REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
* | Not for trading, but only in connection with the listing on the Nasdaq Global Market of American depository shares, each representing two Class A ordinary shares |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Emerging growth company |
† | The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. |
International Financial Reporting Standards as issued | Other | |||||||
by the International Accounting Standards Board ☐ |
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Item 2. |
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Item 3. |
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Item 4. |
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Item 4A. |
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Item 16A. |
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Item 16D. |
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Item 16E. |
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Item 16F. |
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Item 16G. |
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Item 16H. |
161 |
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Item 16I. |
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Item 19. |
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165 |
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F-1 |
• | “AAVs” are to autonomous aerial vehicles; |
• | “ADSs” are to the American depositary shares, each of which represents two of our Class A ordinary shares; |
• | “ADRs” are to the American depositary receipts that evidence the ADSs; |
• | “China” and the “PRC” are to the People’s Republic of China, excluding, for the purposes of this annual report only, Hong Kong, Macau and Taiwan; |
• | “Class A ordinary shares” are to our class A ordinary shares, par value US$0.0001 per share; |
• | “Class B ordinary shares” are to our class B ordinary shares, par value US$0.0001 per share; |
• | “Ehfly Technology” are to Ehfly Technology Limited, our wholly-owned Hong Kong subsidiary; |
• | “EHang,” “we,” “us,” “our company” or “our” are to EHang Holdings and its subsidiaries and, in the context of describing our consolidated financial information only, also include the VIE and its subsidiaries; |
• | “EHang Holdings” are to EHang Holdings Limited, our Cayman Islands holding company; |
• | “RMB” and “Renminbi” are to the legal currency of China; |
• | “shares” and “ordinary shares” are to our Class A ordinary shares and Class B ordinary shares; |
• | “UAM” are to urban air mobility; |
• | “UAVs” are to unmanned aerial vehicles; |
• | “US$,” “U.S. dollars,” “$,” and “dollars” are to the legal currency of the United States; |
• | “VIE” and “EHang GZ” are to Guangzhou EHang Intelligent Technology Co., Ltd., a company incorporated in China that has entered into a series of contractual arrangement with our wholly-owned PRC subsidiary, and we refer to the VIE and its subsidiaries collectively as the VIEs or consolidated affiliated entities; and |
• | “WFOE” and “EHang Intelligent” are to EHang Intelligent Equipment (Guangzhou) Co., Ltd., our wholly-owned PRC subsidiary. |
• | our goals and strategies; |
• | our future business development, financial condition and results of operations; |
• | the trends in and expected growth of the PRC and global UAV industry; |
• | our expectations regarding the demand for and market acceptance of our products and services; |
• | our expectations regarding our relationships with distributors, customers, component suppliers, strategic partners and other stakeholders; |
• | our expectations regarding our capacity to develop, manufacture and delivery AAV products in fulfilment of our contractual commitments; |
• | competition in our industry; |
• | the impact of the COVID-19 pandemic; |
• | relevant government policies and regulations relating to our industry; and |
• | assumptions underlying or related to any of the foregoing. |
Item 1. |
Identity of Directors, Senior Management and Advisers |
Item 2. |
Offer Statistics and Expected Timetable |
Item 3. |
Key Information |
• | exercise effective control over EHang GZ; |
• | receive economic benefits from EHang GZ that potentially could be significant to EHang GZ; and |
• | have an exclusive option to purchase all or part of the equity interests and assets in EHang GZ, when and to the extent permitted by PRC laws. |
Tax calculation (1) |
||||
Hypothetical pre-tax earnings in the VIE (1) |
100 | |||
Tax on earnings at statutory rate of 25% at WFOE level (2) |
(25 | ) | ||
Amount to be distributed as dividend from WFOE to Ehfly Technology (3) |
75 | |||
Withholding tax at a treaty rate of 5% |
(3.75 | ) | ||
Amount to be distributed as dividend at Ehfly Technology level and net distribution to EHang Holdings (4) |
71.25 |
(1) | For purposes of this example, the tax calculation has been simplified. The hypothetical book pre-tax earnings amount is assumed to equal Chinese taxable income. |
(2) | Certain of our subsidiaries and the VIE qualifies for a 15% preferential income tax rate in China. However, such rate is subject to qualification, is temporary in nature, and may not be available in a future period when distributions are paid. For purposes of this hypothetical example, the table above reflects a maximum tax scenario under which the full statutory rate would be effective. |
(3) | China’s Enterprise Income Tax Law imposes a withholding income tax of 10% on dividends distributed by a Foreign Invested Enterprise to its immediate holding company outside of Mainland China. A lower withholding income tax rate of 5% is applied if the Foreign Invested Enterprise’s immediate holding company is registered in Hong Kong or other jurisdictions that have a tax treaty arrangement with Mainland China, subject to a qualification review at the time of the distribution. There is no incremental tax at Ehfly Technology level for any dividend distribution to EHang Holdings. |
(4) | If a 10% withholding income tax rate is imposed, the withholding tax will be 7.5 and the amount to be distributed as dividend at Ehfly Technology level and net distribution to EHang Holdings will be 67.5. |
For the year ended December 31, |
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2019 |
2020 |
2021 |
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Parent |
Other subsidiaries |
WFOE |
VIE and VIE’s subsidiaries |
Eliminating adjustments |
Consolidated totals |
Parent |
Other subsidiaries |
WFOE |
VIE and VIE’s subsidiaries |
Eliminating adjustments |
Consolidated totals |
Parent |
Other subsidiaries |
WFOE |
VIE and VIE’s subsidiaries |
Eliminating adjustments |
Consolidated totals |
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(RMB in thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues |
— |
8,728 |
94,865 |
62,288 |
(44,067 |
) |
121,814 |
— |
64 |
146,905 |
68,372 |
(35,248 |
) |
180,093 |
— |
2,199 |
57,550 |
28,399 |
(31,341 |
) |
56,807 |
|||||||||||||||||||||||||||||||||||||||||||||||||||
- Third-party revenues |
— | 8,728 | 82,604 | 30,482 | — | 121,814 | — | 64 | 144,749 | 35,280 | — | 180,093 | — | 2,199 | 54,378 | 230 | — | 56,807 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Inter-company revenues(1) |
— | — | 12,261 | 31,806 | (44,067 | ) | — | — | — | 2,156 | 33,092 | (35,248 | ) | — | — | — | 3,172 | 28,169 | (31,341 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Costs of revenues |
— |
(8,497 |
) |
(67,825 |
) |
(17,640 |
) |
43,366 |
(50,596 |
) |
— |
— |
(99,530 |
) |
(10,239 |
) |
35,855 |
(73,914 |
) |
— |
(1,616 |
) |
(49,098 |
) |
(720 |
) |
30,657 |
(20,777 |
) | |||||||||||||||||||||||||||||||||||||||||||
- Third-party cost of revenues |
— | (153 | ) | (39,744 | ) | (10,699 | ) | — | (50,596 | ) | — | — | (66,438 | ) | (7,476 | ) | — | (73,914 | ) | — | (48 | ) | (20,069 | ) | (660 | ) | — | (20,777 | ) | |||||||||||||||||||||||||||||||||||||||||||
- Inter-company cost of revenues (1) |
— | (8,344 | ) | (28,081 | ) | (6,941 | ) | 43,366 | — | — | — | (33,092 | ) | (2,763 | ) | 35,855 | — | — | (1,568 | ) | (29,029 | ) | (60 | ) | 30,657 | — | ||||||||||||||||||||||||||||||||||||||||||||||
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Gross profit |
— |
231 |
27,040 |
44,648 |
(701 |
) |
71,218 |
— |
64 |
47,375 |
58,133 |
607 |
106,179 |
— |
583 |
8,452 |
27,679 |
(684 |
) |
36,030 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and marketing expenses |
— | (375 | ) | (14,488 | ) | (12,093 | ) | 101 | (26,855 | ) | — | (4,419 | ) | (24,072 | ) | (8,695 | ) | — | (37,186 | ) | — | (6,859 | ) | (29,848 | ) | (7,105 | ) | 583 | (43,229 | ) | ||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses |
(1,529 | ) | (946 | ) | (21,746 | ) | (12,727 | ) | — | (36,948 | ) | (1,144 | ) | (3,537 | ) | (44,442 | ) | (12,490 | ) | — | (61,613 | ) | (5,668 | ) | (1,383 | ) | (166,531 | ) | (13,889 | ) | 83 | (187,388 | ) | |||||||||||||||||||||||||||||||||||||||
Research and development expenses |
— | — | (38,232 | ) | (19,296 | ) | 361 | (57,167 | ) | — | — | (91,967 | ) | (13,337 | ) | 52 | (105,252 | ) | — | — | (115,141 | ) | (22,123 | ) | 116 | (137,148 | ) | |||||||||||||||||||||||||||||||||||||||||||||
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Total operating expenses |
(1,529 |
) |
(1,321 |
) |
(74,466 |
) |
(44,116 |
) |
462 |
(120,970 |
) |
(1,144 |
) |
(7,956 |
) |
(160,481 |
) |
(34,522 |
) |
52 |
(204,051 |
) |
(5,668 |
) |
(8,242 |
) |
(311,520 |
) |
(43,117 |
) |
782 |
(367,765 |
) | |||||||||||||||||||||||||||||||||||||||
Other operating income |
— | — | 1,286 | 2,121 | — | 3,407 | — | 466 | 3,125 | 2,985 | — | 6,576 | — | 1,696 | 4,544 | 4,959 | — | 11,199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Operating loss |
(1,529 |
) |
(1,090 |
) |
(46,140 |
) |
2,653 |
(239 |
) |
(46,345 |
) |
(1,144 |
) |
(7,426 |
) |
(109,981 |
) |
26,596 |
659 |
(91,296 |
) |
(5,668 |
) |
(5,963 |
) |
(298,524 |
) |
(10,479 |
) |
98 |
(320,536 |
) | ||||||||||||||||||||||||||||||||||||||||
Share of (loss) income from subsidiaries and VIEs (2) |
(47,151 | ) | (44,997 | ) | 2,815 | — | 89,333 | — | (86,938 | ) | (80,960 | ) | 30,740 | — | 137,158 | — | (308,305 | ) | (306,742 | ) | (8,730 | ) | — | 623,777 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Interest and investment income |
135 | 239 | 292 | 217 | — | 883 | 463 | 1,741 | 1,468 | 123 | — | 3,795 | 14 | 3,965 | 891 | 273 | — | 5,143 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expenses |
— | — | (588 | ) | (249 | ) | — | (837 | ) | — | — | (2,131 | ) | (206 | ) | — | (2,337 | ) | — | — | (1,445 | ) | (358 | ) | — | (1,803 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange gain (loss) |
— | 81 | (160 | ) | 188 | — | 109 | — | 144 | (107 | ) | (370 | ) | — | (333 | ) | — | (450 | ) | (253 | ) | (124 | ) | — | (827 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Other income |
— | — | 184 | 256 | — | 440 | — | 820 | 318 | 89 | — | 1,227 | — | 742 | 2,735 | 2,610 | (1 | ) | 6,086 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses |
— | (1,384 | ) | (6 | ) | (26 | ) | — | (1,416 | ) | — | (1,350 | ) | (1,270 | ) | (507 | ) | — | (3,127 | ) | — | (6 | ) | (1,340 | ) | (343 | ) | 140 | (1,549 | ) | ||||||||||||||||||||||||||||||||||||||||||
Loss before income tax and (loss) income from equity method investment |
(48,545 |
) |
(47,151 |
) |
(43,603 |
) |
3,039 |
89,094 |
(47,166 |
) |
(87,619 |
) |
(87,031 |
) |
(80,963 |
) |
25,725 |
137,817 |
(92,071 |
) |
(313,959 |
) |
(308,454 |
) |
(306,666 |
) |
(8,421 |
) |
624,014 |
(313,486 |
) | |||||||||||||||||||||||||||||||||||||||||
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Income tax expenses |
— | — | — | (754 | ) | — | (754 | ) | — | — | — | (206 | ) | — | (206 | — | (21 | ) | — | (113 | ) | — | (134 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
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Loss before (loss) income from equity method investment |
(48,545 |
) |
(47,151 |
) |
(43,603 |
) |
2,285 |
89,094 |
(47,920 |
) |
(87,619 |
) |
(87,031 |
) |
(80,963 |
) |
25,519 |
137,817 |
(92,277 |
) |
(313,959 |
) |
(308,475 |
) |
(306,666 |
) |
(8,534 |
) |
624,014 |
(313,620 |
) | |||||||||||||||||||||||||||||||||||||||||
(Loss) income from equity method investments |
— | — | — | (74 | ) | — | (74 | ) | — | — | — | 236 | — | 236 | — | — | (276 | ) | — | — | (276 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Net (loss) income |
(48,545 |
) |
(47,151 |
) |
(43,603 |
) |
2,211 |
89,094 |
(47,994 |
) |
(87,619 |
) |
(87,031 |
) |
(80,963 |
) |
25,755 |
137,817 |
(92,041 |
) |
(313,959 |
) |
(308,475 |
) |
(306,942 |
) |
(8,534 |
) |
624,014 |
(313,896 |
) | |||||||||||||||||||||||||||||||||||||||||
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Net income (loss) attributable to non-controlling interest |
— | — | — | (551 | ) | — | (551 | ) | — | 93 | 3 | 4,326 | — | 4,422 | — | 170 | 135 | (368 | ) | — | (63 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Net loss attributable to EHang Holdings Limited |
(48,545 |
) |
(47,151 |
) |
(43,603 |
) |
1,660 |
89,094 |
(48,545 |
) |
(87,619 |
) |
(86,938 |
) |
(80,960 |
) |
30,081 |
137,817 |
(87,619 |
) |
(313,959 |
) |
(308,305 |
) |
(306,807 |
) |
(8,902 |
) |
624,014 |
(313,959 |
) | |||||||||||||||||||||||||||||||||||||||||
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Modification of redeemable convertible preferred shares and accretion to redemption value of redeemable and convertible preferred shares |
(27,248 | ) | — | — | — | — | (27,248 | ) | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Net loss attributable to ordinary shareholders |
(75,793 |
) |
(47,151 |
) |
(43,603 |
) |
1,660 |
89,094 |
(75,793 |
) |
(87,619 |
) |
(86,938 |
) |
(80,960 |
) |
30,081 |
137,817 |
(87,619 |
) |
(313,959 |
) |
(308,305 |
) |
(306,807 |
) |
(8,902 |
) |
624,014 |
(313,959 |
) | |||||||||||||||||||||||||||||||||||||||||
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For the year ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2020 |
2021 |
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Parent |
Other subsidiaries |
WFOE |
VIE and VIE’s subsidiaries |
Eliminating adjustments |
Consolidated totals |
Parent |
Other subsidiaries |
WFOE |
VIE and VIE’s subsidiaries |
Eliminating adjustments |
Consolidated totals |
|||||||||||||||||||||||||||||||||||||
(RMB in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
10,801 | 84,095 | 35,576 | 7,368 | — | 137,840 | 72,998 | 137,200 | 28,651 | 8,014 | — | 246,863 | ||||||||||||||||||||||||||||||||||||
Restricted cash |
— | — | 2,327 | 6 | — | 2,333 | — | — | 160 | — | — | 160 | ||||||||||||||||||||||||||||||||||||
Short-term investments |
— | 49,271 | — | — | — | 49,271 | — | 65,108 | — | — | — | 65,108 | ||||||||||||||||||||||||||||||||||||
Accounts receivable, net |
— | 183 | 125,382 | 37,581 | — | 163,146 | — | 66 | 45,164 | 10,959 | — | 56,189 | ||||||||||||||||||||||||||||||||||||
Inventories |
— | 2,190 | 45,461 | 837 | (1,394 | ) | 47,094 | — | 1,729 | 76,836 | 839 | (1,329 | ) | 78,075 | ||||||||||||||||||||||||||||||||||
Prepayments and other current assets |
— | 578 | 15,293 | 5,550 | — | 21,421 | — | 1,529 | 23,564 | 4,302 | — | 29,395 | ||||||||||||||||||||||||||||||||||||
Amount due from a related party |
— | — | — | 2,639 | — | 2,639 | — | — | 1,360 | — | — | 1,360 | ||||||||||||||||||||||||||||||||||||
Amounts due from subsidiaries and VIEs (3) |
— | 98,464 | 26,792 | 11,319 | (136,575 | ) | — | — | 98,375 | 10,550 | 25,774 | (134,699 | ) | — | ||||||||||||||||||||||||||||||||||
Property and equipment, net and intangible assets, net |
— | 520 | 18,862 | 2,772 | (223 | ) | 21,931 | — | 350 | 32,158 | 2,109 | (51 | ) | 34,566 | ||||||||||||||||||||||||||||||||||
Investment in subsidiaries and VIEs (2) |
268,331 | 51,439 | — | — | (319,770 | ) | — | 263,347 | — | — | — | (263,347 | ) | — | ||||||||||||||||||||||||||||||||||
Others |
— | 4,869 | 33,133 | 872 | — | 38,874 | — | 4,784 | 18,837 | 97 | — | 23,718 | ||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||
Total assets |
279,132 |
291,609 |
302,826 |
68,944 |
(457,962 |
) |
484,549 |
336,345 |
309,141 |
237,280 |
52,094 |
(399,426 |
) |
535,434 |
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|
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Short-term bank loans |
— | — | 10,000 | 5,000 | — | 15,000 | — | — | 10,000 | — | — | 10,000 | ||||||||||||||||||||||||||||||||||||
Amounts due to subsidiaries and VIEs (3) |
— | 13,978 | 63,796 | 58,801 | (136,575 | ) | — | — | 10,419 | 78,289 | 45,991 | (134,699 | ) | — | ||||||||||||||||||||||||||||||||||
Accounts payables |
— | — | 46,895 | 6,252 | — | 53,147 | — | — | 42,535 | 3,025 | — | 45,560 | ||||||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities |
2,814 | 467 | 62,902 | 15,395 | — | 81,578 | 3,744 | 1,040 | 39,014 | 18,053 | — | 61,851 | ||||||||||||||||||||||||||||||||||||
Contract liabilities |
— | — | 5,878 | 1,614 | — | 7,492 | — | 906 | 12,248 | 1,677 | — | 14,831 | ||||||||||||||||||||||||||||||||||||
Long-term loans |
— | — | — | — | — | — | — | — | 8,000 | 9,000 | — | 17,000 | ||||||||||||||||||||||||||||||||||||
Deficit in subsidiaries and VIEs (2) |
— | — | 18,385 | — | (18,385 | ) | — | — | 25,172 | 27,115 | — | (52,287 | ) | — | ||||||||||||||||||||||||||||||||||
Others |
— | 8,904 | 40,140 | 588 | — | 49,632 | — | 8,498 | 42,060 | 1,588 | — | 52,146 | ||||||||||||||||||||||||||||||||||||
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Total liabilities |
2,814 |
23,349 |
247,996 |
87,650 |
(154,960 |
) |
206,849 |
3,744 |
46,035 |
259,261 |
79,334 |
(186,986 |
) |
201,388 |
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Total shareholders’ equity (2) |
276,318 |
268,260 |
54,830 |
(18,706 |
) |
(303,002 |
) |
277,700 |
332,601 |
263,106 |
(21,981 |
) |
(27,240 |
) |
(212,440 |
) |
334,046 |
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For the year ended December 31, |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent |
Other subsidiaries |
WFOE |
VIE and VIE’s subsidiaries |
Eliminating adjustments |
Consolidated totals |
Parent |
Other subsidiaries |
WFOE |
VIE and VIE’s subsidiaries |
Eliminating adjustments |
Consolidated totals |
Parent |
Other subsidiaries |
WFOE |
VIE and VIE’s subsidiaries |
Eliminating adjustments |
Consolidated totals |
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(RMB in thousands) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net cash (used in) provided by operating activities (4) |
(1,394 |
) |
17,596 |
(64,898 |
) |
(6,822 |
) |
— |
(55,518 |
) |
(681 |
) |
2,331 |
(148,228 |
) |
(5,118 |
) |
— |
(151,696 |
) |
(4,874 |
) |
(5,792 |
) |
(107,481 |
) |
(3,482 |
) |
— |
(121,629 |
) | |||||||||||||||||||||||||||||||||||||||||
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Cash flows from investing activities |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contribution |
(219,248 | ) | (87,000 | ) | — | — | 306,248 | — | (66,599 | ) | (90,000 | ) | — | — | 156,599 | — | (190,026 | ) | (109,000 | ) | — | — | 299,026 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from maturities of short-term investments |
— | — | — | — | — | — | — | 18,596 | 32,200 | 21,200 | — | 71,996 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of short-term investments |
— | — | — | — | — | — | — | (61,964 | ) | (32,200 | ) | (21,200 | ) | — | (115,364 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans to third parties |
— | — | — | — | — | — | — | (1,900 | ) | (52,000 | ) | — | — | (53,900 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of loan to a third party |
— | — | — | — | — | — | — | — | 40,000 | — | — | 40,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investing activities |
— | (7,444 | ) | (2,825 | ) | (719 | ) | — | (10,988 | ) | (484 | ) | (1,538 | ) | (6,812 | ) | (107 | ) | — | (8,941 | ) | 150 | (17,062 | ) | (15,611 | ) | (878 | ) | — | (33,401 | ) | |||||||||||||||||||||||||||||||||||||||||
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Net cash (used in) provided by investing activities |
(219,248 |
) |
(94,444 |
) |
(2,825 |
) |
(719 |
) |
306,248 |
(10,988 |
) |
(67,083 |
) |
(136,806 |
) |
(18,812 |
) |
(107 |
) |
156,599 |
(66,209 |
) |
(189,876 |
) |
(126,062 |
) |
(15,611 |
) |
(878 |
) |
299,026 |
(33,401 |
) | |||||||||||||||||||||||||||||||||||||||
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Cash flows from financing activities |
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Capital contribution |
— | 219,248 | 87,000 | — | (306,248 | ) | — | — | 66,599 | 90,000 | — | (156,599 | ) | — | — | 190,026 | 109,000 | — | (299,026 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from initial public offering |
252,861 | — | — | — | — | 252,861 | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of redeemable and convertible preferred shares |
47,436 | — | — | — | — | 47,436 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from mandatorily redeemable non- controlling interests of a subsidiary |
— | — | — | — | — | — | — | — | 40,000 | — | — | 40,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from short-term bank loans |
— | — | — | — | — | — | — | — | 15,000 | — | — | 15,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of a short-term bank loan |
— | — | — | — | — | — | — | — | (5,000 | ) | — | — | (5,000 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from loan from a third party |
— | — | 30,000 | — | — | 30,000 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other financing activities |
5 | (5,000 | ) | — | — | — | (4,995 | ) | (7,343 | ) | — | 23 | — | — | (7,320 | ) | 256,947 | — | 5,000 | 5,000 | — | 266,947 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Net cash provided by (used in) financing activities |
300,302 |
214,248 |
117,000 |
— |
(306,248 |
) |
325,302 |
(7,343 |
) |
66,599 |
140,023 |
— |
(156,599 |
) |
42,680 |
256,947 |
190,026 |
114,000 |
5,000 |
(299,026 |
) |
266,947 |
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Effect of exchange rates on cash, cash equivalents and restricted cash (5) |
— | 1,347 | — | — | — | 1,347 | — | (6,264 | ) | — | — | — | (6,264 | ) | — | (5,067 | ) | — | — | — | (5,067 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
79,660 | 138,747 | 49,277 | (7,541 | ) | — | 260,143 | (75,107 | ) | (74,140 | ) | (27,017 | ) | (5,225 | ) | — | (181,489 | ) | 62,197 | 53,105 | (9,092 | ) | 640 | — | 106,850 | |||||||||||||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the year |
6,248 | 19,488 | 15,643 | 20,140 | — | 61,519 | 85,908 | 158,235 | 64,920 | 12,599 | — | 321,662 | 10,801 | 84,095 | 37,903 | 7,374 | — | 140,173 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Cash, cash equivalents and restricted cash at the end of the year |
85,908 |
158,235 |
64,920 |
12,599 |
— |
321,662 |
10,801 |
84,095 |
37,903 |
7,374 |
— |
140,173 |
72,998 |
137,200 |
28,811 |
8,014 |
— |
247,023 |
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Notes: (1) Represents the elimination of the intercompany transactions at the consolidation level. (2) Represents the elimination of the investment among the Parent, other subsidiaries, WFOE, and the VIE and the VIE’s subsidiaries. (3) Represents the elimination of intercompany balances among the Parent, other subsidiaries, WFOE, and the VIE and the VIE’s subsidiaries. (4) For the years ended December 31, 2019, 2020 and 2021, the WFOE did not charge any service fee from the VIE as the VIE was in cumulative loss position. For the years ended December 31, 2019, 2020 and 2021, cash paid by WFOE to VIE and VIE’s subsidiaries were RMB27.6 million, RMB14.8 million and RMB3.2 million, respectively, which represented purchase of software and inventories. For the years ended December 31, 2019, 2020 and 2021, cash paid by other subsidiaries to WFOE were RMB7.9 million, nil and nil, respectively, which represented purchase of inventories. |
|
A. |
Reserved |
B. |
Capitalization and indebtedness |
C. |
Reasons for the offer and use of proceeds |
D. |
Risk factors |
• | Our future growth depends on the demand for, and customers’ willingness to adopt, our passenger-grade AAVs and air mobility solutions; |
• | In the jurisdictions where we, the VIE and its subsidiaries sell and plan to sell products, the commercial use of passenger-grade AAVs, and in some cases non-passenger-grade AAVs, is subject to an uncertain or lengthy approval process; we cannot predict when regulations will change, and any new regulations may impose onerous requirements and restrictions with which we, the VIE and its subsidiaries, the AAVs and potential customers may be unable to comply. As a result, we, the VIE and its subsidiaries may be limited in, or completely restricted from, growing business in the foreseeable future; |
• | We may be unable to make timely product deliveries due to limited production capacity; |
• | Our framework and conditional agreements may not result in material sales of our products; |
• | We have substantial customer concentration and we have experienced a significant increase in accounts receivable; |
• | Our technology platform may not perform in line with customer specifications or expectations; and |
• | We are a relatively young company with a short operating history, and we may not be able to sustain our rapid growth, effectively manage our growth or implement our business strategies. |
• | Changes in China’s economic, political or social conditions or government policies could have a material adverse effect on our business, financial condition and results of operation; |
• | Uncertainties in the interpretation and enforcement of PRC laws and regulations could limit the legal protections available to you and us; |
• | We may be adversely affected by the complexities, uncertainties and changes in PRC regulations on technology companies; |
• | Our ADSs will be delisted and our ADSs and shares may be prohibited from trading in the over-the-counter market under the Holding Foreign Companies Accountable Act, or the HFCA Act, if the PCAOB is unable to inspect or fully investigate auditors located in China. On December 16, 2021, PCAOB issued the HFCA Act Determination Report, according to which our auditor is subject to the determinations that the PCAOB is unable to inspect or investigate completely. Under the current law, delisting and prohibition from over-the-counter trading in the U.S. could take place in 2024. If this happens there is no certainty that we will be able to list our ADS or shares on a non-U.S. exchange or that a market for our shares will develop outside of the U.S. The delisting of our ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment. In addition, the potential enactment of the Accelerating Holding Foreign Companies Accountable Act would decrease the number of non-inspection years from three years to two, thus reducing the time period before our ADSs may be prohibited from over-the-counter trading or delisted. If this bill were enacted, our ADS could be delisted from the exchange and prohibited from over-the-counter trading in the U.S. in 2023; |
• | Increases in labor costs and enforcement of stricter labor laws and regulations in the PRC may adversely affect our business and our profitability; and |
• | We rely on dividends and other distributions on equity paid by our PRC subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our PRC subsidiaries to make payments to us could have a material adverse effect on our ability to conduct our business. |
• | The trading price of the ADSs is likely to be volatile, which could result in substantial losses to investors; |
• | Our dual-class share structure with different voting rights will limit your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders of our Class A ordinary shares and ADSs may view as beneficial; |
• | We are a “controlled company” within the meaning of the Nasdaq Stock Market Rules and, as a result, may rely on exemptions from certain corporate governance requirements that provide protection to shareholders of other companies; |
• | If securities or industry analysts do not publish research or reports about our business, or if they adversely change their recommendations regarding the ADSs, the market price for the ADSs and trading volume could decline; and |
• | The sale or availability for sale of substantial amounts of the ADSs could adversely affect their market price. |
• | the extent of market reception and adoption of AAVs as transportation and logistics solutions; |
• | our navigating a new and evolving regulatory environment; |
• | our timely fulfillment of product orders; |
• | our ability to produce safe, high-quality and cost-effective AAVs on an ongoing basis; |
• | the performance of our AAVs relative to customer expectations and customers’ interest in and demand for our passenger-grade AAVs and air mobility solutions; and |
• | our building a well-recognized and respected brand. |
• | provide safe, convenient and effective air mobility solutions; |
• | maintain reliable, secure, high-performance and scalable infrastructure; |
• | identify suitable facilities to expand manufacturing capacity; |
• | navigate the evolving and complex regulatory environment across all the markets in which we operate; |
• | anticipate and adapt to changing market conditions, including technological developments and changes in the competitive landscape, and adjust, manage and execute our marketing and sales activities to cater to local economic and demographic conditions, cultural differences and customer preferences across all our current and future markets; |
• | successfully market our AAV commercial solutions; |
• | improve and maintain our operational efficiency; and |
• | attract, retain and motivate talented employees. |
• | limited brand recognition; |
• | costs associated with establishing new distribution networks; |
• | difficulty in finding qualified partners for overseas distribution; |
• | inability to anticipate changes in local market conditions, economic landscapes, and consumers’ preferences and customs; |
• | difficulties in staffing and managing foreign operations; |
• | lack of familiarity with and understanding of the local legal, regulatory and policy frameworks, as well as burdens of complying with a wide variety of local laws and regulations, including those governing personal data protection and safety control; |
• | political and economic instability; |
• | trade restrictions; |
• | differing employment laws and practices, as well as potential labor disruptions; |
• | the imposition of government controls; |
• | lesser degrees of intellectual property protection; |
• | tariffs and customs duties and the classifications of our goods by applicable governmental bodies; and |
• | a legal system subject to undue influence or corruption. |
• | cease selling, incorporating certain components into, or using AAVs or offering goods or services that incorporate or use the challenged intellectual property; |
• | pay substantial damages; |
• | seek a license from the holder of the infringed intellectual property right, which license may not be available on reasonable terms or at all; |
• | redesign our, the VIE or its subsidiaries’ AAVs, AAV operating systems and infrastructure, components or services; or |
• | establish and maintain alternative branding for our, the VIE or its subsidiaries’ products and services. |
• | For our lack of financial reporting policies and procedures that are commensurate with U.S. GAAP and SEC reporting and compliance requirements, we (i) hired additional accounting and financial reporting personnel with U.S. GAAP and SEC reporting experience; (ii) provided continuous and appropriate training to the accounting and financial reporting personnel, especially the training related to US GAAP, and SEC rules and regulations; (iii) developed a set of accounting policies, which document the current US GAAP accounting standards and technical accounting guidance that are applicable to our business; and (iv) formalized a period-end closing process to prepare financial statements and related disclosures in compliance with US GAAP and SEC financial reporting requirements. |
• | For our lack of sufficient controls for properly tracking the shipping records of the AAVs, we replaced the logistics service provider with a reputable vendor and implemented a number of controls for recording and tracking the shipping records of AAVs accurately and timely. |
• | For our lack of monitoring of the collection of accounts receivable on a timely basis, we strengthened finance department’s monitoring control over the collection of accounts receivable through quarterly assessment with sales department. |
• | revoking the business licenses and/or operating licenses of such entities; |
• | shutting down our servers or blocking our website, or discontinuing or placing restrictions or onerous conditions on our operation through any transactions between our WFOE and the VIE; |
• | imposing fines, confiscating the income from our WFOE or the VIE, or imposing other requirements with which we or the VIE may not be able to comply; |
• | requiring us to restructure our ownership structure or operations, including terminating the contractual arrangements with the VIE and deregistering the equity pledges of the VIE, which in turn would affect our ability to consolidate, derive economic interests from, or exert effective control over the VIE; |
• | restricting or prohibiting our use of the proceeds of our initial public offering to finance our business and operations in China, and taking other regulatory or enforcement actions that could be harmful to our business; |
• | confiscating any of our income deemed to be obtained through illegal operations; |
• | discontinuing or placing restrictions or onerous conditions on our operations; |
• | imposing additional conditions or requirements with which we may not be able to comply; or |
• | taking other regulatory or enforcement actions against us that could be harmful to our business. |
• | variations in our revenues, earnings and cash flows; |
• | regulatory developments affecting us, our customers, or our industry; |
• | announcements of studies and reports relating to the quality of our products and service offerings or those of our competitors; |
• | announcements of new investments, acquisitions, strategic partnerships or joint ventures by us or our competitors; |
• | announcements of new products or service offerings and expansions by us or our competitors; |
• | changes in financial estimates by securities analysts; |
• | detrimental adverse publicity about us, our products or services or our industry; |
• | additions or departures of key personnel; |
• | detrimental negative publicity about us, our management or our industry; |
• | release of lock-up or other transfer restrictions on our outstanding equity securities or sales of additional equity securities; and |
• | actual or potential litigation or regulatory investigations. |
• | we have timely provided the depositary with notice of meeting and related voting materials; |
• | we have instructed the depositary that we wish a discretionary proxy to be given; |
• | we have informed the depositary that there is no substantial opposition as to a matter to be voted on at the meeting; and |
• | a matter to be voted on at the meeting would not have a material adverse impact on shareholders. |
• | the rules under the Exchange Act requiring the filing of quarterly reports on Form 10-Q or current reports on Form 8-K with the SEC; |
• | the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act; |
• | the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and |
• | the selective disclosure rules by issuers of material nonpublic information under Regulation FD. |
• | In October 2015, Ehfly Technology established a wholly-owned subsidiary in China, EHang Intelligent, our WFOE. EHang Intelligent is engaged in the research, development, manufacture and sale of AAVs, and the research and development of software, communication technology and AAV technologies related to air mobility and intelligent aviation. |
• | In January 2016, we obtained control over EHang GZ through EHang Intelligent by entering into a series of contractual arrangements with EHang GZ and its shareholders. EHang GZ is primarily engaged in the research, development, manufacture and sale of AAVs, and the research and development of AAV operating systems and infrastructure. |
• | In July 2016, EHang GZ established EHang Egret, to provide aerial media solutions and related services. |
• | In March 2018, EHang Intelligent established Xi’an EHang Tianyu Intelligent Technology Co., Ltd., to provide aerial logistics solutions and related services. |
• | In June 2020, EHang Intelligent, jointly with two other parties, established EHang Yunfu to manufacture mainly passenger-grade AAVs. |
• | In March 2021, EHang GZ established Guangdong EHang General Aviation Co., Ltd., to provide operational flight services with AAVs. |
Passenger Transportation |
Logistics | |
Smart City Management |
Aerial Media Solutions |
• | China. know-how. The Special Conditions provided clear safety requirements for the certification of EHang 216, including flight performance, aircraft structures, design and constructions, propulsion systems, systems and equipment, data link, ground control station, etc. With specified requirements set out, we progressed to the compliance review phase and submitted to the CAAC the Project Specific Certification Plan and the Certification Plan with solid means of compliance. During the certification process, we, the VIE and our partners carried out operational trial flights under the CAAC’s guiding principles and in accordance with its compliance requirements. As of March 31, 2022, over 4,000 operational trial flights have been conducted with EHang 216 AAVs in practical scenarios of aerial sightseeing at selected 9 operation spots in cities such as Guangzhou, Hezhou, Shenzhen, Zhaoqing, Sanya under our 100 Air Mobility Routes Initiative in China. |
• | Japan. |
• | Estonia. |
• | Indonesia. |
• | Austria. |
EHang 216 |
EHang 216F |
EHang 216L | ||||
Delivery Status |
As of December 31, 2021, we had cumulatively delivered 153 units to customers for testing, training and demonstration purposes, mainly operated on a limited trial basis in tourism locations in China. Currently we are working to obtain regulatory approvals in China. | As of December 31, 2021, we had cumulatively delivered five units to customers for testing, training and demonstration purposes. In July 2021, we completed a comprehensive 10-month technical examination on EHang 216F through 52 different types of tests by the China National Fire-Fighting Equipment Quality Supervision Testing Center, which is under the Ministry of Emergency Management of China. |
As of December 31, 2021, we had delivered five units to customers for testing, training and demonstration purposes. | |||
Design |
Dual seats, 16 independent motors and propellers over eight arms | 16 independent motors and propellers over eight arms; a high-pressure nozzle, a laser aiming device, six fire extinguishing projectile launchers above the cabin; a firefighting foam tank below cabin | 16 independent motors and propellers over eight arms, a cargo compartment | |||
Applications |
Aerial sightseeing, passenger transportation, aerial logistics, emergency transportation and others | High-rise firefighting | Aerial logistics, emergency medical service, and others | |||
Specifications |
||||||
Maximum speed | 130 km/h | 130 km/h | 130 km/h | |||
Cruising speed | 100 km/h | 100 km/h | 100 km/h | |||
Designed flight time with maximum payload | 25 minutes | 21 minutes | 21 minutes | |||
Designed flight distance with maximum payload | 30 km | 35 km | 35 km | |||
Maximum payload | 220 kg | 150 liters of firefighting foams and 6 fire extinguishing projectiles | 250 kg |
EHang 216 |
EHang 216F |
EHang 216L | ||||
Maximum altitude (above sea level) | 3,000 meters | 3,000 meters | 3,000 meters | |||
Time to full charge (standard charging) | ≤ 120 minutes | < 120 minutes | < 120 minutes |
VT-30 | ||||
Delivery Status |
As of December 31, 2021, we had not delivered any unit to customers. | |||
Design |
Streamlined fuselage with a combined lifting rudder surface at the tail; eight propellers on both sides; a pair of fixed wings; a propelling propeller at the rear, which are designed to achieve a maximum balance of hybrid lift and push. | |||
Applications |
Aerial sightseeing, passenger transportation, aerial logistics, emergency transportation and others | |||
Specifications |
||||
Designed flight time | 100 minutes | |||
Designed flight distance | 300 km |
Passenger Cabin of EHang 216 |
Operating System Interface of EHang 216 |
Falcon B |
GD 2.0X |
V100 | ||||
Design |
Four-arm co-axial octorotor configuration |
Quadrotor configuration | Quadrotor & fixed-wing hybrid configuration | |||
Applications |
Surveillance, fire extinguishment, last-mile delivery and others | Surveillance, last-mile delivery, aerial media shows and others | Surveillance, power line inspection, medium-range delivery and others | |||
Specifications |
||||||
Maximum speed |
80 km/h | 40 km/h | 100 km/h | |||
Designed flight time with maximum payload |
17 minutes | 19 minutes | 1 hour | |||
Designed flight distance with maximum payload |
19 km | 10 km | 80 km | |||
Maximum payload |
5 kg | 0.45 kg | 2 kg | |||
Time to full charge |
≤ 90 minutes | ≤ 90 minutes | ≤ 90 minutes |
• | Autopilot and Flight Control System, Including Course Correction and Traffic Avoidance pre-determined inverted U-shape path from the origin to the destination with precise vertical take-off and landing. Our autopilot and flight control system collects and analyzes data from sensors installed on our AAVs, including accelerometers, gyroscopes, magnetic compass, barometers, visual sensors, Global Navigation Satellite System (GNSS) receivers and millimeter wave radars. Informed by the extensive data collected by these sensors, our AAVs use advanced algorithms to make intelligent navigation decisions, including correcting courses, adapting to weather conditions and avoiding obstacles during flight. |
• | Communication System command-and-control command-and-control |
• | Battery Management System command-and-control |
• | Safety Management System |
• | Command-and-Control command-and-control low-altitude AAV control technologies, our command-and-control command-and-control non-passenger-grade AAVs with precision and accuracy to complete pre-defined actions and movements. |
• | EHang Pro App non-passenger-grade AAVs, such as Falcon B, GD 2.0X, can also be individually controlled by our smartphone- or tablet- or computer-based controller app. |
• | Charging Equipment non-passenger-grade AAVs. The waterproof and dustproof charging platform can monitor real-time charging status and battery health. Our charging platform is expected to be put into service as a part of our smart city management solutions. |
Command-and-Control |
Command-and-Control |
Charging Station |
Lianyungang Command-and-Control |
Shaoguan Command-and-Control | |
Hezhou Command-and-Control |
Shenzhen Expressway Command-and-Control |
Celebration for 2021 Tokyo Olympics |
Aerial Media Show of Butterfly at the Canton Tower | |
Celebration for Spring Lantern Festival 2022 |
Celebration for 2022 Beijing Winter Olympics |
(1) | Messrs. Shuai Feng and Weixian Xia are senior employees of our company and they hold 95.0% and 5.0% equity interests in EHang GZ, respectively. |
(2) | The remaining 31.5% equity interests in EHang Yunfu are held by our joint venture partners. |
• | the ownership structures of our WFOE, the VIE and its subsidiaries are in compliance with applicable PRC laws and regulations; and |
• | such contractual arrangements constitute valid, legal and binding obligations enforceable against each party of such agreements in accordance with the terms of each agreement from their respective effective dates to the date of this annual report, and will not result in any violation of PRC laws or regulations currently in effect. |
Item 4A. |
Unresolved Staff Comments |
Item 5. |
Operating and Financial Review Prospects |
For the Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||
Air mobility solutions |
85,916 | 70.5 | 105,969 | 58.8 | 48,156 | 7,556 | 84.8 | |||||||||||||||||||||
Smart city management solutions |
4,441 | 3.7 | 8,282 | 4.6 | 7,135 | 1,120 | 12.6 | |||||||||||||||||||||
Aerial media solutions |
30,746 | 25.2 | 65,656 | 36.5 | 1,100 | 172 | 1.9 | |||||||||||||||||||||
Others |
711 | 0.6 | 186 | 0.1 | 416 | 66 | 0.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
121,814 |
100.0 |
180,093 |
100.0 |
56,807 |
8,914 |
100.0 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||||||
Sales and marketing expenses |
26,855 | 22.2 | 37,186 | 18.2 | 43,229 | 6,784 | 11.7 | |||||||||||||||||||||
General and administrative expenses |
36,948 | 30.5 | 61,613 | 30.2 | 187,388 | 29,405 | 51.0 | |||||||||||||||||||||
Research and development expenses |
57,167 | 47.3 | 105,252 | 51.6 | 137,148 | 21,522 | 37.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total operating expenses |
120,970 |
100.0 |
204,051 |
100.0 |
367,765 |
57,711 |
100.0 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||||||
Total revenues |
121,814 |
100.0 |
180,093 |
100.0 |
56,807 |
8,914 |
100.0 |
|||||||||||||||||||||
Costs of revenues (1) |
(50,596 |
) |
(41.5 |
) |
(73,914 |
) |
(41.0 |
) |
(20,777 |
) |
(3,260 |
) |
(36.6 |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Gross profit |
71,218 |
58.5 |
106,179 |
59.0 |
36,030 |
5,654 |
63.4 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||
Sales and marketing expenses (1) |
(26,855 | ) | (22.0 | ) | (37,186 | ) | (20.7 | ) | (43,229 | ) | (6,784 | ) | (76.1 | ) | ||||||||||||||
General and administrative expenses (1) |
(36,948 | ) | (30.3 | ) | (61,613 | ) | (34.2 | ) | (187,388 | ) | (29,405 | ) | (329.9 | ) | ||||||||||||||
Research and development expenses (1) |
(57,167 | ) | (46.9 | ) | (105,252 | ) | (58.4 | ) | (137,148 | ) | (21,522 | ) | (241.4 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total operating expenses |
(120,970 |
) |
(99.3 |
) |
(204,051 |
) |
(113.3 |
) |
(367,765 |
) |
(57,711 |
) |
(647.4 |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Other operating income |
3,407 | 2.8 | 6,576 | 3.6 | 11,199 | 1,757 | 19.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating loss |
(46,345 |
) |
(38.0 |
) |
(91,296 |
) |
(50.7 |
) |
(320,536 |
) |
(50,300 |
) |
(564.3 |
) | ||||||||||||||
Other income/(expense): |
||||||||||||||||||||||||||||
Interest and investment income |
883 | 0.7 | 3,795 | 2.1 | 5,143 | 807 | 9.1 | |||||||||||||||||||||
Interest expenses |
(837 | ) | (0.7 | ) | (2,337 | ) | (1.3 | ) | (1,803 | ) | (283 | ) | (3.2 | ) | ||||||||||||||
Foreign exchange gain (loss) |
109 | 0.1 | (333 | ) | (0.2 | ) | (827 | ) | (130 | ) | (1.5 | ) | ||||||||||||||||
Other income |
440 | (0.4 | ) | 1,227 | 0.7 | 6,086 | 955 | 10.7 | ||||||||||||||||||||
Other expense |
(1,416 | ) | (1.2 | ) | (3,127 | ) | (1.7 | ) | (1,549 | ) | (243 | ) | (2.7 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total other (expense) income |
(821 |
) |
(0.7 |
) |
(775 |
) |
(0.4 |
) |
7,050 |
1,106 |
12.4 |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except for percentages) |
||||||||||||||||||||||||||||
Loss before income tax and (loss) income from equity method investment |
(47,166 |
) |
(38.7 |
) |
(92,071 |
) |
(51.1 |
) |
(313,486 |
) |
(49,194 |
) |
(551.8 |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income tax expenses |
(754 | ) | (0.6 | ) | (206 | ) | (0.1 | ) | (134 | ) | (21 | ) | (0.2 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loss before (loss) income from equity method investment |
(47,920 |
) |
(39.3 |
) |
(92,277 |
) |
(51.2 |
) |
(313,620 |
) |
(49,215 |
) |
(552.1 |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(Loss) income from equity method investment |
(74 | ) | (0.1 | ) | 236 | 0.1 | (276 | ) | (43 | ) | (0.5 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net loss |
(47,994 |
) |
(39.4 |
) |
(92,041 |
) |
(51.1 |
) |
(313,896 |
) |
(49,258 |
) |
(552.6 |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Share-based compensation expense was allocated in costs of revenues and operating expenses as follows: |
For the Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands, except share and share related data) |
||||||||||||||||
Costs of revenues |
365 | 2,443 | — | — | ||||||||||||
Sales and marketing expenses |
743 | 10,883 | 18,327 | 2,876 | ||||||||||||
General and administrative expenses |
8,520 | 14,453 | 71,147 | 11,165 | ||||||||||||
Research and development expenses |
5,119 | 27,078 | 31,657 | 4,968 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
14,747 |
54,857 |
121,131 |
19,009 |
||||||||||||
|
|
|
|
|
|
|
|
For the Year Ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Net cash used in operating activities |
(55,518 | ) | (151,696 | ) | (121,629 | ) | (19,086 | ) | ||||||||
Net cash used in investing activities |
(10,988 | ) | (66,209 | ) | (33,401 | ) | (5,241 | ) | ||||||||
Net cash provided by financing activities |
325,302 | 42,680 | 266,947 | 41,888 | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
1,347 | (6,264 | ) | (5,067 | ) | (794 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
260,143 | (181,489 | ) | 106,850 | 16,767 | |||||||||||
Cash, cash equivalents and restricted cash at the beginning of the year |
61,519 | 321,662 | 140,173 | 21,996 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash, cash equivalents and restricted cash at the end of the year |
321,662 | 140,173 | 247,023 | 38,763 | ||||||||||||
|
|
|
|
|
|
|
|
Payment Due by Period |
||||||||||||||||||||
Total |
Less than 1 year |
1-3 years |
3-5 years |
More than 5 years |
||||||||||||||||
(in RMB thousands) |
||||||||||||||||||||
Operating lease commitments |
26,746 | 11,530 | 6,717 | 3,887 | 4,612 | |||||||||||||||
Short-term bank loans |
10,179 | 10,179 | — | — | — | |||||||||||||||
Long-term bank loans |
20,846 | 3,512 | 16,561 | 773 | — | |||||||||||||||
Mandatorily redeemable non-controlling interests |
42,096 | 600 | 1,200 | 40,296 | — | |||||||||||||||
Investment obligations |
9,800 | 6,300 | 3,500 | — | — |
Item 6. |
Directors, Senior Management and Employees |
Directors and Executive Officers |
Age |
Position/Title | ||||
Huazhi Hu |
45 | Founder, Chairman and Chief Executive Officer | ||||
Haoxiang Hou |
33 | Independent Director | ||||
Conor Chia-hung Yang |
59 | Independent Director | ||||
Dongming Wu |
58 | Independent Director | ||||
Xin Fang |
47 | Chief Operating Officer | ||||
Richard Jian Liu |
47 | Chief Financial Officer | ||||
Edward Huaxiang Xu |
46 | Chief Strategy Officer |
Name |
Class A Ordinary Shares underlying Equity Awards |
Date of Grant |
Date of Expiration | |||
Huazhi Hu |
* | January 4, 2021 | January 3, 2031 | |||
Conor Chia-hung Yang |
* | December 16, 2019 January 4, 2021 |
December 15, 2029 January 3, 2031 | |||
Dongming Wu |
* | June 1, 2020 January 4, 2021 |
May 31, 2030 January 3, 2031 | |||
Haoxiang Hou |
* | January 4, 2021 | January 3, 2031 | |||
Edward Huaxiang Xu |
* | July 1, 2019 January 4, 2021 |
June 30, 2029 January 3, 2031 | |||
Richard Jian Liu |
* | January 4, 2021 | January 3, 2031 | |||
All directors and officers as a group |
2,903,737 | Various dates from December 16, 2019 to January 4, 2021 |
Various dates from December 15, 2029 to January 3, 2031 |
* | Less than 1% of our total outstanding ordinary shares on an as-converted basis. |
• | appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors; |
• | reviewing with the independent auditors any audit problems or difficulties and management’s response; |
• | discussing the annual audited financial statements with management and the independent auditors; |
• | reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures; |
• | reviewing and approving all proposed related party transactions; |
• | meeting separately and periodically with management and the independent auditors; and |
• | monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance. |
• | reviewing and approving, or recommending to the board for its approval, the compensation for our chief executive officer and other executive officers; |
• | reviewing and recommending to the board for determination with respect to the compensation of our non-employee directors; |
• | reviewing periodically and approving any incentive compensation or equity plans, programs or similar arrangements; and |
• | selecting compensation consultant, legal counsel or other adviser only after taking into consideration all factors relevant to that person’s independence from management. |
• | selecting and recommending to the board nominees for election by the shareholders or appointment by the board; |
• | reviewing annually with the board the current composition of the board with regards to characteristics such as independence, knowledge, skills, experience and diversity; |
• | making recommendations on the frequency and structure of board meetings and monitoring the functioning of the committees of the board; and |
• | advising the board periodically with regards to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to the board on all matters of corporate governance and on any remedial action to be taken. |
• | convening shareholders’ annual and extraordinary general meetings and reporting its work to shareholders at such meetings; |
• | declaring dividends and distributions; |
• | appointing officers and determining the term of office of the officers; |
• | exercising the borrowing powers of our company and mortgaging the property of our company; and |
• | approving the transfer of shares in our company, including the registration of such shares in our share register. |
Function |
Number |
% of Total Employees |
||||||
Research and product development department |
189 | 58.0 | % | |||||
Marketing and sales department |
61 | 18.7 | % | |||||
General administration department |
76 | 23.3 | % | |||||
Total number of employees |
326 | 100 | % |
• | each of our directors and executive officers; and |
• | each person known to us to beneficially own more than 5% of our ordinary shares on an as-converted basis. |
Class A Ordinary Shares |
Class B Ordinary Shares |
Total Ordinary Shares on an as- Converted Basis |
% of Beneficial Ownership |
% of Aggregate Voting Power*** |
||||||||||||||||
Directors and Executive Officers:** |
||||||||||||||||||||
Huazhi Hu (1) |
3,270,258 | 40,136,560 | 43,406,818 | 37.8 | % | 85.0 | % | |||||||||||||
Haoxiang Hou (2) |
* | — | * | * | * | |||||||||||||||
Conor Chia-Hung Yang (3) |
* | — | * | * | * | |||||||||||||||
Dongming Wu (4) |
* | — | * | * | * | |||||||||||||||
Xin Fang |
— | — | — | — | — | |||||||||||||||
Richard Jian Liu (5) |
1,575,000 | — | 1,575,000 | 1.4 | % | 0.3 | % | |||||||||||||
Edward Huaxiang Xu (6) |
* | — | * | * | * | |||||||||||||||
All Directors and Executive Officers as a Group |
5,286,495 | 40,136,560 | 45,423,055 | 39.6 | % | 85.4 | % | |||||||||||||
Principal Shareholder: |
||||||||||||||||||||
Genesis Rising Limited (7) |
2,600,000 | 40,136,560 | 42,736,560 | 37.3 | % | 84.9 | % |
* | Less than 1% of our total outstanding shares. |
** | Messrs. Huazhi Hu, Xin Fang, Richard Jian Liu and Edward Huaxiang Xu’s business address is Building C, Yixiang Technology Park, No. 72 Nanxiang Second Road, Huangpu District, Guangzhou 510700, People’s Republic of China. Mr. Haoxiang Hou’s business address is 40/F, One Lujiazui, No. 68 Yin Cheng Road, Pudong District, Shanghai, People’s Republic of China. Mr. Dongming Wu’s business address is No. 18 Rong Hua South Road, Beijing Economic-Technological Development Area, Daxing District, Beijing, People’s Republic of China. |
*** | For each person and group included in this column, percentage of voting power is calculated by dividing the voting power beneficially owned by such person or group by the voting power of all of our outstanding Class A and Class B ordinary shares as a single class. Each holder of Class B ordinary shares is entitled to ten votes per share, and while each holder of our Class A ordinary shares is entitled to one vote per share on all matters submitted to them for a vote. Our Class A ordinary shares and Class B ordinary shares vote together as a single class on all matters submitted to a vote of our shareholders. Our Class B ordinary shares are convertible at any time by the holders thereof into Class A ordinary shares on a one-for-one |
(1) | Represents (i) 2,600,000 Class A ordinary shares and 40,136,560 Class B ordinary shares beneficially owned by Genesis Rising Limited, a British Virgin Islands company, and (ii) 335,129 ADSs, representing 670,258 Class A ordinary shares, directly held by Mr. Huazhi Hu. Genesis Rising Limited is wholly owned by Mr. Huazhi Hu. The registered address of Genesis Rising Limited is Start Chambers, Wickham’s Cay II, P.O. Box 2221, Road Town, Tortola, British Virgin Islands. |
(2) | Represents Class A ordinary shares beneficially owned by Mr. Haoxiang Hou. |
(3) | Represents Class A ordinary shares beneficially owned by Mr. Conor Chia-Hung Yang. |
(4) | Represents Class A Ordinary Shares beneficially owned by Mr. Dongming Wu, including Class A ordinary shares underlying share options and restricted share units held by Mr. Dongming Wu that have vested as of March 31, 2022 or will vest within 60 days after March 31, 2022. |
(5) | Represents 1,575,000 Class A ordinary shares beneficially owned by JM Elegance Holdings Limited, a British Virgin Island company that is wholly owned by Mr. Richard Jian Liu. The registered address of JM Elegance Holdings Limited is Drake Chambers, P.O. Box 3321, Road Town, Tortola, British Virgin Islands. |
(6) | Represents Class A ordinary shares beneficially owned by Mr. Edward Huaxiang Xu, including those underlying vested restricted share units held by Mr. Edward Huaxiang Xu. |
(7) | Represents 2,600,000 Class A ordinary shares and 40,136,560 Class B ordinary shares beneficially owned by Genesis Rising Limited, a British Virgin Islands company. Genesis Rising Limited is wholly owned by Mr. Huazhi Hu. The registered address of Genesis Rising Limited is Start Chambers, Wickham’s Cay II, P.O. Box 2221, Road Town, Tortola, British Virgin Islands. |
Item 7. |
Major Shareholders and Related Party Transaction |
Item 8. |
Financial Information |
Item 9. |
The Offer and Listing. |
Item 10. |
Additional Information. |
• | the instrument of transfer is lodged with us, accompanied by the certificate for the ordinary shares to which it relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer; |
• | the instrument of transfer is in respect of only one class of ordinary shares; |
• | the instrument of transfer is properly stamped, if required; |
• | in the case of a transfer to joint holders, the number of joint holders to whom the ordinary share is to be transferred does not exceed four; and |
• | a fee of such maximum sum as the Nasdaq Global Market may determine to be payable or such lesser sum as our directors may from time to time require is paid to us in respect thereof. |
• | the designation of the series; |
• | the number of shares of the series; |
• | the dividend rights, dividend rates, conversion rights, voting rights; and |
• | the rights and terms of redemption and liquidation preferences. |
• | authorize our board of directors to issue preference shares in one or more series and to designate the price, rights, preferences, privileges and restrictions of such preference shares without any further vote or action by our shareholders; and |
• | limit the ability of shareholders to requisition and convene general meetings of shareholders. |
• | does not have to file an annual return of its shareholders with the Registrar of Companies; |
• | is not required to open its register of members for inspection; |
• | does not have to hold an annual general meeting; |
• | may issue negotiable or bearer shares or shares with no par value; |
• | may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 20 years in the first instance); |
• | may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands; |
• | may register as a limited duration company; and |
• | may register as a segregated portfolio company. |
• | the statutory provisions as to the required majority vote have been met; |
• | the shareholders have been fairly represented at the meeting in question and the statutory majority are acting bona fide without coercion of the minority to promote interests adverse to those of the class; |
• | the arrangement is such that may be reasonably approved by an intelligent and honest man of that class acting in respect of his interest; and |
• | the arrangement is not one that would more properly be sanctioned under some other provision of the Companies Act. |
• | a company acts or proposes to act illegally or ultra vires; |
• | the act complained of, although not ultra vires, could only be effected duly if authorized by more than a simple majority vote that has not been obtained; and |
• | those who control the company are perpetrating a “fraud on the minority.” |
• | banks and other financial institutions; |
• | insurance companies; |
• | pension plans; |
• | cooperatives; |
• | regulated investment companies; |
• | real estate investment trusts; |
• | broker-dealers; |
• | dealers or traders that elect to use a mark-to-market |
• | certain former U.S. citizens or long-term residents; |
• | tax-exempt entities (including private foundations); |
• | governmental organizations; |
• | investors who acquire their ADSs or ordinary shares pursuant to any employee share option or otherwise as compensation; |
• | investors that will hold their ADSs or ordinary shares as part of a straddle, hedge, conversion, constructive sale or other integrated transaction for U.S. federal income tax purposes; |
• | investors that have a functional currency other than the U.S. dollar; |
• | investors that actually or constructively own 10% or more of our stock (by vote or value); or |
• | partnerships or other entities taxable as partnerships for U.S. federal income tax purposes, or persons holding ADSs or ordinary shares through such entities, |
• | all of whom may be subject to tax rules that differ significantly from those discussed below. |
• | an individual who is a citizen or resident of the United States; |
• | a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created in or organized under the law of the United States or any state thereof or the District of Columbia; |
• | an estate the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source; or |
• | a trust (A) the administration of which is subject to the primary supervision of a U.S. court and which has one or more U.S. persons who have the authority to control all substantial decisions of the trust or (B) that has otherwise validly elected to be treated as a U.S. person under the Code. |
• | the excess distribution or gain will be allocated ratably over the U.S. Holder’s holding period for the ADSs or ordinary shares; |
• | the amount allocated to the current taxable year and any taxable years in the U.S. Holder’s holding period prior to the first taxable year in which we are classified as a PFIC (each, a “pre-PFIC year”) will be taxable as ordinary income; |
• | the amount allocated to each prior taxable year, other than a pre-PFIC year, will be subject to tax at the highest tax rate in effect for individuals or corporations, as appropriate, for that year; and |
• | the interest charge generally applicable to underpayments of tax will be imposed on the tax attributable to each prior taxable year, other than a pre-PFIC year. |
Item 11. |
Quantitative and Qualitative Disclosures about Market Risk. |
Item 12. |
Description of Securities Other than Equity Securities. |
Persons depositing or withdrawing shares or ADS holders must pay |
For | |
$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) | • Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property | |
• Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates | ||
$0.05 (or less) per ADS | • Any cash distribution to ADS holders |
Persons depositing or withdrawing shares or ADS holders must pay |
For | |
A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs | • Distribution of securities distributed to holders of deposited securities (including rights) that are distributed by the depositary to ADS holders | |
$.05 (or less) per ADS per calendar year | • Depositary services | |
Registration or transfer fees | • Transfer and registration of shares on our share register to or from the name of the depositary or its agent when you deposit or withdraw shares | |
Expenses of the depositary | • Cable (including SWIFT) and facsimile transmissions (when expressly provided in the deposit agreement) | |
• Converting foreign currency to U.S. dollars | ||
Taxes and other governmental charges the depositary or the custodian has to pay on any ADSs or shares underlying ADSs, such as stock transfer taxes, stamp duty or withholding taxes | • As necessary | |
Any charges incurred by the depositary or its agents for servicing the deposited securities | • As necessary |
Item 13. |
Defaults, Dividend Arrearages and Delinquencies. |
Item 14. |
Material Modifications to the Rights of Security Holders and Use of Proceeds. |
Item 15. |
Controls and Procedures. |
Item 16A. |
Audit Committee Financial Expert. |
Item 16B. |
Code of Ethics. |
Item 16C. |
Principal Accountant Fees and Services. |
For the Year Ended December 31, |
||||||||
2020 |
2021 (2) |
|||||||
(RMB in thousands) |
||||||||
Audit fees (1) |
5,600 | 9,554 | ||||||
|
|
|
|
|||||
Total |
5,600 | 9,554 | ||||||
|
|
|
|
(1) | “Audit fees” means the aggregate fees billed in each of the fiscal years for professional services rendered by our principal external auditors for the audit of our annual consolidated financial statements and assistance with review of documents filed with the SEC and other statutory and regulatory filings. |
(2) | The fees for 2021 are fees payable to PwC and EY. See also “Item 16F. Change in Registrant’s Certifying Accountant.” |
Item 16D. |
Exemptions from the Listing Standards for Audit Committees. |
Item 16E. |
Purchases of Equity Securities by the Issuer and Affiliated Purchasers. |
Item 16F. |
Change in Registrant’s Certifying Accountant. |
Item 16G. |
Corporate Governance. |
• | exemption from the requirement that a majority of our board of directors consists of independent directors; |
• | exemption from the requirement that each member of the compensation committee must be an independent director set forth in Nasdaq Rule 5605(d)(2)(A); |
• | exemption from the requirement that director nomination should be made by a vote in which only independent directors participate or by a nominations committee comprised solely of independent directors as set forth in Nasdaq Rule 5605(e)(1); |
• | exemption from the requirement to obtain shareholder approval for certain issuances of securities, including shareholder approval of stock option plans; |
• | exemption from the requirement that our board of directors shall have regularly scheduled meetings at which only independent directors are present as set forth in Nasdaq Rule 5605(b)(2); and |
• | exemption from the requirement that an annual shareholders meeting must be held no later than one year after the end of the company’s fiscal year-end as set forth in Nasdaq Rule 5620(a). |
Item 16H. |
Mine Safety Disclosure |
Item 16I. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Item 17. |
Financial Statements. |
Item 18. |
Financial Statements. |
Item 19. |
Exhibits. |
Exhibit Number |
Description of Document | |
13.2** | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
15.1* | Consent of Ernst & Young Hua Ming LLP | |
15.2* | Consent of PricewaterhouseCoopers Zhong Tian LLP | |
15.3* | Consent of AllBright Law Offices | |
15.4* | Consent of Maples and Calder (Hong Kong) LLP | |
16.1* | Letter from EY addressed to the Securities and Exchange Commission dated April 28, 2022 | |
101.INS* | Inline XBRL Instance Document (the cover page XBRL tags are embedded within the Inline XBRL document) | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Exhibit 101 Inline XBRL document set) |
* | Filed herewith |
** | Furnished herewith |
EHang Holdings Limited | ||
By: | /s/ Huazhi Hu | |
Name: | Huazhi Hu | |
Title: | Chairman of the Board of Directors and Chief Executive Officer |
PAGE(S) |
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As of December 31, |
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Note |
2020 |
2021 |
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RMB |
RMB |
US$ |
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Note 2(e) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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Restricted cash |
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2 | (g) |
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Short-term investments |
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4 | |
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Accounts receivable, net of allowance of RMB 2020 and 2021, respectively |
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5 | |
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Cost and estimated earnings in excess of billings |
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2 | (k) |
— | — | |||||||||||
Inventories |
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6 | |
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Prepayments and other current assets |
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7 | |
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Amount due from a related party |
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17 | |
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Total current assets |
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Non-current assets |
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Property and equipment, net |
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8 | |
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Intangible assets, net |
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Long-term loans receivable |
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9 | |
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Long-term investments |
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10 |
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Other non-current assets |
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Total non-current assets |
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Total assets |
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As of December 31, |
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Note |
2020 |
2021 |
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RMB |
RMB |
US$ |
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Note 2(e) |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||||
Current liabilities Co of RMBmpan y |
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Short-term bank loans |
1 2 |
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Accounts payable |
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Contract liabilities |
||||||||||||||
Current portion of long-term bank loans |
12 | — | ||||||||||||
Accrued expenses and other liabilities |
11 | |||||||||||||
Deferred income |
||||||||||||||
Deferred government subsidies |
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Income taxes payable |
— |
|||||||||||||
Total current liabilities |
||||||||||||||
Non-current liabilitiesnon-current liabilities of the VIEs without recourse to the Co of RMBmpany |
||||||||||||||
Long-term bank loans |
12 | — | ||||||||||||
Mandatorily redeemable non-controlling interests |
13 | |||||||||||||
Deferred tax liabilities |
16 | |||||||||||||
Unrecognized tax benefit |
16 | |||||||||||||
Deferred income |
||||||||||||||
Deferred government subsidies |
— |
— |
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Total non-current liabilities |
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Total liabilities |
||||||||||||||
Commitments and Contingencies |
23 |
As of December 31, |
||||||||||||||
Note |
2020 |
2021 |
||||||||||||
RMB |
RMB |
US$ |
||||||||||||
Note 2(e) |
||||||||||||||
Shareholders’ equity: |
||||||||||||||
Class A ordinary shares (US$ |
19 | |||||||||||||
Class B ordinary shares (US$ |
19 | |||||||||||||
Additional paid-in capital |
||||||||||||||
Statutory reserves |
||||||||||||||
Accumulated deficit |
( |
) | ( |
) | ( |
) | ||||||||
Accumulated other comprehensive income (loss) |
19 |
( |
) | ( |
) | |||||||||
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|||||||||
Total EHang Holdings Limited shareholders’ equity |
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Non-controlling interests |
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Total shareholders’ equity |
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Total liabilities and shareholders’ equity |
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For the year ended December 31, |
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Note |
2019 |
2020 |
2021 |
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RMB |
RMB |
RMB |
US$ |
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Note 2(e) |
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Revenues: |
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Products |
14 | |||||||||||||||||||
Services |
14 | |||||||||||||||||||
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Total revenues |
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Cost of revenues: |
||||||||||||||||||||
Products |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Services |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
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Total cost of revenues |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
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Gross profit |
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Operating expenses: |
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Sales and marketing expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
General and administrative expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Research and development expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
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|
|||||||||||||
Total operating expenses |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Other operating income |
||||||||||||||||||||
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|||||||||||||
Operating loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
Other income (expense) |
||||||||||||||||||||
Interest and investment income |
||||||||||||||||||||
Interest expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Foreign exchange gain (loss) |
( |
) | ( |
) | ( |
) | ||||||||||||||
Other income |
||||||||||||||||||||
Other expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
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Total other (expense) income |
( |
) |
( |
) |
||||||||||||||||
Loss before income tax and (loss) income from equity method investment |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
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|
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|||||||||||||
Income tax expenses |
16 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
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|
|||||||||||||
Loss before (loss) income from equity method investment |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
(Loss) income from equity method investment |
( |
) | ( |
) | ( |
) | ||||||||||||||
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|
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|
|
|
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|
|||||||||||||
Net loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
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|
|
|
|
|
|
For the year ended December 31, |
||||||||||||||||||
Note |
2019 |
2020 |
2021 |
|||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||||
Note 2(e) |
||||||||||||||||||
Net loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||
Net loss (income) attributable to non-controlling interests |
( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net loss attributable to EHang Holdings Limited |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Modification of redeemable convertible preferred shares |
18 |
( |
) | — | — | — | ||||||||||||
Accretion to redemption value of redeemable convertible preferred shares |
18 |
( |
) | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net loss attributable to ordinary shareholders |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net loss per ordinary share: |
||||||||||||||||||
Basic and diluted |
20 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Net loss per ADS (2 ordinary shares equal to 1 ADS): |
||||||||||||||||||
Basic and diluted |
20 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Shares used in net loss per ordinary share computation (in thousands of shares): |
||||||||||||||||||
Basic and diluted |
20 | |||||||||||||||||
Other comprehensive income (loss) |
||||||||||||||||||
Foreign currency translation adjustments , net of nil tax |
19 |
( |
) | ( |
) | ( |
) | |||||||||||
Unrealized (realized) gains on available-for-sale investments, net of nil tax |
19 |
— | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total other comprehensive income (loss), net of tax |
( |
) | ( |
) | ( |
) | ||||||||||||
Comprehensive loss |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||
Comprehensive (income) loss attributable to non-controlling interests |
( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive loss attributable to EHang Holdings Limited |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||
|
|
|
|
|
|
|
|
Note |
Number of ordinary shares |
ordinary shares RMB |
Additional paid-in capital RMB |
Accumulated other comprehensive income RMB |
Statutory reserves RMB |
Accumulated deficit RMB |
EHang Holdings Limited shareholders’ (deficit) equity RMB |
Non- controlling interests RMB |
Total shareholders’ (deficit) equity RMB |
|||||||||||||||||||||||||||||
Balance as of December 31, 2018 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||
Issuance of ordinary shares for the vested restricted share units |
— | — | — | — | — | |||||||||||||||||||||||||||||||||
Conversion of convertible preferred shares to ordinary shares |
18 | — | — | — | — | |||||||||||||||||||||||||||||||||
Issuance of Class A ordinary shares in connection with initial public offering (“IPO”) |
— | — | — | — | ||||||||||||||||||||||||||||||||||
Share-based compensation |
15 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Modification of redeemable convertible preferred shares |
18 |
— | — | — | — | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Accretion to redemption value of redeemable convertible shares |
18 |
— | — | — | — | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Other comprehensive income |
19 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Appropriation of statutory reserves |
— | — | — | — | ( |
) | — | — | — | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance as of December 31, 2019 |
( |
) |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary shares |
Class B ordinary shares |
|||||||||||||||||||||||||||||||||||||||||||||||
Note |
Number of ordinary shares |
Amount RMB |
Number of ordinary shares |
Amount RMB |
Additional paid-in capital RMB |
Accumulated other comprehensive income RMB |
Statutory reserves RMB |
Accumulated deficit RMB |
Total shareholders’ equity RMB |
Non- controlling interests RMB |
Total shareholders’ equity RMB |
|||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A ordinary shares pursuant to underwriters’ exercise of over-allotment option |
19 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Class B ordinary Shares converted to Class A ordinary shares |
— | ( |
) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
Share-based compensation |
15 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Issuance of subsidiaries’ equity to non-controlling interest holders |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss |
19 | — | — | — | — | — | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Balance as of December 31, 2020 |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary shares |
Class B ordinary shares |
|||||||||||||||||||||||||||||||||||||||||||||
Note |
Number of ordinary shares |
Amount RMB |
Number of ordinary shares |
Amount RMB |
Additional paid-in capital RMB |
Accumulated other comprehensive income (loss) RMB |
Statutory reserves RMB |
Accumulated deficit RMB |
Total shareholders’ equity RMB |
Non- controlling interests RMB |
Total shareholders’ equity |
|||||||||||||||||||||||||||||||||||
Balance |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A ordinary shares pursuant to a private placement |
19 |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares to the depository bank |
19 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||
Issuance of ordinary shares for the vested restricted share units |
19 |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||
Settlement of vested restricted share units with shares held by the depositary bank |
19 |
( |
) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||
Class B ordinary shares converted to Class A ordinary shares |
19 | ( |
) | ( |
) | — |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||
Net loss |
— |
— |
— |
— |
— |
— |
— |
( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||
Share - based compensation |
15 | — |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||
Other comprehensive loss |
19 |
— |
— |
— |
— |
— |
( |
) | — |
— |
( |
) | — |
( |
) | |||||||||||||||||||||||||||||||
Appropriation of statutory reserve |
— |
— |
— |
— |
— |
— |
( |
) | — |
— |
— |
|||||||||||||||||||||||||||||||||||
Balance |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 (US$) |
2(e) |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, |
||||||||||||||||||||
Note |
2019 |
2020 |
2021 |
|||||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||
Note 2(e) |
||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||||||||||||||
Net loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||||||||||||||
Depreciation and amortization |
||||||||||||||||||||
Deferred income tax (benefit) expense |
16 | ( |
) | — | — | |||||||||||||||
Share-based compensation |
15 | |||||||||||||||||||
Loss on disposal of intangible assets |
— | — | — | |||||||||||||||||
Loss on disposal of property and equipment |
2(m) |
|||||||||||||||||||
Gain on disposal of long-term investment |
— | ( |
) | — | — | |||||||||||||||
Interest and investment income |
4 |
— | — | ( |
) | ( |
) | |||||||||||||
Loss from an equity method investment |
||||||||||||||||||||
Impairment of long-lived assets |
2(o) |
— | — | |||||||||||||||||
Allowance for doubtful accounts |
||||||||||||||||||||
Foreign exchange loss |
— |
— |
||||||||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||||||
Accounts receivable |
( |
) | ( |
) | ||||||||||||||||
Unbilled revenue |
14 |
( |
) |
|||||||||||||||||
Cost and estimated earnings in excess of billings |
— | — | ||||||||||||||||||
Inventories |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Prepayments and other current assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Amounts due from a related party |
17 | — | ( |
) | ||||||||||||||||
Other non-current assets |
( |
) | — | — | ||||||||||||||||
Accounts payable |
( |
) | ( |
) | ||||||||||||||||
Contract liabilities |
( |
) | ||||||||||||||||||
Accrued expenses and other liabilities |
||||||||||||||||||||
Deferred income |
— | ( |
) | ( |
) | |||||||||||||||
Deferred government subsidies |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Income taxes payable |
( |
) | ||||||||||||||||||
Unrecognized tax benefits |
1 6 |
( |
) | — | — | |||||||||||||||
Net cash flow used in operating activities |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||||||||||||||
Deconsolidation of a subsidiary |
— | ( |
) | — | — | |||||||||||||||
Purchase of short-term investments |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Proceeds from maturities of short-term investments |
||||||||||||||||||||
Purchase of property and equipment |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Proceeds from disposal of property and equipment |
— | — | — | |||||||||||||||||
Acquisition of intangible assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Cash paid for long-term investment |
— | — | ( |
) | ( |
) | ||||||||||||||
Loans to third parties |
— | ( |
) | — | — | |||||||||||||||
Repayment of loan to a third party |
9 | — | — | — | ||||||||||||||||
Loan to a related party |
17 | ( |
) | — | — | — | ||||||||||||||
Repayment of loan to a related party |
17 |
— | — | — | ||||||||||||||||
Net cash flow used in investing activities |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||
For the years ended December 31, |
||||||||||||||||||||
Note |
2019 |
2020 |
2021 |
|||||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||
Note 2(e) |
||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||||||||||||||
Proceeds from short-term bank loans |
1 2 |
|||||||||||||||||||
Repayment of short-term bank loans |
1 2 |
( |
) |
( |
) | ( |
) | ( |
) | |||||||||||
Proceeds from long-term bank loans |
12 | — | — | |||||||||||||||||
Proceeds from loans from third parties |
1 1 |
— | — | — | ||||||||||||||||
Repayment of loans from third parties |
1 1 |
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Proceeds from mandatorily redeemable non-controlling interests of a subsidiary |
13 | — | — | — | ||||||||||||||||
Proceeds from issuance of a subsidiary’s equity to non-controlling interest holders |
— | — | — | |||||||||||||||||
Shares issued upon vesting of restricted share units |
— | — | ||||||||||||||||||
Proceeds from IPO, net of issuance costs |
— | — | — | |||||||||||||||||
Proceeds from issuance of Class A ordinary shares, net of issuance costs |
— | |||||||||||||||||||
Proceeds from issuance of Series C redeemable convertible preferred shares |
— | — | — | |||||||||||||||||
Payment of underwriters’ exercise of over-allotment option’s issuance costs |
— | ( |
) | — | — | |||||||||||||||
Payment of issuance costs for IPO |
— | ( |
) | — | — | |||||||||||||||
Net cash provided by financing activities |
||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
( |
) | ( |
) | ( |
) | ||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
( |
) | ||||||||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the year |
||||||||||||||||||||
Cash, cash equivalents and restricted cash at the end of the year |
||||||||||||||||||||
Supplemental disclosures of cash flow information: |
||||||||||||||||||||
Interest paid |
||||||||||||||||||||
Income taxes paid |
For the years ended December 31, |
||||||||||||||||||||
Note |
2019 |
2020 |
2021 |
|||||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||
Note 2(e) |
||||||||||||||||||||
Non-cash investing and financing activities: |
||||||||||||||||||||
Long-term loan from a third party settled by accounts receivable |
1 1 |
— |
— |
|||||||||||||||||
Purchase of property and equipment included in Accrued expenses and other liabilities |
— | |||||||||||||||||||
Issuance costs for Series C redeemable convertible preferred shares included in Accrued expenses and other liabilities |
— | — | ||||||||||||||||||
Issuance costs for IPO included in Accrued expenses and other liabilities |
— | — | ||||||||||||||||||
Unpaid issuance costs for issuance of Class A ordinary shares pursuant to underwriters’ exercise of overallotment option included in Accrued expenses and other liabilities |
— | — | — | |||||||||||||||||
Reconciliation of cash, cash equivalents and restricted cash: |
||||||||||||||||||||
Cash and cash equivalents |
||||||||||||||||||||
Restricted cash |
2 |
(g) |
— | |||||||||||||||||
Total cash, cash equivalents and restricted cash in the statements of cash flows |
||||||||||||||||||||
1. |
Organization and Basis of Presentation |
Entities Subsidiaries: |
Date of incorporation establishment |
Place of incorporation establishment |
Percentage of direct or indirect ownership |
Principal activities | ||||||||||
Direct |
Indirect |
|||||||||||||
Ehfly Technology Limited (“Ehfly”) |
ong Kong | % | ||||||||||||
EHang Intelligent Equipment (Guangzhou) Co., Ltd. (“EHang Intelligent” or the “WFOE”) |
RC | % | ||||||||||||
EHang Yunfu |
RC | % | ||||||||||||
Variable Interest Entity |
||||||||||||||
Guangzhou EHang Intelligent Technology Co., Ltd. (“EHang GZ” or the “VIE”) |
RC | % |
1. |
Organization and Basis of Presentation (Continued) |
Entities VIE’s Subsidiaries |
Date of incorporation establishment |
Place of incorporation establishment |
Percentage of direct or indirect ownership |
Principal activities | ||||||||||
Direct |
Indirect |
|||||||||||||
Guangdong . Aviation”) |
RC | %(a) |
(a) |
EHang GZ and EHang Intelligent hold |
1. |
Organization and Basis of Presentation (Continued) |
1. |
Organization and Basis of Presentation (Continued) |
1. |
Organization and Basis of Presentation (Continued) |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
ASSETS |
||||||||||||
Cash and cash equivalents |
||||||||||||
Restricted cash |
— | — | ||||||||||
Accounts receivable, net |
||||||||||||
Cost and estimated earnings in excess of billings |
— | — | ||||||||||
Inventories |
||||||||||||
Prepayments and other current assets |
||||||||||||
Amounts due from the Company’s subsidiaries |
||||||||||||
Amounts due from a related party |
— | — | ||||||||||
Property and equipment, net |
||||||||||||
Intangible assets, net |
||||||||||||
Other non-current assets |
||||||||||||
Total assets |
||||||||||||
LIABILITIES |
||||||||||||
Short-term bank loan |
— | — | ||||||||||
Accounts payable |
||||||||||||
Current portion of long-term bank loans |
— |
|||||||||||
Contract liabilities |
||||||||||||
Accrued expenses and current liabilities |
||||||||||||
Amounts due to the Company and its subsidiaries |
1. |
Organization and Basis of Presentation (Continued) |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Long-term bank loans |
— |
|||||||||||
Unrecognized tax benefit |
||||||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
||||||||||||
|
|
|
|
|
|
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Revenues |
||||||||||||||||
- Third-party revenue |
||||||||||||||||
- Inter-company revenue |
||||||||||||||||
Net profit (loss) |
( |
) | ( |
) | ||||||||||||
Net cash used in operating activities |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Net cash used in investing activities |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Net cash provided by financing activities |
— |
— |
||||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash |
( |
) |
( |
) |
2. |
Summary of Significant Accounting Policies |
(a) |
Basis of presentation |
(b) |
Principles of consolidation |
(c) |
Use of estimates |
(d) |
Foreign currency |
2. |
Summary of Significant Accounting Policies (Continued) |
(e) |
Convenience translation |
(f) |
Cash and cash equivalents |
(g) |
Restricted cash |
(h) |
Short-term investments |
(i) |
Accounts receivable and allowance for doubtful accounts |
2. |
Summary of Significant Accounting Policies (Continued) |
(j) |
Loans receivable and allowance for credit loss |
(k) |
Cost and estimated earnings in excess of billings |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Contracts costs incurred plus estimated earnings |
— | — | ||||||||||
Less: Progress billings |
( |
) | — | — | ||||||||
|
|
|
|
|
|
|||||||
— |
— |
|||||||||||
|
|
|
|
|
|
2. |
Summary of Significant Accounting Policies (Continued) |
(l) |
Inventories |
(m) |
Property and equipment, net |
Category |
Estimated useful life |
Residual value |
||||
Office equipment |
% | |||||
Machinery and electronic equipment |
% | |||||
Transportation equipment |
% | |||||
Leasehold improvements |
% |
(n) |
Intangible assets, net |
Category |
Estimated useful life | |
Software |
||
Patents and trademarks |
2. |
Summary of Significant Accounting Policies (Continued) |
(o) |
Impairment of long-lived assets other than goodwill |
(p) |
Long-term investments |
2. |
Summary of Significant Accounting Policies (Continued) |
(p) |
Long-term investments (Continued) |
(q) |
Fair value measurements of financial instruments |
2. |
Summary of Significant Accounting Policies (Continued) |
( r ) |
Revenue recognition |
2. |
Summary of Significant Accounting Policies (Continued) |
(r) |
Revenue recognition (Continued) |
2. |
Summary of Significant Accounting Policies (Continued) |
(r) |
Revenue recognition (Continued) |
(s) |
Cost of revenue |
(t) |
Product warranty liability |
2. |
Summary of Significant Accounting Policies (Continued) |
( u ) |
Advertising expenditures |
(v) |
General and administrative expenses |
( w ) |
Research and development expenses |
( x ) |
Leases |
2. |
Summary of Significant Accounting Policies (Continued) |
( y ) |
Government subsidies |
( z ) |
Income taxes |
( aa ) |
Share-based compensation |
2. |
Summary of Significant Accounting Policies (Continued) |
( ab ) |
Employee benefit expenses |
(ac) |
Statutory reserve |
(ad) |
Comprehensive income (loss) |
(ae) |
Dividends |
2. |
Summary of Significant Accounting Policies (Continued) |
(af) |
Loss per share |
(ag) |
Modification of redeemable convertible preferred shares |
2. |
Summary of Significant Accounting Policies (Continued) |
(a h ) |
Segment reporting |
For the year ended December 31, |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
PRC |
% | % | % | |||||||||||||||||||||||||
East Asia |
— | — | % | % | ||||||||||||||||||||||||
Europe |
% | % | % | |||||||||||||||||||||||||
Other |
% | % |
% | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total net revenues |
% | % | % | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a i ) |
Development and purchase cooperative arrangement |
2. |
Summary of Significant Accounting Policies (Continued) |
(a i ) |
Collaborative arrangement (Continued) |
(a j ) |
Recent accounting pronouncements |
2. |
Summary of Significant Accounting Policies (Continued) |
(aj) |
Recent accounting pronouncements (Continued) |
3. |
Concentration of Risks |
(a) |
Concentration of credit risk |
3. |
Concentration of Risks (Continued) |
( b ) |
Business supplier risk |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Supplier |
||||||||||||
A |
||||||||||||
B |
* |
|||||||||||
C |
* |
* | less than 10% of total purchase of materials of the Group. |
( c ) |
Customer risk |
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Customer |
||||||||||||||||
A |
* | * | ||||||||||||||
B |
* | * | ||||||||||||||
C |
* | |||||||||||||||
D |
* | * |
* | less than 10% of total revenues of the Group. |
3. |
Concentration of Risks ( C ontinued) |
( c ) |
Customer risk ( C ontinued) |
( d ) |
Currency convertibility risk |
( e ) |
Foreign currency exchange rate risk |
4. |
Short-term Investments |
As of December 31, 2020 |
||||||||||||||||||||||||||||
Cost or Amortized cost |
Gross unrecognized holding gains |
Gross unrecognized holding losses |
Gross unrealized gains |
Gross unrealized losses |
Fair value carrying amount |
|||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|
||||||||||||||||||||||
Trading debt investments |
— | — | — | |||||||||||||||||||||||||
Available-for-sale |
— | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
— |
— |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2021 |
||||||||||||||||||||||||||||
Cost or Amortized cost |
Gross unrecognized holding gains |
Gross unrecognized holding losses |
Gross unrealized gains |
Gross unrealized losses |
Fair value carrying amount |
|||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
||||||||||||||||||||||
Trading debt investments |
— | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
— | — | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. |
Short-term Investments (Continued) |
5. |
Accounts Receivable, Net |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Accounts receivable |
||||||||||||
Allowance for doubtful accounts |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Balance at the beginning of the year |
|
( |
) |
( |
) | ( |
) | ( |
) | |||||||
Additional provision charged to expense |
|
( |
) |
( |
) | ( |
) | ( |
) | |||||||
Foreign currency translation |
|
( |
) |
( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Balance at the end of the year |
|
( |
) |
( |
) |
( |
) |
( |
) | |||||||
|
|
|
|
|
|
|
|
6. |
Inventories |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Raw materials |
||||||||||||
Work in progress |
||||||||||||
Finished goods |
||||||||||||
|
|
|
|
|
|
|||||||
Inventories, total |
||||||||||||
Inventories provision |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
|
||||||||||||
|
|
|
|
|
|
7. |
Prepayments and Other Current Assets |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Deductible value-added tax input |
||||||||||||
Staff advances |
||||||||||||
Prepayment to suppliers |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
8. |
Property and Equipment, Net |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Office equipment |
||||||||||||
Machinery and electronic equipment |
||||||||||||
Transportation equipment |
||||||||||||
Leasehold improvements |
||||||||||||
Construction in progress |
||||||||||||
|
|
|
|
|
|
|||||||
Less: accumulated depreciation |
( |
) | ( |
) | ( |
) | ||||||
Less: accumulated impairment |
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
9. |
Long-Term Loans Receivable |
10. |
Long-term investments |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Equity method investments (a) |
— |
|||||||||||
Equity investments without readily determinable fair values (b) |
||||||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
(a) |
In June 2021, the Group and a third party investor entered into an investment agreement to establish an investee for establishing the 5G Intelligent Air Mobility Experience Center as well as local urban air mobility route planning and AAV operations, with total cash consideration of RMB |
(b) |
In 2017, the Group provided facilitating services to a third party to acquire a land use right from the Guangzhou City government. In exchange for such services, the Group received a cash consideration of RMB |
11. |
Accrued Expenses and Other Liabilities |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Payroll and welfare payables |
||||||||||||
Payables to suppliers |
||||||||||||
Payables for service fee |
||||||||||||
Other taxes payable |
||||||||||||
Product warranty liability |
||||||||||||
Consideration payable to an equity method investment (Note 10 (a)) |
— | |||||||||||
Accrued interests |
||||||||||||
Current portion of a long-term loan from a third party (Note a) |
— | — | ||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
For the year ended December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Balance as of the beginning of the year |
||||||||||||
Accruals during the year |
||||||||||||
Claims during the year |
( |
) | ( |
) | ( |
) | ||||||
Reversal during the year |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Product warranty liability |
||||||||||||
|
|
|
|
|
|
(a) |
On September 18, 2019, the Group borrowed a long-term loan from a third party with a principal of RMB |
12. |
Bank loans |
12. |
Bank loans (Continued) |
13. |
Mandatorily redeemable non-controlling interests |
14. |
Revenues |
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Revenues - Products |
||||||||||||||||
Air mobility solutions |
||||||||||||||||
Smart city management solutions |
||||||||||||||||
Aerial media solutions |
||||||||||||||||
Others |
||||||||||||||||
Subtotal-Products |
||||||||||||||||
Revenues - Services |
||||||||||||||||
Air mobility solutions |
||||||||||||||||
Aerial media solutions |
||||||||||||||||
Subtotal-Services |
||||||||||||||||
Total Revenues |
||||||||||||||||
14. |
Revenues (Continued) |
15. |
Share-based Compensation |
15. |
Share-based Compensation (Continued) |
Number of RSUs | Weighted average grant date fair value |
Weighted average remaining contractual life |
||||||||||
(US$) | (Years) | |||||||||||
Unvested, December 31, 2018 |
||||||||||||
Granted |
||||||||||||
Vested |
( |
) | ||||||||||
Forfeited |
||||||||||||
Unvested, December 31, 2019 |
||||||||||||
Granted |
||||||||||||
Vested |
( |
) | ||||||||||
Forfeited |
||||||||||||
Unvested, December 31, 2020 |
||||||||||||
Granted |
||||||||||||
Vested |
( |
) | ||||||||||
Forfeited |
||||||||||||
Unvested, December 31, 2021 |
||||||||||||
Expected to vest as of December 31, 2021 |
||||||||||||
Number of share options |
Weighted average grant date fair value |
Weighted average exercise price |
||||||||||
(US$) |
(US$) |
|||||||||||
Outstanding as of January 1 and December 31, 2021 |
||||||||||||
Vested and expected to vest as of December 31, 2021 |
||||||||||||
Exercisable as of December 31, 2021 |
||||||||||||
15. |
Share-based Compensation (Continued) |
For the years ended December 31, 2020 and 2021 |
||||
Term in years |
||||
Volatility |
% | |||
Discount rate |
% | |||
Fair value per ordinary share |
US$ |
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Cost of revenues |
— | — | ||||||||||||||
Sales and marketing expenses |
||||||||||||||||
General and administrative expenses |
||||||||||||||||
Research and development expenses |
||||||||||||||||
16. |
Income Taxes |
16. |
Income Taxes (Continued) |
16. |
Income Taxes (Continued) |
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
PRC |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Non-PRC |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
( |
) |
( |
) |
( |
) |
( |
) | |||||||||
For the year ended December 31, |
|||||||||||||||||
2019 |
2020 |
2021 |
|||||||||||||||
RMB |
RMB |
RMB |
US$ |
||||||||||||||
Income tax expen ses (benefits) applicable to PRC operations |
|||||||||||||||||
Current income tax expenses |
|||||||||||||||||
Deferred income tax (benefits) expenses |
( |
) | |||||||||||||||
Subtotal income tax expenses applicable to PRC operations |
|||||||||||||||||
Income tax expenses applicable to Non-PRC operations |
|||||||||||||||||
Current income tax expenses |
|||||||||||||||||
Subtotal income tax expenses applicable to Non-PRC operations |
|||||||||||||||||
Total income tax expenses |
|||||||||||||||||
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Loss before income tax expense |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
PRC statutory tax rate |
% |
% |
% |
% | ||||||||||||
Income tax benefits at PRC statutory tax rate of 25% |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Effect of different tax rates in different jurisdictions |
||||||||||||||||
Non-deductible expenses |
||||||||||||||||
Additional deduction for qualified R&D expenses |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Effect on adoption of preferential tax rate |
( |
) |
( |
) |
||||||||||||
Changes in tax rate in measurement of deferred tax |
||||||||||||||||
Statutory expense |
( |
) |
( |
) |
||||||||||||
Others |
( |
) |
||||||||||||||
Change in valuation allowance |
||||||||||||||||
Income tax expenses |
||||||||||||||||
Effect of preferential tax rate inside the PRC on basic and dilutive loss per share |
||||||||||||||||
16. |
Income Taxes (Continued) |
As of December 31, |
||||||||||||
2020 |
2021 |
|||||||||||
RMB |
RMB |
US$ |
||||||||||
Non-current deferred tax assets |
||||||||||||
Inventory provision |
||||||||||||
Welfare payables |
||||||||||||
Accrued expenses and other liabilities |
||||||||||||
Allowance for doubtful accounts |
||||||||||||
Deferred government subsidies |
||||||||||||
Intangible assets |
— | |||||||||||
Unrealized loss on long-term investment |
— | |||||||||||
Unrealized profit arising from elimination of inter-company transactions |
||||||||||||
Tax losses |
||||||||||||
Less: valuation allowance |
( |
) | ( |
) | ( |
) | ||||||
Deferred tax assets, net |
— | — | — | |||||||||
Non-current deferred tax liabilities |
||||||||||||
Unrealized gain on long-term investment |
||||||||||||
Deferred tax liabilities |
||||||||||||
16. |
Income Taxes (Continued) |
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Balance at the beginning of the year |
|
|
( |
) |
( |
) | ( |
) | ( |
) | ||||||
Additions based on tax positions related to the current year |
|
|
( |
) |
( |
) | — | — | ||||||||
Reductions for tax positions of prior years |
|
|
— |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Balance at the end of the year |
|
|
( |
) |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|
|
17. |
Related Party Transactions |
Name of Entity or Individual |
Relationship with the Company | |
Mr. Huazhi Hu |
Principal Shareholder of the Company, Chairman of the Board and Chief Executive Officer | |
Guangzhou Yitong Zhihang Technology Co., Ltd. |
A company over which the Group has significant influence |
(1) |
Transaction with related parties: |
(2) |
Amount due from a related party: |
(3) |
Guarantee received for borrowings: |
18. |
Preferred Shares |
Name |
Issuance Date |
Original Issuance Price per Share |
Number of Shares |
|||||||||
Series Seed 1 preferred shares |
$ | |||||||||||
Series Seed 2 preferred shares |
$ | |||||||||||
Series Seed 3 preferred shares |
$ | |||||||||||
Series A preferred shares |
$ | |||||||||||
Series A preferred shares |
$ | |||||||||||
Series B preferred shares |
$ | |||||||||||
Series B preferred shares |
$ | |||||||||||
Series B preferred shares |
$ | |||||||||||
Series C preferred shares |
$ | |||||||||||
Series C preferred shares |
$ | |||||||||||
Series C preferred shares |
$ | |||||||||||
Series C preferred shares |
$ |
18. |
Preferred Shares (Continued) |
18. |
Preferred Shares (Continued) |
• | The holders of Series C preferred shares are entitled to receive an amount equal to |
• | After the full Series C Preferred Share Preference Amount on all Series C preferred shares then outstanding has been paid, the holders of Series B preferred shares are entitled to receive an amount equal to |
• | After the full Series B Preferred Share Preference Amount on all Series B preferred shares then outstanding has been paid, the holders of Series A preferred shares are entitled to receive an amount equal to |
• | After the full Series A Preferred Share Preference Amount on all Series A preferred shares then outstanding has been paid, the holders of Series Seed preferred shares are entitled to receive an amount equal to |
• | After the full Series Seed Preferred Share Preference Amount on all Series Seed preferred shares then outstanding has been paid, any remaining funds or assets of the Company legally available for distribution to shareholders shall be distributed on a pro rata, pari passu basis among the holders of the then outstanding Redeemable Convertible Preferred Shares on an as-converted basis, together with the holders of the then outstanding ordinary shares. |
18. |
Preferred Shares (Continued) |
18. |
Preferred Shares (Continued) |
Mezzanine equity |
Series Seed preferred shares |
Series A preferred shares |
Series B preferred shares |
Series C preferred shares |
Total |
|||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
||||||||||||||||
Balance as of December 31, 2018 |
||||||||||||||||||||
Issuance |
||||||||||||||||||||
Modification of preferred shares |
||||||||||||||||||||
Accretion to redemption value |
||||||||||||||||||||
Conversion of Preferred Shares to ordinary shares (Note 19) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Balance as of December 31, 2019 |
||||||||||||||||||||
19. |
Shareholders’ Equity |
Foreign currency translation adjustment |
Unrealized (realized) gains on available- for-sales investments |
Total |
||||||||||
RMB |
RMB |
RMB |
||||||||||
Balance as of January 1, 2019 |
||||||||||||
Other comprehensive income |
||||||||||||
Balance as of December 31, 2019 |
||||||||||||
Other comprehensive (loss) income |
( |
) | ( |
) | ||||||||
Balance as of December 31, 2020 |
||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ( |
) | ||||||
Balance as of December 31, 2021 |
( |
) |
( |
) | ||||||||
Balance as of December 31, 2021 (US$) |
( |
) |
( |
) | ||||||||
20. |
Loss Per Share |
For the year ended December 31, |
||||||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||||||||||||||||||
Class A |
Class B |
Class A |
Class B |
Class A |
Class B |
|||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
US$ |
RMB |
US$ |
|||||||||||||||||||||||||
Numerator: |
||||||||||||||||||||||||||||||||
Net loss attributable to EHang Holdings Limited |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||
Modification of Redeemable Convertible Preferred Shares |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Accretion to redemption value of Redeemable Convertible Preferred Shares |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Net loss attributable to ordinary shareholders |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||
Denominator (in thousands of shares): |
||||||||||||||||||||||||||||||||
Weighted-average number of ordinary shares outstanding – basic and diluted |
||||||||||||||||||||||||||||||||
Loss per share – basic and diluted |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||
21. |
Restricted Net Assets |
21. |
Restricted Net Assets (Continued) |
22. |
Fair Value Measurements |
Fair Value Measurements as of December 31, 2021 using |
||||||||||||||||||||
Quoted Price in Active Market for Identical Assets |
Significant Other Observable Inputs |
Unobservable Inputs |
Total |
|||||||||||||||||
(Level 1) |
(Level 2) |
(Level 3) |
fair value |
|||||||||||||||||
RMB |
RMB |
RMB |
RMB |
US$ |
||||||||||||||||
Fair value measurement |
||||||||||||||||||||
Short-term investments |
||||||||||||||||||||
Trading debt investments |
||||||||||||||||||||
Total asset measured at fair value |
||||||||||||||||||||
Fair Value Measurements as of December 31, 2020 using | ||||||||||||||||
Quoted Price in Active Market for Identical Assets |
Significant Other Observable Inputs |
Unobservable Inputs |
Total | |||||||||||||
(Level 1) |
(Level 2) |
(Level 3) |
fair value | |||||||||||||
RMB |
RMB |
RMB |
RMB |
|||||||||||||
Fair value measurement |
||||||||||||||||
Short-term investments |
||||||||||||||||
Trading debt investments |
||||||||||||||||
Available-for-sale |
||||||||||||||||
Total asset measured at fair value |
||||||||||||||||
22. |
Fair Value Measurements (Continued) |
23. |
Commitments and Contingencies |
(a) |
Operating lease commitments |
RMB |
US$ |
|||||||
2022 |
||||||||
2023 |
||||||||
2024 |
||||||||
2025 |
||||||||
2026 |
||||||||
2027 and thereafter |
||||||||
Total |
||||||||
(b) |
Capital commitments |
RMB |
US$ |
|||||||
2022 |
||||||||
2023 |
||||||||
2024 |
||||||||
Total |
||||||||
23. |
Commitments and Contingencies (Continued) |
(c) |
Contingencies |
Exhibit 8.1
List of Principal Subsidiaries and Consolidated Affiliated Entities
Principal Subsidiaries |
Place of Incorporation | |
Ehfly Technology Limited | Hong Kong | |
EHang Intelligent Equipment (Guangzhou) Co., Ltd. | PRC | |
Yunfu EHang Intelligent Technology Limited | PRC | |
Consolidated Affiliated Entities |
Place of Incorporation | |
Guangzhou EHang Intelligent Technology Co., Ltd. | PRC | |
Guangdong EHang General Aviation Co., Ltd. | PRC |
Exhibit 12.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO
EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a),
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Huazhi Hu, certify that:
1. | I have reviewed this annual report on Form 20-F of EHang Holdings Limited; |
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4. The companys other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the companys disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the companys internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the companys internal control over financial reporting; and
5. The companys other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the companys auditors and the audit committee of the companys board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the companys ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the companys internal control over financial reporting.
Date: April 28, 2022
By: | /s/ Huazhi Hu | |
Name: | Huazhi Hu | |
Title: | Chief Executive Officer |
Exhibit 12.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO
EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a),
AS ADOPTED PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Richard Jian Liu, certify that:
1. I have reviewed this annual report on Form 20-F of EHang Holdings Limited;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4. The companys other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the companys disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the companys internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the companys internal control over financial reporting; and
5. The companys other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the companys auditors and the audit committee of the companys board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the companys ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the companys internal control over financial reporting.
Date: April 28, 2022
By: | /s/ Richard Jian Liu | |
Name: | Richard Jian Liu | |
Title: | Chief Financial Officer |
Exhibit 13.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report of EHang Holdings Limited (the Company) on Form 20-F for the year ended December 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Huazhi Hu, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: April 28, 2022
By: | /s/ Huazhi Hu | |
Name: | Huazhi Hu | |
Title: | Chief Executive Officer |
Exhibit 13.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report of EHang Holdings Limited (the Company) on Form 20-F for the year ended December 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Richard Jian Liu, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: April 28, 2022
By: | /s/ Richard Jian Liu | |
Name: | Richard Jian Liu | |
Title: | Chief Financial Officer |
Exhibit 15.1
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the Registration Statement (Form S-8 File No. 333-237769) pertaining to the 2015 Share Incentive Plan and 2019 Share Incentive Plan of EHang Holdings Limited of our report dated June 15, 2021 with respect to the consolidated financial statements of EHang Holdings Limited included in this Annual Report (Form 20-F) for the year ended December 31, 2021.
/s/ Ernst & Young Hua Ming LLP |
Shanghai, the Peoples Republic of China April 28, 2022 |
Exhibit 15.2
Consent of Independent Registered Public Accounting Firm
We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 333-237769) of EHang Holdings Limited of our report dated April 28, 2022 relating to the financial statements, which appears in this Form 20-F.
/s/ PricewaterhouseCoopers Zhong Tian LLP |
Guangzhou, the Peoples Republic of China April 28, 2022 |
Exhibit 15.3
Date: April 28, 2022
EHang Holdings Limited
Building C, Yixiang Technology Park
No. 72 Nanxiang Second Road, Huangpu District
Guangzhou, 510700
The Peoples Republic of China
Dear Sir/Madam:
We hereby consent to the reference to our firm and the summary of our opinion under the headings, Item 3. Key InformationOur Corporate Structure and Its Related Risks, Item 3. Key InformationD. Risk FactorsRisks Relating to Our Corporate Structure, Item 4. Information on the CompanyC. Organizational Structure, Item 4. Information on the CompanyB. Business OverviewPRC Regulation and Item 10. Additional InformationE. TaxationPRC Taxation in EHang Holdings Limiteds Annual Report on Form 20-F for the year ended December 31, 2021 (the Annual Report), which will be filed with the Securities and Exchange Commission (the SEC) in the month of April 2022, and further consent to the incorporation by reference of the summary of our opinion under these headings into the Registration Statement on Form S-8 (File No. 333-237769) pertaining to EHang Holdings Limiteds 2015 Share Incentive Plan and 2019 Share Incentive Plan. We also consent to the filing of this consent letter with the SEC as an exhibit to the Annual Report.
In giving such consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, or under the Securities Exchange Act of 1934, in each case, as amended, or the regulations promulgated thereunder.
Yours Sincerely, |
/s/ AllBright Law Offices |
AllBright Law Offices |
Exhibit 15.4
Our ref VSL/752797-000001/22158133v2
EHang Holdings Limited
Building C, Yixiang Technology Park
No.72 Nanxiang Second Road, Huangpu District
Guangzhou, 510700
Peoples Republic of China
April 28, 2022
Dear Sirs
EHang Holdings Limited
We have acted as legal advisers as to the laws of the Cayman Islands to EHang Holdings Limited, an exempted company incorporated in the Cayman Islands with limited liability (the Company), in connection with the filing by the Company with the United States Securities and Exchange Commission (the SEC) of an annual report on Form 20-F for the year ended 31 December 2021 (the Annual Report).
We hereby consent
to the reference to our firm under the heading Item 10. Additional InformationE. TaxationCayman Islands Taxation in the Annual Report, and further consent to the incorporation by reference into the Registration Statement on
Form S-8 (File No. 333-237769) filed on
21 April 2020 of the summary of our opinion under the heading Item 10. Additional InformationE.
TaxationCayman Islands Taxation in the Annual Report.
We consent to the filing with the SEC of this consent letter as an exhibit to the Annual Report. In giving such consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, or under the Securities Exchange Act of 1934, in each case, as amended, or the regulations promulgated thereunder.
Yours faithfully, |
/s/ Maples and Calder (Hong Kong) LLP |
Maples and Calder (Hong Kong) LLP |
Exhibit 16.1
April 28, 2022
Securities and Exchange Commission
100 F Street, N.E.
Washington, DC 20549
Ladies and Gentlemen:
We have read the statements made by EHang Holdings Limited in Item 16F in its Form 20-F dated April 28, 2022 and are in agreement with the statements contained in the first to fifth paragraphs of Item 16F with reference to us therein. We have no basis to agree or disagree with other statements of the registrant contained therein.
Regarding the registrants statement concerning the material weaknesses, included in the fourth paragraph of Item 16F, we had considered such matter in determining the nature, timing and extent of procedures performed in our audit of the registrants 2019 and 2020 financial statements, respectively.
/s/ Ernst & Young Hua Ming LLP |
Shanghai, the Peoples Republic of China |