A：In the first quarter of 2026, a key update was the institutional shift as the low altitude economy gained a solid legal foundation with the newly revised civil aviation law. The regulatory environment saw the establishment of a new low altitude safety bureau by the CAA and a governance model formed by the NDR and CAAC. Additionally, the company is turning its certification and talent development into building blocks for industry standards, with progress on four core strategies: routine and scaled commercial operations, global expansion, VD35 certification, and industrial chain integration.

A：The four core strategies for the year include routine and scaled commercial operations, global expansion, VD35 certification, and industrial chain integration. The company is focused on overcoming certification hurdles and is refining the entire operational chain to launch the world's first commercial pilotless aircraft service.

A：The company is advancing its commercial operations by fine-tuning operational capabilities and preparing to make the final push from internal trials to public ticketed services. Real market demand is indicated by a large volume of inquiries regarding the purchase of tickets for commercial flights.

A：Global expansion efforts include ongoing routine validation flights in Thailand's sandbox program to address hot weather conditions and battery cooling vehicle testing for improving charging efficiency and passenger comfort. The company is also working towards obtaining the first overseas operating license for VD35 in Thailand. In terms of VD35 certification, the company completed system function and flight performance tests and had in-depth discussions with the CAAC.

A：The company is leveraging its experience in first mover advantages, certification, and ecosystem experience to influence industry standards and create industry consensus. As a leader in pilotless aircraft certification in China and a contributor to national and industry standards for unmanned aircraft, the company is strengthening industrial chain integration.

A：The three priorities of the company are product R&D and upgrades, certification progress, and commercial operation support.The Vt35 development and certification progress have been steadily advancing, entering the certification basis definition stage. The company is working closely with the CAAC to establish a safety evaluation framework and has been engaged in discussions on special conditions, safety objectives, and performance requirements.

A：To address battery thermal management challenges, the company has developed a dedicated battery cooling vehicle that has completed production testing and is undergoing further optimization. This vehicle significantly shortens battery cool-down time from high temperatures to safe operating levels, increasing daily charging cycles and flight volume.

A：The cap and air conditioning system in the EH216s has been upgraded with a new independent cooling system that is separate from the slide control and fuel circuit, ensuring it doesn't interfere with critical functions. This system is expected to improve comfort and has demonstrated the ability to quickly reduce cabin temperature after prolonged sun exposure and maintain a comfortable level throughout the flight.

A：The Guangzhou command and control center is now fully operational, providing integrated capabilities including aerospace management, flight planning, dispatch approval, real-time monitoring, operation records, and risk alerts. It supports passenger firefighting, logistics, training, and drones, and is connected to the city's low altitude fancy network and civil aviation operational data, establishing a solid foundation for regional scaled low altitude operation management.

A：The company is actively advancing the R&D and flight testing of new products including logistics and firefighting aircraft, which are further expanding their product portfolio and applications within the low altitude economy.

A：Under CEO Mr. Hu's leadership, the company will continue to advance product iteration with aviation-grade standards, translating technological progress into commercial value efficiently, and providing a strong foundation for EHang's long-term growth.

A：Miss Li, formerly the vice president and manager of east China, has been promoted to China general manager. She has led the east china team to build the company's presence in Hangzhou, established HEE Aviation, secured its operator certificate, and built an effective operation system and team with strategic industrial layout covering R&D, manufacturing, and commercial operations, achieving outstanding results.

A：The company achieved revenues of 25.7 million RMB in the first quarter. They delivered four units of the EH216s and 1,000 units of the GD4.0 formation drones, and completed 22 drone formation performances. The year-over-year and sequential decline in deliveries主要是由于中国新年假期的季节性影响和客户交付时间。 The company is confident in its 2026 revenue target of 600 million RMB, supported by progress on three strategic initiatives: diversified revenue streams, continued overseas expansion, and advancing domestic commercial operations preparation for the EH216.

A：Recent milestones include the completion of the first humanitarian flat in Mexico and child care permits in Thailand, Japan, South Korea, and Toulouse in Spain. The strategic adjustment mentioned was making VTC a top priority to fully open the commercial pathway in overseas markets.

A：Thailand is the first flagship overseas market. Five VTC locations have been identified, the first roof survey has been completed, and the company has adapted its hardware for the hot and humid tropical environment. Commercial Operation permit progress is being pushed hard.

A：The dedicated overseas team integrates R&D, commercial airworthiness, and communications functions to systematically map out bilateral civil aviation policies globally and develop differentiated overseas deployment plans for human-carrying and cargo aircraft.

A：The business focus is being shifted to high-demand tourism scenarios using light asset models such as equipment leasing, joint operations, and direct sales. Strategies to lower barriers for partners include using existing aircraft and prioritizing locations with high foot traffic and natural commercial appeal.

A：A dedicated sales support team works alongside from Lung teams to develop customized integrated operation plans based on local aerospace conditions, tourism resources, and commercial landscapes.

A：Both operators in Hefei and Guangzhou have maintained a perfect safety record with zero accidents and violations. They continue to refine their operations systems, ground support, crew training, and emergency procedures, running internal trial operations and accumulating flying data and service experience.

A：Internal instructor training for the E-H216 success model has been completed, and all required materials have been submitted. The plan has been reviewed by the Central and Southern regional administration of the CAAC, and once approved, all-out training will begin.

A：The focus areas for the non-human caring business are firefighting and inland waterway logistics. On the firefighting side, product iteration directions have been identified, and the new firefighting aircraft will be launched upon product validation. Inland waterway logistics include completed scientific selection for test rules at Guangzhou port and plans for delivery services on the Pearl River.

A：The company aims to build benchmark projects, replicate profitable models, and expand both domestically and overseas. In overseas markets, they are rolling out formation products and leveraging local tourism resources to create routine performance venues complementing their human-carrying business.

A：The speaker will lead the sales, marketing, and operation team to execute strategic plans, emphasizing dedication, efficiency, and compliance with safety as the first priority.

A：Revenues for Q1 2026 were RMB 25.7 million, par with Q1 2025 but down from Q4 2025. Deliveries were lower due to seasonal factors and customer schedules, while the revenue mix diversified and brand visibility grew. Cross margin remained stable, and adjusted operating expenses were RMB 111.1 million, up 59% from Q4 2025. Adjusted operating loss was RMB 77.1 million, and adjusted net loss was RMB 75.6 million. As of March 31, 2026, combined cash and cash equivalents were RMB 1.03 billion, providing support for ongoing strategy and a 2026 annual revenue guidance of RMB 600 million. The company remains committed to its long-term growth strategy despite near-term financial performance being impacted by delivery timing and strategic investments.

A：The revenue contribution from overseas orders is expected to rise to up to ten percent of the overall revenue, with the specific contribution closely tied to commercial developments in Thailand.

A：The target is to launch official commercial operations by the end of the year, before the AAM conference in Bangkok. If commercial operations can be achieved earlier, there could be a higher contribution to revenue from the overseas market.

A：The key cost items for the EV business include costs of goods sold and the overall target is to achieve a cross margin of 50%. Specific cost components were not detailed in the provided transcript.

A：Management did not provide specific operational data but mentioned that the commercial operation in Hebei has progressed to the final stage and is awaiting approval from the民航局 to commence commercial flight operations.

A：The cost structure for the aerial media part includes various components such as hardware production costs, battery assembly, and a significant portion of the cost is allocated to机身相关的碳纤维材料 (1/3), the power train including batteries and motors (another 1/3), and the remaining 1/3 for other components not covered by the first two sections.

A：The drone flights contribute a gross profit margin of 50%. The majority of sales costs are attributed to the drones themselves and the battery used, while performance costs depend on the size and number of drones deployed, including depreciation costs for the drones and personnel expenses for operation and maintenance.

A：Operational trials are being conducted常态化 to accumulate safe flight experience. As of March 2025, with the approval of the Civil Aviation Administration of China (CAAC), the company has been working towards commercial operations, maintaining a record of zero accidents and violations. Commercial operations are expected to start after final approval from the民航局.