UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2020

Commission File Number 001-39151

 

 

EHANG HOLDINGS LIMITED

 

 

Building C, Yixiang Technology Park

No.72 Nanxiang Second Road, Huangpu District

Guangzhou, 510700

People’s Republic of China

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F  ☒ Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

EHang Holdings Limited
By:  

/s/ Richard Jian Liu

Name:   Richard Jian Liu
Title:   Chief Financial Officer

Date: May 29, 2020


Exhibit Index

Exhibit 99.1—Press Release

EX-99.1

Exhibit 99.1

 

LOGO

EHang Reports First Quarter 2020 Unaudited Financial Results

-     Solid Results Despite Pandemic Challenges

-     YoY Growth in Revenue, Gross Margin and Air Mobility Solutions

-     Global Progress: U.S., Spain, Norway and China

-     Pandemic Reveals New Applications in Emergency Response

Guangzhou, China, May 29, 2020 – EHang Holdings Limited (“EHang” or the “Company”) (Nasdaq: EH), the world’s leading autonomous aerial vehicle (AAV) technology platform company, today announced its unaudited financial results for the quarter ended March 31, 2020.

First Quarter 2020 Highlights

Financial and Operational Highlights

 

 

Total revenues were RMB18.8 million (US$2.7 million), an increase of 80.3% year over year. Revenues from air mobility solutions were RMB15.1 million (US$2.1 million), 80.4% of the total revenues and up 256.0% year over year.

 

 

Gross margin was 59.3%, an increase of 0.8 percentage points year over year. Gross profit was RMB11.2 million (US$1.6 million), an increase of 82.7% year over year.

 

 

Operating loss was RMB21.1 million (US$3.0 million), compared with operating loss of RMB21.2 million in the first quarter of 2019.

 

 

Adjusted operating loss1 (non-GAAP) was RMB19.2 million (US$2.7 million), compared with adjusted operating loss of RMB16.2 million in the first quarter of 2019.

 

 

Net loss was RMB20.4 million (US$2.9 million), compared with net loss of RMB21.3 million in the first quarter of 2019.

 

 

Adjusted net loss2 (non-GAAP) was RMB18.5 million (US$2.6 million), compared with adjusted net loss of RMB16.3 million in the first quarter of 2019.

 

 

Sales of the EHang 216, the world’s first commercially-delivered passenger-grade AAV, reached 9 units, an increase of 200% from 3 units in the first quarter of 2019.

Business Highlights

 

   

In January 2020, EHang achieved a new landmark, conducting the first-ever flight in the United States of a passenger-grade AAV. The EHang 216 flight was performed in the state of North Carolina, which is known in aviation history for the Wright Brothers initial flight there a century ago. EHang’s AAV flight was underpinned by permit and other support from the North Carolina Department of Transportation (NCDOT) and the U.S. Federal Aviation Administration (FAA).

 

 

1 

Adjusted operating profit/loss is a non-GAAP financial measure, which is defined as operating profit/loss excluding share-based compensation expenses. See “Non-GAAP Financial Measures” at the end of this press release.

2 

Adjusted net income/loss is a non-GAAP financial measure, which is defined as net income/loss excluding share-based compensation expenses and a one-time non-operational item. See “Non-GAAP Financial Measures” at the end of this press release.


LOGO

 

   

In January 2020, EHang solidified its industry leadership by issuing a white paper “The Future of Transportation: White Paper on Urban Air Mobility Systems”, which deeply explored the potential of Urban Air Mobility (UAM) to transform transportation globally. The white paper offered insights into vehicle design, an overview of potential applications and the current regulatory landscape, and recommendations for the optimization of UAM’s path towards commercialization.

 

   

In February 2020, EHang 216 obtained the first operational permit in Europe for flight testing of an AAV from the Civil Aviation Authority of Norway, laying a solid foundation for future UAM operations in other European countries.

 

   

Furthering its penetration in Europe, in March 2020 EHang established partnerships for UAM with the city governments of Seville and Llíria in Spain. Both cities are members of the “UAM Initiative Cities Community”, one of the European Union’s EIP-SCC (European Innovation Partnership on Smart Cities and Communities) projects, which was established to promote the transformation of urban three-dimensional transportation.

 

   

During the outbreak of COVID-19, EHang pursued opportunities in medical emergency response. Both the EHang 216 passenger-grade AAVs and the Falcon B non-passenger-grade AAVs demonstrated a number of valuable applications, such as transport of medical supplies and personnel, as well as in-air inspection and broadcast of instructions above populated areas in several cities of China, including Guangzhou, Shaoguan and Hezhou. These time-and-cost-efficient solutions created new use cases and market demands for AAVs in emergency services.

Mr. Huazhi Hu, EHang’s Founder, Chairman and Chief Executive Officer, commented: “We are pleased to deliver solid financial and operational results in the first quarter of 2020. Despite the challenges posed by the virus outbreak, we still achieved significant year-over-year top line growth. Although there was some short-term impact to our supply chain and customers, since mid-March our operations have gradually resumed and our business initiatives are back on track. Meanwhile, we have continued to increase our customer base for emerging use cases, such as medical emergency transportation and air tourism. We have also expanded the UAM pilot city network and successively achieved regulatory breakthroughs in the U.S. and Europe, paving the way for global business expansion in the post-COVID-19 world. Looking forward, we will continue to invest in technology and talents to accelerate commercialization of AAVs and related solutions. We are confident we can achieve our targets for 2020 and further strengthen our leadership in the promising UAM market.”

First Quarter 2020 Financial Results

Revenues

Total revenues were RMB18.8 million (US$2.7 million), up 80.3% year over year. The year-over-year growth was driven by the Company’s core business of air mobility solutions, which represented 80.4% of total revenues in the first quarter 2020. Sales of the EHang 216, the Company’s flagship passenger-grade AAV, reached 9 units compared with 3 units in the same period of 2019, representing an increase of a 200% year over year.


LOGO

 

Costs of revenues

Costs of revenues were RMB7.7 million (US$1.1 million), up 76.9% year over year. The year-over-year increase was primarily due to the increased volume of AAVs sold.

Gross profit

Gross profit was RMB11.2 million (US$1.6 million), up 82.7% from RMB6.1 million in the first quarter of 2019.

Gross margin was 59.3%, up 0.8 percentage points from 58.5% in the first quarter of 2019. Gross margin increased due to favorable revenue mix, as the Company derived a greater proportion of revenues from sales of higher-margin AAVs and other high-margin solutions including Smart City Management solutions.

Operating expenses

Total operating expenses were RMB33.0 million (US$4.7 million), up 16.8% from RMB28.3 million in the first quarter of 2019. Operating expenses as a percentage of total revenues was 175.6%, compared with 271.0% in the first quarter of 2019. The increase in operating expenses was primarily due to higher research and development expenses related to product development, and higher sales and marketing expenses as the Company commercializes the EHang 216, its flagship passenger-grade AAV product.

 

   

Sales and marketing expenses were RMB5.8 million (US$0.8 million), up 16.3% from RMB5.0 million in the first quarter of 2019. The increase in sales and marketing expenses was mainly due to the increased sales and marketing human costs as the Company prepared to expand its presence in the European markets.

 

   

General and administration expenses were RMB10.6 million (US$1.5 million), up 22.2% from RMB8.7 million in the first quarter of 2019. The increase was mainly due to the increased expenses related to being publicly traded.

 

   

Research and development expenses were RMB16.7 million (US$2.4 million), up 13.8% from RMB14.6 million in the first quarter of 2019. The increase was mainly due to more resources devoted in development of the new models of passenger-grade AAV and non-passenger-grade AAV products as well as related operating systems with enhanced functionalities, as the Company continued to strengthen its product development efforts to drive sales growth.

Adjusted operating expenses3 (non-GAAP)

Adjusted operating expenses were RMB31.1 million (US$4.4 million), representing an increase of 32.9% from RMB23.4 million in the first quarter of 2019. Adjusted operating expenses as a percentage of total revenues was 165.3%, compared with 224.3% in the first quarter of 2019.

Operating loss

Operating loss was RMB21.1 million (US$3.0 million), compared with operating loss of RMB21.2 million in the first quarter of 2019. Operating margin was negative 112.2%, compared with negative 203.1% in the first quarter of 2019.

 

 

3 

Adjusted operating expenses is a non-GAAP financial measure, which is defined as operating expenses excluding share-based compensation expenses. See “Non-GAAP Financial Measures” at the end of this press release.


LOGO

 

Adjusted operating loss (non-GAAP)

Adjusted operating loss was RMB19.2 million (US$2.7 million) compared with adjusted operating loss of RMB16.2 million in the first quarter of 2019. Adjusted operating margin was negative 102.0%, compared to negative 154.7% in the first quarter of 2019.

Net loss

Net loss was RMB20.4 million (US$2.9 million) with a net loss margin of 108.4%, compared with net loss of RMB21.3 million in the first quarter of 2019.

Adjusted net loss (non-GAAP)

Adjusted net loss was RMB18.5 million (US$2.6 million) compared with adjusted net loss of RMB16.3 million in the first quarter of 2019. Adjusted net loss margin was negative 98.2%, compared to negative 156.0% in the first quarter of 2019.

Adjusted net loss attributable to EHang’s ordinary shareholders was RMB17.6 million (US$2.5 million) with an adjusted net margin of 93.6%, compared to negative 153.3% in the first quarter of 2019.

Loss per share and per ADS

Basic and diluted net loss per ordinary share were both RMB0.18 (US$0.03). Adjusted basic and diluted net loss per ordinary share4 (non-GAAP) were both RMB0.16 (US$0.02).

Basic and diluted net loss per ADS were both RMB0.36 (US$0.06). Adjusted basic and diluted net loss per ADS5 (non-GAAP) were both RMB0.32 (US$0.04).

Business Outlook

Despite the short-term impact of the COVID-19 outbreak on the Company’s supply chain and some of the customers’ industries, the Company has gradually recovered to normal operations and business initiatives. The Company is confident the year-over-year growth of its annual total revenues in 2020 will be at least 200%.

The above outlook is based on information available as of the date of this press release and reflects the Company’s current and preliminary expectation, which is subject to change in light of uncertainties and situations related to how COVID-19 develops.

 

 

4 

Adjusted basic and diluted net income/loss per ordinary share is a non-GAAP financial measure, which is defined as basic and diluted net income/loss per ordinary share excluding share-based compensation expenses, a one-time non-operational item and accretion to redemption value of redeemable convertible preferred shares. See “Non-GAAP Financial Measures” at the end of this press release.

5 

Adjusted basic and diluted net income/loss per ADS is a non-GAAP financial measure, which is defined as basic and diluted net income/loss per ADS excluding share-based compensation expenses, a one-time non-operational item and accretion to redemption value of redeemable convertible preferred shares. See “Non-GAAP Financial Measures” at the end of this press release.


LOGO

 

Conference Call

EHang’s management team will host an earnings conference call at 8:00 AM on Friday, May 29, 2020, U.S. Eastern Time (8:00 PM on May 29, 2020, Beijing/Hong Kong Time).

To join the conference, please register in advance using the link below. Conference access information will be provided upon registration.

Participant Online Registration: http://apac.directeventreg.com/registration/event/3297267

A replay of the conference call may be accessed by phone at the following numbers until June 6, 2020. To access the replay, please reference the conference ID 3297267.

 

    

Phone Number

International    +61 2 8199-0299
United States    +1 (646) 254-3697
Hong Kong    +852 800963117
Mainland China   

+86 4006322162

+86 8008700205

A live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.ehang.com/.

About EHang

EHang (Nasdaq: EH) is the world’s leading autonomous aerial vehicle (AAV) technology platform company. EHang’s mission is to make safe, autonomous, and eco-friendly air mobility accessible to everyone. EHang provides customers in various industries with AAV products and commercial solutions: air mobility (including passenger transportation and logistics), smart city management, and aerial media solutions. As the forerunner of cutting-edge AAV technologies and commercial solutions in the global Urban Air Mobility (UAM) industry, EHang continues to explore the boundaries of the sky to make flying technologies benefit our life in smart cities. For more information, please visit www.ehang.com.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management’s control. These statements involve risks and uncertainties that may cause EHang’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

Non-GAAP Financial Measures

The Company uses adjusted operating profit/loss, adjusted net income/loss, adjusted operating expenses, adjusted basic and diluted net income/loss per ordinary share and adjusted basic and diluted net income/loss per ADSs (the “Non-GAAP Financial Measures”) in evaluating its operating results and for financial and operational decision-making purposes. There was no income tax impact on the Company’s non-GAAP adjustments because the non-GAAP adjustments are usually recorded in entities located in tax-free jurisdictions, such as the Cayman Islands.


LOGO

 

The Company believes that the Non-GAAP Financial Measures help identify underlying trends in its business that could otherwise be distorted by the effects of items such as share-based compensation expenses that are included in their comparable GAAP measures. The Company believes that the Non-GAAP Financial Measures provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management members in their financial and operational decision-making.

Each of the Non-GAAP Financial Measures should not be considered in isolation or construed as an alternative to its comparable GAAP measure, operating profit margin and net margin or any other measure of performance or as an indicator of the Company’s operating performance. Investors are encouraged to review the Company’s most directly comparable GAAP measures in conjunction with the Non-GAAP Financial Measures. The Non-GAAP Financial Measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

Exchange Rate

This press release contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.0808 to US$1.00, the noon buying rate in effect on March 31, 2020 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all.

Statement Regarding Preliminary Unaudited Financial Information

The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information.

Investor Contact:

ir@ehang.com

In the U.S.: Julia@blueshirtgroup.com

In China: Susie@blueshirtgroup.com

Media Contact:

pr.cn@ehang.com


EHANG HOLDINGS LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

     As of
December
31, 2019
    

As of

March
31, 2020

 
     RMB      RMB      US$  
            (Unaudited)      (Unaudited)  

ASSETS

        

Current assets:

        

Cash and cash equivalents

     321,662        245,015        34,603  

Short-term investments

     7,674        11,994        1,694  

Accounts receivable, net

     41,103        49,404        6,977  

Unbilled revenue

     4,807        2,800        395  

Cost and estimated earnings in excess of billings

     14,212        3,722        526  

Inventories

     18,490        28,978        4,092  

Prepayments and other current assets

     20,565        21,877        3,090  
  

 

 

    

 

 

    

 

 

 

Total current assets

     428,513        363,790        51,377  
  

 

 

    

 

 

    

 

 

 

Non-current assets:

        

Property, plant and equipment, net

     16,272        14,583        2,060  

Intangible assets, net

     1,209        1,129        159  

Long term loans receivable

     —          44,265        6,251  

Long-term investments

     2,983        2,964        419  

Deferred tax assets

     184        184        26  

Other non-current assets

     252        230        32  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     20,900        63,355        8,947  
  

 

 

    

 

 

    

 

 

 

Total assets

     449,413        427,145        60,324  
  

 

 

    

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

        

Current liabilities

        

Short-term bank loan

     5,000        5,000        706  

Accounts payable

     27,285        29,232        4,128  

Contract liabilities

     9,918        6,575        929  

Accrued expenses and other liabilities

     53,310        43,721        6,175  

Deferred government subsidies

     80        80        11  

Income taxes payable

     5        —          —    
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     95,598        84,608        11,949  
  

 

 

    

 

 

    

 

 

 

Non-current liabilities:

        

Long-term loans

     32,534        30,723        4,339  

Deferred tax liabilities

     292        292        41  

Unrecognized tax benefit

     5,494        5,465        772  

Deferred government subsidies

     140        120        17  
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     38,460        36,600        5,169  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     134,058        121,208        17,118  
  

 

 

    

 

 

    

 

 

 


EHANG HOLDINGS LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS (CONT’D)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

     As of
December
31, 2019
   

As of

March
31, 2020

 
     RMB     RMB     US$  
           (Unaudited)     (Unaudited)  

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Shareholders’ equity:

      

Class A ordinary shares

     44       44       6  

Class B ordinary shares

     28       28       4  

Additional paid-in capital

     1,020,691       1,028,378       145,235  

Statutory reserves

     1,035       1,035       146  

Accumulated deficit

     (720,419     (739,969     (104,504

Accumulated other comprehensive income

     10,195       13,496       1,906  
  

 

 

   

 

 

   

 

 

 

Total EHang Holdings Limited shareholders’ equity

     311,574       303,012       42,793  

Non-controlling interests

     3,781       2,925       413  
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     315,355       305,937       43,206  
  

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

     449,413       427,145       60,324  
  

 

 

   

 

 

   

 

 

 


EHANG HOLDINGS LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“USD”) except for number of shares and per share data)

 

     2019 Q1     2019 Q4     2020 Q1  
     Single
quarter
    Single
quarter
    Single quarter  
     RMB     RMB     RMB     USD  
     (Unaudited)     (Unaudited)     (Unaudited)  

Total revenues

     10,439       54,684       18,818       2,658  

Costs of revenues

     (4,333     (21,488     (7,664     (1,082
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     6,106       33,196       11,154       1,576  

Operating expenses:

        

Sales and marketing expenses

     (4,966     (8,157     (5,776     (816

General and administrative expenses

     (8,679     (9,364     (10,608     (1,498

Research and development expenses

     (14,645     (15,468     (16,660     (2,353
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     (28,290     (32,989     (33,044     (4,667

Other operating income

     980       1,938       769       109  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating (loss)/profit

     (21,204     2,145       (21,121     (2,982

Other (expense)/income:

        

Interest income

     79       237       1,412       199  

Interest expenses

     (141     (428     (488     (69

Foreign exchange loss

     (68     (287     (271     (38

Other income

     53       199       81       11  

Other expense

     (26     (1,390     —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other (expense)/income

     (103     (1,669     734       103  

(Loss)/Income before income tax and share of net loss from an equity investee

     (21,307     476       (20,387     (2,879
  

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expenses

     (26     (627     —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before share of net loss from an equity investee

     (21,333     (151     (20,387     (2,879

Share of net loss from an equity investee

     (5     (5     (19     (3
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (21,338     (156     (20,406     (2,882
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (21,338     (156     (20,406     (2,882

Net loss/(income) attributable to non-controlling interests

     281       (1,777     856       121  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to EHang Holdings Limited

     (21,057     (1,933     (19,550     (2,761

Accretion to redemption value of redeemable convertible preferred shares

     (1,475     (13,554     —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to ordinary shareholders

     (22,532     (15,487     (19,550     (2,761

Net loss per ordinary share/Class A and Class B ordinary share:

        

Basic and diluted

     (0.40     (0.22     (0.18     (0.03

Shares used in net loss per share/Class A and Class B ordinary share computation (in thousands of shares):

        

Basic and diluted

     56,792       71,236       109,066       109,066  

Loss per ADS (2 ordinary shares equal to 1 ADS)
Basic and Diluted

     —         (0.44     (0.36     (0.06


EHANG HOLDINGS LIMITED

CONDENSED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data)

 

     2019 Q1     2019 Q4     2020 Q1  
     Single
quarter
    Single
quarter
    Single quarter  
     RMB     RMB     RMB     USD  

Gross profit

     6,106       33,196       11,154       1,576  

Plus: Share-based compensation

     178       —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted gross profit

     6,284       33,196       11,154       1,576  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted gross margin

     60.2     60.7     59.3     59.3

Operating expenses

     (28,290     (32,989     (33,044     (4,667

Plus: Share-based compensation

     4,876       1,632       1,936       273  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating expenses

     (23,414     (31,357     (31,108     (4,394
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating expenses percentage

     224.3     57.3     165.3     165.3

Operating (loss)/profit

     (21,204     2,145       (21,121     (2,982

Plus: Share-based compensation

     5,054       1,632       1,936       273  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating (loss)/profit

     (16,150     3,777       (19,185     (2,709
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted operating (loss)/profit margin

     (154.7 %)      6.9     (102.0 %)      (102.0 %) 

Net loss

     (21,338     (156     (20,406     (2,882

Plus: Share-based compensation

     5,054       1,632       1,936       273  

Plus: One-time non-operational expense

     —         1,384       —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net (loss)/income

     (16,284     2,860       (18,470     (2,609
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net (loss)/income margin

     (156.0 %)      5.2     (98.2 %)      (98.2 %) 

Net loss attributable to ordinary shareholders

     (22,532     (15,487     (19,550     (2,761

Plus: Share-based compensation

     5,054       1,632       1,936       273  

Plus: One-time non-operational expense

     —         1,384       —         —    

Plus: Accretion to redemption value of redeemable convertible preferred shares

     1,475       13,554       —         —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net (loss)/income attributable to ordinary shareholders

     (16,003     1,083       (17,614     (2,488
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net (loss)/income attributable to ordinary shareholders margin

     (153.3 %)      2.0     (93.6 %)      (93.6 %) 

Adjusted basic and diluted net loss per share

     (0.16     —           —           —      

Adjusted basic and diluted net income/(loss) per Class A and Class B ordinary share

     —         0.02       (0.16     (0.02

Adjusted basic and diluted net income/(loss) per ADS

     —         0.04       (0.32     (0.04


EHANG HOLDINGS LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“USD”))

 

     2019 Q1     2019 Q4     2020 Q1  
     Single quarter     Single quarter     Single quarter  
     RMB     RMB     RMB     USD  
     (Unaudited)     (Unaudited)     (Unaudited)  

CASH FLOWS FROM OPERATING ACTIVITIES

        

Net loss

     (21,338     (156     (20,406     (2,882

Adjustments to reconcile net loss to net cash (used in)/ provided by operating activities:

        

Depreciation and amortization

     1,431       1,488       1,570       222  

Deferred income tax benefit

     —         (49     —         —    

Share-based compensation

     5,054       1,632       1,936       273  

Loss on disposal of property, plant and equipment

     —         28       —         —    

Share of net loss from an equity investee

     5       5       19       3  

Allowance for doubtful accounts

     (215     836       142       20  

Changes in operating assets and liabilities:

        

Accounts receivable

     (3,386     (4,869     (9,091     (1,284

Unbilled revenue

     —         (4,807     1,481       209  

Cost and estimated earnings in excess of billings

     3,247       952       10,490       1,481  

Inventories

     (1,963     (559     (11,153     (1,575

Prepayments and other current assets

     (3,521     858       (1,761     (249

Other non-current assets

     15       (24     22       3  

Accounts payable

     237       3,163       2,696       381  

Contract liabilities

     2,722       7,685       (3,343     (472

Income taxes payable

     26       (44     (5     (1

Deferred government subsidies

     (20     (20     (20     (3

Unrecognized tax benefits

     —         602       (29     (4

Accrued expenses and other liabilities

     (959     8,010       (1,603     (225
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used in)/provided by operating activities

     (18,665     14,731       (29,055     (4,103
  

 

 

   

 

 

   

 

 

   

 

 

 


EHANG HOLDINGS LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT’D)

(Amounts in thousands of Renminbi (“RMB”) and US dollars (“USD”))

 

CASH FLOWS FROM INVESTING ACTIVITIES

        

Deconsolidation of a subsidiary

     —         —         (54     (8

Acquisition of intangible assets

     —         (819     (9     (1

Proceeds from maturity of short-term investments

     3,300       66,200       13,000       1,836  

Purchase of short-term investments

     (12,900     (55,774     (17,200     (2,429

Purchase of property and equipment

     (645     (1,731     (292     (41

Loans to third parties

     —         —         (53,900     (7,612

Repayment of loan from a third party

     —         —         10,000       1,412  

Loan to a related party

     (425     —         —         —    

Repayment of loan from a related party

     425       425       —         —    

Net cash flow (used in)/provided by investing activities

     (10,245     8,301       (48,455     (6,843
  

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

        

Proceeds from a short-term bank loan

     5,000       —         5,000       706  

Repayment of a short-term bank loan

     (5,000     —         (5,000     (706

Proceeds from issuance of Series C redeemable convertible preferred shares

     47,436       —         —         —    

Shares issued upon vesting of restricted share units

     —         2       —         —    

Proceeds from initial public offering, net of issuance costs

     —         252,861       —         —    

Proceeds from issuance of Class A ordinary shares, net of issuance costs

     —         —         6,797       960  

Payment of issuance costs for initial public offering

     —         —         (9,119     (1,288

Net cash provided by/(used in) by financing activities

     47,436       252,863       (2,322     (328
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (567     (605     3,185       450  

Net increase/(decrease) in cash and cash equivalents

     17,959       275,290       (76,647     (10,824

Cash and cash equivalents at the beginning of the period

     61,519       46,372       321,662       45,427  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     79,478       321,662       245,015       34,603  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-cash financing activities:

        

Issuance costs for Series C redeemable convertible preferred shares included in Accrued expenses and other liabilities

     743       743       743       105  

Issuance costs for initial public offering included in Accrued expenses and other liabilities

     —         14,727       5,608       792  

Issuance costs for Class A ordinary shares included in Accrued expenses and other liabilities

     —         —         1,046       148