EHang Holdings Limited (NASDAQ:EH) Q1 2020 Earnings Conference Call - Final Transcript
May 29, 2020 • 08:00 am ET
Good day, ladies and gentlemen. Thank you for standing by, and welcome to EHang's First Quarter 2020 Earnings Conference Call. [Operator Instructions]
Now, I will turn the call over to Julia Qian, Managing Director of the Blueshirt Group Asia. Ms. Qian, please proceed.
Hello everyone, thank you all for joining us on today's conference call to discuss the Company's financial results for the first quarter of 2020. We released the results early today. The press release is available on Company's website as well as from newswire services.
On the call with me today are Mr. Hu Huazhi, Chief Executive Officer; Mr. Edward Xu, Chief Strategy Officer; and Mr. Richard Liu, Chief Financial Officer.
Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's actual results may be materially different from the expectations expressed today.
Further information regarding these and other risks and uncertainties is included in the Company's public filings with the SEC. The Company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Also, please note that unless otherwise stated, all the figures mentioned during the conference call, are in Chinese RMB.
With that, let me turn to the call to the management team and our CEO, Mr. Hu Huazhi. Mr. Hu will speak in Chinese, then our CSO, Edward Xu, will translate his comments to English. Please go ahead, Mr. Hu.
Edward Huaxiang Xu
Thank you, Mr. Hu, and hello everyone. Let me first do the translation of what Mr. Hu said in his opening remarks, and then I will talk about our key business strategies going forward.
Hello everyone, thank you for joining us on the call today. Despite the unprecedented global COVID-19 pandemic that has started this year, we are pleased to report a solid first quarter financial results with significant top line growth.
Total revenues were RMB18.8 million, increased by 80.3% year-on-year. Gross profit grew by 82.7% year-on-year and the sales volume of EHang 216 reached a nine units in the first quarter of this year versus only three units in the first quarter of 2019.
During the first quarter, China implemented strict controls contain the virus. The country was a locked down, businesses were closed and people were quarantined, because of this, we did experience some short-term impact, including disruptions across the supply chain and temporarily decreased demand, including delayed orders from the customers. However, we were able to create a new business opportunities from this crisis.
We successfully introduced a practical application for both EHang 216 and Falcon B in medical emergency transportation. Our flight tests in Hezhou People's Hospital in Guangxi, has fully demonstrated our ability to apply AAV technology in an emergency situation. We will continue to actively develop more UAM applications such as emergency response and air tourism.We will expand the e UAM pilot city network