00:00Can you tell us how the regulatory framework is looking like for you and how you're doing business these days,
00:04in particular when it comes to the status of your aircraft certification?
00:07What's the update there when it comes to Europe and the U.S. now?
00:13Right. We have obtained the world's first operator certificate late March, together with our client.
00:22So after that, the visitor, we can start to sell the ticket, commercialized.
00:30To the general public and globally, we have expanded to like Middle East, South America, Caribbean countries, as well as the Southeast Asia.
00:42For the U.S., currently, we don't have a planned selling product over there.
00:47But globally, there are strong interest in our product and, of course, domestic as well.
00:53Yeah.
00:55Connor, David here. Just to follow up on that, I believe you're, and correct me if I'm wrong,
01:00are you in 16, one, six cities right now outside of China?
01:03And are you looking to increase that number?
01:06And when can, again, to your point, when can we start to expect the company to derive revenues from its business outside of mainland China?
01:13Well, last year, we have a group of our revenue over 300 percent compared with 2023.
01:24We have a server of 216 units of our EBITO, you know, the aircraft, mainly in China, as well as some selling to overseas.
01:33And in terms of the – in China, for example, that currently there are over close to 60 cities in China has laid down the low altitude economy
01:46as their national government work for the next few years.
01:50So we expect to see a strong demand of our products in the next few years.
01:55Globally, that, as I mentioned earlier, we are in the Middle East, we are in Caribbean countries, South America and Southeast Asia.
02:05These countries in those areas have a strong interest in us.
02:10In the U.S. and in Europe, there are special regulations for the type of certificate approval.
02:18So in terms of pace, we'll do globally outside of these two regions first.
02:25Is there any sort of risk in expanding some of these markets, Conor?
02:30I have to ask you about how are you addressing some of the regulatory hurdles in some of the international markets that you're trying to get into?
02:39Right.
02:40You know, the most important certificate is the Thai certificate that we have attempted from Civil Aviation Administration of China back in 2013, October.
02:50So globally, that we are selling our product to those countries or areas that I just mentioned, and they can use that for like a trial purpose.
03:00But if they want to start a massive operation commercially using our product, they still need to obtain so-called VPC.
03:09It's a validation of our type certificate, because mostly those countries, they do not produce aircraft.
03:16So what they need to do is to have like bilateral agreements with China's Civil Aviation Authority to get more information and get the approval process.
03:28And this process will be a lot shorter than officially getting a type certificate.
03:34But some countries, like Thailand, for example, they're more flexible, even before they get in VPC, they will put in some area for like a sandbox within this confined sandbox area.
03:49If we meet certain requirements, we can start to operate commercially.
03:54So there's various countries that have a different approach.
03:57I think longer term, we'll get there, because globally, we do see that this EVTOL is a global industry.
04:05You know, China, I believe, is the largest country, largest market in this area.
04:10Globally, it's also very strong interest.
04:15Connor, I need to ask you, the product on display right behind you, I think that's EH216S EVTOL.
04:22And speaking of aviation authorities in China, you recently got certification to operate.
04:29If you could just clarify what exactly are you now allowed to do and what does that mean for your domestic business?
04:37Right.
04:38There are, as a manufacturer like Yihang, that we have obtained the type certificate, we have obtained the production certificate, as well as the standard air awareness certificate.
04:49So with these three certificates, we'll enable us to sell to our customers, and also our customers can use the EH216 for commercial purpose.
05:02And our client purchased our EVTOL.
05:05They want to sell tickets.
05:06They want to provide to the public.
05:08They need to obtain so-called operator certificate.
05:11That the CAC in China has also granted the OC, the operator certificate, to one of our clients in Hefei, called Hefei Hei, as well as to Yihang ourselves.
05:23So once the client gets this OC, they can, you can think about that as like a regional airline company on the EVTOL sector.
05:32They can, after internal trial, then CAC will start to, you know, allow those OC owners to operate to the public step by step.
05:42Conor, just to ask about, and I know you guys are reporting results very soon, so you can't get into detail, but just to understand if you are, I think the last time that we had a conversation, you said you were on track for $900 million in revenues this year.
05:59Are you still on track broadly for that?
06:01And are there any concerns that have been brought up because of your concentration in terms of the small number of customers that you guys have?
06:08Which can be a good thing, or it could be a bad thing as well, Conor?
06:14Yes, there are over about 15,000 scenic area with A-rated or above.
06:21And many of those are operated by the various local government.
06:25That's why the first step will be in aerial sightseeing.
06:29You know, in China, even we adopt a 15% penetration rate on this 15,000 aerial areas.
06:35And each area can purchase, like, about 10 ebitos.
06:40That will be over 20,000 units of ebitos in demand in the long term.
06:46So that's a very big market.
06:49And, of course, you know, it's a human carrier and a pilotless.
06:52It's a brand-new industry, the first type of its kind in China as well as in the world.
06:59So, therefore, safety is the utmost important thing for us as well as for the government.
07:05Yeah.
07:06If you compare, like, this industry versus electric car 10 years ago, you know, versus 10 years after, you know, you can see a huge potential.
07:16Ebitos really will create a brand-new way of transportation for human beings, utilize the low-altitude space.
07:26So we are very confident in the longer term, the big picture, the big market, especially with the huge population and the government support in the regulatory environment.
07:38And product-wise, we are currently leading in China as well as in the world on the commercialized front.
07:45Connor, I was looking at you, our last question.
07:49We've seen a pickup in at least an interest in a lot of U.S.-listed firms looking to IPO somewhere else, given just the tensions that we're seeing between the U.S. and China right now.
07:59For Yi Hong, you know, do you share those kind of concerns and do you have any plans for a second listing?
08:03Yeah, we were listed in NASDAQ back in 2019, December.
08:12So currently, other than listed in NASDAQ, we are actively exploring different alternatives for listing outside of the United States.
08:22Connor, if I could push you on that, you're actively exploring options.
08:30If you could maybe give us a short list of the places that you're considering.
08:38Well, as most of the Chinese ADR, right, there are definitely very clear answer on that.
08:44Yeah, definitely will pick the best one for us.
Be the first to comment