EHang Holdings Limited (NASDAQ:EH) Q2 2020 Earnings Conference Call - Final Transcript
Aug 25, 2020 • 08:00 am ET
Edward Huaxiang Xu
Transport Canada Civil Aviation.
Finally, due to the COVID-19 pandemic, we re-evaluated our global marketing strategy in order to minimize the geopolitical risk and further enhance marketing opportunities. Notably, Europe is our most important region after Asia, and so was the focus of changes. We established a new regionalized marketing management team, deploying local talents to accelerate the market development.
Going forward, we will put more efforts in the Chinese market and also enhance business developments in the European markets. We remain confident but cautious about the COVID-19 situation globally. We expect to roll out more new products, including the one with a fight range of over 100 kilometers, opening up more market opportunities. We believe 200% revenue growth is achievable as our continuous efforts in innovation lead to stronger development.
So those were Mr. Hu's remarks.
Now let me cover some of our business achievements in this quarter.
As Mr. Hu just mentioned, we made a number of breakthroughs on the regulatory front, which is key for progress in the AAV industry. We were the first company approved to use passenger grade AAVs for air logistics. With this approval, we will start trial air logistic operations using the EHang 216. We would do commercial pilot operations in the category of 150 kilograms plus heavy-lift cargo transport between ground and a hilltop and between shore and islands and a customer site in Taizhou. This approval was based upon a pioneering regulation for specific unmanned aircraft under the globally recognized Specific Operation Risk Assessment or SORA framework of the Joint Authorities for Rulemaking of Unmanned Systems or JARUS.
Starting from this air logistics trial in Taizhou, we intend to gradually expand this application to more locations in China. This is an important milestone for EHang as it enables us to accelerate the commercialization of AAV technology and air mobility solutions. We believe this will benefit the long-term development of UAM applications.
Another exciting regulatory breakthrough was the EHang 216 obtained a special flight operation certificate issued by Transport Canada Civil Aviation. Notably, this permit was the first of its kind permit for the periodic operations of passenger grade AAVs in North America. This fully demonstrates our leading position in the global AAV market. It is a positive signal from global regulators to establish a supportive and sustainable regulatory environment for the UAM industry.
In smart city management, EHang completed the deployment of a command control center in the city of Hezhou in China. This center was the third of its kind after those in the cities of Shaoguan and Lianyungang. This deployment demonstrates our ability to build this type of sophisticated centralized command control system designed specifically for urban air mobility uses. More importantly, it also shows our strong commitment to further expand and scale our business.
To demonstrate our AAV technologies in use in smart city management, in April 2020, we participated in a flood emergency response exercise organized by the local government in Shaoguan, China. In this exercise, large-scale