Aug 25, 2026 earnings call — Regulatory delay slows China commercialization, global expansion
Q2 revenue was RMB 77.9 million, and the company withdrew its 2026 revenue guidance due to regulatory uncertainty.
Revenue $0.0B (est $0.0B) · EPS $-0.12 (est $-0.13)
Key quotes
"In late June, a serious accident involving a piloted light-sport aircraft in China has led regulators to adopt a more cautious approach to safety oversight."
"Since Q2, we've been pushing hard on 3 things: first, expanding globally on lot of fronts, strengthening domestic readiness while accelerating overseas deployment."
"Second, revenue diversification. Keeping passenger transportation as our strategic focus, while developing nonpassenger carrying business and a broader product portfolio."
Analyst Q&A 3
Thailand permit timing and China approval delays
Q (Tim Hsiao · Morgan Stanley): When will Thailand approvals happen and how many EH216 units might ship this year? Also, what changed management's view on China commercialization after the June incident?
A: Management said they expect an experimental flying permit in Q3 and aim to secure a formal commercial operation certificate by the end of the year in Thailand. Official deliveries of EH216 models will start next year, and each location will require at least 5 units of EH216-S. They said the June manned aircraft incident led regulators to tighten rules and delayed the Hefei commercial operation approval, though they believe their unmanned model has a safety advantage.
"We are striving to secure the operational certificate in Thailand by the end of the year." — Unknown Executive
Revenue split and accounting adjustments
Q (Jefferies): Can you give color on second-half run rate versus Q2, split between eVTOL and nonpassenger? And update on the accounting adjustment delivered in Q2 and any more to come?
A: The company will not update full-year 2026 revenue guidance or give specific quantitative revenue mix. For Q2, they reported air mobility revenue accounted for around 92% of Q2 revenue and nonpassenger (primarily GD4 formation drone performance) accounted for approximately 8%, and nonpassenger revenue is expected to trend upward in the second half driven by more formation drone deliveries and some firefighting model deliveries. They recognized revenue in Q2 for a portion of previously delivered EH216 aircraft and said future revenue will be recognized as contracts meet applicable accounting criteria and will be disclosed timely.
"However, based on the actual operating data that has already been achieved, air mobility revenue accounted for around 92% of our Q2 revenue, while nonpassenger business, primarily GD4 formation drone performance accounted for approximately 8%." — Unknown Executive
Safety milestones and nonpassenger product progress
Q (Xinran Li · Deutsche Bank): What safety evidence or milestones would normalize approvals? And update on nonpassenger businesses like logistics and firefighting — which is most promising and any contracts?
A: They said reviews focus strongly on safety and approvals are ongoing; the operational model must pass regulatory review and enter regulatory operations before approvals normalize. To return to full-scale normal approvals, they need trial operations in Hefei to move into routine operations and become a role model for others. On nonpassenger, they see genuine demand, are reusing human-carrying tech for short-range and long-range logistics, will ship firefighting products in the second half, and expect nonpassenger share (already 8%) to expand.
"I think to see a full-scale back-to-normal review and approval condition, we need to see that the trial operations that we have in Hefei moving into routine operations." — Unknown Executive