On August 22, Yihang Intelligence released its Q2 2024 financial performance report: Q2 revenue was RMB 102 million, a significant increase of 919% year-on-year and 65% month on month, with quarterly revenue reaching a historic high. The revenue growth is attributed to the advantages of Yihang Intelligence in the sales of low altitude aircraft products after the completion of the three certificates. The flagship product EH216-S has seen a significant increase in sales, with a total of 49 EH216-S products delivered in the second quarter, a rapid increase compared to 5 in the same period last year and 26 in the first quarter.
Realizing a turnaround from losses to profits after adjustment, it is expected that the third quarter revenue will increase by approximately 330% year-on-year
In the second quarter, Yihang Intelligent turned loss into profit (after adjustment), with the adjusted net profit of 1.15 million yuan and the expected market loss of 24 million yuan. In addition, Yihang Intelligent has achieved positive operating cash flow for three consecutive quarters, with a cumulative financing of approximately 550 million yuan from ATM projects, further enhancing the company's liquidity. At the same time, the company's operating cash flow will also maintain a positive growth trend in the future, and there will be no further ATM issuance within 2024. The financing amount will be used for the research and development of Yihang Intelligent's next-generation eVTOL technology and products, team expansion, capacity expansion, construction of the new headquarters in Guangzhou, next steps of commercial operation, and other company purposes.
Since the third quarter of last year, the EH216 series has accumulated over 1000 orders in China, providing a sufficient foundation for future delivery and performance growth. In terms of performance outlook, Yihang Intelligence expects to generate revenue of approximately RMB 123 million in the third quarter of 2024, a year-on-year increase of approximately 330% and a month on month increase of 20.6%, maintaining a quarterly growth trend.
Hu Huazhi, founder, chairman, and CEO of Yihang Intelligent, said, "The EH216-S has obtained three certifications, allowing us to accelerate production and delivery processes. Coupled with the government's support policies to promote the development of the low altitude economy, it has driven a significant increase in demand and orders from domestic and foreign customers, including the government and tourism operators. Therefore, we delivered 49 EH216-S aircraft this quarter, setting a new historical high and driving significant revenue growth. We have also signed hundreds of purchase orders and intention orders for EH216-S aircraft with domestic customers
The next step is to focus on sales and operations, and it is expected that the first OC will be approved this year
In addition to sales and delivery, Yihang Intelligence has also begun planning the next step of commercial operation. In July of this year, the Civil Aviation Administration of China officially accepted the application for an Operation Certificate ("OC") submitted by Hefei Heyi Airlines, a joint venture operating company of Yihang Navigation, a wholly-owned subsidiary of Yihang Intelligent specializing in UAM operation services, in Hefei. At present, the review team of the Civil Aviation Administration of China has completed the document review work and will conduct on-site review in Hefei. The company expects the first OC to be approved within this year.
Regarding the operation of eVTOL, Hu Huazhi said, "Under the strategy of combining operation and sales, we have made significant progress in accelerating the preparation work for urban air traffic commercial operation for our customers in terms of after-sales, including personnel training, infrastructure construction, operational standards, and certification. The Civil Aviation Administration of China has officially accepted the application for the Operational Qualification Certificate (OC) submitted by Yihang Navigation and Heyi Airlines. In addition, our customers and partners in Guangzhou, Shenzhen, Taiyuan, Wuxi and other places are actively preparing OC applications to accelerate the construction of EH216-S as a demonstration model for low altitude economic commercial operation in the local area
Real gold and silver support for low altitude development in various regions
The reporter noticed that since the second quarter, several securities research departments including Morgan Stanley, Deutsche Bank, CITIC Securities, Tianfeng Securities, Huatai Securities, Haitong International, Tianfeng International, Huachuang Securities, and Guoxin Securities have released the first coverage report of Yihang Intelligence, giving it a "buy in", "increase in holdings" or "better than the market" rating, with a maximum target price of $32.98.