EHang Holdings Limited (NASDAQ:EH) Q2 2020 Earnings Conference Call - Final Transcript
Aug 25, 2020 • 08:00 am ET
Edward Huaxiang Xu
AAV operations were conducted efficiently and autonomously. As a supporting partner, EHang responded quickly by sending 10 remotely managed AAVs to four emergency sites. This exercise fully demonstrated the real application of our AAV technologies in an emergency situation. It also showed our ability to further explore new uses with efficiency and effectiveness.
Moving to our business expansion. The increasing market demands and our strong commercialization ability of AAVs are driving us to expand our production and upgrade our manufacturing capabilities. With the local government support, we are going to build a new AAV production facility in Yunfu city of Guangzhou -- Guangdong Province in China. The facility will include an R&D center for air mobility solutions and a training center for operations and technical talent with an initial annual capacity of 600 units. We are excited with our facility expansion and we expect it to further support the growth of air mobility business in China.
Looking at air tourism services, in May 2020, EHang partnered with the Shenzhen-listed tourism platform company Lingnan Holdings to develop the world's first UAM themed hotel at the Lingnan Garden Hotel in Guangzhou, China. A variety of air tourism service using EHang AAVs are planned for the hotel such as aerial sightseeing, transportation, air logistics and aerial media light shows. We are excited to establish such meaningful collaboration which not only broadens the uses of AAVs but also develops a new commercial use case for EHang by providing customers a brand new interesting experience of air tourism.
Finally, I would like to announce the appointment of Mr. Dongming Wu, CEO of DHL Express China as an Independent Director of EHang. We are greatly honored to welcome Mr. Wu who has over 30 years of valuable experience in the global delivery and logistic industry. We believe Mr. Wu will help our strategic development, especially in air logistics and further enhance our corporate governance.
To conclude, we continue to deliver solid performance in this quarter. Despite the difficult market conditions, we are optimistic about the long-term promise of the UAM industry, and we believe our first-mover advantage will enable us to drive robust growth in the near future.
Richard Jian Liu
Thank you, Edward, and hello to everyone on the call.
Before I go into details about our financial results, please note that all numbers presented are in RMB and percentage changes refer to year-over-year comparisons unless otherwise specified. Detailed analysis is contained in our earnings press release, which is available on our IR website.
I'm going to highlight some of the key points here. We achieved a significant revenue growth again this quarter, quite an achievement considering all the uncertainties and challenges. Total revenues were RMB35.7 million, up 62.7%, growing across all revenue streams. Our core business of air mobility solutions represented 63.5% of total revenues. Sales of the EHang 216, the Company's flagship passenger grade AAV reached 16 units compared with 14 units in Q2 2019.
Gross profit in Q2 was RMB20.6 million, up 60%.