{"url_path":"/sec/eh/10-k/2026/item-15","section_key":"item-15","section_title":"Item 15 Controls and Procedures","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1759783/0001193125-26-226608-index.html","accession_number":"0001193125-26-226608","cik":"0001759783","ticker":"EH","issuer_name":"EHang Holdings Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1759783/0001193125-26-226608-index.html","primary_entity_key":"0001759783","primary_entity_name":"EHang Holdings Ltd"},"word_count":722,"has_tables":true,"body_markdown":"Item 15.\n\nControls and Procedures\n\nEvaluation of Disclosure Controls and Procedures\n\nOur management, with the participation of our chief executive officer and chief financial officer, has performed an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this annual report.\n\nBased upon that evaluation, our chief executive officer and chief financial officer have concluded that, as of December 31, 2025, our disclosure controls and procedures were ineffective because of the material weakness in our internal control over financial reporting described below.\n\nNotwithstanding the material weakness in our internal control over financial reporting, we believe that our consolidated financial statements included in this annual report fairly present, in all material respects, our financial position, results of operations and cash flows for the fiscal years covered thereby in accordance with U.S. GAAP.\n\nManagement’s Annual Report on Internal Control over Financial Reporting\n\nOur management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)). Our management evaluated the effectiveness of our internal control over financial reporting based on criteria established in the framework in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management has concluded that our internal control over financial reporting was ineffective as of December 31, 2025, due to the material weakness in our internal control over financial reporting described below.\n\nA material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.\n\nWe identified a material weakness in our internal control over financial reporting, as we lacked effective controls over revenue from air mobility solutions. Specifically, we did not effectively assess the probability to collect substantially all of the consideration from the customers prior to recognizing revenue. This material weakness, resulted in material errors in our previously announced unaudited financial information for the three and six months ended June 30, 2025, the three and nine months ended September 30, 2025, and the three months and year ended December 31, 2025. Corrections to the 2025 interim and annual periods have been made to the revenue and accounts receivable, net, and the corresponding financial statement line items, including contract liabilities, accrued expenses and other liabilities, cost of revenues and prepayments and other current assets, the expected credit losses on accounts receivable, warranty costs and related balance, and relevant accounts for value-added tax and income tax. Additionally, until we remediate the material weakness identified, it could result in material misstatements to our annual consolidated financial statements that would not be prevented or detected on a timely basis.\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, projections of any evaluation of effectiveness of our internal control over financial reporting to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.\n\n \n\n \n\n152\n\n##### Table of Contents\n\nAttestation Report of the Registered Public Accounting Firm\n\nOur independent registered public accounting firm, PricewaterhouseCoopers Zhong Tian LLP, has audited the effectiveness of our internal control over financial reporting as of December 31, 2025 as stated in its report, which is included herein.\n\nRemediation Activities\n\nManagement has undergone a comprehensive review of the material weakness and is actively engaged in the planning for and designing of controls to remediate the material weakness. Additional time is required to complete the design and test the operating effectiveness of the applicable controls to demonstrate the effectiveness of the remediation efforts. The material weakness cannot be considered remediated until applicable remedial controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.\n\nChanges in Internal Control over Financial Reporting\n\nOther than as described above, there were no changes in our internal control over financial reporting that occurred during the year ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting"}