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Good day, ladies and gentlemen. Thank you for standing by, and welcome to the EHang first quarter 2026 earnings conference call. Please note that the management's prepared remarks and the subsequent Q&A session will primarily be conducted in Chinese, and the corresponding simultaneous or consecutive interpretation can be accessed on the English line. As a reminder, all translations are for convenient purposes only. In case of any discrepancy, the management's statement in the original language will prevail. To listen to the original remarks by the management, please join the Chinese line. Additionally, both the Chinese and English lines are open for questions. Today's call is being recorded. Now I will turn the call over to Anne Ji, EHang Senior Director of Investor Relations. Ms. Anne, please proceed.

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 2026. The earnings release is available on the company's IR website. Please note that the conference call is being recorded. 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. Shuai Feng, Chief Technology Officer. Mr. Zhao Wang, Chief Operating Officer. Mrs. Xiaona Li, China General Manager. Mr. Conor Yang, Chief Financial Officer. Before we continue, please note that today's discussion will contain forward-looking statements made pursuant to the safe harbor provisions of the U.S. 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 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 2026, unless stated otherwise. With that, let me now turn the call over to our CEO, Mr. Huazhi Hu. Please go ahead, Mr. Hu. Thank you.

Hello, everyone, and thank you for joining our earnings call. In the first quarter of 2026, EHang is navigating a critical transition from certification to commercial operation. We are fully committed to launching the world's first pilotless human-carrying eVTOL into commercial service. Today, I would like to share updates from two perspectives, the fundamental shift in regulatory environment and progress on our four core strategies. First, policy and industry developments. The biggest change in Q1 was institutional. The low-altitude economy now has a solid legal foundation and policy anchor. We're moving from a policy concept stage to one truly governed by law. On the legal front, the newly revised Civil Aviation Law was passed in January and will take effect on July 1st, formally recognizing the low-altitude economy for the first time.

On the regulatory front, the CAAC has established a new low-altitude safety bureau, while the NDRC and CAAC have formed a two-tier governance model, with the NDRC providing top-level coordination and the CAAC handling industry-specific implementation. Separately, China's State Administration for Market Regulation, together with 10 government departments in China, have jointly issued the Low-Altitude Economy Standards System Development Guide, aiming to establish a basic standard system by 2027. Some worry that more regulations may slow the industry down. I believe the opposite. This is a positive development. A clear regulatory and standard framework helps everyone in the industry move faster and more properly. As a pioneer, EHang is turning our certification and talent development knowhow into building blocks for industry standards. These first-mover advantages not only contribute to industry development, but also strengthen our long-term competitive mode. Meanwhile, state-owned enterprises and local governments are accelerating their deployment.

The low-altitude economy has been featured in the government work report for three consecutive years and is now designated as one of the six emerging strategic pillar industries under China's 15th Five-Year Plan. More cities are actively planning airspace, building vertiports, and rolling out subsidy programs. The low-altitude industry ecosystem is accelerating toward maturity. Now let me turn to progress on our four core strategies for this year. Routine commercial operations, global expansion, VT-35 certification, and industrial chain integration. First, routine and scaled commercial operations remain our top priority. We have cleared the certification hurdle and are now fully focused on the commercial operation hurdle.

We have obtained TC, PC, and AC, and our two operators hold OCs. Over the past year, we have continued to refine the entire operational chain, ticketing, insurance, aerospace approval, maintenance, charging infrastructure, crew training, and command and control systems to launch the world's first commercial pilotless human-carrying eVTOL service. We are now working closely with the regulator to fine-tune our operational capabilities and to make the final push from the internal trial operations to public ticketed service. That day will not be far away. The market demand is real. Take our RMB 299 experience ticket as an example. We continue to receive a large volume of inquiries asking, "When can I buy a ticket and take a flight?" This reflects a strong public enthusiasm for eVTOL commercial flights. Importantly, our operational capabilities extend beyond passenger eVTOLs. Our formation drone fleet has years of proven experience.

In February, our new GD 4.0 drones completed 22,580 units of formation flights, setting a Guinness World Record. In Q1, the proportion of revenue from the aerial media solution increased noticeably. The experience, processes, and teams we have built through these large-scale, highly reliable unmanned aircraft operations will directly benefit EH216-S commercialization. As the saying goes, the last leg of the journey marks the halfway point. Obtaining the four certificates was only the first half. The real second half is the commercial operation. In the global eVTOL industry, EHang remains the only company with the TC, PC, AC, and the license for commercial operations. The first-mover advantage here is not a short sprint nor a manufacturing race. It is an operational race. Who can run a safe, sustainable commercial model? Second, deepening our global footprint. We are making steady progress overseas.

The Thailand AAM sandbox program continues with the routine validation flights. To address hot weather conditions, we completed a battery cooling vehicle testing in Thailand and Guangzhou this month, adding independent cooling systems that significantly improve charging efficiency and passenger comfort. We are also actively working with the Civil Aviation Authority of Thailand to issue EH216-S' first overseas operating license. Our experience in Thailand sandbox has become an important reference for our global expansion. Third, accelerating VT-35 certification and commercialization. Certification for VT-35, our new longer-range pilotless human-carrying eVTOL, is progressing steadily. In Q1, we completed multiple system function and flight performance tests and held in-depth discussions with the CAAC on certification basis. Our VT-35 will support future intercity and regional air mobility, enriching our product portfolio.

At the same time, we are developing non-human carrying models, including firefighting and logistics for more application scenarios to further expand our addressable market. Fourth, strengthening industrial chain integration. We are turning our first-mover certification and ecosystem experience into industry consensus. EHang is not only China's leader in pilotless human-carrying eVTOL certification, but also the earliest practitioner and contributor to national and industry standards for unmanned aircraft in China. As the world's first mover about to enter routine commercial operation, we are taking steady steps to strengthen our operational capabilities and build a compliance mode. At the same time, we are integrating R&D, manufacturing, supply chain, and quality systems to improve end-to-end efficiency and scale delivered capabilities. In closing, I want to reiterate, the low-altitude economy is a long-term strategic arena with deep potential. EHang will never lose sight of safety, compliance, and operational quality.

We are committed to being long-term players who shape eVTOL industry standards with craftsmanship so that China developed and China operated pilotless eVTOLs will continue to lead the global low-altitude mobility market. I will now turn the call over to our CTO, Shuai Feng. Thank you.

Thank you, Mr. Hu. Hello, everyone. I am Shuai Feng. In Q1 2026, our work focused on three priorities, product R&D and upgrades, certification progress, and commercial operation support. On one hand, we accelerated VT-35 development and certification. On the other, we continued to optimize the EH216-S performance, operational efficiency, and passenger experience to support upcoming operations, strengthening the foundation for scaled deployment. Number one, VT-35 progress. VT-35 R&D and certification progressed steadily in Q1. The program has now entered the certification basis definition stage, where we are working closely with the CAAC to establish the safety evaluation framework.

We are engaged in in-depth discussions on special conditions, safety objectives, and performance requirements. On the engineering side, critical ground and flight tests are advancing as planned to validate system functionality, flight performance, and safety redundancy. Meanwhile, the VT-35 AVDOC system has entered a detailed design stage, preparing for certification prototype manufacturing and conformity verification. Building on the EH216-S certification experience and our eVTOL technical expertise, we are advancing VT-35 efficiently, laying the groundwork for future intercity and regional air mobility. Number two, EH216-S performance upgrades. This quarter, we focus on hot weather operational efficiency and passenger experience through targeted upgrades to battery thermal management and cabin comfort systems. On operational efficiency, to address battery thermal management challenges during high-frequency takeoffs and landings, we developed a dedicated battery cooling vehicle. It has completed production testing and is undergoing further optimization.

The cooling vehicle significantly shortens battery cool-down time from high temperatures to safe operating levels, increasing daily charging cycles and flight volume. In field tests, the cooling vehicle doubled EH216-S utilization, directly supporting higher-frequency commercial flights. The unit can be quickly deployed across operation sites, providing flexible and reliable thermal management for large-scale, high-density operations. On passenger experience, we upgraded the cabin air conditioning system. The new independent cooling system is separate from flight control and avionics circuits, so it doesn't interfere with critical functions while improving comfort. In tests, the system quickly reduces cabin temperature after prolonged sun exposure and maintains a comfortable level throughout the flight. This upgrade directly addresses a key pain point in hot climates, improving passenger experience, commercial reputation, and market acceptance. Number three, digital infrastructure for low-altitude operations.

Our Guangzhou command and control center is now fully operational, supporting passenger, firefighting, logistic, and formation drones. It provides integrated capabilities including aerospace management, flight planning, dispatch approval, real-time monitoring, operation records, and risk alerts. In Hefei, the command and control system has been deployed and is connected to the city’s low-altitude sensing network and Hefei HeYi Aviation’s operational data. Together, these platforms establish a solid foundation for regional, scaled low-altitude operations management. Number four, new product development. We are also actively advancing the R&D and flight testing of new products, including logistics and firefighting aircraft, further expanding our product portfolio and low-altitude economy applications. Under our CEO, Mr. Hu’s leadership, I will continue to lead our team in advancing product iterations with aviation-grade standards, translating technological progress into commercial value efficiently, and providing a strong foundation for EHang’s long-term growth.

I will now turn the call over to our COO, Zhao Wang, for sales and operations updates. Thank you.

Thank you, Mr. Feng. Hello, everyone. I am Zhao Wang. As EHang enters a new phase of commercial operations, I want to introduce a new member of our management team. Ms. Li Xiaona, formerly our vice president and general manager of East China, has been promoted to China general manager. She will lead our sales, operations, and marketing teams, overseeing business development and operations management in both China and overseas markets. Over the years, Xiaona has led our East China team to build our presence in Hefei from the ground up. She established the Hefei HeYi Aviation, secured its operator certificate, built a highly effective operation system and team with strategic industrial layout covering R&D, manufacturing, and commercial operations, and delivered outstanding results.

I look forward to seeing the Hefei model scale further under her leadership. Now, let me walk you through our Q1 business results and strategic plans. In Q1 2026, we achieved revenues of RMB 25.7 million. We delivered four units of the EH216-S and 1,000 units of the GD 4.0 formation drones and completed 22 drone formation performances. The year-over-year and sequential decline in eVTOL deliveries was mainly due to the seasonal impact of the Chinese New Year holiday and customer delivery timing. Looking at our revenue mix, our aerial media business grew faster and contributed approximately 40% of the total revenue in Q1. The parallel development of our multiple business lines is driving revenue diversification, reflecting continued demand growth across low-altitude application scenarios. Looking ahead to the full year, we remain confident in our 2026 revenue target of RMB 600 million.

This will be supported by the progress we have made on three strategic initiatives. First, diversified revenue streams. Beyond passenger eVTOL sales and operations, our non-human-carrying businesses, including aerial media, firefighting solutions, and command and control systems, are expected to become new growth drivers. Second, continued overseas expansion. We expect to replicate our overseas model that combines regulatory sandbox program, local partners, and our integrated operational capabilities to drive sales and operations in Thailand and other global markets. Third, advancing domestic commercial operations. Preparation for EH216-S commercial operations has entered the final stage. We are working with the CAAC on the last mile of commercial operation. We will continue to prioritize both sales and operations, ensuring steady and compliant commercialization progress. I will now turn the call over to Xiaona for a detailed review of our Q1 execution. Thank you.

Thank you, Mr. Wang. Hello, everyone. I am Li Xiaona.

I am pleased to join the earnings call for the first time. Let me walk you through our Q1 results, operational strategy, and future plans. In February, we featured 16 EH216-S aircraft and 22,580 GD 4.0 formation drones in the CMG 2026 Spring Festival Gala Hefei segment. We completed a flawless performance and set a new Guinness World Record. This appearance significantly enhanced our brand awareness and industry visibility, helped reduce the concept of low altitude mobility to a broad public audience, and demonstrated our leadership in fleet flights, remote dispatch, and communication integration, strengthening our brand foundation for commercial partnerships and market expansion, both at home and abroad. As of May 2026, the EH216 series has accumulated over 90,000 safe flights globally in 21 countries. This long-term, stable, safe track record is our core competitive advantage in global market expansion.

Overseas, we have achieved multiple milestones, completed the first human-carrying flight in Mexico, Latin America, and trial flight permits in Thailand, Japan, South Korea, and Middle East and Spain. On overseas strategy, we made a strategic adjustment this year, making VTC our top priority to fully open the commercial pathway in overseas markets. Given how civil aviation regulations work, we plan to leverage China's existing bilateral airworthiness agreements with 32 countries for our certification applications. Thailand is our first flagship overseas market. Five vertiport locations have been identified, and the first approved survey has been completed. We have adapted our hardware, including batteries and onboard air conditioning, for hot and humid tropical environment, and are pushing hard on commercial operation permit progress. We have formed a dedicated overseas team integrating R&D, commercial airworthiness, and communications functions.

Going forward, we will systematically map out our bilateral civil aviation policies globally and develop differentiated overseas deployment plans for human carrying and cargo aircraft, targeting key markets one by one. On domestic human-carrying air mobility network continues to expand. To date, our customers have built over 40 eVTOL operational sites across China, some of which are already in routine operation. This year, we are shifting our business focus to high-demand tourism scenarios using light asset models such as equipment leasing, joint operations, and direct sales to lower the barrier for partners while putting existing aircraft to fly. We are prioritizing locations with high foot traffic and natural commercial appeal, such as Dali, Huangshan, and Taishan, running small-scale trials to accumulate safety data, then progressively helping customers apply for operator certification.

To improve project execution efficiency, we have set up a dedicated sales support team that works alongside frontline teams to develop customized integrated operation plans based on local airspace conditions, tourism resources, and commercial landscape. On commercial operation preparation, the CAAC has raised the requirements for the world's first pilotless human-carrying eVTOL commercial operation with higher and more detailed standards. At this stage, our two OC-certified operators in Hefei and Guangzhou continue to refine their operations systems, ground support, crew training, and emergency procedures while running internal trial operations routinely and accumulating flight data and service experience. Since obtaining their OCs in March 2025, both operators have maintained a perfect safe record, zero accidents, and zero violations. As domestic benchmarks, EHang General Aviation and Hefei Heyi Aviation have completed over 3,000 EH216-S flights.

We have built a complete end-to-end service system covering ticket pricing, online and offline ticketing channels, customer service, and complaint handling. Flight capacity is being expanded in phases. Going forward, we'll continue to refine our standardized SOPs for passenger services, ticketing management, and vertiport operations, then export these proven models. Crew training progress is on track. We have completed internal instructor training for the EH216-S model and submitted all required materials. The plan has been reviewed by the CAAC Central South Regional Administration, and once formally approved by the CAAC, official training will begin. After internal instructor training wraps up in late June, we'll begin full-scale crew training. Our non-human carrying business is an important second growth driver. We focus on two areas, firefighting and inland waterway logistics. On the firefighting side, based on real-world operational scenarios, we have identified clear product iteration directions.

R&D of the new firefighting aircraft is on schedule, will be formally launched to the market upon product validation together with supporting maintenance and training systems. In the second half of the year, we'll showcase product performance through firefighting drills at various levels while actively working to get our products included in fire equipment procurement catalogs, tapping into the emergency response market. On inland waterway logistics side, we have completed site selection for test routes at Guangzhou Port and the Pearl River main channel. The project will be rolled out in phases. Near term, continue test flights and routine safety reviews. Medium term, routine delivery services on the Pearl River and expansion of our new application scenarios.

Long term, replication of the proven model, application for government funding, and building a benchmark inland waterway low altitude logistics project in China. With formation drone performances, the industry is seeing increasingly intense low-price competition. We are avoiding price competition, have set a clear strategy to build benchmark projects, replicate profitable models, and expand both domestically and overseas. In overseas markets, we are simultaneously rolling out formation products, leveraging local tourism resources to create routine performance venues that complement our human-carrying business. Going forward, I'll lead the sales, marketing, and operation team to execute our strategic plan steadily with dedication, efficiency, and compliance, with safety as the first priority. I will now turn the call over to our CFO, Conor Yang. Thank you.

Hello, everyone. 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. Now let me walk you through the key financial data. In Q1 2026, revenues were RMB 25.7 million, on par with RMB 26.1 million in Q1 2025, but down from RMB 177.6 million in Q4 2025. The decline was mainly due to lower eVTOL deliveries, partly offset by growth from our non-human carrying business. During the quarter, we delivered four units of the EH216 series, compared to 11 units in Q1 2025 and 61 units of EH216 series plus five units of VT-35 in Q4 2025. The lower deliveries were primarily due to seasonal factors at the beginning of the year and customer delivery schedules. On a positive note, our revenue mix continues to diversify.

Benefiting from increased brand visibility and growing market demand, our aerial media business grew faster and contributed approximately 40% of total revenue in Q1, highlighting the synergies across our diversified business lines. Gross margin in Q1 was 62.5%, stable compared to 62.4% in Q1 2025, and up slightly from 61.6% in Q4 2025. Our consistently strong margin profile reflects continued improvements in manufacturing efficiency and supply chain management. Turning to operating expenses. Adjusted operating expenses defined as total operating expenses excluding share-based compensation were RMB 101.1 million in Q1, up 59% from RMB 63.6 million in Q1 2025, and up 7.9% from RMB 93.7 million in Q4 2025. The increase was driven by our continued commercialization efforts, R&D team expansion, and increased technology investment.

As our business scales, we have strengthened our operational R&D and global expansion teams while continuing to invest in EH216 series upgrades, VT-35 development, and future generation products and core technologies to enrich our product pipeline and reinforce our long-term competitive advantages. As we continue to invest for future growth, our near-term profitability was impacted by lower revenue scale and higher R&D expenditure. Adjusted operating loss in Q1 was RMB 77.1 million, compared to RMB 42.6 million in Q1 2025. Adjusted net loss was RMB 75.6 million, compared to RMB 31.1 million in Q1 2025. As of March 31st, 2026, our combined cash and cash equivalents, restricted short-term deposits, and short-term and treasury investment totaled RMB 1.03 billion. This healthy cash position provides a solid support for the continued execution of our commercialization strategy, global expansion plans, and technology development programs.

While near-term financial performance was impacted by delivery timing and strategic investments, we remain committed to long-term growth strategy and maintain our 2026 annual revenue guidance of RMB 600 million. Our confidence is supported by our diversified revenue mix, continued global market progress, including the commercial breakthrough in Thailand, and the advancement of EH216-S commercial operations in China. Meanwhile, we remain focused on improving operational efficiency and capital allocation as we scale our business. We believe these efforts will strengthen our foundation for long-term growth and create sustainable value for our shareholders. Based on our confidence in the company's future and healthy cash position, our board of directors has approved a share repurchase program. Over the next 12 months, the company may repurchase up to $30 million worth of its ADSs. Repurchases will be funded from existing cash reserves, and management will execute them flexibly based on market conditions.

This initiative reflects our commitment to returning value to shareholders and demonstrating our long-term confidence. Thank you all.

Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. We will now pause momentarily to allow questions to register. Once again, if you wish to ask a question, please press star one on your telephone. Thank you. Your first question comes from Peggy Wang with MS. Please go ahead.

Hello, this is Peggy from Morgan Stanley. Can you hear me?

Yes.

Hi, thank you for taking my questions. I have two questions for the first quarter results. I think first, most investors are curious about what is the expected revenue mix for main three quarters of 2026. Because we have been exploring more revenue stream from product outside of eVTOL. Could the management team give more color on the revenue mix in the following quarters? This is my first question. The second question is about the overseas business. How should we look at the contribution from the overseas market in the coming months? Thank you.

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Hello, operator, can you hear me?

Yes。

Now I'll provide the translation for Conor. The key strategy for the company is to execute revenue diversification strategy. The results have been shown in our Q1 results. We have projects both at home and overseas for our human carrying business as well as our GD4 AAL business. The projects are scattered across both China and overseas. Some of the typical examples are projects in Changsha, Xiamen. An overseas example would be Thailand. We are going to increase the number of performances for these GD4 drone performances in the upcoming two quarters. We are also advancing the R&D for our logistics and firefighting models. They will be rolled out to the market later this year. In terms of the revenue mix breakdown for our human carrying business, specifically speaking, that will be revenue contributed by the sales and deliveries of EH216s and the VT-35. Together, they will contribute 60% of our revenue. For non-human carrying businesses. They are going to contribute roughly 40% of our revenue. Now moving on to the second question. The proportion of the overseas revenue will increase significantly. We have made obtaining overseas VTCs, i.e.

validation of type certificates, our top priority this year, relying on bilateral agreement channels and have established a dedicated team. Pioneer projects in Thailand and Mexico are progressing smoothly. In the medium to long term, overseas markets are expected to continuously contribute to revenue. Thank you.

The next question comes from Wei Shen with UBS. Please go ahead.

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Thank you, management, for taking our question. My first question is on the gross profit margin. As we can see, it stayed elevated in Q1. I also noticed that 40% of revenue from Q1 was contributed by media business or non-human carrying related services. I was wondering what is the gross profit margin for this segment? What is the market and competition outlook is like for this segment? My second question is on your overseas business. As we have heard from management, the potential orders from overseas markets was around 100 units. I was wondering if there is any update to this number? If you can please also provide a timeline on that. Thank you.

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Sure. On the gross profit margin, so that specifically means the gross profit margin of sales and performance of the flight performance of the GD 4.0. That is around 50%. For our human carrying business, that is contributing higher and higher profit margin this year. Therefore, we are seeing the overall mix staying above 60% for the first quarter. We also keep that as our full year target. That is on the gross profit margin.

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With your question on the overseas orders, we are expecting the revenue contribution to rise up to 10% of the overall revenue. However, this specific contribution is closely tied to our commercial developments in Thailand. We have been spending every effort in our communication with the CAAC. Our overall target is to launch the official commercial operation by the end of the year before the AAM conference is going to be held in Bangkok by the end of the year. If the commercial operation could be achieved early, we are going to see a higher contribution to the revenue from the overseas market. Thank you.

Your next question comes from Alan Lau with Jefferies. Please go ahead.

Thanks for taking my question. This is Alan. I'd like to follow up on the question regarding the gross margins. What are the major cost items for the non-eVTOL business? Because the margin is 50%, we would like to know what are the key cost of goods sold in that business line. The second question is there any operation data that management can share to investors regarding the operations in Hefei? Thank you. Sorry, I would like to clarify. My first question is regarding to the non-eVTOL part. The aerial media part. What are the cost of goods sold in that business? Thank you.

Okay. Now the sales and the performance of the drone flights is contributing 50% profit margin. To break it down, majority of the costs for the sales comes of the drones is first of all, the BOM costs, plus the battery, the costs occurred in the assembly line. When it comes to performing, the majority cost of that depends on the size as well as the units of the drones to be deployed for the performance. Given that these drones are possessed by the company as a fixed asset, there is a cost of depreciation, plus the cost of sending personnel and staff to operate and fly these drones at different places. Together, these form the costs of the operation and the sales. Now moving on to the non-human carrying business, specifically we're talking about the firefighting models. It has a higher gross margin.

In terms of the cost, a third of it comes from the carbon fiber material used in building the model. Another one third of the cost comes from the powertrain as well as the battery, with the remaining one third coming from the components I used to build the model.

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This is Wang Zhao. I'll take your second question. I know the market is keenly watching the progress of the operation site in Hefei. I would say it is right now in the final stage of official commercial operations. At the moment, the Hefei and Guangzhou operation sites are currently still in preparation for commercial operations. Given the unique nature of that site being the world's first pilotless human-carrying VTOL commercial operation project, the CAAC has proposed higher and stricter operational standards. Since obtaining the OC in March 2025, we have been maintaining close communications with the CAAC. We are accumulating precious and valuable trial flight data, making sure that there is no accidents or zero violations of the standards in place. Thank you.

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To supply some key data, since obtaining the OC in March 2025, the two partner or two operation sites have maintained stable operations with a safe flight record of zero accidents and zero violations, completing over 3,000 flights. As we have disclosed, the early bird price we set for the Hefei operation site is RMB 299. Currently, there are four units of the EH216 at this site, and they are scheduled to fly 14 flights per day. Related mini apps for ticket booking is now up and running. We are fully ready for commercial operations. Once we get the approval from the CAAC, we will soon roll out the commercial operation. Thank you.

Your next question comes from Laura Li with Deutsche Bank. Please go ahead.

Hey, thank you for taking my question. My first question would be, could you provide more color on the order intake so far in 2026? Are the new orders mainly from existing customers or that you're seeing demand from new clients as well? My second question will be, could you update the expected timeline for the operator training? Because once your program is approved, like how long it takes for the first group of the ground crew to complete the training. Thank you.

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On the revenue question, we remain confident in our full year revenue target of RMB 600 million. Actually, this confidence is based on the diversified revenue structure achieved in Q1, the predictability of overseas market breakthroughs and domestic commercial operations entering the final sprint phase. Majority of the orders will be coming in the second half of the year. We have many orders moving in parallel. Given that a majority of the orders coming from government related entities or institutions or enterprises, the overall approval for the budget is primarily ready in the second half of the year. We also have seen a lot of new customers expressing strong interest in purchasing our models. We expect that over 50% of the revenue for this upcoming year gonna come from new customers.

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Let me explain. The crew training usually is broken down into three stages. In the very first stage, the CAAC has officially stipulated the large-scale civil pilot training or crew training mechanism. We have deeply involved in this process. We actually supplement all the related documents, teaching materials, and everything. We also participate in making the related teaching materials and formulating the tests required to test all the training personnel. Actually, in May this year, the CAAC has already formally published the requirements for the civil training related standards. That actually provided a key compliant reference for the whole industry. EHang has been deeply involved in that process. We have actually lent our experience to this process in forming the standards.

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Following the formulating the standards is the internal training of the instructors. This process has kicked off and is about to wrap up. We have submitted the associated plans, which has been reviewed by the CAAC. Right now, this has been progressing quite steadily. We are expecting the training of the instructor program to wrap up by the end of the month. The third stage is to kick off the official training of the ground crew. That will expect it to start in the following quarters. Once all these stages have completed, EHang will be in a good position and ready to launch batch trainings. With each training group, we can train 5-10 personnel, and with multiple classes training groups moving in parallel. By that time, we will be ready to supply sufficient number of qualified ground crew to the market. Thank you.

Thank you all. Given the time is limited, let me turn the call back to Ms. Anne for closing remarks.

Thank you operator. Thank you all for participating on today's call. We understood that there are many analysts and investors still waiting on the line. Due to the time limits, if you have any further questions, please contact our IR team by email or participating in our following investor events through the calendar information provided on our IR website. We appreciate your interest and look forward to our next earnings call. Thank you.

That does conclude our conference for today. Thank you for participating. You may now disconnect.

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the EHang Fourth Quarter and Fiscal Year of 2025 Earnings Conference Call. Please note that the management's prepared remarks and the subsequent Q&A session will primarily be conducted in Chinese, and the corresponding simultaneous or consecutive interpretation can be accessed on the English line. As a reminder, all translations are for convenient purposes only. In case of any discrepancy, the management's statements in the original language will prevail. To listen to the original remarks by the management, please join the Chinese line. Additionally, both the Chinese and English lines are open for questions. And today's call is being recorded. Now I will turn the call over to Anne Ji, EHang's Senior Director of Investor Relations. Ms. Anne, please proceed.

[Interpreted] Hello, everyone. Thank you all for joining us on today's conference call to discuss the company's financial results for the fourth quarter and the fiscal year 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. Shuai Feng, Chief Technology 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 made pursuant to the safe harbor provisions of the U.S. 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 these 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 fourth quarter and the fiscal year 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.

[Interpreted] Hello, everyone, and thank you for joining our call today. 2025 was a pivotal year for EHang as we strengthened our business foundation and made a meaningful progress towards commercialization. In Q4, we delivered a strong set of results. Quarterly eVTOL sales volume reached 100 units for the first time. Revenues grew significantly both year-over-year and sequentially, and we achieved our first ever quarterly GAAP profitability. For the full year, we delivered 221 units of eVTOL aircraft, setting a new record and successfully meeting our annual revenue guidance. We also achieved non-GAAP profitability for the second consecutive year. These results reflect years of sustained investment and disciplined execution across product innovation, regulatory certification, industrial ecosystem development and market expansion, laying a solid foundation for our commercialization progress in 2026. I am pleased to announce that the commercial operation of our flagship product, the EH216-S is entering the final count down. Following comprehensive preparation across our commercial operation system, we're about to officially open our commercial flight services to the public. After nearly a year of internal trial operations, we have established standardized procedures across the entire operational chain from route planning and fleet management to boarding services. At the same time, we have optimized our maintenance systems and safety assurance mechanisms while actively supporting the Civil Aviation Administration of China in advancing the training and certification program for our ground operating crew. Our 2 OC certified operators, EHang General Aviation and Heyi Aviation both plan to begin offering ticketed EH216-S flight services to the public this month and their operational sites in EHang Future City, our new headquarters in Guangzhou and Luogang Park in Hefei. This launch is expected to mark the world's first commercial service of pilotless human-carrying eVTOL aircraft. It also represents the completion of EHang's full life cycle ecosystem from technology development and airworthiness certification to manufacturing and commercial operations. Going forward, we are evolving from being an aircraft manufacturing to a comprehensive provider of integrated advanced air mobility solutions. 2026 marks the first year of China's 15th 5-year plan period. As the national strategic emerging pillar industry, the low altitude economy is embracing unprecedented strategic development opportunities. Supportive policy direction is now shifting from encouraging exploration to systematic advancement with the continued progress in aerospace management reform, airworthiness notification frameworks and infrastructure development. Together, these initiatives are creating a favorable policy environment for industry development. With that in mind, EHang's core strategy for this year are to move forward with a disciplined execution, strengthening our foundation while steadily advancing commercialization, operational ecosystem development and global expansion. First, it has been nearly a year since EHang obtained OC for EH216-S. Over the past year, we have been working intensively to expand our customer and partner base. At the same time, we built the operational systems required to support the commercial flights. This year, our top priority is to launch routine and scaled commercial operations of human-carrying eVTOL aircraft to the public, delivering reliable flight services and continuously improving the flight experience. Our goal is to transform scenes in science fiction into everyday reality for people. This is a milestone many people have been waiting for and so have we. But aviation has always been an industry that moves forward with patience and responsibility, especially when safety and human lives are involved. Second, we'll continue advancing our global expansion strategy. Taking the Thailand AAM Sandbox initiative as an example, we are steadily moving towards a commercial flight operations and established benchmark projects. I'm also pleased to share good news that EHang is expected to obtain the first commercial operation license for pilotless passenger eVTOL aircraft from the Civil Aviation Authority of Thailand, paving the way for regular urban air mobility services in the country. Third, we'll accelerate the commercialization readiness of the VT35. In 2026, our focus will be on advancing its time certification and conducting extensive flight test in more diverse and complex environments to fully validate its passenger flight capabilities. At the same time, we'll continue improving the performance of the EH216 series and expanding the deployment of nonpassenger products and applications, including firefighting and logistics, further broadening our market reach. Fourth, we'll further strengthen our end-to-end industrial chain integration capabilities by coordinating our R&D, manufacturing, supply chain and quality management systems. We aim to improve operational efficiency across the entire value chain, reinforce our long-term competitive advantages and contribute to the establishment of industry standards. EHang remains committed to the principles of safety first innovation-driven growth and collaborative development. We will continue advancing our technology and product innovation, expanding multi-scenario commercial operations and establishing AAM operational models in more regions around the world. At the same time, we're building a comprehensive business model combining technology, R&D, intelligent manufacturing, commercial operation services, infrastructure collaboration and industry education and integration. We believe the low altitude economy industry will evolve from demonstration programs to scale commercial operations and then to public accessible services. It will become a vital engine for activating 3 dimensional aerospace resources and cultivating new forms of consumption, truly transforming the industrial values into economic and social benefits. At this important starting point of a pivotal year, our newly appointed Chief Technology Officer, Feng Shuai, is also joining today's earnings call. Under my leadership, he will oversee our technology R&D, supply chain management, manufacturing and quality system development, driving a more integrated end-to-end management approach from technology innovation to product delivery. By strengthening coordination and the integration across the entire industry chain, we believe our innovation capability, product competitiveness and overall execution will continue to improve. With that, I would like to hand the call over to Feng Shuai. Thank you.

[Interpreted] Thank you, Mr. Hu. Hello, everyone. I'm Feng Shuai, CTO of EHang. It is a great honor to join today's earnings call for the first time. I am pleased to share our progress in 4 key areas during the fourth quarter. R&D, production and manufacturing, quality management and supply chain assurance, which we refer to as the RPQS Center. We'll also briefly outline our priorities for 2026. The RPQS Center is the core engine of our technology and industrial execution. We focus on technology innovation as the foundation, production capacity as the driver, quality control as the bottom line and supply chain as the cornerstone. Together, these capabilities support the development, commercialization and scale delivery of our products. Let me walk through the key highlights in each area. Starting with R&D. The fourth quarter of 2025 marked a major breakthroughs across our core product. Our flagship passenger carrying aircraft, VT35 completed multiple critical tests, including multicopter protected transition flights and locked-to-prop fixed wing flights. The aircraft also successfully completed its first public demonstration flight in Hefei after its grand debut in October. During the quarter, we held the first type certification team meeting with the CAAC, marking a key step forward in the airworthiness certification progress. We are currently conducting flight envelope testing and aim to obtain the type certification in China within the next 2 years. For the nonpassenger business, we are also developing and deploying product and system lines under multiple application scenarios. Our new GD4.0 formation drones set a Guinness World Record with 22,580 units flying simultaneously at the China Spring Festival Gala, significantly announcing our brand visibility and generating strong demand for both drone products and performance services. In the firefighting aircraft program, we are upgrading the current models while advancing the next-generation R&D to support emergency response scenarios. For logistics, we are accelerating the development and first flight of the VT series lift and cruise cargo aircraft, developing longer endurance aerial logistics applications. At the same time, our proprietary command and control system continues to evolve as a city-level digital infrastructure platform for a low attitude economy is now being trial operations in Hefei, providing solid tech support for future skilled commercial operations and air traffic management. On manufacturing, we continue to expand our production capability and enhance the smart manufacturing capabilities during the fourth quarter. The Phase II expansion of our Yunfu production facility was successfully completed, bring our total plan annual capacity to 1,000 units of the eVTOL aircraft and components. The automated production lines have entered a trial product to stage and our smart manufacturing systems will further improve production efficiency and supply chain management. Meanwhile, additional facilities in Hefei, Weihai and Beijing are progressing as planned. Our nationwide manufacturing footprint is steadily taking shape. We follow a manufacturing to order approach, ensuring stable production planning while preparing large-scale deliveries in the future. On quality control, we maintain strict end-to-end quality control across the entire product life cycle. Throughout 2025, our quality management system delivered strong performance with steady improvements across all key indicators. The post-certification airworthiness review for our [ PC ] achieved the third zero defect pass and the EN9100 audit continues to pass. On supply chain, during the fourth quarter, we further expanded our supplier network and strengthened our supply chain resilience. Our core supplier system remained stable with a 100% on-time delivery rate for key components, fully supporting our production and deliveries. Going forward, we will continue our strategy of maintaining strong partnerships while introducing additional high-quality suppliers. This approach will strengthen our stable and scalable supply chain, providing support for future capacity expansion and new model development. The low attitude economy represents a new frontier for technological industrial innovation, strong R&D and smarter manufacturing capabilities are the foundation of our long-term competitiveness. As CTO, I'll continue leading the RPQS team to drive technology innovation, advance product development and certification, expand manufacturing capacity and smart production capabilities, maintain strict quality standards and strengthen supply chain resilience. Our goal is to efficiently translate technological innovation into real commercial deployment and provide a solid technical and industrial support for the company's long-term growth. With that, I'd like to turn the call over to our COO, Mr. Wang Zhao, for our sales and operations update in more detail. Thank you.

[Interpreted] Thank you, Mr. Hu and Mr. Feng. In 2025, we advanced our business across 3 key priorities: safety, operations and commercialization. For the full year, we generated RMB 509 million in revenues and delivered 221 units of eVTOL aircraft, including 215 units of EH216 series and 6 units of VT35 series. Our Q4 performance reached a new high. We delivered 95 units of EH216 series and 5 units of VT35 series, generating RMB 240 million in revenues. In China, we continue to deepen our presence in key cities and build flagship partnerships. In Hefei, our collaboration with the local government expanded from a single product to a full product portfolio. The corporation now covers multiple applications, including the EH216 series human-carrying and firefighting versions, the 5 VT35 the GD4.0 formation drone. We also continue to strengthen our partnership with Anshun in Guizhou Province and Guizhou Tourism Group. In Q4, 30 units of EH216-S were delivered to the local market, bringing total deliveries to 50 units to this customer, supporting the development of a local low attitude economy applications. Building operational capability has been a major strategic focus throughout the year after EHang General Aviation and Heyi Aviation obtained their operator certificate in March 2025, we began to conduct extensive internal testing and operational optimization across the entire service process, from ticket booking and on-site verification to boarding and flight operations to ensure a seamless user experience. At the same time, we have established a comprehensive set of standard operating procedures covering battery charging, maintenance and fault troubleshooting to ensure the continued airworthiness and operational stability of the fleet. Based on the safety and operational experience we have accumulated, we plan to officially launch commercial operations with the EH216-S in this month. EHang General Aviation and Heyi Aviation will begin selling flight tickets to the public offering EH216-S pilotless aerial sightseeing our headquarters in Guangzhou and Luogang Park in Hefei. The public will be able to book flights through the EHang Trip and the Heyi Aviation mini programs with an early bird discount price of RMB 299 per person. This will be the world's first ticketed commercial service for pilotless human-carrying eVTOL in the urban air mobility industry, transforming the low altitude economy from a concept into a reality that is accessible to the general public. Over the past year, we have carefully refined every aspect of the operation. Our approach has always been safety first, experience-focused and sustainability driven. Delivering a high-quality flight experience for our passengers in the initial phase is crucial to building public trust and supporting long-term market adoption. Looking ahead, we will leverage the experience from our OC certification and operations to develop a comprehensive operational solution covering [indiscernible], planning, routes design, ground crew team training and operational system set up. We plan to replicate this model across more locations in China and overseas to support our customers and partners in launching commercial operations. It is worth noting that we are building a core note for our operational capabilities, a professional talent system. We're actively working with the CAAC on the trial project for the administration of licenses for the ground operating crew of large civil unmanned aerial vehicles. We have completed multiple rounds of validation and refinement of training courses. Recently, the CAAC has expanded the number of special approval license to ground operating crew for us, providing additional talent support for our upcoming commercial operations. Beyond meeting immediate operational needs, this initiative is helping establish a long-term industry talent training system. Together with the regulator, we are converting our front-line operational experience into standardized training procedures. This helps establish professional standards for a new generation of aviation talent and strengthens the safety foundation of the industry. Over time, this training framework will enable us to support partners and export our operational capabilities as commercial operation expands. On the international front, the Thailand AAM Sandbox program remains our key focus. Since its launch in October last year, we have completed a series of verification flights and ongoing trial operations. We are now working closely with the Civil Aviation Authority of Thailand to obtain the first commercial operation license under the Sandbox initiative. If approved, this could become the first overseas commercial operation of a pilotless human-carrying eVTOL. The initial Sandbox areas are planned near the IMPACT Challenger International Convention Center in Bangkok, which will also host the ICAO Second Advanced Air Mobility Symposium or AAM 2026. The CAAT and local partners have set a clear goal of operating up to 100 eVTOL aircraft across 20 Sandbox areas by the end of 2026. Our plan is to establish talent as a model for overseas operations and gradually replicate this model in South East Asia and other [ belt and road ] market. Overall, in 2025, we maintained a disciplined approach to growth, focusing on strengthening our product, manufacturing and operational systems under a strict framework of safety and regulatory compliance. We believe that building these foundational capabilities is essential to support sustainable growth and scalable international expansion in the years ahead. At the same time, the low altitude economy industry is entering an important policy window. China's 15th 5-year plan has elevated the low altitude economy to a level of strategic emerging pillar industry. This signals the transition from early demonstration programs to a new phase of national level industry development. The low altitude economy has also been formally incorporated to the newly amended civil aviation law of China, which took effect in 2026. Looking ahead to 2026, we believe the company is entering a new stage of development. Over the past several years, we have been systematically building the key capabilities required for the urban air mobility industry, including aircraft R&D, airworthiness certifications, smart manufacturing and commercial operation readiness. As these foundational capabilities continue to mature and integrate, we see 3 important shifts in our business model. First, our revenue streams will gradually become more diversified. Applications beyond a passenger transportation, including logistics, aerial firefighting solutions and commanding control systems are progressing steadily and could become additional growth drivers as the market evolves. Second, we're evolving from an aircraft provider to a one-stop low attitude operation solution provider, leveraging the operational experience of the EHang General Aviation and Heyi Aviation, along with our standardized operating systems, and we will offer integrated solutions to customers. These include aircraft deliveries, [ vertical ] construction, route planning, team build up and training and operational guidance. Third, we're establishing a clear pathway for overseas expansion that combines regulatory Sandbox programs, partnerships with local operators and systematic deployment of our technology and operational capabilities. Thailand is the first to market where this model is taking shape, and we expect to gradually expand to other regions, including Southeast Asia, Central Asia and the Middle East as global regulatory framework continue to evolve. Overall, we remain committed to a strategy of safety first and disciplined execution. For 2026, we are targeting RMB 600 million of annual revenues while continuing to scale the business at a more steady pace. As the industry is still in its early stages, we'll continue to work closely with regulators, partners and local governments to help move the low altitude economy from demonstration programs to a broader commercial adoption, unlocking the long-term potential of urban air mobility as the new form of transportation. Now I'll turn it over to our CFO, Conor, to walk us through the financial results.

[Interpreted] Hello, everyone. 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. Now I will present some key financial data. In Q4 2025, the revenues were RMB 243.8 million, up 48.4% year-over-year and 163.6% sequentially. The quarterly increase was primarily driven by higher sales volume of our products, including 95 units of the EH216 series and 5 units of VT35 delivered this quarter. For the full year, the total eVTOL deliveries reached 221 units and revenues totaled RMB 509.5 million, representing 11.7% increase year-over-year, surpassing our annual guidance. This growth reflects the sustained market demand for our products as well as our effective execution and delivery management, customer support and commercial operation readiness. Gross margin in Q4 was 62.1%, improving from 60.7% in Q4 of 2024 and 60.8% in Q3 of 2025. For the full year of 2025, gross margin was 62%, improving from 61.4% in 2024. As production scale expanded, overall cost efficiency continued to improve. Overall, the company maintained a gross margin above 60%, reflecting our strong product competitiveness, scaling production capability and display cost management in the eVTOL sector. Turning to operating expenses. In Q4, adjusted operating expenses, defined as operating expenses excluding share-based compensation, were RMB 99.3 million, representing a 26% year-over-year increase from RMB 78.8 million in Q4 2024 and an 11.4% increase from RMB 89.1 million in Q3 2025. For 2025, adjusted operating expenses were RMB 348.9 million, representing a 20% increase from [ RMB 290.1 million ] in 2024. The increase in operating expenses was primarily driven by the continued R&D innovation, expansion of our product sales and the company's commercialization efforts. As we scale our business, we have strategically expanded our sales network, strengthen our operations team and added a key R&D talent, while maintaining ongoing investments in the development and iteration of new eVTOL models like VT35 and EH216-F series and et cetera, and related technologies to enrich our product pipeline and lay the groundwork for future revenue streams. As the company's revenue continues to grow with operating expenses increasing modestly, operating efficiency has been steadily improving, particularly in the fourth quarter where overall profitability saw a significant improvement. In the fourth quarter, we achieved our first quarter of GAAP profitability with net income reaching RMB 10.5 million. Adjusted operating income for the fourth quarter reached RMB 54.3 million, representing a year-over-year increase of 99.5% and a substantial sequential turnaround from a loss. Adjusted net income for the fourth quarter was RMB 71.5 million, up 96.4% year-over-year, also achieving a sequential return to profitability. On a full year basis, the company recorded a second consecutive year of profitability under non-GAAP measures with adjusted net income of RMB 29.4 million in 2025. This not only underscores that we have captured the right direction for profitable growth, but also demonstrates our ability to translate the operating leverage into sustainable financial returns. Looking ahead to 2026, the company will continue to advance the commercial operations and sales of the EH216-S, expand its nonpassenger business and further penetration into international markets. Full year total revenues are expected to reach RMB 600 million, representing a year-over-year increase of approximately 18%. As our manufacturing and operational systems continue to mature, overseas Sandbox projects progress, global market expansion accelerates and ongoing investment in next-generation products, the foundation for our long-term growth continues to solidify. This requires us to strike a balance between strategic execution and financial discipline in our resource allocation, ensuring that every investment translates into sustainable long-term value. We will remain committed to controlling risks and enhancing efficiency and make our expansion, solidifying the financial condition for the next phase of high quality and sustainable growth and delivering long-term and stable value to our shareholders. Thank you.

[Operator Instructions] Your first question comes from [ Peggy Wang with MS. ]

This is [ Peggy ] from Morgan Stanley. Congratulations on good first quarter results. So I have 2 questions today. First, it's about the license for ground operating crew since we now expect to begin commercial operation in China soon. So could, management team, could you share some more color on the progress of getting those required license for the crew team? And the second one is about the projects in Thailand. Since we are also close to obtaining license for commercial operation, what is the expected timing of revenue contribution? And how will the volume ramp up going forward? So these are my questions.

[Interpreted] This is Wang Zhao. I will take your first question. As mentioned previously, we are still moving forward with the operator training program. All training materials have been submitted to the CAAC for approval, and several courses have already been authorized. We expect the first class for operators to begin in the first half of the year. The good news is that to encourage qualified operators to conduct early commercial operations, the authorities have expanded the number of specially authorized operators for EHang. In the short term, we can conduct commercial operations through these operators. In the long term, we will replenish our talent pool through the operator training program. Thank you.

[Interpreted] This is Conor. I will take your second question. Ever since last October, we have been conducting extensive test flights and trial operations in Thailand. The Civil Aviation Authorities of China and Thailand have communicated thoroughly and they have reached a consensus on mutual airworthiness recognition. This work is now nearing completion. We expected to obtain the first overseas commercial operation license for the EH216-S pilotless eVTOL aircraft following final approval from the Civil Aviation Authority of Thailand. So this would mean that we would truly achieve a normalized urban air mobility services. With the specific to the commercial operations side, they are still under planning. So it will be through the Sandbox initiative. So once obtaining the Sandbox commercial operation permit, the local customers will start to move forward with the purchase orders and deliveries. So we are expecting that to start in Q2. If the progress goes smoothly, there could be dozens of units for the full year of 2026. Thank you.

Your next question comes from Wei Shen with UBS.

[Interpreted] this is Wei Shen from UBS. Congratulations on strong results. So I've got two questions. One is on the current policy changes in the domestic low attitude industries because we saw more [ colors ] mentioning about this industrial sector in the 2 sessions meetings. And my second question is on the overseas market sales guidance, whether management could share any?

This is an Wang Zhao. I'll take your first question. Generally, we believe the overall macro environment in 2026 will be better than in 2025. As you know, the 15th 5-year plan has lifted the low altitude economy to an emerging pillar industry or strategic pillar industry, and the level of -- or intensity of resource allocation and policy support for this industry will be greatly enhanced in the future. And also the development of the low altitude economy was included in the newly issued civil aviation law, which will take effect this July. So this means the industry is entering a new stage where it's going to be ruled by law, governed by law and regulations and standard systems at all levels will be gradually established. This is a necessary path for the new aviation industry. For EHang, we are at the forefront of this industry, and we are contributing first-hand experience to the standard construction. And also, we expected the overall market environment to improve.

This is Conor. I'll take your second question. On the overseas revenue, so the overall revenue guidance for 2026 is RMB 600 million. The overseas revenue in 2025 was in low single digit as a percentage. Looking ahead to this year, as the overseas commercial operations take place in countries like Thailand, the overseas revenue is expected to increase significantly compared to last year. If things progress well, we may expect to see the revenue contribution move into the double digit as a percentage of the overall revenue.

Your next question comes from Laura Li with Deutsche Bank.

So I want to ask about the [ RMB 600 million ] revenue guidance. So what are the assumptions underpinning that? Could you talk about diversifying the revenue through different models or the service revenue versus aircraft delivery or the OEM model versus operator model or the overseas market. So how do you see this play out during this and next year?

So Laura Li, right?

Yes.

[Foreign Language].

This is the conference operator. We have temporarily lost connection with the speaker line. Please continue to hold, the conference will recommence shortly. [Technical Difficulty]

[Interpreted] This is Wang Zhao. I'll take your question. Well, in addition to the human-carrying eVTOL business, we will proactively develop the nonpassenger segment this year such as emergency firefighting, logistics, GD4.0 drone formations and command and dispatch systems. You can see that actually, we delivered 8 firefighting aircraft in December 2025. Meanwhile, during the Chinese Spring Festival Gala, our formation performance of 22,580 drugs earned EHang a new Guinness World Record and attracted significant attention. This, like I said, attracted significant attention for EHang, leading to a surge in inquiries for this business. These are all achievements from our diversified aircraft models and nonpassenger business. With our opening of commercial operations and ticket sales to the public in March, EHang General Aviation will generate some operational service revenue. But of course, the initial contribution to the overall revenue won't be large. But nevertheless, this is a good start. Thank you.

Our next question comes from Fuyin Liang with Bank of America.

I have two questions for the management. The first one is about our commercial operation plan in this month in China. So initially, how do we expect the fleet size of our commercial operation in the 2 cities in China? And given the current fair price, how do we think about the unit economy model? And what's the profit margin of this operation?

[Interpreted] So initially, there will be around 6 to 10 aircraft, and we will gradually increase the number of eVTOL to be used for the commercial operations. And the early bird ticket price for each passenger is set at RMB 299 per person, which will basically cover the flight costs. With the specific data, I think we'll have to give it a period of time before we can disclose further details to the public.

My second question is about our cost control. EHang had a very good OpEx control in the last quarter in 2025. So what's the reason behind that? Looking at 2026, how do we expect the OpEx and also the OpEx to sales ratio?

[Interpreted] This is Conor. I'll take your second question. Yes, you're right. Overall, the [ SBC ] expenses in 2025 were lower in that of 2024. So that resulted in a smaller-than-expected increase in OpEx. Looking ahead to 2026, the year-over-year growth rate for OpEx is expected to be lower than our revenue growth rate. So we are setting our revenue growth year-over-year at [ 18, ] -- from [ 18 ] and our OpEx is going to be definitely lower than that.

Your next question comes from Alan Lau with Jefferies.

Congratulations for the company for the strong results in 4Q and also achieving commercial operation in March. So my first question is regarding to the strong delivery in fourth quarter. So we saw the company deliver units on a single quarter. So I would like to know who are the major clients contributing to such strong delivery? And do you expect further orders from the same clients?

[Interpreted] This is Wang Zhao. The growth in the Q4 deliveries was primarily the result of the year long marketing efforts in 2025. Many of them were not new Q4 customers. But actually, customers who we have been discussing specific operational plans and scenarios over the previous quarters with. And that finally result in the deliveries. And like I said, so the engagement with these clients finally lead to the deliveries in Q4. Some of them were repeat customers. And the key contributions come from clients from Hefei, Wencheng, Xiamen, Guizhou, Sichuan and Guangzhou, and we expect some repeat orders or purchases from repeat customers as well in the future.

That's very clear. And then my second question is regarding to the commercial operation in March. So I would like to know some specifics. Firstly, do you have an exact date on when the app will be launched or the public can book their flights in the program? And then is it [ point A to point A ] flight and each time, it's 1 or 2 persons?

[Interpreted] Yes, our commercial operations will be launched in March. We haven't yet disclosed the exact date as we are still fine-tuning the booking platform, the mini program. But operational readiness wise, we are ready. And as for the route, it is -- the flight is for tourism purposes, and it's from point A to point B, carrying 1 passenger. We believe this is enough to fulfill the needs of the customer.

Your next question comes from Chen Yu with GUANGFA Securities.

[Interpreted] So my question is on the OC application for the existing customers or clients. So what is the company doing on the company side? And what initiatives or efforts is the company putting in to facilitate the OC application? Are there any time lines that can be shared on the OC application for these existing clients? And my second question, I'm not sure whether any other analysts have already asked the same question. Are there any updates on the QC or airworthiness application for VT35? What's the current plan? Are there any adjustments, changes or updates on that?

[Interpreted] This is Wang Zhao. I'll take your first question. There will be 2, so 2 customers that have obtained the OC and their commercial operation will start to accumulate very valuable experience and become a demo of project for the rest of their clients. And we expect the training for the ground crew to begin in the first half of the year. So this will start to build the solid foundation for the expertise that's needed to conduct the commercial operation. And this would also increase the talent pool required to support the commercial operations of other clients. And particularly, our client from Guizhou has already submitted their materials for the OC. And furthermore, the policy environment is much more favorable compared to that in 2025. And we have done a lot of work, and we are ready. So we believe as we make more progress on these applications, there will be more customers that can apply and obtain their OCs in this upcoming year.

[Interpreted] This is Feng Shuai. I will take your second question on VT35 certification progress. In Q4, our VT35 completed key tests, including multi-rotor protective transition and shut down and locked propeller fixed-wing flights. Additionally, we've also held a first TCT meeting for airworthiness review. And we are currently conducting flight envelope tests. We are aiming to obtain the type certification in China within 2 years.

Thank you all. Given that time is limited, let me turn the call back to Ms. Anne for closing remarks.

[Foreign Language] [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.