EHang Tops Q1 Backed By Customer Orders And Deliveries; Flags Necessity Of Commercialization Of EH216-S AAVs - EHang Holdings (NASDAQ:EH)

EHang Holdings Ltd (NASDAQ: EH) reported first-quarter FY23 revenues of RMB22.2 million ($3.23 million), an increase of 41.6% quarter-over-quarter, beating the consensus of $1.46 million.
The gross margin declined by 220 bps on quarter to 63.9%, mainly due to changes in the revenue mix.
Adjusted loss per ADS of $(0.08) or RMB (0.56) beat the consensus loss of $(0.13).
Adjusted operating loss was RMB(34.3) million or $(5.0) million, compared with RMB(61.3) million in 4Q.
Adjusted operating expenses were RMB50.1 million ($7.3 million), compared with RMB73.2 million in the prior quarter.
EHang held cash and equivalents of RMB217.6 million ($31.7 million).
Sales and deliveries of EHang 216 AAVs were 11 units versus 6 units in Q4.
Huazhi Hu, EHang's Founder, Chairman, and Chief Executive Officer, said, "As anticipated, we witnessed increasing demands for our AAVs upon the post-pandemic recovery of the tourism industry in China. In the first quarter, we achieved more customer orders and deliveries, leading to remarkable revenue growth of 42% quarter over quarter and 283% year over year."
The company's ability to continue as a going concern is currently largely dependent on the timing of the procurement of the type certificate of its EH216-S in the near term to launch fully commercial sales of its EH216-S AAVs and its capability to raise additional funds through debt financings or equity offerings.
Price Action: EH shares traded higher by 2.23% at $11.00 premarket on the last check Wednesday.

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