EHang secures order for 41 pilotless air vehicles from Jilin province

GUANGZHOU, China - Urban air mobility company EHang Holdings Limited (NASDAQ:EH), currently valued at $1.2 billion and showing impressive revenue growth of 168% in the last twelve months, has entered into a strategic cooperation agreement with Jingyue High-tech Industrial Development Zone in Changchun, Jilin Province, according to a company press release issued Friday. According to InvestingPro data, the company maintains strong liquidity with a healthy current ratio of 2.68.

Under the agreement, Jilin Aerospace Industry Development Investment Co. has committed to purchase 41 units of EHang’s EH216-S pilotless electric vertical takeoff and landing (eVTOL) aircraft. The vehicles will be deployed for low-altitude sightseeing, urban emergency response, and traffic management in Changchun. The company’s operational efficiency is reflected in its impressive 61% gross profit margin, as reported by InvestingPro, which offers 8 additional key insights about EHang’s financial health.

Changchun is among China’s designated pilot cities for low-altitude airspace management reform and aims to grow its low-altitude economy to RMB3 billion ($414 million) by 2026.

Jingyue High-Tech Zone, recognized as a National Independent Innovation Demonstration Zone, will serve as the core development hub. The zone has been selected as a "Regulatory Sandbox for Low-Altitude Economy" under a national initiative by China’s Ministry of Industry and Information Technology and Ministry of Science and Technology.

The partnership includes plans to develop a provincial-level demonstration zone and establish a low-altitude command and dispatch platform. EHang will also contribute to the planning and construction of a cold-region testing site for eVTOL aircraft in Jingyue.

"With two EH216-S operators securing China’s first batch of Operating Certificates, EHang’s human-carrying eVTOL has officially entered commercial operations," said Wang Zhao, Chief Operating Officer of EHang.

The collaboration aims to advance eVTOL applications in cold-climate regions, with plans to deploy aircraft across eight 5A-rated scenic destinations in Jilin Province for aerial tourism.

In other recent news, EHang Holdings reported its first-quarter 2025 financial results, revealing a significant drop in sales to RMB 26 million, a 58% year-over-year decline. This decrease was largely due to fewer-than-expected deliveries of its electric vertical take-off and landing vehicles, with only 11 units delivered instead of the projected 60. Despite the sales shortfall, EHang’s gross profit margin saw a slight improvement, reaching 62.4%. BofA Securities adjusted its price target for EHang from $26 to $24 but maintained a Buy rating, indicating confidence in the company’s recovery potential. Jefferies also initiated coverage of EHang with a Buy rating and set a price target of $30.40, highlighting the significant market potential for eVTOL technology. Deutsche Bank upgraded EHang from Hold to Buy, though it lowered the price target to $20, citing China’s rapid development of an eVTOL ecosystem. Additionally, EHang announced that recent U.S. tariff changes will not affect its operations, as the company does not export to the U.S. market and maintains an independent supply chain.

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