管理層發言
Good day. Hello, everyone. Thank you all for joining us on today's conference call to discuss the company's financial results for the first quarter of 2025. The earnings release is available on the company's IR website. Please note the conference call is being recorded and the audio replay will be posted on the company's IR website. On the call today, we have Mr. Huazhi Hu, our Founder, Chairman and Chief Executive Officer; Mr. Zhao Wang, Chief Operating Officer; and Mr. Conor Yang, Chief Financial Officer. Before we continue, please note that today's discussion will contain forward-looking statements pursuant to the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding this and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Also, please note that all numbers presented are in RMB and are for the first quarter of 2025 unless stated otherwise. With that, let me now turn the call over to our CEO Mr. Huazhi Hu. Please go ahead, Mr. Hu.
Hello, everyone, and thank you for joining our earnings conference call today. We started 2025 with another major regulatory breakthrough. At the end of March, EHang General Aviation, our wholly owned subsidiary, and Heyi Aviation, an operator of our client in Hefei, were granted the first batch of Air Operator Certificates for human-carrying pilotless aerial vehicles by the Civil Aviation Administration of China. This approval officially takes us from product certification into the era of commercial flight operations. It marks the beginning of commercial eVTOL services in China's low-altitude economy, allowing the general public to experience eVTOL flights for the first time. The issuance of the OC signifies that EHang has achieved full lifecycle capabilities of eVTOL, from design and R&D to manufacturing, airworthiness certification, and now operational readiness. This completes a fully integrated and commercial loop.
At the same time, we are gradually contributing to the development of industry innovation standards in areas like infrastructure, personal training, and operational safety. Step by step, we are advancing toward our long-term strategic goal, evolving from the manufacture of autonomous aerial vehicles into a comprehensive Urban Air Mobility platform operator, delivering a one-stop solution to our clients that covers aircraft hardware, software, operational services, and standard systems. The first OC represents the most critical milestone for enabling commercial operations. With this issuance, EHang has officially entered the commercialization phase, a stage that brings both opportunity and great responsibility. Aviation has always progressed with caution and discipline. And as a pioneer in this emerging field, EHang remains deeply committed to the principle of safety first. We're taking a deliberate and phased approach.
On one hand, we continue to accumulate flight test data and provide strong support to our operator partners, such as safe operation guidance and maintenance. On the other hand, we're adopting a phased strategy: first isolation and then integration, first tourism then transportation, and first pilot projects then expansion. We're not rushing to scale or chasing short-term gains. Instead, our early efforts are focused on pilot cities where our clients are to accumulate operational experience and build scalable models to gradually lift OC operational restrictions. For example, we started with clearly defined low-risk scenarios such as sightseeing flights before expanding into more complex Urban Air Mobility services like Urban Air Commuting. This will pave the way for the gradual realization and scaling of commercial operations for autonomous human-carrying aircraft. We believe this is the right path forward for our customers, for our partners, and for the healthy development of the entire Urban Air Mobility industry.
Turning to product development. Our next-generation long-range pilotless human-carrying eVTOL, the VT35, has completed the final assembly of its first unit based on the VT30 prototype. The VT35 features significant upgrades, including the industry's most stable and safe autonomous flight control and propulsion systems. With our proprietary autonomous platform and command and control system technologies, the VT35 delivers disruptive innovations in both design and reliability. We believe it will become an outstanding model among medium and long-range eVTOL products. It is now undergoing full-scale flight testing. The CAAC has officially accepted our type certification application for the VT35, and the aircraft is already being used for airworthiness validation testing. Leveraging our EH216-S certification experience, we expect it to help accelerate the VT35 certification process. We plan to unveil the VT35 in the third quarter of this year.
In the international market, we believe the VT35, backed by China's industrial strength and advanced manufacturing, will offer a clear cost and competitive advantage over other long-range eVTOL products globally. On the innovation front, R&D has always been the driving force behind EHang. We currently hold over 700 issued and pending patent assets worldwide. Nearly half of our team is dedicated to R&D, and many of our top engineers and technical leads, like me, come from Tsinghua University. Their strong academic foundation in aerospace, automation, and intelligent manufacturing, along with nearly 10 years' experience at EHang, have positioned us as a global leader in autonomous flight systems and technologies. In February this year, the Aerospace and Intelligent Manufacturing Committee of the Tsinghua Alumni Association was officially launched at EHang's headquarters in Guangzhou. We're honored to serve as the Chair Member and myself as the Chairman.
Through this committee, we aim to build an innovative ecosystem for the low-altitude economy in the Greater Bay Area, combining EHang's leadership in autonomous aviation with Tsinghua University's deep strengths in research and talent. Our shared goal is to drive continuous R&D and achieve breakthroughs in next-generation pilotless aerial vehicle technologies. In March, we also signed an MoU with the University of Zaragoza in Spain and Guangzhou University to establish a joint low-altitude flight safety lab. With their support, we are deepening our cooperation with the European Union Aviation Safety Agency and advancing joint R&D and talent development in Europe. With continuous innovation and differentiated core competitiveness, we will remain a global leader in the pilotless eVTOL industry and continue to shape the future of Urban Air Mobility. With that, I'll hand it over to our Chief Operating Officer, Mr. Wang, to walk through our operational highlights. Thank you.
Thank you, Mr. Hu. In the first quarter, we delivered 11 units of our EH216-S and generated revenues of RMB26.1 million. The low delivery volume was primarily due to three factors. First, seasonal slowdown. The winter months and the Chinese New Year holiday typically make Q1 an off-season for product deliveries. Second, after the holiday, many clients, especially those involving government procurement, required time for their internal budgeting and approval processes. Third, as the issuance of an OC was approaching, some customers chose to place their orders after the OC was granted, meaning those orders were not reflected in Q1 results. At the same time, in Q1 2025, we kicked off the expansion and upgrade of our Yunfu production base. The size of our main factory has now doubled. And once fully operational, it will support an annual production capacity of up to 1,000 units. In parallel, we're also building additional assembly facilities in Hefei, Anhui Province, and Weihai, Shandong Province.
These multiple sites will ensure we have ample production capacity to fulfill orders in the future while also providing a supply of spare parts and consumables for the aircraft in operations. On March 28th, two operators of the EH216-S and relevant services were officially granted their OCs. This marks a significant milestone for both EHang and the industry as it formally allows autonomous human-carrying aircraft to begin commercial operations in China. It also demonstrates strong recognition and validation of our EH216-S from both the CAAC and the market. With the commercial operations now underway, we expect flight activities to ramp-up significantly since the second quarter. The decline in Q1 performance was only temporary. Underlying demand remains robust with procurement and deliveries simply deferred to later quarters. We are pleased to see that following the issuance of the OCs, consumer inquiries and order volumes have picked up significantly.
We expect a strong rebound in the second quarter. Several major orders were discussed in Q1 with customers from provinces such as Jilin, Jiangxi, Guizhou, Hainan, Anhui, and Guangdong in China, and these are now moving forward, beginning to convert into deliveries starting in the second quarter in phased batches. On the operations side, following the CAAC's principle of safety first, EHang and our operator partners are implementing enhanced standards to ensure safe and compliant flight operations. The two certified operators, Heyi Aviation and EHang General Aviation, are taking a phased three-step rollout starting with internal trial operations followed by human-carrying trial operations and automatically transitioning into routine human-carrying commercial services. This approach ensures a safe, stable, and seamless progression toward full-scale commercial operations. Currently, both operators have entered the human-carrying trial phase at designated eVTOL cities in Guangzhou's Suigang Pier and Hefei's Luogang Park.
These flights are being offered initially to internal staff and a selected group of invited passengers via ticketing platforms. Once sufficient experience and safety data have been accumulated, the operators will begin offering flight tickets sales to the public. At the same time, we're actively laying groundwork for scaled commercial operations by enhancing our customer service infrastructure. This includes providing standardized and scalable flight route planning, modular and customized vertiport designs, and a systematic training program for operational and maintenance personnel. These efforts are aimed at helping more customers prepare for their OC applications. In Q1, we supported a customer in Shanghai in establishing an eVTOL operation center at Longhua Airport on the Xuhui Riverside and successfully completed the first EH216-S flight in the city. This also marked the start of routine sightseeing flights along the Huangpu River in Shanghai.
In Wenchang, Zhejiang Province, the world's largest UAM Center for eVTOL Exploration Sales and Operations was established. Meanwhile, in Shenzhen's Luohu District, our client has launched a UAM demonstration and experience center. This facility features the world's first fully automated multilevel smart eVTOL Vertiports, setting a new benchmark for urban low-altitude infrastructure. Additionally, in collaboration with the China Communications Information and Technology Group, we are building a multilevel urban transportation hub in Nalate, Xinjiang. These are examples of how the low-altitude economy will diversify its operational models and shape a more vibrant future-oriented way of lifestyle. On the industrial collaboration front, in February, we entered into a strategic partnership with JAC Motors and Guoxian Holdings to jointly develop a next-generation eVTOL manufacturing base in Hefei.
More recently, we expanded our partnership with CCIT to include CCCC-FHDI Engineering Company, forming a trilateral collaboration in three key areas. First, we're focusing on delivering specialized low-attitude tourism routes, smart inner-city transportation corridors, and emergency response networks. This includes creating unique transport systems such as themed low-latitude tourism experiences and aerial canal logistics pathways. Second, we are jointly building a multidimensional infrastructure network covering aerospace management, flight route planning, and deployment of digital base stations. Third, we're jointly expanding into international markets across Southeast Asia, Africa, and South Asia to develop integrated land, air, and water transportation solutions. Our goal is to build a globally connected low-altitude economy ecosystem, promote the adoption of Chinese standards worldwide, and bring safe intelligent air mobility to more regions across the world.
At the same time, we're establishing low-altitude aircraft testing sites across multiple regions to evaluate performance under extreme conditions, such as high altitude, high temperature, high salinity, low temperature, and severe weather conditions. Continuous testing and refinement will help enhance the resilience and safety of our aircraft. In Guangzhou, we are working closely with government authorities and construction partners to transform the area surrounding our new headquarters into an aerospace industry hub, promoting industrial clustering, accelerating the deployment of standardized infrastructure, and promoting the growth of the low-altitude economy. Currently, the construction is already underway. In addition, we're also actively expanding our businesses into other applications such as logistics and emergency rescue. Our logistics autonomous aerial vehicle has already completed multi-round trip flights between Guangzhou and Zhuhai, covering distances of up to 200 kilometers.
With the upcoming launch of our VT35 series, we expect it to further enhance our long-range, high-efficiency logistics capabilities. Emergency rescue is another major focus area. The growing use of UAVs offers new solutions for high-rise firefighting, forest firefighting, search and rescue, and medical transport. EHang has developed a new generation of specialized UAVs tailored for these use cases. These aircraft have already been used in multiple emergency drills and have drawn strong interest from China's Ministry of Emergency Management and National Firefighting Authorities. These products have already received initial purchase interest. As these products near finalization, we expect them to begin generating sales later this year and contributing to our revenues. In addition to advancing low-altitude products, EHang is exploring collaborations with the General Aviation sector. We've launched pilot initiatives through different approaches for integrated trial operations of low-altitude aircraft in General Aviation airports in Guangxi, Hezhou, Beijing Pinggu, Fangshan, and Hainan Wanning.
We're also planning additional projects in Anhui Hefei, Guangdong Guangzhou, and Hainan Lingao. As our operations in airports and the network expand in the future, we expect to unlock greater deployment potential for our full range of aircraft. As China's low-altitude economy continues to gain momentum, EHang, as a recognized industry leader, is attracting increasing interest from cities and enterprises nationwide. Our products' operational philosophy and unwavering commitment to safety are gaining broader recognition and acceptance across the market. In the first quarter, EHang was featured in over 19,000 domestic media reports, including coverage from national television networks, newspapers, and major online platforms, reaching an estimated 80 billion views. Internationally, we were mentioned more than 3,600 times across media outlets in the UK, France, Spain, the US, Japan, and other countries, generating a global reach of over 1.69 billion views.
EHang's products have been featured at a wide range of low-altitude economy expressions and forums, both in China and internationally. Our brand has earned strong recognition at home and abroad. Internationally, our global flight footprint continues to expand in the first quarter. Our EH216-S has successfully completed demo flights in Benidorm, Spain, and in Mexico. In Thailand, our local partners have started working with the National Air Traffic Control Authority to conduct preliminary route and site assessments in Phuket. Our operational team is already in place, aiming to launch commercial trial flights within Thailand's designated regulatory Sandbox in the near future. Looking ahead to the rest of 2025, we will continue advancing both operations and product sales with a clear focus on building diversified revenue streams. We are confident in our growth momentum over the next few quarters and remain fully committed to achieving our full-year revenue target of RMB900 million. Now I'll turn it over to our CFO, Conor, to walk us through the financial results. Thank you.
Hello, everyone. This is Conor. Before I go into the details, please note that all numbers presented are in RMB unless otherwise stated. A detailed analysis is available in our earnings press release on the IR site. Total revenues were RMB26.1 million in Q1 2025, a decrease compared with Q1 last year and Q4 2025. This change is primarily driven by a decreased sales volume of EH216 series products. As our COO mentioned earlier, although there was a short-term decline in performance in the first quarter, this doesn't affect the company's long-term growth trend. In fact, we have observed a significant improvement and growth in potential orders and deliveries in Q2, which keeps us confident in the company's future performance. Gross profit was RMB16.3 million in Q1 and gross margin improved to 62.4% compared with 61.9% in the same period of 2024 and 60.7% in Q4 2024. The increase in gross profit was mainly benefited from the higher average selling price of EH216 series products, indicating that our products have strong market competitiveness and pricing power.
Turning to expenses. Total operating expenses in Q1 were RMB110 million, a quarter-on-quarter decrease of 31.6%, mainly due to a significant reduction in employee compensation and share-based compensation expenses. Adjusted operating expenses, which exclude share-based compensation expenses, were RMB63.6 million in Q1, up 16.8% year-over-year and down 19.3% from the previous quarter. The year-on-year growth is due to the company's continuous expansion of key positions and recruitment of talents to support sustained business growth, leading to an increase in overall employee compensation expenses. Meanwhile, we continue to invest in R&D to maintain our technological leadership. The quarter-on-quarter decrease reflects our achievements in cost control and efficiency optimization. Adjusted net loss was RMB31.1 million in Q1, primarily driven by a decline in deliveries in the quarter. While this represents a decline compared with an adjusted net income of RMB36.4 million last quarter, we believe the impact is only temporary.
As deliveries recover and continue to grow in the coming quarters, we expect financial performance to gradually improve accordingly. The company still has sufficient capital reserves. As of March 31st, 2025, cash restricted deposits and short-term investments totaled RMB1.11 billion, giving us solid flexibility to support upcoming R&D investment, production scale-up, and commercial deployments. With the achievement of the important OC milestone in Q1 and the eVTOL commercial operations to be gradually launched, we are confident in our business growth throughout the year. As such, we are maintaining our annual revenue guidance of RMB900 million for the full year 2025. We believe that the market increasingly recognizes EHang's commercialization capabilities and the low-altitude economy industry continues to gain momentum. We are able to continuously create value for our shareholders over the long term. Thank you.
分析師問答
Full-year revenue guidance of RMB900 million unchanged. I was wondering, could you please give us an outlook in which quarter we could probably see a significant growth in both sales as well as deliveries? So just to give us an outlook on that. So that's the first question.
Q1 performance declined due to several factors. First, the seasonal impact from winter and the Chinese New Year holidays typically results in slower delivery periods in the first quarter. Second, as we enter the new fiscal year, customers need time to finalize their annual budgets, particularly for government procurement, which involves longer approval cycles. Third, some customers postponed their orders until after receiving OC certification, pushing these sales beyond Q1. However, after obtaining OC certification, our internal data shows improvements in both Q2 delivery volumes and sales. Large orders from customers in Jilin, Jiangxi, Guizhou, Hainan, Anhui, and Guangdong that were negotiated in Q1 will start converting into contracts and deliveries in batches beginning in Q2. Therefore, we are maintaining our full-year revenue guidance of RMB900 million unchanged. Thank you.
Thank you for your answer. I have a follow-up question. I've noticed that during the reporting period, two EH216-S operators, including one of your wholly owned subsidiaries, have received the Air OC from the CAAC, allowing for commercial operations. I was wondering how long it typically takes for an EH216-S owner to obtain the certificate. Additionally, how many more operators are expected to receive approval for commercial operations this year? I hope this will lead to increased deliveries and a larger operational fleet in the second half of the year. That's my second question. Thank you.
This is Wang Zhao. I will also address your second question. EHang General Aviation and Hefei Heyi are the first two operators in the country to obtain operating certificates for unmanned civilian aircraft. The issuance of these certificates clarifies the regulatory standards and framework, which should shorten the application timelines for future operators. Currently, many of our customers' operating companies are in the application process. Thank you.
Hi. Thank you for taking my question and congrats on the OC award. So my question is about the competition. We have seen some of your peers start to win orders recently. Most of them are with different designs like tiltrotor or like lift and cruise. But some of those have applied for TC like one or three years ago ahead of our VT35. And they might be granted maybe next year or so. So how should EHang stay competitive going forward, especially beyond the current multi-copter design?
Urban air mobility and intracity air transportation cater to different markets with unique needs. Urban operations demand smaller footprints, high-density networks, fast turnarounds, and cost efficiency, while intracity focuses on long range. These markets are not in direct competition; the real rivals are traditional ground transportation like cars for urban travel and high-speed options for intercity routes. Our EH216-S multi-copter, with its compact six-meter wingspan, is lightweight and requires minimal infrastructure for takeoff and landing, allowing for large-scale deployment in tourist and urban areas. In contrast, larger aircraft with wingspans over ten meters, such as tilt rotors and lift-and-cruise models, necessitate costly large-scale airport infrastructure, making them impractical for dense urban settings. Our economics are also favorable; the EH216-S is priced at only RMB2.39 million domestically, significantly lower than competitors' large aircraft, which exceed RMB10 million.
Our autonomous flight system reduces pilot training and employment costs. As we collect more operational data, our ongoing airworthiness programs will lead to considerable cost savings, enhancing our competitive edge. Additionally, we are capitalizing on our first-mover advantage by continuously advancing technology and product development. For the EH216-S, we are working on more efficient motors, fast-charging batteries, and solid-state battery solutions. Our VT35 is also progressing towards PC certification, and upon its launch, it will offer competitive pricing and advantages compared to other long-range eVTOL products. Thank you.
Huazhi Hu, thank you for the color. That's very helpful.
Thank you, management, for addressing my questions. I have three inquiries. Firstly, regarding your delivery, when can we expect to see sales growth? Will we achieve growth in the first half of the year? My second question pertains to the order guidance; can you provide some insights about the order guidance as of May? Lastly, when can we expect the operator to begin commercial operations, considering the infrastructure is nearly ready? These are my three questions.
This is Conor. I'll address your question on new order guidance. As I mentioned, our sales in Q1 were affected. However, due to seasonal factors and progress with OC certification, we view this as a temporary situation. We have already observed an uptick in our orders and client numbers in Q2, indicating strong service performance. Therefore, we are maintaining our full-year revenue guidance of RMB900 million. Furthermore, several large orders are in progress, and as we approach the finalization of contracts with our clients, we will share the details as we have done in the past. That's in response to your first question about new order guidance.
So this is Wang Zhao. I'll take your second question. The operator in Hefei has already started operations. However, we are taking a phased approach. In Phase 1, it is limited to internal employees and invited passengers, and employees can already book flight experiences through our ticketing platform. In Phase 2, we will open ticket sales to the general public.
Sorry, I was on mute. A couple of questions. First, when can we expect the formal commercial operation in Guangzhou and Hefei to commence? My second question is regarding the end customers who are obtaining OC. I've heard that around five operators are expected to receive OC certificates by the end of the year. Are there any updates on that?
This is Wang Zhao. I'll take your questions. Guangzhou and Hefei operators have begun trial operations following the OC certification. Safety is our top priority for the sustainable development of the low-altitude economy. As mentioned earlier, we are following our phased operational strategy; both operators at Guangzhou Suigang Terminal and Hefei Luogang Park have started manned trial operations, initially catering to internal employees and invited passengers through our booking platform. Once we gain enough operational experience, we will open public sales. Since operations have already started, formal inaugural ceremonies will not be held. As for the progress on OC applications from other clients, our customers with significant fleets are actively working on their OC applications. For example, our Wenchang customer has formed a professional team with our support and has submitted their application, which is currently under review by the East China Regional Administration. Thank you.
Thank you management for taking my question.
Hi, operator. Next question please. Thank you.
Thank you management for taking my question. With the current commercialization progress and the operational status after receiving the OC, I was wondering whether the company has conducted any preliminary assessment or survey. What is the daily revenue and also the passenger flow or traffic like? And how much revenue does that translate into on a daily basis?
This is Wang Zhao. I'll take your question. The two certified operators have begun trial operations, conducting regular daily flights to gather operational experience and data while testing our booking platform. As more customers acquire operating certificates starting from Q2, we expect to see a larger fleet and additional operators beginning their trial operations. We anticipate that the number of trial operations will increase to 1,000 flights, and we foresee this number growing even further as more customers obtain their operating certificates throughout the rest of the year. Thank you.
Thank you to the management for addressing my questions. I have two inquiries. First, can you update us on the progress of the airworthiness certification for the lift and cruise product? Second, what can you share about the expansion into overseas markets?
This is Wang Zhao. The assembly of the VT35 is complete. Building on the VT30, we've upgraded key components such as configuration, flight control, and propulsion systems, resulting in a design that is significantly improved, with more reliable flight performance and a smaller size. We plan to officially launch the EHang VT35 series in the third quarter of this year. Currently, the VT35 is undergoing comprehensive flight testing, and the China Aviation and Administration has formally accepted our application for the type certificate. Based on our successful certification experience with the EH216-S, we anticipate an expedited certification process for the VT35. In response to your question about international market expansion, we successfully conducted demonstrations in Benidorm, Spain, and Mexico in the first quarter. EHang is now operational in 20 countries worldwide. As we advance in Southeast Asia, our intention is to initiate commercial operations in Thailand first. Our partner there is working with the National Air Traffic company on route and site surveys in Phuket. The operational team is in place, and we are preparing to start operations in Thailand's Sandbox pilot zone.
Thank you management for taking my question. You mentioned expecting significant growth in sales and deliveries in Q2. My understanding is that as you ship more to clients, this will result in increased revenues. Therefore, I assume there will be a notable revenue rise in the second half of the year. Is that correct? Additionally, regarding the gross profit margin, the improvement in Q1 was partially attributed to ASP gains. Could management provide a breakdown of delivery volumes by the different models shipped? Thank you.
This is Conor. I'll take your first question. You're absolutely right. Q2 is showing very strong sales growth, and we're expecting significant year-over-year growth. As we negotiate and engage more clients and cater to their specific needs, we anticipate much stronger year-over-year revenue growth in the second half of the year. Regarding your second question, for the past two to three quarters, we provided discounts because of many large orders. However, in Q1, we delivered 11 EH216-S to retail customers, selling them at RMB2.39 million per unit with no discounts, which increased the average selling price. Additionally, our larger volume of procurement has reduced the total boom on a year-over-year basis in Q1. These two factors contributed to the improved gross profit margin in Q1. Thank you.
Thank you for taking my question. This is Chen Yu, an analyst from Guangfa Securities. My questions are similar to those raised by other analysts. I would like to clarify a few details. First, can you provide an update on the planned production capacity for the Hefei facility and the timeline for its progress? My second question is regarding SG&A expenses. In Q1, there was a decline on an adjusted basis. Is the company maintaining the SG&A expense ratio at the unchanged growth guidance of 40%? Thank you.
This is Wang Zhao. In the first quarter, we expanded and upgraded our Yunfu facility, which has increased the main factory growth area to 48,000 square meters. With the enhanced automation, we aim to boost our total annual production capacity to 1,000 units by the year’s end. In Hefei, we have announced a strategic partnership with JAC Motors and Guoxian Holdings to create a modern low-altitude aircraft manufacturing base. The government expects the base to be completed within one to two years. Currently, we are constructing a transitional or mixed-shift facility, which has its infrastructure completed and equipment installation ongoing. I would also like to note that the site selection for our factories in Beijing and Weihai is finalized, and construction is now in progress.
This is Conor. Cost and expense management is a key focus this year for the company. We have already seen the results reflected in Q1 financial results showing a quarter-over-quarter decrease in the pre-adjusted expenses. We will continue to maintain stringent control on SG&A expense growth in the coming quarters. While maintaining our full-year revenue guidance of RMB900 million unchanged, we will keep our 40% operating expense growth guidance for the full year of 2025. Thank you.
Thank you to management for addressing my question. I would like to know how the company views the recent statements from the NDRC regarding the expansion of low-altitude economy applications. The NDRC mentioned concepts such as prioritizing cargo over passengers, promoting integration, and differentiating between urban and suburban areas. What is management's perspective on these statements?
EHang has always prioritized safety since its inception. For our two OC certified operators, they will follow a three-phase approach: cargo trial operations, passenger trial operations, and then routine passenger operations, ensuring a safe and stable transition to commercial operations. Both operators at Guangzhou's Suigang Terminal and Hefei's Luogang Park have entered passenger trial operations. The low-altitude economy is developing rapidly with many new entrants. From EHang's experience, ensuring aircraft safety is always paramount. The NDRC's guidance emphasizes industry-wide safety requirements. Thorough research and validation must go ahead before passenger aircraft development and production. In this regard, EHang has invested over 10 years in this development. Additionally, the low-altitude office of NDRC has continuously tracked EHang's passenger operations through regular communication meetings. Thank you.
Thank you. Seeing no more questions in the queue, let me turn it back to Ms. Anne for closing remarks. Thank you, operator, and thank you all for participating in today's call. If you have further questions, please contact our IR team by e-mail or participate in the following investor events through the calendar information provided on our IR site. We appreciate your interest and look forward to our next earnings call. Thank you.