Good day, ladies and gentlemen, thank you for standing by, and welcome to the EHang Third Quarter 2023 Earnings Conference Call. As a reminder, we are recording today's call. Now I will turn the call over to Anne Ji, EHang's Senior Director of Investor Relations. Ms. Anne Ji, please proceed. Hello, everyone. Thank you for joining us on today's conference call to discuss the company's financial results for the third quarter of 2023. The earnings release is available on the company's IR website. Please note that 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. Xin Fang, Chief Operating Officer, Mr. Conor Yang, Chief Financial Officer, and Director of the Board. The management team will successfully give prepared remarks. Remarks delivered in Chinese will be followed by English translations. All translation is for the convenience purposes only. In case of any discrepancy, management's statement in the original language will prevail. A Q&A session will follow afterwards. 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 are required under applicable law. Also, please note that all numbers presented are in RMB and are for the third quarter of 2023, unless stated otherwise. With that, let me now turn the call over to our CEO, Mr. Huazhi Hu. Please go ahead, Mr. Hu. 谢谢Anne。大家好，感谢各位参加我们这次的电话会议。2023年第三季度是我们值得纪念的节点，我们终于实现了亿航发展史上一个最值得期待、最激动人心的重大里程碑，那就是亿航自主研发的产品EH216-S无人驾驶载人航空器系统，在2023年10月13日获得了中国民航局颁发的型号合格证TC，这是全球首张无人驾驶电动垂直起降航空器的型号合格证。它不仅仅是亿航的一张简单的合格证，它为整个eVTOL行业指引了前进的方向，为行业的发展铺平道路。俗话说先行不易，开路难。一个新行业的建立和发展需要底层的创新，更要发展之初持之以恒的坚持。这是我门亿航人一直以来的决心，不忘初心，永不言弃。从早年全球还没有eVTOL型式审定方法时，我们的不斷探索、持续实践和完善，到2021年1月，中国民航局正式受理EH216-S的TC申请。经过了一千多个日日夜夜，不懈努力，攻坚克难，开拓创新，同时克服疫情带来的重重困难和考验，我们终于从零到一走完了TC认证全过程，率先趟出一条无人驾驶eVTOL的型号合格认证之路。EH216-S作为一个颠覆性的创新产品，具有诸多独特的创新性，例如全电动、无人驾驶、全备份、集群调度等。因此，相比于传统有人驾驶航空器，不论在技术架构、构型、性能、功能，还是在运行模式和飞行环境等方面均存在巨大差异。为此，中国民航局在全國范围内组织顶尖专家人才，成立了包含近百人的专家团队。亿航智能团队与中国民航局审查组密切协作，锐意创新，严谨求证，以生命至上、安全第一的原则，与有人驾驶航空器同等安全水平的标准，制定了国际上第一份用于无人驾驶载人航空器的适航审定标准，奠定了EH216-S的审定基础，为国际民航电动无人驾驶载人航空器的发展和建立健全的适航标准贡献了中国智慧和中国方案。适航审定的过程无捷径可走。我们和中国民航局以科学、全面、安全的原则，基于CCAR-21部框架基础，参照有人驾驶航空器适航审定的严格程序，多维度、多专业、综合化、系统性，无遗漏地完成了大量难度和复杂度高的审查验证工作。全部审定工作分为飞行性能、结构、设计与构造、电气系统、动力装置、飞行控制系统、地面控制系统、通讯与链路、人机交互、总体、持续适航、系统安全性，共计十二个专业组，包括六十五个大项，四百五十多个科目的符合性实验，包括主材料性能、结构强度、阻燃、坠撞、气体毒性、设备...系统的环境、软件仿真、数据链路、地面控制站、整机功能、电池兼容、飞行性能和操稳特性功能等试验及试飞。其中包括了对部件、设备、整机在试验试飞期间的预置缺陷、故障、干扰等试验。一千五百多个架次的试验试飞，以及超过四万余次的安全飞行数据记录，已符合全部条款，完成了符合性审查，具备了科学性、严谨性和权威性。获得TC意味着EH216-S具备了投入无人驾驶载人商业运行的资格，也预示着在今后的日子里，亿航也即将迈入一个全新的阶段，引领商业化运营。在此感谢亿航全体员工、中国民航局各级领导、成员和审查组的努力，也感谢所有关注、支持亿航和eVTOL行业发展的各界朋友。但我深知，获得TC并不意味着亿航已经成功，这仅仅意味着我们又一个新的开始。但是这已经叩响了无人驾驶航空产业快速发展的大门，也叩开了低空经济的蓝海，带领中国的城市空中交通行业步入快车道。作为行业先行者，接下来还会有很多个第一等着我们去逐步实现。比如第一架依照TC生产的EH216-S正式下线，EH216-S的首 批开放的运营点和线路，首次商业飞行、第一个购票的乘客等，请大家拭目以待。当然，航空业需要时时刻刻牢记飞行安全，因为这关系着每一位乘客的人身安全。过去几年里，我们已经在全球十四个国家执行了四万两千多架次无人驾驶飞行，保持着良好的飞行记录。在未来商业化运行新阶段，我们为自己立了一个新的目标，就是要继续保持安全飞行，为行业的健康发展铺路。在生产端，我们会严格把控航空器的质量标准，在获取AS9100国际航空航天质量体系认证的基础上，目前我们正在与中国民航局密切合作，完成生产许可证PC的办理工作，从而确保后续批量生产的每一架航空器产品符合适航标准，颁发适航证AC，并且能够高效交付给客户。在运营方面，目前我们有序推进EH216-S商业运营做好准备工作，包括完善安全运行规章、人员培训、起降平台建设、维修和服务体系、运营资质和保险等。此外，今年八月，我们的无人机云系统已获得了中国民航局的试运行批文，这将为公司下一步商业运营的落地奠定重要基础，也是亿航无人驾驶eVTOL规模化运行安全和管理的重要保障。在商业运营阶段，亿航本着对公众安全和行业发展负责的态度，合理把握发展节奏。初期我们对EH216-S提出了使用和运行限制，首先开展载人观光、短途航线等飞行服务，基于风险递进、审运结合的原则，再逐步开放稳健有序地向机场接驳、全自动城市空中的士等更广泛的城市空中交通的应用场景逐步拓展。在这个过程中，亿航还会继续完善产品方案，继续推进基础研发，完成高能量密度电池的试验试飞，完成VT-30等垂直起降固定翼类eVTOL飞行器的试验、试飞及适航审定，将飞行性能实现翻倍式的跨越。要实现安全、自动、环保的城市空中交通，不仅仅是亿航为之奋斗多年的事业，更是全人类发展的共同目标。我们深知路漫漫其修远兮。作为创新开拓者，肩负的责任和使命重大，但我们不会停下践行的脚步，一定会秉承中国民航人敬畏生命、敬畏规章、敬畏职责的精神，朝着我们战略目标继续努力奋斗，为推动民航无人驾驶航空高质量发展做出贡献。下面交给我们的首席运营官方鑫先生。谢谢大家。 This is the English translation of Mr. Hu's remarks. Hello everyone, thank you all for joining our conference call today. The third quarter of 2023 marks a significant milestone in our journey as we have successfully reached one of the most highly anticipated and thrilling achievements. Our self-developed EH216-S passenger carrying unmanned aerial vehicle system has obtained a Type Certificate from the CAAC on October 13th this year, making it the world's first TC for un manned eVTOL aircraft. It is not only a milestone for EHang, but also serves as a guiding light for the entire eVTOL industry, paving the way for its future development. As the saying goes, being the pioneer in the new industry is no easy feat. It requires innovation from the ground up and unwavering determination from the outset. At EHang, we have always been committed to this principle to keep in mind our humble beginnings and never give up. In the early days, when there were no established method for eVTOL airworthiness certification worldwide, we embarked on a journey of continuous exploration, experiment, and improvement. It was in January 2021, that the CAAC officially accepted our TC application for the EH216-S. After that, over more than 1,000 days and nights, we persevered with relentless effort, overcoming challenges and demonstrating innovation. We also faced the additional hurdles posed by the epidemic. Today, we have successfully completed the entire process of TC certification, starting from scratch, leading the way for unmanned eVTOL type certification. The EH216-S stands out as a disruptive and innovative product, boasting a range of unique features such as its all-electric nature, autonomous flying, full backup systems, and a cluster management, among others. As a result, it differs significantly from traditional piloted aircraft in terms of a technical architecture, configuration, performance, functionality, operation modes, and a flight environment. Recognizing this, the CAAC gathers a team of nearly 100 top experts from across the nation to review and certify EH216-S. Through close collaboration between the EHang team and the CAAC review team, a rigorous and innovative approach was taken, and established the world's first airworthiness certification standard for passenger-carrying UAVs. Guided by the principles of life first, safety first, this standard ensures that the EH216-S certifies at the level of safety equivalent to that of a piloted aircraft. These standards lays a solid foundation for the verification of the EH216-S, contributing Chinese wisdom and solutions to the global development of the electric passenger-carrying UAVs in a civil aviation, and the establishment of the comprehensive airworthiness certification standards. The process of airworthiness certification is a rigorous one with no shortcuts. Grounded in the principles of science, comprehensiveness, and safety, and following the framework of CCAR-21, we, in collaboration with the CAAC, have undertaken an extensive and complex review and verification process. This comprehensive approach encompasses multiple dimensions and disciplines, ensuring a meticulous and systematic evaluation. Across the 12 professional subjects and 65 major categories, we have completed over 450 compliance test items. The 12 professional subjects cover a wide range of areas, including flight performance, structure, design and configuration, electrical system, propulsion unit, flight control system, ground control station, communication and data link, airborne human computer interaction, general aspect, continued airworthiness, and system safety. The compliance tests involving assessing main material performance, structural strength, flame resistance, crashworthiness, gas toxicity, environmental conditions of equipment and systems, software simulation, data links, ground control station, overall system functionality, electromagnetic compatibility, flight performance, and the flight stability characteristics, et cetera. Throughout the validation process, we meticulously scrutinized every component, equipment, and the entire aircraft for any potential defects, faults, or interference. This scrutiny extended to both laboratory tests and flight tests. Over 1,500 compliance test flights, along with more than 40,000 safe flight records, EH216-S finally met all the requirements to complete a compliance review. The TC process has been conducted with a scientific rigor and authoritative oversight. The TC signifies that EH216-S is qualified for passenger carrying commercial operations. It also marks the beginning of the new chapter as we are poised to take the lead in commercial operations in the days to come. I wanna thank the entire team at EHang, as well as all the leaders and members of the CAAC and the review team for their support and dedicated efforts, and to all the people who support and are passionate about our development, as well as the eVTOL industry. However, we are fully aware that obtaining TC does not mean we have succeeded. Instead, it just makes the beginning of the new chapter for us. The TC has opened the door to rapid advancement in the UAM aviation industry and the vast opportunities presented by the low-altitude economy. It will propel China's urban air mobility industry into the fast lane. As a pioneer in this field, we anticipate several firsts that await us to achieve on this journey. This include the milestones such as the first EH216-S aircraft produced according to the TC, officially rolling off the production line, and the first batch of EH216-S operation sites and routes. The first commercial flight, and the first passenger to buy a flight ticket. We invite you to stay tuned and witness these milestones as we progress forward. Undoubtedly, prioritizing flight safety is of a paramount importance in aviation industry, as it directly impacts the personal safety of every passenger. Throughout the past few years, we have conducted over 42,000 autonomous flights across 14 countries, establishing an outstanding track flight record. As we enter a new phase of commercial operations, we will continue to uphold our commitment to safe flights for a healthy and sustainable development of this industry. At the production level, we maintain strict control over the quality standards of our aircraft. Based on obtaining the AS9100 International Aerospace and Aviation Quality Management System certification, we are now actively collaborating with the CAAC to finalize the processing of a Production certificate. This ensures that every aircraft produced in mass quantities adheres to the airworthiness standards, and will be issued an airworthiness certificate and efficiently delivered to our customers. Regarding operations, we are advancing toward commercial operations of EHang 216-S in an orderly manner. We are undertaking comprehensive preparations, such as enhancing safety operation regulations, conducting personnel training, constructing vertiports, establishing maintenance and service systems, and obtaining operation licenses and insurance. Furthermore, in August of this year, our Unmanned Aircraft Cloud System received the approval for trial operations from the CAAC, which serves as significant foundation for our upcoming commercial operations. It also plays a vital role in ensuring the safety and management of large-scale operations of our unmanned eVTOL aircraft. At the commercial operation stage, we will take a proper pace and approach of our development with a responsible mindset, by prioritizing the public safety and fostering industry development. Initially, we have set restrictions on the usage and operational conditions of EH216-S, primarily focusing on sightseeing and short-distance passenger flights. Adhering to the principle of progressive risks and conduct trial operation while advancing certification, we plan to gradually lift these restrictions, expanding operation scenarios into the broader range of urban mobility applications, including airport shuttles and fully autonomous urban air taxis, et cetera. Throughout this process, EHang remains dedicated to enhancing our product, advancing fundamental research and development, and achieving milestones such as the test flights with high-energy-density batteries, and test flight our lift and cruise eVTOLs, such as the VT-30, alongside its airworthiness certification. These efforts will be geared towards achieving significant advancement in our flight performance. To achieve safe, autonomous, and eco-friendly air mobility is not only a long-standing commitment for EHang, but also a shared goal for humankind. Facing the long journey ahead, we are aware of the significant responsibilities and the mission as a pioneer of innovations. Our dedication remains unwavering, guided by the core principles of the Chinese civil aviation industry, a reverence for life, regulations, and duties. We are resolute in our pursuit of strategic goals, unwaveringly contributing towards the high-quality development of the civil unmanned aviation industry, thereby making meaningful progress in advancing this innovative sector. Now, I will hand over the call to our Chief Operating Officer, Mr. Xin Fang. Thank you. 谢谢胡总。各位好，今年10月，亿航216-S的成功取证，标志着亿航从产品认证阶段正式步入到下一个商业运营的新阶段。围绕我们城市空中交通平台运营商的战略定位，公司会采取产品销售加运营服务双驱动的整体商业模式。因此，生产、销售、运营将是驱动业务发展的三大关键因素。下面我将从这三方面分享公司的最新进展和规划。在销售方面，今年第三季度，我们累计交付了13架亿航216系列产品，同比、环比均有大幅提升，并且随着亿航216-S获得型号合格证，我们知道来自全球各地客户的业务合作与产品采购需求显著增长，尤其在中国。例如，我们收获了来自深圳博领客户 的100架亿航216-S意向采购订单，并已交付了首批5架给客户做前期运行储备。另外，合肥市政府基于我们的战略合作，积极协调，促进不少于100架亿航216系列产品的采购订单。截止目前，亿航216系列产品在国内的订单储备累计超过245架，未来将根据客户的需求，分批次逐步交付。在生产方面，目前在中国民航中南地区管理局的主导审产下，我们正在与云浮生产基地依据亿航216-S型号合格证，稳步推进生产工作。... 第一批认证后的EH216-S将于今年第四季度完成生产下线，并交付客户使用。在运营方面，城市空中交通生态体系建设和新兴的行业长远发展，离不开政府的顶层规划和政策支持。我们很高兴看到，就在EH216 TC起证前夕，中国工信部、科技部、财政部、民航局四个部门联合发布了绿色航空制造业发展纲要，2023至2035年。提出到2025年，以委托实现试点运行。近期，国内各政府也都纷纷出台一系列扶持政策，积极促进低空经济产业高质量健康发展。这为我们的无人驾驶航空器在国内的运营落地奠定了坚实的政策基础。第三季度以来，我们相继与深圳宝安区政府、合肥市政府签署了战略合作协议，各地将在政策、基建、应用、资金补贴等多个方面给予亿航各项支持，合力推动产业发展和应用落地。宝安区作为深圳的门户，大湾区的交通枢纽，计划在2025年前，建设100个以上的低空飞行器起降平台，开通50条以上的无人机航线，建成全国领先的低空经济创新发展标杆城区。目前，基于亿航的战略合作，宝安区正在加快建设位于前海湾湾区之一城市空中交通运营示范中心，准备接下来EH216-S，在当地开展空中旅游观光体验运营服务。合肥市作为安徽省全域低空空域管理改革试点的中心和通用航空区域服务中心，正在积极打造低空产业集群。合肥市政府计划为亿航提供总价值$100 million的采购订单和资金支持，并积极推动我们的无人驾驶航空器，在当地文旅、应急、物流、消防等低空应用场景的应用。我们将计划在合肥的骆岗中央公园，开展无人驾驶航空器的常态化运营。在国际市场，继我们获得中国民航局颁发的型号合格证后，目前我们也正通过当地客户与合作伙伴的沟通协作，积极推动其所在国家民航监管机构的商业运营和认证许可，为下一阶段海外的订单交付和业务落地铺平道路。下面请我们的首席财务官Conor介绍财务情况。谢谢大家。 This is the English translation of Mr. Fang's remarks. Thank you, Mr. Hu, and hello, everyone. The achievement of the EH216-S TC in October this year makes EHang's transition from the product certification phase to the next stage of commercial operations. Align with our strategic positioning as an urban mobility platform operator. The company is set to implement an integrated business model driven by both product sales and operational services. Therefore, production, sales, and operations are the three key drivers to our business growth. I will now share the latest updates and plans of our company in these three areas. Regarding sales, we successfully delivered 13 units of EH216 series products in the third quarter, marking a notable year-over-year and quarter-over-quarter growth. With the EH216-S receiving TC, we've seen a significant increase in business collaborations and product purchase demand from customers around the globe, especially from China. For instance, Shenzhen Boling intends to purchase 100 units of EH216-S, and we have delivered the initial five units for operational preparations. Moreover, in accordance with our strategic partnership, the Hefei Municipal Government is set to facilitate orders for at least 100 units of EH216 series products. As of now, the total sales pipeline for the EH216 series in China have more than 245 units, which will be delivered in phases as per customer's requirements. Regarding production, guided by the CAAC, Central and Southern Regional Administration, we are steadily moving towards producing EH216-S according to its TC at our Yunfu factory. The initial batch of EHang 216-S produced based on its TC, is scheduled to roll out of our production line for deliveries to our customers in the fourth quarter of 2023. In terms of operations, the growth and sustained development of the UAM ecosystem and emerging industries hinge on strategic government planning and policies. We are glad to see that just before the EHang 216-S obtains TC, China issued a Green Aviation Manufacturing Industry Development Outline 2023- 2035, jointly by the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance and the CAAC to encourage aviator operations by 2025. Moreover, recently, many local governments in China have introduced a series of supportive policies to cultivate robust and sustainable growth in the low-altitude economy, establishing a stable policy foundation for our UAV operations in China. Since the third quarter, we have entered strategic partnerships with Bao'an District Government of Shenzhen and Hefei Municipal Government. These governmental collaborations involve providing supports in terms of policies, infrastructures, applications, and subsidies to EHang.... aimed at facilitating industrial growth and applications within these regions. Serving as Shenzhen's gateway and a key transit hub in the Greater Bay Area, Bao'an District aims to become a pioneering zone for low-altitude economy innovation and development in China, and it plans to build over 100 low-altitude aircraft vertiports, along with the launch of more than 50 UAV routes by 2025. Currently, in strategic partnership with EHang, Bao'an is actively expediting its establishment of a UAM Operation Demonstration Center at the OH Bay, with the plan to initiate aero-tourism and local sightseeing services with the EH216-S. Hefei City, serving as a central area for low-altitude airspace management reform in Anhui Province, and as the regional general aviation service hub, is actively fostering the development of the low-altitude industry cluster. The Hefei Municipal Government intends to provide EHang with a total value of $100 million supports, including facilitating purchase orders and financing support. Additionally, Hefei is dedicated to promote the utilization of our UAVs across various low-altitude scenarios, including culture and tourism, emergency transportation, air logistics, and firefighting, et cetera. Meanwhile, we will plan to launch regular operations with our UAVs in Luogang Central Park in Hefei. Internationally, following by obtaining a TC from the CAAC, we are proactively engaging in efforts to secure bilateral recognition and certification from various civil aviation authorities through communication and collaborations with our local customers and partners. This will position us well for the next phase of delivering international orders and expanding our business abroad. Next, I will turn the call over to our CFO, Conor. Thanks. Thank you, Mr. Fang. Hello, everyone, this is Conor. Before I go into details, please note that all numbers presented are in RMB and are for the third quarter of 2023, unless stated otherwise. Detailed analysis are contained in our earnings press release, which is available on our IR website. I will now highlight about some of the key points here. In third quarter, total revenue was RMB 28.6 million, an increase of 248% from RMB 8.2 million in the same period last year, and 186% increase compared to RMB 10 million in second quarter. The increase were primarily attributed to the increase in our sales volume of EH216 series products. We delivered 13 units of EH216, up 225% year-over-year, and 160% quarter-over-quarter. We've been seeing growing demand for our products upon obtaining the TC, and expect our revenue further increase and cash flow generation continue to strengthen in the next few quarters. Gross margin continued to stand at a high level of 64.6% in third quarter, an increase of 4.4 percentage point from 60.2% in second quarter, primarily driven by higher average selling price of our EH216. Furthermore, our distinctive advantage in the UAM industry allow us to enjoy higher margin over other type of electric transportation vehicles. In third quarter, our adjusted operating expenses, which are operating expenses excluding share-based compensation expenses, were RMB 54 million, down 9.5% from CNY 59.7 million in the same period last year, and down 7% from RMB 58.1 million in second quarter. This decrease was primarily due to a reduction in professional service fees and healthier situation in accounts receivable compared to last year, demonstrating effective cost control and improved operational efficiency. As a result, our adjusted operating loss in third quarter was RMB 34.2 million, an improvement from a loss of RMB 5.9 million in the same period last year, and a loss of RMB 51.3 million in the second quarter. Adjusted net loss was RMB 31.3 million, a significant reduction of 43.1% year-over-year, and a reduction of 39.5% quarter-over-quarter. Turning to our balance sheet. Our stringent approach to cash and liquidity management is reflected in our cash position. As of the end of third quarter, we have RMB 295.6 million of cash, cash equivalent, short-term investment, and restricted short-term deposits. In July, we successfully concluded a private placement, securing RMB 23 million from long-term strategic investors. The funding will bolster our liquidity and provide support for technology advancement, for business development, and post-certification commercial operations. We are confident in our cash position will be sufficient to meet cash needs for us to reach cash flow positive phases in the near future. Starting from this quarter, we will provide revenue guidance for the next quarter in our earnings results. We are optimistic about our post TC commercial operations. We anticipate achieving revenue of about RMB 56 million for fourth quarter, representing an increase of 257% year-over-year, and an increase of 96% quarter-over-quarter. For the fiscal year of 2023, we expect total revenues to be about RMB 180 million, up 166% from last year. Looking forward, as we sell and deliver more products per customer's request and steadily expand our commercial operations in the future, our cash flow will improve, and we are confident that the company can generate positive cash flow in later part of 2024. That concludes our prepared remarks. Let's now open the call for questions. Operator, please go ahead. Thank you. As a reminder, gentlemen, to ask a question, please press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Once again, please press star one and one to ask a question, and wait for your name to be announced. To withdraw your question, please press star one and one again. Thank you. We are now going to proceed with our first question. The first question comes from the line of Tim Hsiao from Morgan Stanley. Please ask your question. Your line is open. Thank you for taking my question, and congratulations on receiving the Type Certificate from CAAC. I'm Tim's colleague, and will ask the question on behalf of him, as he lost his voice due to a bad cold. Just a quick question about order backlog. Can we get a sense of the composition of current order backlog in terms of geographic mix and model mix? When- Yes, thank you. the EHang revenue, since the company has obtained the type of certificate. Yes, thank you for the question. Currently, our sales pipeline reached more than 450 units of unmanned eVTOL aircraft from China and the other part of Asia. This includes more than 245 units from domestic customers and 210 units of pre-orders from Asian overseas market. There are also other countries from other countries that will be delivered after obtaining validation TC in these respective countries. And over 90% of our sales pipeline in the domestic and Asian markets are for EH216-F, and less than 10% orders from EH216 logistics version and also EH216 firefighter version. This sales pipeline will be delivered in stages per our customer's request. For instance, our scenic spot customers, they typically start with an initial purchase of three to 10 units for training and trial operations at local sites. Subsequently, as operations expand and demand increase, they will buy more products. So these, purchase timeline typically span one to three years. So we can see a significant increase in delivery volume in the fourth quarter upon obtaining the TC. Moving forward, we will provide revenue guidance for the next quarter in our quarterly financial reports. Thank you. Thank you. Thank you. We are now going to proceed with our next question. The question's come from the line of Ting Song from Goldman Sachs. Please ask your question. Your line is open. Thank you for taking my questions. Just a quick one. What's EHang's progress on getting TC certification in overseas market, like Middle East or some other countries? Thank you. The Type Certificate we have obtained is by the CAAC. CAAC. As we know that, in the past few years, the CAAC has reached a lot of bilateral recognition agreement with other aviation authorities in other countries. As we all know that, in the +past few years, the CAAC has reached a lot of bilateral recognition agreement with other aviation authorities in other countries. ...Yeah, we are promoting the communication between the CAAC and with other civil aviation authorities. For example, recently, the Brazil Civil Aviation Authority have came to China. 对，我们，所以我们会优先跟我们已经觉得有订单的一些国家，会尽快的来，这个是进行TC的这种互认，这种认定。 So first we will prioritize to work on the regions that we have orders in the local market. 对，在基于中国TC的这个，已经颁发的这个基础上，所以我们跟各国的这个，TC VTC这个认证，我们其实主要是起到一个支持作用。所以，我相信这个在双边的这个沟通过程中，会，这个进程会非常的快。 We believe we will make efforts to promote the VTC procedure, which means the Verification of the Type Certificate in the local countries, and we will provide a support to that work. 对，我们在VTC还没有完成之前，我们可以对其，可以对其他相关的国家可以进行一些，也可以提前进行一些互动，然后并且可以在，在当地进行一些，培训之类的工作。 Before we obtain the VTC, we can deliver some products to the local market and do some trainings at the for the local client. 对，我们会很有节奏地向全球开始，全球去尽快推广我们在全球的这个UAM，还有这个无人驾驶载人飞机的一个飞行工作，相信，相信很快会让更多的国家看到我们在当地的一个落地。 We will extend our market extensions at a proper pace to the international market. We believe that soon we will see our global exposures. 对，这是一个行政过程，我相信它会非常的快，它不像TC当年那个技术认证那么复杂。 The VTC is an administrative work, so it's not as complicated as the Type Certificate. 好，我就说到这里，谢谢。 Yeah, that's my answer. Thank you. Thank you. We are now going to proceed with our third question. The question come from the line of Rong Zhao from TF. Please ask your question. Your line is opened. Okay, thank you for taking my question. So I have two questions on my side, and the first one is about the EH216. So I would like to ask whether the company sees the need to upgrade the product so as to increase the range of mileage, judging from the current feedback from demand side, and if so, what is the timeline and the cost outlook? And the second question is about the airworthiness certification, the EH216 logistic version. What is the expected time to get TC? Thank you. 好，谢谢，谢谢天风证券。我还是需要安妮来翻译。首先第一个呢，就是说我们飞机目前的这个续航里程，其实我们216这个型号是专门适用于城市内的公共交通的。 Thanks for your question. The EH216 is designed for the short distance, air transportation within the city. 对，而且我们在216的整个从设计到今天拿到TC这个过程中，我们已经，经过了大量的测试，证明它在城市内进行air taxi这样的业务的这种飞行都是足够的。所以我们会在这个前期先，以我们尽快地能做到的，并且让它更加安全地能感受我们的这个飞行。 According to our test, our product is capable to do the air taxi services within the city. 所以说，我们在目前也考虑到了，我们有需要更长的飞行时间，所以我们在早些时间，已经开始对动力系统，包括电池系统进行更深层次的研发。 In order to achieve the longer flight time, we will continue to optimize our power system and battery system. 对，所以我们特别是大家都知道，在这个，现在有很多，特别是包括中国的宁德时代，有很多其他的几个公司，都在研发和推出了这个固态电池的这样一个技术，所以我们在这块已经有所布局，所以大家知道我们在前期，也投资了一个电池的公司。 Yes, as you know that there are many companies in China have invested in the solid state lithium batteries, for example, the CATL. And recently we have also invested in the domestic solid state lithium battery company. 也是我们，我们会在未来的研发中，会让我们的216的这个动力系统，还有这个电池系统，会让它的性能会增，争取让它翻倍，这是我之前讲话中讲过的。 So, we are making efforts to achieve the goal that, to, you know, double the flight performance... in the future. 对，我们的目标是让它飞得更远，但是一定要让它更加安全。 Our goal is to achieve a longer flight range, but, meanwhile, we will ensure safety. 对，另外呢，就是在城市与城市之间，我们，我们的VT-30的这个，城市与城市的更加长途的这个飞机，我们在VT，我们在这个TC认证之后，我们开始了让它更尽快的让它更多的开始研发。在，在TC，在这个我们拿TC过程中，我们这个VT-30的这个步伐走得稍微有点慢，但是我们，我们会尽快地让VT-30也走入到这个TC的这个过程中，也会让它开始去申请试航。 During we are doing the type certification with the EH216, the VT-30 development pace is a much slower, but now we are have after the type certification of EH216, we are also developing and working on the long range model, which is the VT-30, a lift and cruise model for the intercity longer range air mobility. 好，然后还有第二个问题，就是我们的物流版的216呢。其实我们在之前就已经通过了中国民航局的一个运行许可，就是货运飞行的运行许可。所以我们在现在这个阶段，中国有新的法规出来，我们还会去申请它的货运版的TC。 The EHang 216-L have obtained the trial operation certificate for the cargo transportation previously. So, after there is a certification standards for this kind of aircraft, we will apply for a type certification for the EHang 216-L. 对，如果在我们货运版TC还没有出来之前，我们也会在这个业务上进行拓展。我们是基于原有的这个货运版的这个飞行许可，已经拿到的这个飞行许可继续运行，然后再……然后你先到这，你先翻译。 Before we obtain the Type Certificate of the EHang 216-L, we can still expand our business based on the trial operation permits that we have obtained. 对，然后我们216，216-L，在这个货运版的TC上，我们也会去正式申请。然后基于216-S现在已经拿到的TC，在基础构型不变的情况下，我们会很快地拿到那个货运版的TC。 As the EH216-L and EH216-S share the same platform, so we can leverage the experience from the type certification for the passenger model, so we can expect to take shorter time on the EH216-L type certification than that of the passenger one. 好的，谢谢，谢谢天芳。 Thank you。 Thank you. Thank you. We are now going to proceed with our next question... And the question comes from the line of Laura Li from Deutsche Bank. Please ask your question. Your line is open. Hey, thank you for taking the questions and, congratulations on receiving first Type Certificates. My first question is, we are already talked about the backlog orders, but just clarification on this, would you expect to be able to collect deposits? And also, when will you expect the first customer paying flights to occur? And my second question is, how should we think about the cash burn trajectory and your future financing plans? Thank you. Thank you for the question. For your first question, as mentioned before, you know, we are after securing the TC, we have seen a surge in interest and inquiries from many domestic and global customers. For our pre-order and order of intent, we charge a small, non-refundable deposit, which varies by customers to confirm their commitment to purchase. For the purchase order, right now, we will collect about 30%, for down payment, and then for the remaining, 60% - 70% before delivery. So for your second question on the cash burn situation and capital, our current average monthly cash burn rate of our operation is less than 10 million, or roughly less than about $1.4 million. At the end of third quarter, we have 295.6 million of cash, cash equivalent, short-term investment and restricted short-term deposits. Therefore, we believe that our current cash and cash equivalents of our anticipated cash flow from operations will be sufficient to meet our anticipated working capital requirements. Looking forward, as we sell and deliver more products per customer's request and steadily expand our commercial operations in the future, our cash flow will improve, and we are confident that our company can generate positive cash flow in the later part of 2024. Thank you. ... Thank you so much. Thank you. We are now going to proceed with our next question. The question comes from the line of Yu Chen from Haitong Securities. Please ask your question, your line is opened. 好的，非常感谢，EHang的各位领导，我是来自海通的陈宇。那首先恭喜EHang取得非常不错的成绩。我这边主要有三个方面的小问题想向各位领导请教。首先第一个问题的话是关于我们的订单，那我们也了解到，其实公司未来还有许多的预存订单。那从三季度情况来看，目前已经交付了17架的EH216，根据四季度的财报指引，营收上面，我们根据营收推算呢，是不是意味着在整个四季度，我们EH216可能交付的情况是在三季度的基础上翻倍？另外的话，我们也想了解，就是关于未来两年整体订单的交付的情况，然后这个是关于订单的问题。第二个方面的问题的话，其实前面也有分析师提到，是关于我们海外的适航认证的情况。因为我们也了解到，其实公司与海外的许多客户也已经签了一些预订单，那我们想知道，就是目前来说，在海外政府这边去取得他们官方认定的适航认证的话，整个的pipeline大概是，需要多长的时间周期？那公司关于整个海外市场的订单交付情况，是否，有这样的预期，就是可能在未来几年内能陆续落地。第三个问题的话是我们有注意到三季报的情况来看的话，应该是EH216的交付单价可能略有上升。那我们想了解一下，因为EH216的定价应该是CNY 216万，那我们在整个的交付期，就是说目前来看，价格往上走是不是一个自然的跟着CPI指数可能会略微往上升，就是这是一个长期看的趋势，还是说，是因为某些可能订单原因，就是折扣方面略有不同。以上，谢谢。 Yeah, I kind of briefly repeat your question. That's your first question is the, how about the order for the next two years? And then, the validation of Type Certificate in overseas, how long will it take? And thirdly, regarding the SP price of 216. Yeah. You know, as we see that, our guidance for the fourth quarter, basically, the EH216 volume has increased quite a lot. And for the next two to three years, actually, I will see that the first year of 2024, the majority of the order will come from domestic sightseeing places or scenic spots in China. We estimate that in China, there are over 6,000 scenic spots that can apply our products in their location to enhance their revenue. You know, even we use like 10% penetration rate in each site use five units, that will be like over 3,000 EH216 demand from domestic scenic spots in the next several years. So, 2024, we'll see a strong demand coming out from scenic spot in China. The application for overseas validation of TC will be a lot shorter than the TC we have obtained from CAAC. We are expecting that roughly about should not be maybe 12 months, more or less, for the local, for the foreign government to get approval for validation TC. So even though we have seen a strong demand from globally right now, but we are expecting, you know, give a year of getting validation TC from different countries globally. We're expecting that global demand will come in a great way in 2025. In 2025, the growth driver will be the domestic scenic spot demand, as well as the international orders in 2025. Then come to the later part of 2025, for transportation purpose, a demand of our EH216 will start to contribute a minimal portion of our business. After one to two years, build-out for the infrastructure, and the in-talk cooperation with the local government in China. In 2026, there will be three ways of revenue contribution orders. First one is, again, the domestic scenic spot, and secondly, global order, and thirdly, for transportation purpose of EH216. So all these will contribute a lot of our revenue in the next three years. And other than that, our logistics version of the EH216, as well as the firefighter version of the EH216, will also provide a strong growth driver for our revenue going forward. And regarding the SP of the EH216, yes, we saw that there's a slight increase on SP third quarter versus second quarter. And especially after we obtain TC, we will have a stronger position in our pricing, right? So 216, sorry, 2.16 million CNY per selling price, that's a listed selling price. We sometimes give certain discount to our customers, but after we obtain TC, we think the pricing will be stronger. We should expect slightly increase on the SP. Especially if those orders coming power from overseas, we can even sell a lot, lot higher price. Yeah. So gradually looking forward that, there's so, so upside on the SP price for 216. Thank you. Thank you for your clear. Thank you. Seeing no more questions in the queue, let me turn back the call to Miss Anne for closing remarks. Thank you, operator, and thank you all for participating on today's call. If you have any further questions, please contact our firm by email or by participating in our following investor events through the calendar information provided on our website. We appreciate your interest and look forward to our next earnings call. Thank you. Thank you all again. This concludes the call. You may now disconnect your lines. Thank you.