On March 15th, EH. O released its quarterly and annual performance reports for 2023. Among them, the revenue in the fourth quarter was 56.6 million yuan, a year-on-year increase of 260.9% and a month on month increase of 97.8%.
Looking at the annual data, Yihang Intelligent achieved a revenue of 117 million yuan and delivered 52 EH216 series aircraft.
In the fourth quarter of 2023, Yihang Intelligence delivered a total of 23 units, including EH216 series products, while 13 units were delivered in the third quarter. With the increase in sales volume, Yihang Intelligence achieved a positive operating cash flow and improved its financial situation in the fourth quarter.
Yihang Intelligence is the fastest commercializing enterprise in the world for eVTOL. It began manned flight tests in 2017, but it was not until the end of 2023 that EH216-S obtained the standard airworthiness certificate, which lasted for more than six years.
At the performance conference on March 15th, Hu Huazhi, Chairman of Yihang Intelligence, stated that the review team of the Civil Aviation Administration of China has completed all on-site inspections, and all quality system documents have been submitted to the bureau for final summary. Yihang's PC audit work is coming to an end and it is expected to receive evidence in the near future.
Overall, eVTOL development is still in the early stages of transitioning from conceptual design to commercial applications.
The EH216-S of Yihang Intelligence adopts the simplest multi rotor technology route. Multi rotor type refers to a type of rotor consisting of three or more rotors, which achieve flight control by adjusting the rotational speed. The hovering flight performance is good, but its design is relatively simple, with slow flight speed, small load, and short range. It is suitable for short distance air transportation in cities.
Public information shows that EH216-S can be fully charged within two hours, with a range of 25 minutes and a designed range of only 30 kilometers.
The financial report shows that Yihang Intelligence has a gross profit margin of over 60% in the fourth quarter and annual period, and has sufficient pricing power in the field of autonomous driving eVTOL.
Previously, Yihang Intelligence announced that the official guide price for EH216-S in China was 2.39 million yuan per aircraft, and the relevant price will officially take effect from April 1, 2024.
This year, the low altitude economy was included in the government work report for the first time. Local governments have successively introduced policies to support the development of low altitude economy. Cities such as Shenzhen, Guangzhou, and Hefei have continuously introduced strategic plans and preferential policies to support the development of low altitude economy since last year.
In this trillion level low altitude industry, unmanned aerial vehicles are undoubtedly the leading industry of low altitude economy, and eVTOL (Electric Vertical Takeoff and Landing Vehicles) is one of the important carriers of low altitude economy.
Low altitude economy has become the focus of work for more than 20 provincial governments in China this year, deploying the introduction of unmanned aerial vehicles, constructing takeoff and landing pads, opening routes, and exploring low altitude economy demonstration scenarios.
Public information shows that since the fourth quarter of last year, Yihang Intelligence has reached cooperation with multiple local governments, such as Bao'an District in Shenzhen, Luohu District, Huangpu District in Guangzhou, Hefei City, Wuxi City, etc., as well as the United Arab Emirates in the Middle East. It has received hundreds of pre orders for EH216-S aircraft and is also building and laying out eVTOL operation points in multiple locations.
A securities analyst stated that compared to US listed companies in the eVTOL industry, such as Joy, Archer, etc., the market value of Yihang Intelligence is still relatively low and in an undervalued state. With the strategic position of the low altitude economy track increasing, the industry's development gradually maturing, the catalysis of favorable policies, and the continuous increase in demand for EH216-S products in the future market, as well as stable performance improvement, the value and growth potential of Yihang Intelligence may gradually emerge and are expected to further improve.
In terms of performance outlook, Yihang Intelligence is expected to have a revenue of approximately 58 million yuan in the first quarter of 2024, a year-on-year increase of about 160%.
At the performance meeting, Hu Huazhihai revealed that GAC Group and Yihang plan to cooperate to establish an eVTOL production line, and GAC Group's eVTOL will be handed over to Yihang for research and development.
After the financial report was released, the stock price of Yihang Intelligence surged, rising 12.93% to $15.37 as of the close of March 15th Eastern Time.