EHang Secures RMB113 Million Order for 50 Units of EH216-S Pilotless eVTOLs from Xishan Tourism to Jointly Promote Low-Altitude Economy in North China
Rhea-AI Summary
EHang Holdings (Nasdaq: EH) has signed a memorandum of understanding (MoU) with Xishan Tourism to develop the low-altitude economy in Taiyuan City, Shanxi Province, China. As part of this agreement, Xishan Tourism placed an order for 50 units of EHang's EH216-S pilotless electric vertical takeoff and landing (eVTOL) aircraft valued at RMB113 million (USD15.6 million). Additionally, a purchase plan for 450 more units over the next two years was agreed upon. The collaboration aims to establish a Low-Altitude Economy Industrial Park in Taiyuan and expand eVTOL applications for aerial tourism and passenger transport. EHang aims to create the largest eVTOL UAM operation base in North China, benefitting from the region's supportive environment for aviation development.
Positive
- Secured a significant order valued at RMB113 million (USD15.6 million) for 50 EH216-S eVTOLs.
- Additional purchase plan for 450 EH216-S units over the next two years.
- Collaboration aims to establish the largest eVTOL UAM operation base in North China.
- Development of a Low-Altitude Economy Industrial Park in Taiyuan.
- Potential for increased revenue from expanded eVTOL applications in aerial tourism and passenger transport.
- Support from the Chinese government for the growth of the low-altitude economy and eVTOL industry.
Negative
- Dependence on successful implementation of the low-altitude economy initiatives.
- Potential risks associated with scaling up production and meeting delivery timelines for 450 additional units.
News Market Reaction
On the day this news was published, EH gained 1.86%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
GUANGZHOU, China, May 31, 2024 (GLOBE NEWSWIRE) -- EHang Holdings Limited (“EHang” or the “Company”) (Nasdaq: EH), the world’s leading urban air mobility (“UAM”) technology platform company, today announced it has signed a memorandum of understanding (“MoU”) with Taiyuan Xishan Ecological Tourism Investment Construction Co., Ltd. (“Xishan Tourism”) to jointly develop the low-altitude economy in Taiyuan City, Shanxi Province, China. Concurrently with the signing of the MoU, Xishan Tourism has placed a purchase order for 50 units of EHang’s EH216-S pilotless electric vertical takeoff and landing (“eVTOL”) aircraft, and has paid the total contract price of RMB113 million (USD15.6 million) to EHang. Meanwhile, Xishan Tourism has signed a purchase plan agreement for an additional 450 units of EH216-S over the next two years. These aircraft will be deployed for aerial tourism, passenger transportation, and other low-altitude use cases to facilitate adoption and operations of pilotless eVTOL in North China.
(Picture: EHang and Xishan Tourism signed the MoU and purchase order)
According to the MoU, EHang and Xishan Tourism will collaborate to develop a Low-Altitude Economy Industrial Park in Taiyuan, where they can establish EHang’s command-and-control center, marketing and exhibition center, operations center, after-sales service center, research institute, etc. By combining EHang’s leading advantages and expertise in the low-altitude economy sector with Xishan Tourism’s rich cultural and tourism resources, the collaboration aims to establish the largest eVTOL UAM operation base in North China.
EHang and Xishan Tourism plan to build EH216-S low-altitude sightseeing demonstration centers in the scenic areas of Xishan Mountain and Fenhe River in Taiyuan initially, with further plans to gradually expand pilotless eVTOLs application to Shanxi Province and North China to stimulate the growth of the low-altitude industry in the region.
Shanxi Province has been designated as a national demonstration province for the development of the general aviation industry, and Taiyuan City is one of the national civil unmanned aviation demonstration zones that boast fertile ground for aviation as a conducive environment for the growth of low-altitude economy development.
Earlier this year in April, a delegation from Shanxi provincial government visited EHang’s headquarters. During the visit, Mr. Xiangjun Jin, Governor of Shanxi Province, highly commended EHang’s pioneering efforts and achievements for the low-altitude economy, stating, “The low-altitude economy is a representative of new productive forces and serves as a new track for industrial development as well as a new engine driving economic growth. We hope that EHang's expertise in commercializing the low-altitude economy would be a valuable source of inspiration and reference for Shanxi's development in this area.”
Mr. Yaozong Chang, Chariman of Xishan Tourism, stated, “Xishan Tourism is a contemporary company integrating operational infrastructure, industrial investment, operational properties, and park development, etc. Since the establishment in 2019, we adhered to the development philosophy of 'diversified operations with a focus on both investment and financing' and have been actively leveraging the strategic potential of the low-altitude economy. In close collaboration with EHang, we are poised to driving the creation of a new low-altitude economy ecosystem and to further enrich the 'low-altitude + cultural tourism' use cases under the guidance of the Xishan Demonstration Zone. Moving forward, we will expedite the development of a comprehensive low-altitude economy ecosystem, encompassing research and development, manufacturing, operations, and services, with the aim of establishing a flagship low-altitude economy industrial park with national influence.”
Mr. Huazhi Hu, Founder, Chairman and CEO of EHang, stated, “As the Chinese government continues to support the growth of low-altitude economy and eVTOL industry, we're capitalizing on this momentum to further expand our presence in the Chinese market and prepare for commercial UAM operations. We're delighted to secure this major order from Taiyuan and look forward to collaborating with our partners to establish a benchmark for low-altitude economy in the city, and gradually introduce more low-altitude use cases in Shanxi and extend it across North China. Our goal is to bring pilotless eVTOLs to more cities and drive the sustainable growth of China’s low-altitude ecosystem.”
(Picture: EHang is steadily advancing production and delivery of EH216-S pilotless eVTOL)
About EHang
EHang (Nasdaq: EH) is the world’s leading urban air mobility (“UAM”) technology platform company. Our mission is to enable safe, autonomous, and eco-friendly air mobility accessible to everyone. EHang provides customers in various industries with unmanned aerial vehicle (“UAV”) systems and solutions: air mobility (including passenger transportation and logistics), smart city management, and aerial media solutions. EHang’s EH216-S has obtained the world’s first type certificate, production certificate and standard airworthiness certificate for passenger-carrying pilotless eVTOL aircraft issued by the Civil Aviation Administration of China. As the forerunner of cutting-edge UAV technologies and commercial solutions in the global 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. Statements that are not historical facts, including statements about management’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to those relating to certifications, our expectations regarding demand for, and market acceptance of, our products and solutions and the commercialization of UAM services, our relationships with strategic partners, and current litigation and potential litigation involving us. 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.
Investor Contact: ir@ehang.com
Media Contact: pr@ehang.com
Photos accompanying this announcement are available at:
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FAQ
What order did EHang secure from Xishan Tourism?
What is the value of the order EHang received for its EH216-S eVTOLs?
How many EH216-S units did Xishan Tourism agree to purchase in the future?
What is the purpose of EHang's MoU with Xishan Tourism?
What are the intended applications for EHang's EH216-S eVTOLs in North China?
