EHang Holdings Limited (NASDAQ:EH) Q2 2020 Earnings Conference Call - Final Transcript

Good day, ladies and gentlemen. Thank you for standing by and welcome to EHang's Second 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 second quarter of 2020. We released the result early today. The press release is available on the 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 statement made on the Safe Harbor provision of the US Private Security Litigation Reform of 1995. Forward-looking statement involves inherent risk and uncertainties. As such, the Company's actual results may be materially different from the expectation expressed today. Further information regarding these and other risks and uncertainties is included in the Company's public filing with the SEC. The Company does not assume any obligation to update any forward-looking statement except as required under applicable law.

Also please note that unless otherwise state, all the figures mentioned during the conference call are in Chinese RMB.

With that, let me now turn the call over to Mr. Hu Huazhi, our CEO. Mr. Hu will speak in Chinese. Then our CSO, Edward, will translate his comments into English. Please go ahead, Mr. Hu.

[Foreign Speech]

Thank you, Mr. Hu, and hello, everyone. My name is Edward, CSO of Ehang.

Let me first translate what Mr. Hu said in his opening remarks, and then I will talk about our key business strategies going forward.

Thank you, Julia. Hello, everyone. Thank you for joining us on the call today. It's widely known recently the COVID-19 pandemic and geopolitics have brought huge impact on the global economy. But our business continued stable growth in the second quarter of this year. I would like to express my gratitude to my team for their endeavors.

Our total revenues were RMB35.7 million, an increase of 62.7% year-on-year. Gross profit was RMB20.6 million, an increase of 60% year-on-year. It is worth mentioning that under this environment sales volumes of EHang 216 exceeded the level of the same period of 2019.

As the world's only AAV company that has achieved commercial deliveries, technology is our core competency. Relying on the EHang 216 platform, we have rapidly developed customized solutions for aerial rescue and firefighting, solving the problems of high-rise firefighting by fulfilling the gap of aerial firefighting. We have not only completed the development of the new model quickly but also rolled out it to the market rapidly.

We have also made several remarkable regulatory breakthroughs in China and Canada. We obtained the world's first commercial pilot operation approval for passenger grade AAVs for air logistic in China as well as special flight operation certificate from the