Operator
Operator

Sir, do you have any follow-up questions?

Executive
Edward Huaxiang Xu

Yeah, maybe I can answer the third question regarding the pipeline, right. So this is Edward. So regarding your question on the demand for the April and May, currently our order pipeline is approximately on a quarter rolling basis. We have largely resumed that from the impact of the COVID-19 outbreak and basically we see our order pipeline for the second quarter back to the roughly at the level of the fourth quarter of last year, which was at a historical high level. But unfortunately, I cannot tell you the exact number. But based upon our current order book, we are comfortable and confident that this can give us the ability to achieve at least a 200% growth year-on-year. Thank you.

Analyst
Vincent Yu

Got it. So a very quick follow-up. Do we have any capacity expansion plan for the rest of 2020 as