Benzinga | Feb 22, 2021 06:39AM EST

EHang Issues a Statement Refuting a Negative Report Published by Wolfpack Research

Shanghai Kunxiang Intelligent Technology Co., Ltd. ("Kunxiang") is only one of EHang's many customers and it is not a related party of EHang. Set forth below are details concerning EHang's sales to Kunxiang.

1. In 2019, EHang generated revenues of RMB29.2 million (US$4.2 million) from Kunxiang, representing 24% of its total revenues for the same period.



2. These revenues were entirely related to the two sales contracts: (i) a contract dated February 1, 2019 for the sale of 3 passenger-grade AAVs and (ii) a contract dated June 3, 2019 for the sale of 20 passenger-grade AAVs.



3. The table below sets out the details relating to the Company's sales to Kunxiang in 2019:



Total units sold to Kunxiang in 2019 22 (21 units of EH 216 and 1 unit of EH 116)Contract unit price (inclusive of VAT of 13%) RMB1.5 millionEx-VAT unit price (exclusive of VAT of 13%) RMB1.327 millionRevenues from sales to Kunxiang RMB29.2 millionPercentage of revenues from sales to Kunxiang in 24%the total revenues in 2019

4. Please see below for additional details concerning the 22 units of passenger-grade AAVs sold to Kunxiang in 2019:

Reference No. Model Delivered Location1. EH21000002 EH116 Suzhou, Jiangsu Province2. EH21000004 EH216 Dalian, Liaoning Province3. EH21000006 EH216 Kashgar, Xinjiang Province4. EH21000007 EH216 Suzhou, Jiangsu Province5. EH21000015 EH216 Changchun, Jilin Province6. EH21000016 EH216 Hengyang, Hunan Province7. EH21000017 EH216 Dalian, Liaoning Province8. EH21000018 EH216 Dalian, Liaoning Province9. EH21000019 EH216 Turpan, Xinjiang Province10. EH21000021 EH216 Dalian, Liaoning Province11. EH21000022 EH216 Taizhou, Zhejiang Province12. EH22000001 EH216 Dalian, Liaoning Province13. EH22000002 EH216 Yangjiang, Guangdong Province14. EH22000003 EH216 Taizhou, Zhejiang Province15. EH22000004 EH216 Yangjiang, Guangdong Province16. EH22000005 EH216 Shijiazhuang, Hebei Province17. EH22000006 EH216 Yangjiang, Guangdong Province18. EH22000007 EH216 Yangjiang, Guangdong Province19. EH22000011 EH216 Ningbo, Zhejiang Province20. EH22000015 EH216 International21. EH22000016 EH216 International22. EH22000017 EH216 International

5. Approximately 71% of the revenues the Company generated from sales to Kunxiang in 2019 has been collected.

6. With EHang's passenger-grade AAVs, Kunxiang has explored businesses in a number of areas, including aerial sightseeing, emergency transportation and aerial firefighting in different locations. According to Kunxiang and publicly available information, Kunxiang has conducted series of trial flight activities of EH216 in 17 cities across China, including Changchun, Yantai, Suzhou, Turpan, Shenyang, Hangzhou, Yangjiang, Panjin, Harbin, Lanzhou, Tianjin, Ningbo, Shijiazhuang, Dalian, Xi'an, Hengyang and Fuxin, among others in additional to its internal trial flight activities. Most of these activities have been reported by media. Detailed information can be found in a video of selected public trial flight activities at Kunxiang's Douyin (the Chinese version of TikTok) account (ID: 2211017075) and via this YouTube channel (link).

7. Kunxiang is a customer that focuses on aerial tourism as its core business. As a leader in AAV technology, EHang has developed solutions for a broad range of applications, such as aerial transportation, logistics, aerial tourism, aerial firefighting, smart city management and aerial media. EHang has attracted a number of customers and strategic partners, including private companies, multinational companies and local governments both in China and abroad. As previously communicated, Kunxiang is no longer the largest customer of EHang in the fiscal year ended December 31, 2020.

EHang is in the process of taking legal actions against Wolfpack Research for its malicious act and false allegations in order to protect the interests of the Company and its shareholders.