{"url_path":"/sec/eh/10-k/2026/item-19","section_key":"item-19","section_title":"Item 19 Exhibits","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":32328,"has_tables":true,"body_markdown":"Item 19.\n\nExhibits\n\n \n\nExhibit\nNumber\n\n  \n\nDescription of Document\n\n  1.1\n\n  \n[Fifth Amended and Restated Memorandum and Articles of Association of the Registrant (incorporated herein by reference to Exhibit 3.2 to our registration statement on Form F-1 (File No. 333-234411) filed with the SEC on October 31, 2019)](http://www.sec.gov/Archives/edgar/data/1759783/000119312519280594/d515413dex32.htm)\n\n  2.1\n\n  \n[Registrant’s Specimen American Depositary Receipt (incorporated herein by reference to Exhibit 4.3 to the registration statement on Form S-8 (File No. 333-237769) filed with the SEC on April 21, 2020)](http://www.sec.gov/Archives/edgar/data/1759783/000119312520113512/d882202dex43.htm)\n\n  2.2\n\n  \n[Registrant’s Specimen Certificate for Class A ordinary shares (incorporated herein by reference to Exhibit 4.2 to the registration statement on Form F-1 (File No. 333-234411) filed with the SEC on October 31, 2019)](http://www.sec.gov/Archives/edgar/data/1759783/000119312519280594/d515413dex42.htm)\n\n  2.3\n\n  \n[Deposit Agreement among the Registrant, the depositary and the owners and holders of American Depositary Shares, dated as of December 11, 2019 (incorporated herein by reference to Exhibit 4.3 to the registration statement on Form S-8 (File No. 333-237769) filed with the SEC on April 21, 2020)](http://www.sec.gov/Archives/edgar/data/1759783/000119312520113512/d882202dex43.htm)\n\n  2.4\n\n  \n[Second Amended and Restated Shareholders’ Agreement, dated as of December 27, 2016, by and among the Registrant and other parties thereto (incorporated herein by reference to Exhibit 4.4 to the registration statement on Form F-1 (File No. 333-234411) filed with the SEC on October 31, 2019)](http://www.sec.gov/Archives/edgar/data/1759783/000119312519280594/d515413dex44.htm)\n\n  2.5\n\n  \n[Description of Securities (incorporated herein by reference to Exhibit 2.5 of our Annual Report on Form 20-F for the year ended December 31, 2019 (File No. 001-39151) filed with the SEC on April 20, 2020)](http://www.sec.gov/Archives/edgar/data/1759783/000119312520112223/d863414dex25.htm)\n\n  4.1\n\n  \n[2015 Share Incentive Plan (incorporated herein by reference to Exhibit 10.1 to the registration statement on Form F-1 (File No. 333-234411) filed with the SEC on October 31, 2019)](http://www.sec.gov/Archives/edgar/data/1759783/000119312519280594/d515413dex101.htm)\n\n  4.2\n\n  \n[2019 Share Incentive Plan (incorporated herein by reference to Exhibit 10.2 to the registration statement on Form F-1 (File No. 333-234411) filed with the SEC on October 31, 2019)](http://www.sec.gov/Archives/edgar/data/1759783/000119312519280594/d515413dex102.htm)\n\n  4.3\n\n  \n[2023 Share Incentive Plan (incorporated herein by reference to Exhibit 4.1 to the current report on Form 6-K (File No. 001-39151) filed with the SEC on December 22, 2023)](http://www.sec.gov/Archives/edgar/data/1759783/000119312523302097/d673667dex41.htm)\n\n  4.4\n\n  \n[Form of Indemnification Agreement between the Registrant and its director and executive officers (incorporated herein by reference to Exhibit 10.3 to the registration statement on Form F-1 (File No. 333-234411) filed with the SEC on October 31, 2019)](http://www.sec.gov/Archives/edgar/data/1759783/000119312519280594/d515413dex103.htm)\n\n \n\n158\n\n##### Table of Contents\n\nExhibit\nNumber\n\n  \n\nDescription of Document\n\n  4.5\n\n  \n[Form of Employment Agreement between the Registrant and its executive officers (incorporated herein by reference to Exhibit 10.4 to the registration statement on Form F-1 (File No. 333-234411) filed with the SEC on October 31, 2019)](http://www.sec.gov/Archives/edgar/data/1759783/000119312519280594/d515413dex104.htm)\n\n  4.6\n\n  \n[English translation of the Shareholders Voting Proxy Agreement and Power of Attorney among the WFOE, the VIE and shareholders of the VIE dated October 21, 2020 (incorporated herein by reference to Exhibit 4.5 of our Annual Report on Form 20-F for the year ended December 31, 2020 (File No. 001-39151) filed with the SEC on June 15, 2021)](http://www.sec.gov/Archives/edgar/data/1759783/000119312521190578/d71703dex45.htm)\n\n  4.7\n\n  \n[English translation of the Share Pledge Agreements among the WFOE and shareholders of the VIE dated October 21, 2020 (incorporated herein by reference to Exhibit 4.6 of our Annual Report on Form 20-F for the year ended December 31, 2020 (File No. 001-39151) filed with the SEC on June 15, 2021)](http://www.sec.gov/Archives/edgar/data/1759783/000119312521190578/d71703dex46.htm)\n\n  4.8\n\n  \n[English translation of the Exclusive Consulting and Service Agreement and the Exclusive Services Agreement between the WFOE and the VIE dated January 29, 2016 (incorporated herein by reference to Exhibit 10.9 to the registration statement on Form F-1 (File No. 333-234411) filed with the SEC on October 31, 2019)](http://www.sec.gov/Archives/edgar/data/1759783/000119312519280594/d515413dex109.htm)\n\n  4.9\n\n  \n[English translation of the Amendment to Exclusive Consulting and Service Agreement between the WFOE and the VIE dated November 30, 2018 (incorporated herein by reference to Exhibit 10.10 to the registration statement on Form F-1 (File No. 333-234411) filed with the SEC on October 31, 2019)](http://www.sec.gov/Archives/edgar/data/1759783/000119312519280594/d515413dex1010.htm)\n\n  4.10\n\n  \n[English translation of the Exclusive Option Agreement among the WFOE, the VIE and shareholders of the VIE dated October 21, 2020 (incorporated herein by reference to Exhibit 4.9 of our Annual Report on Form 20-F for the year ended December 31, 2020 (File No. 001-39151) filed with the SEC on June 15, 2021)](http://www.sec.gov/Archives/edgar/data/1759783/000119312521190578/d71703dex49.htm)\n\n  4.11\n\n  \n[English translation of the Special Agreement on the Capital Increase of the VIE among the WFOE, the VIE and shareholders of the VIE dated February 22, 2019 (incorporated herein by reference to Exhibit 10.14 to the registration statement on Form F-1 (File No. 333-234411) filed with the SEC on October 31, 2019)](http://www.sec.gov/Archives/edgar/data/1759783/000119312519280594/d515413dex1014.htm)\n\n  4.12\n\n  \n[English translation of the Amendments to the Special Agreement on the Capital Increase of the VIE among the WFOE, the VIE, Huazhi Hu, Yifang Xiong and shareholders of the VIE dated September 7, 2020 and October 21, 2020, respectively (incorporated herein by reference to Exhibit 4.11 of our Annual Report on Form 20-F for the year ended December 31, 2020 (File No. 001-39151) filed with the SEC on June 15, 2021)](http://www.sec.gov/Archives/edgar/data/1759783/000119312521190578/d71703dex411.htm)\n\n  4.14\n\n  \n[English Translation of the Subscription Agreement, dated as of December 21, 2022, between the Registrant and Qingdao Ocean Investment Group Co., Ltd. (incorporated herein by reference to Exhibit 4.13 of our Annual Report on Form 20-F for the year ended December 31, 2022 (File No. 001- 39151) filed with the SEC on April 27, 2023)](http://www.sec.gov/Archives/edgar/data/1759783/000119312523122090/d404296dex413.htm)\n\n  4.15\n\n  \n[Subscription Agreement, dated as of July 11, 2023, between the Registrant and Rich Ning Inc. (incorporated herein by reference to Exhibit 4.15 of our Annual Report on Form 20-F for the year ended December 31, 2023 (File No. 001- 39151) filed with the SEC on April 15, 2024)](http://www.sec.gov/Archives/edgar/data/0001759783/000119312524095477/d709315dex415.htm)\n\n  4.16\n\n  \n[Subscription Agreement, dated as of July 11, 2023, between the Registrant and Gamma Financial Solutions Limited (incorporated herein by reference to Exhibit 4.16 of our Annual Report on Form 20-F for the year ended December 31, 2023 (File No. 001- 39151) filed with the SEC on April 15, 2024)](http://www.sec.gov/Archives/edgar/data/0001759783/000119312524095477/d709315dex416.htm)\n\n \n\n159\n\n##### Table of Contents\n\nExhibit\nNumber\n\n  \n\nDescription of Document\n\n  4.17\n\n  \n[Subscription Agreement, dated as of July 11, 2023, between the Registrant and Lee Soo Man (incorporated herein by reference to Exhibit 4.17 of our Annual Report on Form 20-F for the year ended December 31, 2023 (File No. 001- 39151) filed with the SEC on April 15, 2024)](http://www.sec.gov/Archives/edgar/data/0001759783/000119312524095477/d709315dex417.htm)\n\n  4.18\n\n  \n[At Market Issuance Sales Agreement, dated as of April 19, 2024, between EHang Holdings Limited and China Renaissance Securities (Hong Kong) Limited (incorporated herein by reference to Exhibit 1.2 to the registration statement on Form F—3 (File No. 333-278830) filed with the SEC on April 19, 2024)](http://www.sec.gov/Archives/edgar/data/1759783/000119312524102861/d759076dex12.htm)\n\n  4.19#\n\n  \n[English Translation of the Subscription Agreement, dated as of November 14, 2024, between the Registrant and Enpower Electric Co., Ltd. (incorporated herein by reference to Exhibit 4.19 of our Annual Report on Form 20-F for the year ended December 31, 2024 (File: 001-39151) filed with the SEC on April 15, 2025)](http://www.sec.gov/Archives/edgar/data/1759783/000119312525080649/d848580dex419.htm)\n\n  4.20#\n\n  \n[Form of Subscription Agreement, dated as of November 7, 2024, between the Registrant and an investor (incorporated herein by reference to Exhibit 4.20 of our Annual Report on Form 20-F for the year ended December 31, 2024 (File: 001-39151) filed with the SEC on April 15, 2025)](http://www.sec.gov/Archives/edgar/data/1759783/000119312525080649/d848580dex420.htm)\n\n  8.1*\n\n  \n[List of Principal Subsidiaries and Consolidated Affiliated Entities](d39307dex81.htm)\n\n 11.1\n\n  \n[Code of Business Conduct and Ethics of the Registrant (incorporated herein by reference to Exhibit 99.1 to the registration statement on Form F-1 (File No. 333-234411) filed with the SEC on October 31, 2019)](http://www.sec.gov/Archives/edgar/data/1759783/000119312519280594/d515413dex991.htm)\n\n 11.2\n\n  \n[Insider Trading Policy (incorporated herein by reference to Exhibit 11.2 of our Annual Report on Form 20-F for the year ended December 31, 2024 (File: 001-39151) filed with the SEC on April 15, 2025)](http://www.sec.gov/Archives/edgar/data/1759783/000119312525080649/d848580dex112.htm)\n\n 12.1*\n\n  \n[Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](d39307dex121.htm)\n\n 12.2*\n\n  \n[Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](d39307dex122.htm)\n\n 13.1**\n\n  \n[Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](d39307dex131.htm)\n\n 13.2**\n\n  \n[Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](d39307dex132.htm)\n\n 15.1*\n\n  \n[Consent of PricewaterhouseCoopers Zhong Tian LLP](d39307dex151.htm)\n\n 15.2*\n\n  \n[Consent of Zhong Lun Law Firm](d39307dex152.htm)\n\n 15.3*\n\n  \n[Consent of Maples and Calder (Hong Kong) LLP](d39307dex153.htm)\n\n 97.1\n\n  \n[Incentive Compensation Recoupment Policy (incorporated herein by reference to Exhibit 97.1 of our Annual Report on Form 20-F for the year ended December 31, 2023 (File No. 001- 39151) filed with the SEC on April 15, 2024)](http://www.sec.gov/Archives/edgar/data/0001759783/000119312524095477/d709315dex971.htm)\n\n \n\n160\n\n##### Table of Contents\n\nExhibit\nNumber\n\n  \n\nDescription of Document\n\n101.INS\n  \nInline XBRL Instance Document-the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document\n\n101.SCH\n  \nInline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents\n\n104\n  \nCover page formatted as Inline XBRL and contained in Exhibit 101\n\n \n\n*\n\nFiled herewith\n\n**\n\nFurnished herewith\n\n#\n\nCertain personally identifiable information in this exhibit has been omitted pursuant to Item 601(a)(6) of Regulation S-K, and certain information has been omitted on the basis that the Company customarily and actually treats that information as private or confidential and the omitted information is not material, pursuant to Item 601(b)(10) of Regulation S-K.\n\n \n\n161\n\n##### Table of Contents\n\nSIGNATURES\n\nThe registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.\n\n \n\nEHang Holdings Limited\n\nBy:\n \n\n/s/ Huazhi Hu\n\nName:\n \nHuazhi Hu\n\nTitle:\n \nChairman of the Board of Directors and Chief Executive Officer\n\nDate: May 15, 2026\n\n \n\n162\n\n##### Table of Contents\n\nF4F4F4F4F4falsehttp://fasb.org/us-gaap/2025#Assetshttp://fasb.org/us-gaap/2025#Assets\n\nEHANG HOLDINGS LIMITED\n\nINDEX TO CONSOLIDATED FINANCIAL STATEMENTS\n\n \n  \n\nPAGE(S)\n\n[Report of Independent Registered Public Accounting Firm (PCAOB ID 1424)](#fin39307_1)\n\n  \n\nF-2\n\n[Consolidated Balance Sheets as of December 31, 2024 and 2025](#fin39307_2)\n\n  \n\nF-5 - F-7\n\n[Consolidated Statements of Comprehensive Loss for the Years Ended December 31, 2023, 2024 and 2025](#fin39307_3)\n\n  \n\nF-8 - F-9\n\n[Consolidated Statements of Changes in Shareholders’ Equity for the Years Ended December 31, 2023, 2024 and 2025](#fin39307_4)\n\n  \n\nF-10 - F-12\n\n[Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2024 and 2025](#fin39307_5)\n\n  \n\nF-13 - F-15\n\n[Notes to the Consolidated Financial Statements](#fin39307_6)\n\n  \n\nF-16 - F-65\n\n \n\nF- 1\n\n[Table of Contents](#toc)\n\nReport of Independent Registered Public Accounting Firm\n\nTo the Board of Directors and Shareholders of EHang Holdings Limited\n\nOpinions on the Financial Statements and Internal Control over Financial Reporting\n\nWe have audited the accompanying consolidated balance sheets of EHang Holdings Limited and its subsidiaries\n\n(the “Company”) as of December 31, 2025 and 2024,\n\nand the related consolidated statements of comprehensive loss, of changes in shareholders’ equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the “consolidated financial statements”).\n\nWe also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in\n\nInternal Control - Integrated Framework\n\n(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).\n\nIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company did not maintain, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in\n\nInternal Control - Integrated Framework\n\n(2013) issued by the COSO because a material weakness in internal control over financial reporting existed as of that date related to the Company’s lack of effective controls over revenue from air mobility solutions. Specifically, the Company did not effectively assess the probability to collect substantially all of the consideration from the customers prior to recognizing revenue.\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 annual or interim financial statements will not be prevented or detected on a timely basis. The material weakness referred to above is described in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 15. We considered this material weakness in determining the nature, timing, and extent of audit tests applied in our audit of the 2025 consolidated financial statements, and our opinion regarding the effectiveness of the Company’s internal control over financial reporting does not affect our opinion on\nthose\nconsolidated financial statements.\n\nChange in Accounting Principle\n\nAs discussed in Note 2 to the consolidated financial statements, the Company changed the manner in which it accounts for current expected credit loss in 2023.\n\n \n\nF- 2\n\n[Table of Contents](#toc)\n\nBasis for Opinions\n\nThe Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in management’s report referred to above. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.\n\nOur audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.\n\nDefinition and Limitations of Internal Control over Financial Reporting\n\nA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness 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 or procedures may deteriorate.\n\n \n\nF- 3\n\n[Table of Contents](#toc)\n\nCritical Audit Matters\n\nThe critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\nRevenue recognition - air mobility solutions related to products\n\nAs described in Notes 2(s) and 14 to the consolidated financial statements, the Company’s air mobility solutions revenue related to products was RMB390.5 million. Revenues from air mobility solutions related to products are primarily from the sales of passenger-grade UAVs and its software. As the UAVs and software are highly interdependent, the entire bundle of promised goods is considered one performance obligation within the context of the contract. The Company recognizes revenue for this single performance obligation at a point in time when control to the bundle of goods transfers to the customer and other conditions as set out in ASC 606 are met. When the Company contracts with a customer and management determines that the collection of substantially all of the consideration from a customer is not probable at contract inception, no contract is established, and the Company recognizes the consideration received from the customer as revenue only when the Company has transferred control of the corresponding goods, has no obligation under the contract to transfer additional goods, and the consideration received is nonrefundable.\n\nThe principal considerations for our determination that performing procedures relating to revenue recognition from air mobility solutions related to products is a critical audit matter are (i) the significant judgment made by management in determining whether collection of substantially all of the consideration from customers is probable to support the establishment of contracts with customers prior to revenue recognition; and (ii) a high degree of auditor judgement, subjectivity and effort in performing procedures related to the revenue recognition from air mobility solutions related to products. As described in the “Opinions on the Financial Statements and Internal Control over Financial Reporting” section, a material weakness was identified related to this matter.\n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the recognition of air mobility solutions related to products revenues. These procedures also included, among others (i) evaluating management’s assessment and supporting documents for determining whether the collection of substantially all of the consideration from customers is probable to support the establishment of contracts; (ii) determining whether the revenue recognition criteria were fulfilled upon receipt of partial consideration from the customers before a contract is established; (iii) testing revenue recognized for a sample of revenue transactions by obtaining and inspecting source documents, such as sales contracts, goods delivery notes, acknowledgement receipts from customers, and proof of delivery documentation; (iv) obtaining and inspecting a sample of cash receipts; (v) confirming a sample of outstanding accounts receivable as of December 31, 2025; (vi) performing site visits and interviews with certain selected customers to corroborate with the Company’s records of products delivered.\n\n/s/ PricewaterhouseCoopers Zhong Tian LLP\n\nShenzhen, the People’s Republic of China\n\nMay 15, 2026\n\nWe have served as the Company’s auditor since 2021.\n\n \n\nF- 4\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nCONSOLIDATED BALANCE SHEETS\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n \n\n \n  \n \n \n  \n\nAs of December 31,\n\n \n\n \n  \n\nNote\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n \n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\n \n  \n \n \n  \n \n \n  \n \n \n  \nNote 2(e)\n \n\nASSETS\n\n  \n\n  \n\n  \n\n  \n\nCurrent assets\n\n  \n\n  \n\n  \n\n  \n\nCash and cash equivalents\n\n  \n \n2(f)\n \n  \n \n610,877\n \n  \n \n256,400\n \n  \n \n36,665\n \n\nShort-term investments\n\n  \n \n2(i), 4\n \n  \n \n513,683\n \n  \n \n843,232\n \n  \n \n120,581\n \n\nRestricted short-term deposits\n\n  \n \n2(g)\n \n  \n \n30,295\n \n  \n \n29,655\n \n  \n \n4,241\n \n\nAccounts receivable, net of expected credit losses of RMB103,340 and RMB111,259\n \n(US$15,910) as of December 31, 2024 and 2025, respectively (including amounts due from related parties, net, of RMB458 and RMB5,188 (US$741) as of December 31, 2024 and 2025)\n\n  \n \n5, 18\n \n  \n \n58,180\n \n  \n \n111,670\n \n  \n \n15,969\n \n\nInventories\n\n  \n \n6\n \n  \n \n75,687\n \n  \n \n101,634\n \n  \n \n14,533\n \n\nPrepayments and other current assets (including amounts due from a related party, net, of nil and RMB2,070 (US$296) as of December 31, 2024 and 2025)\n\n  \n \n7\n \n  \n \n68,298\n \n  \n \n140,922\n \n  \n \n20,151\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal current assets\n\n  \n\n  \n\n \n\n1,357,020\n\n \n\n  \n\n \n\n1,483,513\n\n \n\n  \n\n \n\n212,140\n\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNon-current\nassets\n\n  \n\n  \n\n  \n\n  \n\nProperty and equipment, net\n\n  \n \n8\n \n  \n \n60,224\n \n  \n \n258,050\n \n  \n \n36,901\n \n\nRight-of-use\n\nassets, net\n\n  \n \n2(y)\n \n  \n \n128,433\n \n  \n \n116,468\n \n  \n \n16,655\n \n\nLand use right, net\n\n  \n \n2(m)\n \n  \n \n— \n \n  \n \n11,347\n \n  \n \n1,623\n \n\nIntangible assets, net\n\n  \n \n2(n)\n \n  \n \n2,617\n \n  \n \n2,713\n \n  \n \n388\n \n\nInvestments accounted for using equity method\n\n  \n \n9\n \n  \n \n23,897\n \n  \n \n28,849\n \n  \n \n4,125\n \n\nOther investments\n\n  \n \n10\n \n  \n \n9,867\n \n  \n \n45,330\n \n  \n \n6,482\n \n\nDeferred tax assets\n\n  \n \n17\n \n  \n \n— \n \n  \n \n6,969\n \n  \n \n997\n \n\nOther\nnon-current\nassets\n\n  \n\n  \n \n2,440\n \n  \n \n38,294\n \n  \n \n5,476\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\nnon-current\nassets\n\n  \n\n  \n\n \n\n227,478\n\n \n\n  \n\n \n\n508,020\n\n \n\n  \n\n \n\n72,647\n\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal assets\n\n  \n\n  \n\n \n\n1,584,498\n\n \n\n  \n\n \n\n1,991,533\n\n \n\n  \n\n \n\n284,787\n\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF- \n5\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nCONSOLIDATED BALANCE SHEETS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n \n\n \n  \n \n \n  \n\nAs of December 31,\n\n \n\n \n  \n\nNote\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n \n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\n \n  \n \n \n  \n \n \n  \n \n \n  \nNote 2(e)\n \n\nLIABILITIES AND SHAREHOLDERS’ EQUITY\n\n  \n\n  \n\n  \n\n  \n\nCurrent liabilities\n\n(including current liabilities of the consolidated variable interest entity and its subsidiaries\n(“VIEs”) without recourse to EHang Holdings Limited (the “Company”) of RMB38,837 and\n \nRMB45,285\n\n(US$6,475) as of December 31, 2024 and 2025, respectively)\n\n  \n\n  \n\n  \n\n  \n\nShort-term bank loans\n\n  \n \n12\n \n  \n \n64,250\n \n  \n \n229,611\n \n  \n \n32,834\n \n\nAccounts payable\n\n  \n\n  \n \n127,446\n \n  \n \n132,509\n \n  \n \n18,949\n \n\nContract liabilities (including amounts due to related parties of RMB2,000 and RMB2,307 (US$330) as of December 31, 2024 and 2025)\n\n  \n \n18\n \n  \n \n62,561\n \n  \n \n60,839\n \n  \n \n8,700\n \n\nCurrent portion of long-term bank loans\n\n  \n \n12\n \n  \n \n10,500\n \n  \n \n9,800\n \n  \n \n1,401\n \n\nMandatorily redeemable\nnon-controlling\ninterests\n\n  \n \n13\n \n  \n \n40,000\n \n  \n \n— \n \n  \n \n— \n \n\nAccrued expenses and other liabilities\n\n  \n \n11\n \n  \n \n150,196\n \n  \n \n263,439\n \n  \n \n37,671\n \n\nCurrent portion of lease liabilities\n\n  \n \n2(y)\n \n  \n \n12,527\n \n  \n \n16,278\n \n  \n \n2,328\n \n\nDeferred income\n\n  \n\n  \n \n1,504\n \n  \n \n817\n \n  \n \n117\n \n\nDeferred government subsidies\n\n  \n \n2(z)\n \n  \n \n1,209\n \n  \n \n684\n \n  \n \n98\n \n\nIncome taxes payable\n\n  \n\n  \n \n150\n \n  \n \n1,820\n \n  \n \n260\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal current liabilities\n\n  \n\n  \n\n \n\n470,343\n\n \n\n  \n\n \n\n715,797\n\n \n\n  \n\n \n\n102,358\n\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNon-current\nliabilities\n\n(including\nnon-current\nliabilities of the VIEs without recourse to the Company of RMB7,588 and RMB5,588\n \n(US$799) as of December 31, 2024 and 2025, respectively)\n\n  \n\n  \n\n  \n\n  \n\nLong-term bank loans\n\n  \n \n12\n \n  \n \n20,500\n \n  \n \n82,700\n \n  \n \n11,826\n \n\nDeferred tax liabilities\n\n  \n \n17\n \n  \n \n292\n \n  \n \n292\n \n  \n \n42\n \n\nUnrecognized tax benefit\n\n  \n \n17\n \n  \n \n5,480\n \n  \n \n5,480\n \n  \n \n784\n \n\nLease liabilities\n\n  \n \n2(y)\n \n  \n \n125,719\n \n  \n \n114,246\n \n  \n \n16,337\n \n\nOther\nnon-current\nliabilities\n\n  \n\n  \n \n6,350\n \n  \n \n4,676\n \n  \n \n669\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\nnon-current\nliabilities\n\n  \n\n  \n\n \n\n158,341\n\n \n\n  \n\n \n\n207,394\n\n \n\n  \n\n \n\n29,658\n\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal liabilities\n\n  \n\n  \n\n \n\n628,684\n\n \n\n  \n\n \n\n923,191\n\n \n\n  \n\n \n\n132,016\n\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nCommitments and Contingencies\n\n  \n \n24\n \n  \n\n  \n\n  \n\n \n\nF- \n6\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nCONSOLIDATED BALANCE SHEETS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n \n\n \n  \n \n \n  \n\nAs of December 31,\n\n \n\n \n  \n\nNote\n\n \n  \n\n2024\n\n \n \n\n2025\n\n \n\n \n  \n \n \n  \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nUS$\n\n \n\n \n  \n \n \n  \n \n \n \n \n \n \nNote 2(e)\n \n\nShareholders’ equity\n\n  \n\n  \n\n \n\n \n\nClass A ordinary shares (US$0.0001 par value; 1,904,577,337 shares authorized, 106,532,825 shares issued and 104,828,035 shares outstanding as of December 31, 2024; 1,904,577,337 shares authorized, 111,736,100 shares issued and 111,215,614 shares outstanding as of December 31, 2025)\n\n  \n \n19\n \n  \n \n66\n \n \n \n68\n \n \n \n10\n \n\nClass B ordinary shares (US$0.0001 par value; 45,422,663 shares authorized, 39,026,560 shares issued and outstanding as of December 31, 2024 and 2025)\n\n  \n \n19\n \n  \n \n24\n \n \n \n24\n \n \n \n3\n \n\nAdditional\npaid-in\ncapital\n\n  \n \n19\n \n  \n \n2,923,178\n \n \n \n3,335,371\n \n \n \n476,952\n \n\nTreasury shares\n\n  \n\n  \n \n(10,085\n) \n \n \n(10,085\n) \n \n \n(1,442\n) \n\nStatutory reserves\n\n  \n\n  \n \n1,772\n \n \n \n3,302\n \n \n \n472\n \n\nAccumulated deficit\n\n  \n\n  \n \n(1,984,851\n) \n \n \n(2,262,358\n)\n \n \n(323,513\n)\n\nAccumulated other comprehensive income\n\n  \n \n19\n \n  \n \n25,539\n \n \n \n2,605\n \n \n \n373\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal EHang Holdings Limited shareholders’ equity\n\n  \n\n  \n\n \n\n955,643\n\n \n\n \n\n \n\n1,068,927\n\n \n\n \n\n \n\n152,855\n\n \n\nNon-controlling\ninterests\n\n  \n\n  \n \n171\n \n \n \n(585\n) \n \n \n(84\n) \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal shareholders’ equity\n\n  \n\n  \n\n \n\n955,814\n\n \n\n \n\n \n\n1,068,342\n\n \n\n \n\n \n\n152,771\n\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal liabilities and shareholders’ equity\n\n  \n\n  \n\n \n\n1,584,498\n\n \n\n \n\n \n\n1,991,533\n\n \n\n \n\n \n\n284,787\n\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF- \n7\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for per share data and per ADS data)\n\n \n\n \n\n \n\n \n  \n \n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\nNote\n\n \n  \n\n2023\n\n \n \n\n2024\n\n \n \n\n2025\n\n \n\n \n  \n \n \n  \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nUS$\n\n \n\n \n  \n \n \n  \n \n \n \n \n \n \n \n \n \nNote 2(e)\n \n\nRevenues\n\n  \n\n  \n\n \n\n \n\n \n\nProducts (including related party revenues of RMB11,859, RMB133 and RMB13,316 (US$1,904) for the years ended December 31, 2023, 2024 and 2025)\n\n  \n \n14, 18\n \n  \n \n100,960\n \n \n \n440,641\n \n \n \n405,037\n \n \n \n57,919\n \n\nServices (including related party revenues of nil, RMB1,225 and RMB394 (US$56) for the years ended December 31, 2023, 2024 and 2025)\n\n  \n \n14, 18\n \n  \n \n16,466\n \n \n \n15,511\n \n \n \n12,944\n \n \n \n1,851\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal revenues\n\n  \n\n  \n\n \n\n117,426\n\n \n\n \n\n \n\n456,152\n\n \n\n \n\n \n\n417,981\n\n \n\n \n\n \n\n59,770\n\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCost of revenues\n\n  \n\n  \n\n \n\n \n\n \n\nProducts\n\n  \n\n  \n \n(34,304\n) \n \n \n(171,035\n) \n \n \n(157,958\n)\n \n \n(22,588\n)\n\nServices\n\n  \n\n  \n \n(7,811\n) \n \n \n(5,171\n) \n \n \n(2,869\n) \n \n \n(410\n) \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal cost of revenues\n\n  \n\n  \n\n \n\n(42,115\n\n) \n\n \n\n \n\n(176,206\n\n) \n\n \n\n \n\n(160,827\n\n)\n\n \n\n \n\n(22,998\n\n)\n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nGross profit\n\n  \n\n  \n\n \n\n75,311\n\n \n\n \n\n \n\n279,946\n\n \n\n \n\n \n\n257,154\n\n \n\n \n\n \n\n36,772\n\n \n\nOperating expenses\n\n  \n\n  \n\n \n\n \n\n \n\nSales and marketing expenses\n\n  \n\n  \n \n(60,389\n) \n \n \n(131,027\n) \n \n \n(122,020\n) \n \n \n(17,449\n) \n\nGeneral and administrative expenses\n\n  \n\n  \n \n(150,092\n) \n \n \n(233,398\n) \n \n \n(269,648\n)\n \n \n(38,559\n)\n\nResearch and development expenses\n\n  \n\n  \n \n(167,315\n) \n \n \n(199,465\n) \n \n \n(194,581\n) \n \n \n(27,825\n) \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal operating expenses\n\n  \n\n  \n\n \n\n(377,796\n\n) \n\n \n\n \n\n(563,890\n\n) \n\n \n\n \n\n(586,249\n\n)\n\n \n\n \n\n(83,833\n\n)\n\nOther operating income\n\n  \n \n2(z)\n \n  \n \n6,233\n \n \n \n29,869\n \n \n \n12,383\n \n \n \n1,771\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nOperating loss\n\n  \n\n  \n\n \n\n(296,252\n\n) \n\n \n\n \n\n(254,075\n\n) \n\n \n\n \n\n(316,712\n\n)\n\n \n\n \n\n(45,290\n\n)\n\nOther (expenses) income\n\n  \n\n  \n\n \n\n \n\n \n\nInterest and investment income\n\n  \n\n  \n \n8,484\n \n \n \n30,599\n \n \n \n58,588\n \n \n \n8,378\n \n\nInterest expenses\n\n  \n\n  \n \n(2,930\n) \n \n \n(3,375\n) \n \n \n(5,976\n) \n \n \n(855\n) \n\nAmortization of debt discounts\n\n  \n\n  \n \n(12,023\n) \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nForeign currency exchange gains (losses), net\n\n  \n\n  \n \n394\n \n \n \n(1,188\n) \n \n \n1,174\n \n \n \n168\n \n\nOther\nnon-operating\nincome\n\n  \n\n  \n \n1,966\n \n \n \n4,670\n \n \n \n2,810\n \n \n \n402\n \n\nOther\nnon-operating\nexpenses\n\n  \n \n\n16\n\n \n  \n \n(214\n) \n \n \n(1,924\n) \n \n \n(15,456\n) \n \n \n(2,210\n) \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other (expenses) income\n\n  \n\n  \n\n \n\n(4,323\n\n) \n\n \n\n \n\n28,782\n\n \n\n \n\n \n\n41,140\n\n \n\n \n\n \n\n5,883\n\n \n\nLoss before income tax and loss from equity method investments\n\n  \n\n  \n\n \n\n(300,575\n\n) \n\n \n\n \n\n(225,293\n\n) \n\n \n\n \n\n(275,572\n\n)\n\n \n\n \n\n(39,407\n\n)\n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nIncome tax (expenses) benefits\n\n  \n \n17\n \n  \n \n(206\n) \n \n \n(386\n) \n \n \n4,409\n \n \n \n630\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLoss before loss from equity method investments\n\n  \n\n  \n\n \n\n(300,781\n\n) \n\n \n\n \n\n(225,679\n\n) \n\n \n\n \n\n(271,163\n\n)\n\n \n\n \n\n(38,777\n\n)\n\nLoss from equity method investments\n\n  \n\n  \n \n(1,560\n) \n \n \n(4,353\n) \n \n \n(5,248\n) \n \n \n(750\n) \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet loss\n\n  \n\n  \n\n \n\n(302,341\n\n) \n\n \n\n \n\n(230,032\n\n) \n\n \n\n \n\n(276,411\n\n)\n\n \n\n \n\n(39,527\n\n)\n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF- \n8\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for per share data and per ADS data)\n\n \n\n \n\n \n\n \n  \n\nNote\n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n \n \n  \n\n2023\n\n \n \n\n2024\n\n \n \n\n2025\n\n \n\n \n  \n \n \n  \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nUS$\n\n \n\n \n  \n \n \n  \n \n \n \n \n \n \n \n \n \nNote 2(e)\n \n\nNet loss\n\n  \n\n  \n\n \n\n(302,341\n\n) \n\n \n\n \n\n(230,032\n\n) \n\n \n\n \n\n(276,411\n\n)\n\n \n\n \n\n(39,527\n\n)\n\nNet loss attributable to\nnon-controlling\ninterests\n\n  \n\n  \n \n641\n \n \n \n256\n \n \n \n434\n \n \n \n62\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet loss attributable to EHang Holdings Limited’s ordinary shareholders\n\n  \n \n21\n \n  \n\n \n\n(301,700\n\n) \n\n \n\n \n\n(229,776\n\n) \n\n \n\n \n\n(275,977\n\n)\n\n \n\n \n\n(39,465\n\n)\n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet loss per ordinary share\n\n  \n\n  \n\n \n\n \n\n \n\nBasic and diluted\n\n  \n \n21\n \n  \n \n(2.48\n) \n \n \n(1.71\n) \n \n \n(1.88\n) \n \n \n(0.27\n) \n\nNet loss per ADS (2 ordinary shares equal to 1 ADS)\n\n  \n\n  \n\n \n\n \n\n \n\nBasic and diluted\n\n  \n \n21\n \n  \n \n(4.96\n) \n \n \n(3.42\n) \n \n \n(3.76\n) \n \n \n(0.54\n) \n\nShares used in net loss per ordinary share computation (in thousands of shares)\n\n  \n\n  \n\n \n\n \n\n \n\nBasic and diluted\n\n  \n \n21\n \n  \n \n121,494\n \n \n \n134,367\n \n \n \n146,665\n \n \n \n146,665\n \n\nOther comprehensive income (loss)\n\n  \n\n  \n\n \n\n \n\n \n\nForeign currency translation adjustments, net of nil tax\n\n  \n\n  \n \n69\n \n \n \n10,460\n \n \n \n(22,934\n) \n \n \n(3,280\n) \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nTotal other comprehensive income (loss), net of tax\n\n  \n\n  \n \n69\n \n \n \n10,460\n \n \n \n(22,934\n) \n \n \n(3,280\n) \n\nComprehensive loss\n\n  \n\n  \n\n \n\n(302,272\n\n) \n\n \n\n \n\n(219,572\n\n) \n\n \n\n \n\n(299,345\n\n)\n\n \n\n \n\n(42,807\n\n)\n\nComprehensive loss attributable to\nnon-controlling\ninterests\n\n  \n\n  \n \n641\n \n \n \n256\n \n \n \n434\n \n \n \n62\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nComprehensive loss attributable to EHang Holdings Limited\n\n  \n\n  \n\n \n\n(301,631\n\n) \n\n \n\n \n\n(219,316\n\n) \n\n \n\n \n\n(298,911\n\n)\n\n \n\n \n\n(42,745\n\n)\n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF- \n9\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n  \n \n  \n \n\n \n\nClass A ordinary shares\n\n \n \n\n \n\nClass B ordinary shares\n\n \n \n  \n \n \n  \n \n \n  \n \n \n  \n \n \n  \n \n \n  \n \n \n  \n \n \n  \n \n \n  \n \n\n \n \n \n \n\nNumber of\nordinary\nshares\n\n \n \n\nAmount\n\n \n \n\nNumber of\nordinary\nshares\n\n \n \n\nAmount\n\n \n \n\nNumber of\ntreasury\nshares\n\n \n \n\nTreasury\nshares\n\n \n \n\nAdditional\n\npaid-in\n\ncapital\n\n \n \n\nAccumulated\n\nother\n\ncomprehensive\n\nincome\n\n \n \n\nStatutory\n\nreserves\n\n \n \n\nAccumulated\ndeficit\n\n \n \n\nTotal\nEHang\nHoldings\nLimited\nshareholders’\nequity\n\n \n \n\nNon-controlling\n\ninterests\n\n \n \n\nTotal\n\nshareholders’\n\nequity\n\n \n\n \n \n\nNote\n\n \n \n \n \n\nRMB\n\n \n \n \n \n \n\nRMB\n\n \n \n \n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n\nBalance as of December 31, 2022\n\n \n\n \n\n \n\n78,300,387\n\n \n\n \n\n \n\n51\n\n \n\n \n\n \n\n39,026,560\n\n \n\n \n\n \n\n24\n\n \n\n \n\n \n\n(871,000\n\n) \n\n \n\n \n\n— \n\n \n\n \n\n \n\n1,558,356\n\n \n\n \n\n \n\n15,010\n\n \n\n \n\n \n\n1,191\n\n \n\n \n\n \n\n(1,450,374\n\n) \n\n \n\n \n\n124,258\n\n \n\n \n\n \n\n420\n\n \n\n \n\n \n\n124,678\n\n \n\nAdoption of ASC Topic 326\n\n \n2(j)\n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n(2,420\n) \n \n\n \n\n(2,420\n\n) \n\n \n \n(2\n) \n \n\n \n\n(2,422\n\n) \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBalance as of January 1, 2023\n\n \n\n \n\n \n\n78,300,387\n\n \n\n \n\n \n\n51\n\n \n\n \n\n \n\n39,026,560\n\n \n\n \n\n \n\n24\n\n \n\n \n\n \n\n(871,000\n\n) \n\n \n\n \n\n— \n\n \n\n \n\n \n\n1,558,356\n\n \n\n \n\n \n\n15,010\n\n \n\n \n\n \n\n1,191\n\n \n\n \n\n \n\n(1,452,794\n\n) \n\n \n\n \n\n121,838\n\n \n\n \n\n \n\n418\n\n \n\n \n\n \n\n122,256\n\n \n\nIssuance of Class A ordinary shares\n\n \n19\n \n \n7,870,938\n \n \n \n5\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n242,399\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n\n \n\n242,404\n\n \n\n \n \n— \n \n \n\n \n\n242,404\n\n \n\nShares issued to depository bank\n\n \n19\n \n \n236,000\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n(236,000\n) \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n\n \n\n— \n\n \n\n \n \n— \n \n \n\n \n\n— \n\n \n\nIssuance of ordinary shares for the vested restricted share units\n\n \n19\n \n \n1,598,776\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n536,692\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n\n \n\n— \n\n \n\n \n \n— \n \n \n\n \n\n— \n\n \n\nNet loss\n\n \n\n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n(301,700\n) \n \n\n \n\n(301,700\n\n) \n\n \n \n(641\n) \n \n\n \n\n(302,341\n\n) \n\nShare based compensation\n\n \n15\n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n151,485\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n\n \n\n151,485\n\n \n\n \n \n— \n \n \n\n \n\n151,485\n\n \n\nArrangement for employee stock withholding tax\n\n \n19\n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n108,792\n \n \n \n— \n \n \n \n7,795\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n\n \n\n7,795\n\n \n\n \n \n— \n \n \n\n \n\n7,795\n\n \n\nAcquisition of\nnon-controlling\ninterests\n\n \n20\n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n(8,099\n) \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n\n \n\n(8,099\n\n) \n\n \n \n650\n \n \n\n \n\n(7,449\n\n) \n\nOther comprehensive loss\n\n \n\n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n69\n \n \n \n— \n \n \n \n— \n \n \n\n \n\n69\n\n \n\n \n \n— \n \n \n\n \n\n69\n\n \n\nAppropriation of statutory reserve\n\n \n2(ad)\n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n \n \n48\n \n \n \n(48\n) \n \n\n \n\n— \n\n \n\n \n \n— \n \n \n\n \n\n— \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBalance as of December 31, 2023\n\n \n\n \n\n \n\n88,006,101\n\n \n\n \n\n \n\n56\n\n \n\n \n\n \n\n39,026,560\n\n \n\n \n\n \n\n24\n\n \n\n \n\n \n\n(461,516\n\n) \n\n \n\n \n\n— \n\n \n\n \n\n \n\n1,951,936\n\n \n\n \n\n \n\n15,079\n\n \n\n \n\n \n\n1,239\n\n \n\n \n\n \n\n(1,754,542\n\n) \n\n \n\n \n\n213,792\n\n \n\n \n\n \n\n427\n\n \n\n \n\n \n\n214,219\n\n \n\n \n\n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF- \n10\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n  \n  \n  \n  \n\n \n\nClass A ordinary shares\n\n \n  \n\n \n\nClass B ordinary shares\n\n \n  \n  \n \n \n  \n \n \n  \n \n  \n  \n \n  \n  \n \n  \n  \n \n \n  \n \n \n  \n \n \n  \n \n\n \n  \n \n  \n\nNumber of\nordinary\nshares\n\n \n  \n\nAmount\n\n \n  \n\nNumber of\nordinary\nshares\n\n \n  \n\nAmount\n\n \n  \n\nNumber of\ntreasury\nshares\n\n \n \n\nTreasury\nshares\n\n \n \n\nAdditional\n\npaid-in\n\ncapital\n\n \n  \n\nAccumulated\n\nother\n\ncomprehensive\n\nincome\n\n \n  \n\nStatutory\n\nreserves\n\n \n  \n\nAccumulated\ndeficit\n\n \n \n\nTotal\nEHang\nHoldings\nLimited\nshareholders’\nequity\n\n \n \n\nNon-\n\ncontrolling\n\ninterests\n\n \n \n\nTotal\n\nshareholders’\n\nequity\n\n \n\n \n  \n\nNote\n\n  \n \n \n  \n\nRMB\n\n \n  \n \n \n  \n\nRMB\n\n \n  \n \n \n \n\nRMB\n\n \n \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n\nBalance as of December 31, 2023\n\n  \n\n  \n\n \n\n88,006,101\n\n \n\n  \n\n \n\n56\n\n \n\n  \n\n \n\n39,026,560\n\n \n\n  \n\n \n\n24\n\n \n\n  \n\n \n\n(461,516\n\n) \n\n \n\n \n\n— \n\n \n\n \n\n \n\n1,951,936\n\n \n\n  \n\n \n\n15,079\n\n \n\n  \n\n \n\n1,239\n\n \n\n  \n\n \n\n(1,754,542\n\n) \n\n \n\n \n\n213,792\n\n \n\n \n\n \n\n427\n\n \n\n \n\n \n\n214,219\n\n \n\nShares issued to depository bank\n\n  \n19\n  \n \n11,578,890\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n(11,578,890\n) \n \n \n— \n \n \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n\n \n\n— \n\n \n\n \n \n— \n \n \n\n \n\n— \n\n \n\nIssuance of Class A ordinary shares\n\n  \n19\n  \n \n3,328,334\n \n  \n \n10\n \n  \n \n— \n \n  \n \n— \n \n  \n \n9,231,510\n \n \n \n— \n \n \n \n693,586\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n\n \n\n693,596\n\n \n\n \n \n— \n \n \n\n \n\n693,596\n\n \n\nIssuance of ordinary shares for the vested restricted share units and vested share options\n\n  \n19\n  \n \n3,619,500\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n1,242,176\n \n \n \n— \n \n \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n\n \n\n— \n\n \n\n \n \n— \n \n \n\n \n\n— \n\n \n\nNet loss\n\n  \n\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n \n— \n \n \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n(229,776\n) \n \n\n \n\n(229,776\n\n) \n\n \n \n(256\n) \n \n\n \n\n(230,032\n\n) \n\nShare based compensation\n\n  \n15\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n \n— \n \n \n \n273,124\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n\n \n\n273,124\n\n \n\n \n \n— \n \n \n\n \n\n273,124\n\n \n\nArrangement for employee stock withholding tax\n\n  \n19\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n61,930\n \n \n \n— \n \n \n \n4,532\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n\n \n\n4,532\n\n \n\n \n \n— \n \n \n\n \n\n4,532\n\n \n\nShare repurchase\n\n  \n19\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n(200,000\n) \n \n \n(10,085\n) \n \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n\n \n\n(10,085\n\n) \n\n \n \n— \n \n \n\n \n\n(10,085\n\n) \n\nOther comprehensive loss\n\n  \n\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n \n— \n \n \n \n— \n \n  \n \n10,460\n \n  \n \n— \n \n  \n \n— \n \n \n\n \n\n10,460\n\n \n\n \n \n— \n \n \n\n \n\n10,460\n\n \n\nAppropriation of statutory reserve\n\n  \n2(ad)\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n \n— \n \n \n \n— \n \n  \n \n— \n \n  \n \n533\n \n  \n \n(533\n) \n \n\n \n\n— \n\n \n\n \n \n— \n \n \n\n \n\n— \n\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance as of December 31, 2024\n\n  \n\n  \n\n \n\n106,532,825\n\n \n\n  \n\n \n\n66\n\n \n\n  \n\n \n\n39,026,560\n\n \n\n  \n\n \n\n24\n\n \n\n  \n\n \n\n(1,704,790\n\n) \n\n \n\n \n\n(10,085\n\n) \n\n \n\n \n\n2,923,178\n\n \n\n  \n\n \n\n25,539\n\n \n\n  \n\n \n\n1,772\n\n \n\n  \n\n \n\n(1,984,851\n\n) \n\n \n\n \n\n955,643\n\n \n\n \n\n \n\n171\n\n \n\n \n\n \n\n955,814\n\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF- \n11\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n  \n  \n  \n  \n\n \n\nClass A ordinary shares\n\n \n  \n\n \n\nClass B ordinary shares\n\n \n  \n  \n \n \n  \n \n \n  \n \n  \n  \n \n \n  \n \n  \n  \n \n \n  \n \n \n  \n \n \n  \n \n\n \n  \n \n  \n\nNumber of\nordinary\nshares\n\n \n  \n\nAmount\n\n \n  \n\nNumber of\nordinary\nshares\n\n \n  \n\nAmount\n\n \n  \n\nNumber of\ntreasury\nshares\n\n \n \n\nTreasury\nshares\n\n \n \n\nAdditional\n\npaid-in\n\ncapital\n\n \n  \n\nAccumulated\n\nother\n\ncomprehensive\n\nincome\n\n \n \n\nStatutory\n\nreserves\n\n \n  \n\nAccumulated\ndeficit\n\n \n \n\nTotal\nEHang\nHoldings\nLimited\nshareholders’\nequity\n\n \n \n\nNon-\n\ncontrolling\n\ninterests\n\n \n \n\nTotal\n\nshareholders’\n\nequity\n\n \n\n \n  \n\nNote\n\n  \n \n \n  \n\nRMB\n\n \n  \n \n \n  \n\nRMB\n\n \n  \n \n \n \n\nRMB\n\n \n \n\nRMB\n\n \n  \n\nRMB\n\n \n \n\nRMB\n\n \n  \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n\nBalance as of December 31, 2024\n\n  \n\n  \n\n \n\n106,532,825\n\n \n\n  \n\n \n\n66\n\n \n\n  \n\n \n\n39,026,560\n\n \n\n  \n\n \n\n24\n\n \n\n  \n\n \n\n(1,704,790\n\n) \n\n \n\n \n\n(10,085\n\n) \n\n \n\n \n\n2,923,178\n\n \n\n  \n\n \n\n25,539\n\n \n\n \n\n \n\n1,772\n\n \n\n  \n\n \n\n(1,984,851\n\n) \n\n \n\n \n\n955,643\n\n \n\n \n\n \n\n171\n\n \n\n \n\n \n\n955,814\n\n \n\nShares issued to depository bank\n\n  \n19\n  \n \n2,400,000\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n(2,400,000\n) \n \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n\n \n\n— \n\n \n\n \n \n— \n \n \n\n \n\n— \n\n \n\nIssuance of Class A ordinary shares\n\n  \n19\n  \n \n— \n \n  \n \n2\n \n  \n \n— \n \n  \n \n— \n \n  \n \n2,769,184\n \n \n \n— \n \n \n \n165,567\n \n  \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n\n \n\n165,569\n\n \n\n \n \n— \n \n \n\n \n\n165,569\n\n \n\nIssuance of ordinary shares for the vested restricted share units and vested share options\n\n  \n19\n  \n \n2,803,275\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n811,138\n \n \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n\n \n\n— \n\n \n\n \n \n— \n \n \n\n \n\n— \n\n \n\nNet loss\n\n  \n\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n \n— \n \n  \n \n(275,977\n)\n \n\n \n\n(275,977\n\n)\n\n \n \n(434\n) \n \n\n \n\n(276,411\n\n)\n\nShare based compensation\n\n  \n15\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n \n— \n \n \n \n246,158\n \n  \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n\n \n\n246,158\n\n \n\n \n \n— \n \n \n\n \n\n246,158\n\n \n\nArrangement for employee stock withholding tax\n\n  \n19\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n3,982\n \n \n \n— \n \n \n \n76\n \n  \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n\n \n\n76\n\n \n\n \n \n— \n \n \n\n \n\n76\n\n \n\nCapital injection\nby non-controlling interests\n\n  \n\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n\n \n\n— \n\n \n\n \n \n70\n \n \n\n \n\n70\n\n \n\nTransaction with\nnon-controlling\ninterests\n\n  \n\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n\n \n \n— \n \n \n \n392\n \n  \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n\n \n\n392\n\n \n\n \n \n(392\n) \n \n\n \n\n— \n\n \n\nOther comprehensive loss\n\n  \n\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n \n— \n \n \n \n— \n \n  \n \n(22,934\n) \n \n \n— \n \n  \n \n— \n \n \n\n \n\n(22,934\n\n) \n\n \n \n— \n \n \n\n \n\n(22,934\n\n) \n\nAppropriation of statutory reserve\n\n  \n2(ad)\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n \n1,530\n \n  \n \n(1,530\n) \n \n \n— \n \n \n \n— \n \n \n\n \n\n— \n\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance as of December 31, 2025\n\n  \n\n  \n\n \n\n111,736,100\n\n \n\n  \n\n \n\n68\n\n \n\n  \n\n \n\n39,026,560\n\n \n\n  \n\n \n\n24\n\n \n\n  \n\n \n\n(520,486\n\n) \n\n \n\n \n\n(10,085\n\n) \n\n \n\n \n\n3,335,371\n\n \n\n  \n\n \n\n2,605\n\n \n\n \n\n \n\n3,302\n\n \n\n  \n\n \n\n(2,262,358\n\n)\n\n \n\n \n\n1,068,927\n\n \n\n \n\n \n\n(585\n\n) \n\n \n\n \n\n1,068,342\n\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nBalance as of December 31, 2025 (US$)\n\n  \n\n  \n\n \n\n111,736,100\n\n \n\n  \n\n \n\n10\n\n \n\n  \n\n \n\n39,026,560\n\n \n\n  \n\n \n\n3\n\n \n\n  \n\n \n\n(520,486\n\n) \n\n \n\n \n\n(1,442\n\n) \n\n \n\n \n\n476,952\n\n \n\n  \n\n \n\n373\n\n \n\n \n\n \n\n472\n\n \n\n  \n\n \n\n(323,513\n\n)\n\n \n\n \n\n152,855\n\n \n\n \n\n \n\n(84\n\n) \n\n \n\n \n\n152,771\n\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF- 1\n2\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n \n\n \n  \n \n \n  \n\nFor the years ended December 31,\n\n \n\n \n  \n\nNote\n\n \n  \n\n2023\n\n \n \n\n2024\n\n \n \n\n2025\n\n \n\n \n  \n \n \n  \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nUS$\n\n \n\n \n  \n \n \n  \n \n \n \n \n \n \n \n \n \nNote 2(e)\n \n\nCASH FLOWS FROM OPERATING ACTIVITIES\n\n  \n\n  \n\n \n\n \n\n \n\nNet loss\n\n  \n\n  \n \n(302,341\n) \n \n \n(230,032\n) \n \n \n(276,411\n)\n \n \n(39,527\n)\n\nAdjustments to reconcile net loss to net cash (used in) generated from operating activities\n\n  \n\n  \n\n \n\n \n\n \n\nDepreciation of property and equipment\n\n  \n \n8\n \n  \n \n12,442\n \n \n \n12,774\n \n \n \n18,954\n \n \n \n2,710\n \n\nAmortization of intangible assets\n\n  \n\n  \n \n787\n \n \n \n922\n \n \n \n972\n \n \n \n139\n \n\nAmortization of\n\nright-of-use\n\nassets\n\n  \n\n  \n \n8,131\n \n \n \n6,103\n \n \n \n10,068\n \n \n \n1,440\n \n\nShare-based compensation\n\n  \n \n15\n \n  \n \n151,485\n \n \n \n273,124\n \n \n \n246,158\n \n \n \n35,200\n \n\nLosses on disposal of property and equipment\n\n  \n \n2(l)\n \n  \n \n138\n \n \n \n682\n \n \n \n34\n \n \n \n5\n \n\nAmortization of debt discounts\n\n  \n\n  \n \n12,023\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nInterest expenses\n\n  \n\n  \n \n— \n \n \n \n(707\n) \n \n \n(25\n) \n \n \n(4\n) \n\nInterest and investment income\n\n  \n\n  \n \n(3,361\n) \n \n \n(11,103\n) \n \n \n(47,429\n) \n \n \n(6,782\n) \n\nLosses from equity method investments\n\n  \n \n9\n \n  \n \n1,560\n \n \n \n4,353\n \n \n \n5,248\n \n \n \n750\n \n\nCurrent expected credit losses\n\n  \n\n  \n \n13,691\n \n \n \n12,790\n \n \n \n7,938\n \n \n \n1,135\n \n\nWrite-downs of inventories\n\n  \n \n2(k)\n \n  \n \n460\n \n \n \n921\n \n \n \n1,482\n \n \n \n212\n \n\nDeferred tax assets\n\n  \n\n  \n \n— \n \n \n \n— \n \n \n \n(6,969\n)\n \n \n(997\n)\n\nForeign currency exchange (gains) losses\n\n  \n\n  \n \n(394\n) \n \n \n49\n \n \n \n(372\n) \n \n \n(53\n) \n\nChanges in operating assets and liabilities\n\n  \n\n  \n\n \n\n \n\n \n\nAccounts receivable\n\n  \n\n  \n \n(20,523\n) \n \n \n(30,089\n) \n \n \n(61,428\n)\n \n \n(8,784\n)\n\nInventories\n\n  \n\n  \n \n7,816\n \n \n \n(21,590\n) \n \n \n(35,667\n)\n \n \n(5,100\n)\n\nPrepayments and other assets\n\n  \n\n  \n \n10,728\n \n \n \n(29,515\n) \n \n \n(101,575\n)\n \n \n(14,525\n)\n\nAccounts payable\n\n  \n\n  \n \n5,445\n \n \n \n92,345\n \n \n \n5,023\n \n \n \n718\n \n\nContract liabilities\n\n  \n\n  \n \n17,847\n \n \n \n25,392\n \n \n \n(1,722\n)\n \n \n(246\n)\n\nAccrued expenses and other liabilities\n\n  \n\n  \n \n(192\n) \n \n \n57,551\n \n \n \n61,583\n \n \n \n8,808\n \n\nLease liabilities\n\n  \n\n  \n \n(3,708\n) \n \n \n(2,665\n) \n \n \n(5,825\n)\n \n \n(833\n)\n\nDeferred income\n\n  \n\n  \n \n(1,464\n) \n \n \n(1,531\n) \n \n \n(687\n)\n \n \n(98\n)\n\nDeferred government subsidies\n\n  \n\n  \n \n998\n \n \n \n(1,936\n) \n \n \n(526\n)\n \n \n(75\n)\n\nIncome taxes payable\n\n  \n\n  \n \n22\n \n \n \n121\n \n \n \n1,670\n \n \n \n239\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet cash flow (used in) generated from operating activities\n\n  \n\n  \n\n \n\n(88,410\n\n) \n\n \n\n \n\n157,959\n\n \n\n \n\n \n\n(179,506\n\n)\n\n \n\n \n\n(25,668\n\n)\n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF- 1\n3\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n \n  \n \n \n  \n\nFor the years ended December 31,\n\n \n\n \n  \n\nNote\n\n \n  \n\n2023\n\n \n \n\n2024\n\n \n \n\n2025\n\n \n\n \n  \n \n \n  \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nUS$\n\n \n\n \n  \n \n \n  \n \n \n \n \n \n \n \n \n \nNote 2(e)\n \n\nCASH FLOWS FROM INVESTING ACTIVITIES\n\n  \n\n  \n\n \n\n \n\n \n\nAcquisition of\nnon-controlling\ninterests\n\n  \n \n20\n \n  \n \n(6,920\n) \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\nPurchase of short-term investments\n\n  \n\n  \n \n(56,694\n) \n \n \n(885,706\n) \n \n \n(729,153\n) \n \n \n(104,267\n)\n\nRedemption of short-term investments\n\n  \n\n  \n \n— \n \n \n \n444,759\n \n \n \n418,728\n \n \n \n59,877\n \n\nPayments for short-term deposits\n\n  \n\n  \n \n(14,164\n) \n \n \n(130,071\n) \n \n \n— \n \n \n \n— \n \n\nProceeds received from maturity of short-term deposits\n\n  \n\n  \n \n— \n \n \n \n143,782\n \n \n \n— \n \n \n \n— \n \n\nPayments for restricted short-term deposits\n\n  \n\n  \n \n(33,437\n) \n \n \n(39,486\n) \n \n \n(29,126\n) \n \n \n(4,165\n) \n\nProceeds received from maturity of restricted short-term deposits\n\n  \n\n  \n \n— \n \n \n \n43,942\n \n \n \n29,486\n \n \n \n4,216\n \n\nPurchase of property and equipment\n\n  \n\n  \n \n(7,832\n) \n \n \n(38,966\n) \n \n \n(147,903\n)\n \n \n(21,150\n)\n\nPurchases of land use rights\n\n  \n\n  \n \n— \n \n \n \n— \n \n \n \n(11,409\n)\n \n \n(1,631\n)\n\nAcquisition of intangible assets\n\n  \n\n  \n \n(1,255\n) \n \n \n(1,112\n) \n \n \n(1,068\n) \n \n \n(153\n) \n\nCash paid for investments accounted for using equity method and other investments\n\n  \n\n  \n \n(10,090\n) \n \n \n(19,650\n) \n \n \n(34,700\n) \n \n \n(4,962\n) \n\nLoan to a related party\n\n  \n\n  \n \n— \n \n \n \n— \n \n \n \n(5,000\n) \n \n \n(715\n) \n\nReceipt of loans receivable from a related party\n\n  \n\n  \n \n— \n \n \n \n— \n \n \n \n3,000\n \n \n \n429\n \n\nReceipt of loans receivable from a third party\n\n  \n\n  \n \n1,700\n \n \n \n— \n \n \n \n— \n \n \n \n— \n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet cash flow used in investing activities\n\n  \n\n  \n\n \n\n(128,692\n\n) \n\n \n\n \n\n(482,508\n\n) \n\n \n\n \n\n(507,145\n\n) \n\n \n\n \n\n(72,521\n\n) \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCASH FLOWS FROM FINANCING ACTIVITIES\n\n  \n\n  \n\n \n\n \n\n \n\nProceeds from short-term bank loans\n\n  \n \n12\n \n  \n \n69,090\n \n \n \n64,250\n \n \n \n249,143\n \n \n \n35,627\n \n\nRepayment of short-term bank loans\n\n  \n\n  \n \n(49,794\n) \n \n \n(69,090\n) \n \n \n(83,758\n) \n \n \n(11,977\n) \n\nProceeds from long-term bank loans\n\n  \n \n12\n \n  \n \n10,000\n \n \n \n25,000\n \n \n \n75,000\n \n \n \n10,725\n \n\nRepayment of long-term bank loans\n\n  \n\n  \n \n(14,154\n) \n \n \n(6,846\n) \n \n \n(13,500\n) \n \n \n(1,930\n) \n\nProceeds from short-term debts\n\n  \n\n  \n \n— \n \n \n \n90,000\n \n \n \n— \n \n \n \n— \n \n\nRepayment of short-term debts\n\n  \n\n  \n \n(69,861\n) \n \n \n(90,000\n) \n \n \n— \n \n \n \n— \n \n\nCapital injection by\nnon-controlling\ninterests\n\n  \n\n  \n \n— \n \n \n \n— \n \n \n \n70\n \n \n \n10\n \n\nRepayment of Mandatorily redeemable\nnon-controlling\ninterests\n\n  \n \n13\n \n  \n \n— \n \n \n \n— \n \n \n \n(40,000\n) \n \n \n(5,720\n) \n\nPayment of share repurchase\n\n  \n \n19\n \n  \n \n— \n \n \n \n(10,085\n) \n \n \n— \n \n \n \n— \n \n\nCapitalized professional service fee related to financing transactions\n\n  \n\n  \n \n— \n \n \n \n— \n \n \n \n(16,334\n) \n \n \n(2,336\n) \n\nProceeds from issuance of Class A ordinary shares, net of issuance costs\n\n  \n\n  \n \n250,199\n \n \n \n698,128\n \n \n \n166,810\n \n \n \n23,853\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet cash provided by financing activities\n\n  \n\n  \n\n \n\n195,480\n\n \n\n \n\n \n\n701,357\n\n \n\n \n\n \n\n337,431\n\n \n\n \n\n \n\n48,252\n\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEffect of exchange rate changes on cash and cash equivalents\n\n  \n\n  \n \n562\n \n \n \n5,819\n \n \n \n(5,257\n) \n \n \n(752\n) \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet (decrease) increase in cash and cash equivalents\n\n  \n\n  \n \n(21,060\n) \n \n \n382,627\n \n \n \n(354,477\n) \n \n \n(50,689\n) \n\nCash and cash equivalents at the beginning of the years\n\n  \n\n  \n \n249,310\n \n \n \n228,250\n \n \n \n610,877\n \n \n \n87,354\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nCash and cash equivalents at the end of the years\n\n  \n\n  \n\n \n\n228,250\n\n \n\n \n\n \n\n610,877\n\n \n\n \n\n \n\n256,400\n\n \n\n \n\n \n\n36,665\n\n \n\n  \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF- 1\n4\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n \n  \n \n \n  \n\nFor the years ended December 31,\n\n \n\n \n  \n\nNote\n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n \n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\n \n  \n \n \n  \n \n \n  \n \n \n  \n \n \n  \nNote 2(e)\n \n\nSupplemental disclosures of cash flow information\n\n  \n\n  \n\n  \n\n  \n\n  \n\nInterest paid\n\n  \n\n  \n \n2,183\n \n  \n \n3,400\n \n  \n \n6,663\n \n  \n \n953\n \n\nIncome taxes paid\n\n  \n\n  \n \n184\n \n  \n \n101\n \n  \n \n879\n \n  \n \n126\n \n\nNon-cash\ninvesting and financing activities\n\n  \n\n  \n\n  \n\n  \n\n  \n\nLoans receivable settled by accounts payable\n\n  \n\n  \n \n5,800\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\nPurchase of property and equipment included in accrued expenses and other liabilities\n\n  \n\n  \n \n1,401\n \n  \n \n1,198\n \n  \n \n45,768\n \n  \n \n6,545\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF- 1\n5\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n1.\n\nOrganization and Nature of Operations\n\n \n\n(a)\n\nPrincipal activities\n\nEHang Holdings Limited (the ‘‘Company’’) was incorporated in the Cayman Islands on December 23, 2014 under the Cayman Islands Companies Law as an exempted company with limited liability. On December 12, 2019, the Company completed its initial public offering (the “IPO”) and got listed on Nasdaq Global Market. The Company through its consolidated subsidiaries, variable interest entity (the ‘‘VIE’’) and the subsidiaries of the VIE (collectively, the ‘‘Group’’) are principally engaged in the research and development, manufacturing, sales and operations of unmanned aerial vehicles (“UAVs”). The Group established its manufacturing facility in Yunfu City in the People’s Republic of China (“PRC”).\n\n \n\n(b)\n\nPrincipal subsidiaries and VIEs\n\nAs of December 31, 2025, the Company’s major subsidiaries, VIE and the\nsubsidiaries\nof the VIE (“VIEs”, refer to VIE and its subsidiaries as a whole, where appropriate) are as follows:\n\n \n\nEntities\n\n  \n\nDate of\n\nincorporation\n\nestablishment\n\n  \n\nPlace of\n\nincorporation\n\nestablishment\n\n  \n\nEquity\n\ninterest\n\nheld\n\n  \n\nPrincipal activities\n\nSubsidiaries:\n\n  \n\n  \n\n  \n\n  \n\nEhfly Technology Limited (“Ehfly”)\n\n  \n\nDecember 5, 2014\n\n  \n\nHong Kong\n\n  \n100%\n  \n\nProduct sales, investment holding\n\nEHang Intelligent Equipment Co., Ltd. (“EHang Intelligent” or the “WFOE”)\n\n  \n\nOctober 15, 2015\n\n  \n\nPRC\n\n  \n100%\n  \n\nResearch and development, manufacturing and product sales\n\nYunfu EHang Intelligent Technology Limited (“EHang Yunfu”)\n\n  \n\nJune 15, 2020\n\n  \n\nPRC\n\n  \n96.2%\n  \n\nResearch and development, manufacturing and product sales\n\n \n\nEntities\n\n  \n\nDate of\n\nincorporation\n\nestablishment\n\n  \n\nPlace of\n\nincorporation\n\nestablishment\n\n  \n\nPrincipal activities\n\nVariable Interest Entity\n\n  \n\n  \n\n  \n\nGuangzhou EHang Intelligent Technology Co., Ltd. (“EHang GZ” or the “VIE”)\n\n  \n\nAugust 8, 2014\n\n  \n\nPRC\n\n  \n\nResearch and development, manufacturing and product sales\n\nVIE’s Subsidiaries\n\n  \n\n  \n\n  \n\nGuangdong EHang General Aviation Co., Ltd. (“EHang Aviation”)\n\n  \n\nMarch 11, 2021\n\n  \n\nPRC\n\n  \n\nOperational flight services\n\nGuangdong EHang Egret Media Technology Co., Ltd (“EHang Egret GD”)\n\n  \n\nJuly 6, 2016\n\n  \n\nPRC\n\n  \n\nOperational aerial media solutions\n\nservices\n\n \n\nF- 1\n6\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n1.\n\nOrganization and Nature of Operations (Continued)\n\n \n\n(b)\n\nPrincipal subsidiaries and VIEs (Continued)\n\n \n\nSummary of the VIE contractual arrangements (the “VIE Contractual Agreements”)\n\nThe Group conducts all of its business in China through its subsidiaries and the VIEs in the PRC. The Company’s subsidiary EHang Intelligent, or the WFOE, has entered into contractual arrangements with the VIE and its shareholders described below, which are referred to as the VIE Contractual Agreements. During the years ended December 31, 2023 and 2024, and for the eight-month ended August 31, 2025, the shareholders of the VIE (the “Nominee Shareholders”) are Mr. Shuai Feng and Mr. Weixian Xia, who are the Group’s employees. In September 2025, Mr. Shuai Feng, completed transfer all of his equity interests in the VIE to Mr. Huazhi Hu and concurrently, all rights and obligations of Mr. Shuai Feng under the VIE Contract Agreements were assigned to Mr. Huazhi Hu. After the transfer, Mr. Huazhi Hu and Mr. Weixian Xia has became the Nominee Shareholders. Through the Contractual Agreements, the Nominee Shareholders of the VIE effectively assigned all of their voting rights underlying their equity interests in the VIE to the WFOE, a wholly-owned entity of the Company, which further assigned the voting rights underlying their equity interests in the VIE to the Company. Therefore, the Company has the power to direct the activities of the VIE that most significantly impact their economic performance. The Company also has the right to receive economic benefits via the WFOE, and the obligation to absorb losses of the VIE, that potentially could be significant to the VIE. Through the VIE Contractual Agreements, the Company is considered the primary beneficiary of the VIEs for accounting purposes only and thus consolidates each of these entities under\nASC810-10,\n\nConsolidation: Overall\n\n.\n\nThe following is a summary of the Contractual Agreements and its amendments among the Nominee Shareholders, the VIE, the WFOE and the Company:\n\nSpecial Agreement on the Capital Increase Arrangement of the VIE\n\nThe WFOE has granted interest-free loans with an aggregate amount of RMB\n\n60,000\n\n to the Nominee Shareholders of the VIE for the sole purpose of providing funds necessary for the capital increase to the VIE. The loans are repayable by such Nominee Shareholders through a transfer of their equity interests in the VIE to the WFOE, in proportion to the amount of the loans to be repaid.\n\nPower of Attorney and Shareholders Voting Proxy Agreement\n\nPursuant to the Power of Attorney and Shareholders Voting Proxy Agreement entered into amongst the Nominee Shareholders, the VIE and the WFOE, the Nominee Shareholders authorized the WFOE to act on behalf of the Nominee Shareholders as exclusive agent and attorney with respect to all matters concerning the VIE’s equity interests, including but not limited to: (1) propose, convene and preside over the shareholders’ meetings of the VIE; (2) attend shareholders’ meetings of the VIE; (3) exercise all the shareholders’ rights, including voting rights; and (4) designate and appoint the senior management members of the VIE. The agreement stipulates that failure to remedy a breach within a reasonable period or ten days after written notice may result in liability. If the Nominee Shareholders or the VIE breach the agreement, the WFOE is entitled to terminate it and claim compensation. If the WFOE breaches, the\nnon-defaulting\nparty may claim damages but does not have the right to terminate the agreement unless required by law. The proxy is irrevocable and continuously valid from the date of execution. The WFOE is entitled to\nre-authorize\nor assign its rights related to the equity interest to any other person or entity at its own discretion and without giving prior notice to the Nominee Shareholders or obtaining their consents. In 2019, the WFOE reassigned its rights under the Power of Attorney and Shareholders Voting Proxy Agreement to the Company, pursuant to the Commitment Letter below.\n\nExclusive Option Agreements\n\nPursuant to the Exclusive Option Agreements entered amongst the Nominee Shareholders, the VIE and WFOE, the Nominee Shareholders granted to WFOE or their designees an irrevocable and exclusive right to purchase all or part of the equity interests held by the Nominee Shareholders in the VIE at the WFOE’s sole discretion, to the extent permitted under the PRC laws, at an amount equal to the minimum consideration permitted under the applicable PRC law and administrative regulations. Any proceeds received by the Nominee Shareholders from the exercise of the options shall be remitted to the WFOE or its designated party, to the extent permitted under PRC laws. In addition, the VIE and the Nominee Shareholders have agreed that without prior written consent of the WFOE, they will not: (i) create any pledge or encumbrance on their equity interests in the VIE, (ii) transfer or otherwise dispose of their equity interests in the VIE, or (iii) request any distribution of profits, income or any form of profit sharing, and any such assets that have been transferred to the shareholders of the VIE shall be returned to the WFOE or any entity designated by the WFOE. In addition, the Nominee Shareholders undertake that, upon the winding up of the VIE, all assets obtained by them shall be transferred to the WFOE or any entity designated by the WFOE at nil consideration or at the lowest price permissible under applicable PRC laws. The term of the agreement remains effective as long as each Nominee Shareholder remains a shareholder of the VIE. The WFOE may terminate the agreement at its sole discretion, whereas under no circumstances may the VIE or the Nominee Shareholders terminate the agreement.\n\n \n\nF- 1\n7\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n1.\n\nOrganization and Nature of Operations (Continued)\n\n \n\n(b)\n\nPrincipal subsidiaries and VIEs (Continued)\n\nSummary of the VIE contractual arrangements (the “VIE Contractual Agreements”) (Continued)\n\n \n\nExclusive Technical Consulting and Service Agreement\n\nPursuant to the Exclusive Technical Consulting and Service Agreement and the\nE\nxclusive\nS\nervices\nA\ngreement between the WFOE and the VIE, the WFOE has the exclusive right to provide technical consulting and services to the VIE and its subsidiaries including but not limited to those relating to the development, manufacturing and sales of intelligent aerial vehicles. Without the WFOE’s prior written consent, the VIE\nshall not\n, directly or indirectly,\no\nbtain the same or similar\n\ntechnical consulting services\n as provided under this agreement\nfrom any third party. In return, the VIE agrees to pay a service fee equal to\n\n100\n\n% of the consolidated net profits of the VIE after the VIE turns cumulative profitable and after certain expenses. The WFOE has sole discretion in determining the service fee charged to the VIE under this agreement. The WFOE will have exclusive ownership of all intellectual property rights created by performance of this agreement.\n\nThe Exclusive Technical Consulting and Service Agreement and the Exclusive Services Agreement are valid for 10 years and shall be automatically renewed for successive\nten-year\nperiods without limitation on the number of renewals\n.\n\nThis agreement can be terminated by the WFOE at any time\nwithout cause\nbut cannot be terminated by the VIE.\n\nShare Pledge Agreements\n\nPursuant to the Share Pledge Agreements entered amongst the WFOE and the Nominee Shareholders, the Nominee Shareholders have pledged their entire equity interests in the VIE to the WFOE in favor of the WFOE to secure the VIE and their obligations under the various contractual agreements, including the Exclusive Technical Consulting and Service Agreements, the Exclusive Services Agreement, the Shareholders Voting Proxy Agreement and Exclusive Option Agreements described above. The WFOE, as pledgee, shall have the right to collect dividends generated by the pledged equity interests during the term of the pledge. If the Nominee Shareholders breach their respective contractual obligations under the Share Pledge Agreements, the WFOE, as pledgee, will be entitled to rights, including the right to dispose of the pledged equity interests entirely or partially. The Nominee Shareholders of the VIE agree not to create any encumbrance on or otherwise transfer or dispose of their respective equity interests in the VIE, without the prior consent of the WFOE. The Share Pledge Agreements will remain effective until the earlier of: (i) all the contractual obligations under the relevant agreement have been satisfied in full, (ii) the WFOE exercises its unilateral and unconditional right to terminate the share pledge agreements, or (iii) it is terminated as required by applicable PRC laws and regulations. The Company has completed the registration of all such share pledge of Mr. Weixian Xia and Mr. Huazhi Hu in March 2021 and September 2025, respectively, with the relevant office of Administration for the Industry and Commerce in accordance with the PRC Property Rights Law.\n\nCommitment Letter in Respect of Shareholders Voting Proxy and Provision of Financial Support\n\nPursuant to the Commitment Letter in Respect of Shareholders Voting Proxy and Provision of Financial Support (“Commitment Letter”), the WFOE irrevocably and unconditionally commits to execute its rights and obligations under the Power of Attorney and Shareholders Voting Proxy Agreement under the instruction of the Company. In addition, the Company is obligated and undertakes to provide unlimited financial support to the VIE, to the extent permissible under applicable PRC laws and regulations. Such financial support shall be interest-free and without a fixed term, and shall not be subject to early repayment unless with the prior written consent of the Company.\n\nBased on the opinion of the Company’s PRC legal counsel, the ownership structures of the WFOE and the VIE are in compliance with applicable PRC laws or regulations currently in effect; and each of the VIE Contractual Agreements is valid, legal and binding on the parties thereto under applicable PRC Laws currently in effect, and each party to the VIE Contractual Agreements is entitled to assert its respective rights and is obligated to perform its respective duties in accordance with the terms and conditions of each VIE Contractual Agreement, subject to applicable PRC Laws currently in effect.\n\n \n\nF- 1\n8\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n1.\n\nOrganization and Nature of Operations (Continued)\n\n \n\n(b)\n\nPrincipal subsidiaries and VIEs (Continued)\n\nSummary of the VIE contractual arrangements (the “VIE Contractual Agreements”) (Continued)\n\n \n\nHowever, certain uncertainties regarding the interpretation and application of current or future PRC Laws could cause the relevant regulatory authorities to find the current Contractual Agreements and businesses to be in violation of any existing or future PRC laws or regulations. If the Company, the WFOE or any of their current or future VIE are found in violation of any existing or future laws or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion in dealing with such violations, which may include, but not limited to, revocation of business and operating licenses, being required to discontinue or restrict its business operations, restriction of the Group’s right to collect revenues, being required to restructure its operations, imposition of additional conditions or requirements with which the Group may not be able to comply, or other regulatory or enforcement actions against the Group that could be harmful to its business. The imposition of any of these or other penalties would result in a material and adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these government actions causes the Company to lose the rights to direct the activities of the VIE or the right to receive substantially all of the economic benefits, and the Group are not able to restructure the ownership structure and operations in a satisfactory manner, the Company would no longer be able to consolidate the VIE.\n\nThe following financial statement balances and amounts of the Group’s VIEs were included in the accompanying consolidated\nfinancial\nstatements:\n\n \n\n \n\n  \n\nAs of December 31,\n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n \n\n  \n\nRMB\n\n \n\n  \n\nRMB\n\n \n\n  \n\nUS$\n\n \n\nASSETS\n\n  \n\n  \n\n  \n\nCash and cash equivalents\n\n  \n \n6,866\n \n  \n \n20,719\n \n  \n \n2,963\n \n\nAccounts receivable, net\n\n  \n \n6,106\n \n  \n \n6,217\n \n  \n \n889\n \n\nInventories\n\n  \n \n834\n \n  \n \n2,319\n \n  \n \n332\n \n\nPrepayments and other current assets\n\n  \n \n3,924\n \n  \n \n28,495\n \n  \n \n4,075\n \n\nAmounts due from the Company and its subsidiaries\n\n  \n \n86,496\n \n  \n \n79,816\n \n  \n \n11,414\n \n\nProperty and equipment, net\n\n  \n \n3,436\n \n  \n \n61,259\n \n  \n \n8,760\n \n\nInvestments accounted for using equity method\n\n  \n \n15,459\n \n  \n \n17,622\n \n  \n \n2,520\n \n\nIntangible assets, net\n\n  \n \n371\n \n  \n \n407\n \n  \n \n58\n \n\nDeferred tax assets - non-current\n\n \n\n \n\n— \n\n \n\n \n\n \n\n3,305\n\n \n\n \n\n \n\n473\n\n \n\nOther non-current assets\n\n \n\n \n\n— \n\n \n\n \n\n \n\n15,310\n\n \n\n \n\n \n\n2,189\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal assets\n\n  \n\n \n\n123,492\n\n \n\n  \n\n \n\n235,469\n\n \n\n  \n\n \n\n33,673\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nLIABILITIES\n\n  \n\n  \n\n  \n\nAccounts payable\n\n  \n \n3,070\n \n  \n \n1,293\n \n  \n \n185\n \n\nContract liabilities\n\n  \n \n1,848\n \n  \n \n2,058\n \n  \n \n294\n \n\nCurrent portion of long-term bank loans\n\n  \n \n2,000\n \n  \n \n2,000\n \n  \n \n286\n \n\nAccrued expenses and current liabilities\n\n  \n \n31,919\n \n  \n \n39,877\n \n  \n \n5,702\n \n\nAmounts due to the Company and its subsidiaries\n\n  \n \n82,179\n \n  \n \n99,244\n \n  \n \n14,192\n \n\nIncome taxes payable\n\n \n\n \n\n— \n\n \n\n \n\n \n\n57\n\n \n\n \n\n \n\n8\n\n \n\nLong-term bank loans\n\n  \n \n7,000\n \n  \n \n5,000\n \n  \n \n715\n \n\nUnrecognized tax benefit\n\n  \n \n588\n \n  \n \n588\n \n  \n \n84\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal liabilities\n\n  \n\n \n\n128,604\n\n \n\n  \n\n \n\n150,117\n\n \n\n  \n\n \n\n21,466\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF- 1\n\n9\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n1.\n\nOrganization and Nature of Operations (Continued)\n\n \n\n(b)\n\nPrincipal subsidiaries and VIEs (Continued)\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nRevenues\n\n  \n \n32,808\n \n  \n \n123,960\n \n  \n \n160,250\n \n  \n \n22,915\n \n\n- Third-party revenue\n\n  \n \n9,225\n \n  \n \n5,553\n \n  \n \n6,671\n \n  \n \n954\n \n\n- Inter-company revenue\n\n  \n \n23,583\n \n  \n \n118,407\n \n  \n \n153,579\n \n  \n \n21,961\n \n\nNet (loss) income\n\n  \n \n(5,234\n) \n  \n \n66,234\n \n  \n \n68,366\n \n  \n \n9,776\n \n\nNet cash provided by operating activities\n\n  \n \n14,870\n \n  \n \n11,695\n \n  \n \n33,738\n \n  \n \n4,824\n \n\nNet cash used in investing activities\n\n  \n \n(17,007\n) \n  \n \n(14,096\n) \n  \n \n(17,885\n)\n \n\n  \n \n(2,557\n)\n \n\nNet cash (used in) provided by financing activities\n\n  \n \n(5,154\n) \n  \n \n5,154\n \n  \n \n(2,000\n)\n  \n \n(286\n)\n\nNet (decrease) increase in cash and cash equivalents\n\n  \n \n(7,291\n) \n  \n \n2,753\n \n  \n \n13,853\n \n  \n \n1,981\n \n\nOther than the amounts due to the Company and its subsidiaries (which are eliminated upon consolidation), all remaining liabilities of the VIE are without recourse to the primary beneficiary. The Company did not provide or intend to provide financial or other supports that are not previously contractually required to the VIEs during the years presented.\n\nThe revenue-producing assets that are held by the VIEs comprise mainly of permits, domain names, intellectual property rights, operating licenses, intangible assets and fixed assets. The VIEs contributed an aggregate of 7.86%, 1.22% and 1.60% of the Group’s consolidated revenues for the years ended December 31, 2023, 2024 and 2025, respectively, after elimination of inter-company transactions. The\n\nVIEs contributed net loss of\n\nRMB26,013, RMB51,893 and\n\n net profit of\n\n RMB52,435 (US$7,498) of the Group’s consolidated net loss for the years ended December 31, 2023, 2024 and 2025, respectively, after elimination of inter-company transactions. There are no consolidated VIE’s assets that are pledged or collateralized for the VIE’s obligations which can only be used to settle the VIE’s obligations, except for the registered capital and the statutory reserves. Relevant PRC laws and regulations restrict the VIE from transferring a portion of its net assets, equivalent to the balance of its statutory reserves and its share capital, to the Company in the form of loans and advances or cash dividends (Note 22). Creditors of the VIE do not have recourse to the general credit of the Company for any of the liabilities of the VIE.\n\n \n\n(c)\n\nLiquidity and Going Concern\n\nThe Group has been incurring losses from operations since inception. For the years ended December 31, 2023, 2024 and 2025, the Group incurred net losses of RMB302,341, RMB230,032 and RMB276,411 (US$39,527\n\n), respectively\n\n. As of December 31, 2024 and 2025, accumulated deficits amounted to RMB1,984,851 and RMB2,262,358 (US$323,513\n\n), respectively. Net cash used in operating activities was RMB\n\n88,410 and RMB179,506 (US$25,668\n\n) for the years ended December 31, 2023 and 2025, and net cash generated from operating activities was RMB\n\n157,959 for the year ended December 31, 2024.\n\nAs of December 31, 2025, the Group’s balance of cash and cash equivalents, short-term investments and restricted short-term deposits were RMB256,400 (US$36,665), RMB843,232 (US$120,581) and RMB29,655 (US$4,241), respectively.\n\n \n\nF- \n20\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n1.\n\nOrganization and Nature of Operations (Continued)\n\n \n\n(c)\n\nLiquidity and Going Concern (Continued)\n\n \n\nThe Group’s liquidity is based on its ability to enhance its operating cash flow position, obtain capital financing from equity interest investors and borrow funds to fund its general operations, research and development activities and capital expenditures. The Group’s ability to continue as a going concern is dependent on management’s ability to execute its business plan successfully, which includes increasing market acceptance of the Group’s products to boost its sales volume to achieve economies of scale while applying more effective marketing strategies and cost control measures to better manage operating cash flow position and obtaining funds from outside sources of financing to generate positive financing cash flows.\n\nManagement has concluded that its existing balance of cash and cash equivalents, short-term investments and restricted short-term deposits as of December 31, 2025 provide the Group with sufficient liquidity to meet its working capital requirements and contractual (including debt) obligations for the next twelve months following the issuance of the consolidated financial statements. Accordingly, the consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities during the normal course of operations.\n\n \n\n2.\n\nSummary of Significant Accounting Policies\n\n \n\n(a)\n\nBasis of presentation\n\nThe accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) to reflect the financial position, results of operations and cash flows of the Group. Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized below.\n\n \n\n(b)\n\nPrinciples of consolidation\n\nThe consolidated financial statements include the financial statements of the Company, its subsidiaries and the VIEs, for which the Company is the ultimate primary beneficiary. All significant inter-company transactions and balances between the Company, its subsidiaries, and the VIEs have been eliminated upon consolidation.\n\nA subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power: has the power to appoint or remove the majority of the members of the board of directors (the “Board”): to cast majority of votes at the meeting of the Board or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.\n\nA VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Company’s obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.\n\n \n\nF- \n2\n1\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies\n (Continued)\n\n \n\n(c)\n\nUse of estimates\n\nThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and revenues and expenses during the reporting periods in the consolidated financial statements and accompanying notes. Significant estimates and assumptions reflected in the Group’s consolidated financial statements include, but not limited to expected credit losses, the determination of warranty cost, lower of cost and net realizable value of inventories, useful lives of long-lived assets, impairment of long-lived assets, valuation allowance for deferred tax assets, uncertain tax positions, fair value of share-based awards, fair value of short-term investments, incremental borrowing rates for operating lease liabilities and determination of the fair value of debt investments accounted for under the fair value option model as well as subsequent adjustments for equity investments without readily determinable fair values and not accounted for by the equity method. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements.\n\n \n\n(d)\n\nForeign currency\n\nThe functional currency of the Company, Ehfly, and EHANG Investment (HK) Limited (“EHang HK”) is the United States dollar (“US$”). The functional currency of EHang Holding GmbH (“EHang GmbH”), EHANG TECHNOLOGIES SPAIN & LATAM, S.L. (“EHang Spain”) and Ehang EUROPE SAS (“EHang France”) is the Euro. The functional currency of the Company’s PRC subsidiaries and the VIEs is the Renminbi (“RMB”). The Group uses the RMB as its reporting currency. The determination of the respective functional currency is based on the criteria set out by ASC 830,\n\nForeign Currency Matters\n\n.\n\nTransactions denominated in foreign currencies are\nre-measured\ninto the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are\nre-measured\nat the exchange rates prevailing at the balance sheet date.\nNon-monetary\nitems that are measured in terms of historical cost in foreign currency are\nre-measured\nusing the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of comprehensive loss.\n\nThe financial statements of the Group’ entities of which the functional currency is not RMB use the periodic average exchange rates and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income, a component of shareholders’ equity.\n\n \n\n(e)\n\nConvenience translation\n\nAmounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB6.9931 as set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 31, 2025. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2025 or any other rate.\n\n \n\n(f)\n\nCash and cash equivalents\n\nCash and cash equivalents consist of deposits and highly liquid investments placed with banks and other financial institutions, which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased.\n\n \n\nF- 2\n2\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(g)\n\nRestricted short-term deposits\n\nAs of December 31, 2024 and 2025, restricted short-term deposits represent time deposits placed with a reputable bank in the PRC with original maturities between three months and one year, which are pledged for issuance of letter of credit. Interest earned is classified as “interest and investment income” in the consolidated statements of comprehensive loss during the years presented.\n\n \n\n(h)\n\nDerivative instruments\n\nThe Group’s derivative instruments are carried at fair value, which primarily consisted of foreign exchange forward contract. The fair values of the derivative instruments generally represent the estimated amounts expect to receive or pay upon termination of the contracts as of the reporting date. The Group selectively uses financial instruments to mitigate the risk of foreign currency exchange (losses) gains arose from the Group’s cash and cash equivalent denominated in US$ and Euro. As the derivative instruments of foreign exchange forward contract does not qualify for hedge accounting treatment, changes in the fair value are reflected in “interest and investment income” of the consolidated statements of comprehensive loss. As of December 31, 2024 and 2025, the notional principal amounts of the outstanding foreign exchange forward contract were approximately RMB31,215 and RMB30,000 (US$4,290), respectively. Total changes in fair value of the derivatives recorded in interest and investment income, were incomes of RMB8 and RMB314 (US$45) for the years ended December 31, 2024 and 2025.\n\n \n\n(i)\n\nShort-term investments\n\nAll highly liquid investments with original maturities of greater than three months but less than twelve months, are classified as short-term investments. Investments that are expected to be realized in cash during the next twelve months are also included in short-term investments.\n\nShort-term investments consist primarily of investments in wealth management products, which are redeemable within one year. These investments are all designated as trading and measured at fair value and the change in fair value is recognized in “interest and investment income”.\n\n \n\nF- 2\n3\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(j)\n\nCurrent expected credit loss\n\nThe Group’s cash and cash equivalents, restricted short-term deposits, accounts receivable, loans receivable, other receivables and other\nnon-current\nassets are within the scope of ASC Topic 326. The Group adopted ASC Topic 326 and several associated ASUs on January 1, 2023 using a modified retrospective approach with a cumulative effect recorded as an decrease of shareholders’ equity in the amount of RMB2,422.\n\nThe Group has identified the relevant risk characteristics of its customers and the related receivables which include the products the Group provides, the type of business, the scale of transactions on credit terms, the nature of counterparties and the level of credit risk of the customers, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis include payment terms offered in the normal course of business to customers and industry-specific factors that could impact the Group’s receivables. Additionally, external data and macroeconomic factors are also considered. When facts and circumstances indicate that the receivable no longer shares similar risk characteristics, the Group evaluates the receivables for expected credit losses on an individual basis with expected future cash flow. This is assessed at each quarter based on the Group’s specific facts and circumstances. For the years ended December 31, 2023, 2024 and 2025, the Group recorded RMB 13,691, RMB12,790 and RMB7,938 (US$1,135) of expected credit loss, net within general and administrative expenses, respectively.\n\nThe Group considers historical credit loss rates for each category of loan receivables, other receivables and other\nnon-current\nassets and also considers forward looking macroeconomic data in making its loss accrual determinations. The Group has made specific credit loss provisions on\n\na case-by-case\n\nbasis for particular aged receivable balances.\n\nThe following table summarizes the activity in the allowance for credit losses related to accounts receivable, loans receivable and other receivables for the years ended December 31, 2023, 2024 and 2025:\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nBeginning balance prior to ASC 326\n\n  \n \n117,035\n \n  \n \n \n \n \n \n \n \n \n \n \n\n \n\nAdoption of ASC Topic 326\n\n  \n \n2,422\n \n  \n \n \n \n \n \n \n \n \n \n \n \n\n  \n\n \n\n \n\n \n  \n \n \n \n \n \n \n \n \n \n \n \n\nBalance at the beginning of the years\n\n  \n \n119,457\n \n  \n \n132,806\n \n  \n \n110,422\n \n  \n \n15,790\n \n\nCurrent period provision\n\n  \n \n16,455\n \n  \n \n19,262\n \n  \n \n11,294\n \n  \n \n1,615\n \n\nReversal\n\n  \n \n(2,764\n) \n  \n \n(6,472\n) \n  \n \n(3,356\n)\n  \n \n(480\n)\n \n\nWrite-off\n\n  \n \n— \n \n  \n \n(35,194\n) \n  \n \n— \n \n  \n \n— \n \n\nAcquisition of\nnon-controlling\ninterests\n\n  \n \n(390\n) \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\nOthers\n\n  \n \n48\n \n  \n \n20\n \n  \n \n148\n \n  \n \n21\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nBalance at the end of the years\n\n  \n\n \n\n132,806\n\n \n\n  \n\n \n\n110,422\n\n \n\n  \n\n \n\n118,508\n\n \n\n  \n\n \n\n16,946\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe Group’s expected credit loss of cash and cash equivalents, restricted short-term deposits in banks and other\nnon-current\nassets within the scope of ASC Topic 326 were immaterial.\n\n \n\nF- 2\n4\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(k)\n\nInventories\n\nInventories are comprised of raw materials, work in progress and finished goods. The Group’s raw materials consist of accessories and hardware parts used to produce UAVs and hardware for building the\n\ncommand-and-control\n\ncenters. Work in progress primarily consist of UAVs and hardware parts in production which will be transferred into production cost when incurred. Finished goods primarily consist of UAVs. Cost is determined using the weighted average method and includes all costs to acquire and other costs to bring the inventories to their present location and condition. Inventories are stated at the lower of cost or net realizable value. This requires the determination of the estimated selling price of the vehicles less the estimated cost to convert inventory on hand into a finished product. Once inventory is written down, a new, lower-cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, to record the decreases in sales prices, obsolescence or similar reductions in the estimated net realizable value. Inventory write-downs of RMB460, RMB921 and RMB1,482 (US$212) were recognized in “cost of revenues” for the years ended December 31, 2023, 2024 and 2025.\n\n \n\n(l)\n\nProperty and equipment, net\n\nProperty and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows:\n\n \n\nCategory\n\n  \n\nEstimated useful life\n\n  \n\nResidual value\n\n \n\nBuilding\n\n  \n18 years\n  \n \n5\n% \n\nMold and tooling\n\n  \n2-5 years\n  \n \n0\n% \n\nOffice equipment\n\n  \n5 years\n  \n \n5\n% \n\nElectronic equipment\n\n  \n3-5 years\n  \n \n5\n% \n\nMachinery equipment\n\n  \n\n5-10\nyears\n  \n \n5\n% \n\nTransportation equipment\n\n  \n4 years\n  \n \n5\n% \n\nLeasehold improvements\n\n  \nShorter of lease term or the estimated useful lives of the assets\n  \n \n0\n% \n\nRepair and maintenance costs are charged to expense as incurred, whereas the costs of renewals and betterments that extend the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of comprehensive loss. The losses on the disposal of property and equipment amounted to RMB138, RMB682 and RMB34 (US$5) were recognized in the consolidated statements of comprehensive loss for the years ended December 31, 2023, 2024 and 2025, respectively.\n\nDirect costs that are related to the construction of property and equipment and incurred in connection with bringing the assets to their intended use are capitalized as\n\nconstruction-in-progress.\n\nConstruction-in-progress\n\nis transferred to specific property and equipment accounts and commences depreciation when these assets are ready for their intended use.\n\n \n\n(m)\n\nLand use right, net\n\nLand use right is recorded at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives which is 46 years.\n\n \n\nF- 2\n5\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(n)\n\nIntangible assets, net\n\nIntangible assets consist of software, patents and trademarks. Intangible assets with finite lives, including software, patents and trademarks are carried at acquisition cost less accumulated amortization and impairment, if any. Finite lived intangible assets are tested for impairment if impairment indicators arise.\n\nAmortization of intangible assets with finite lives are computed using the straight-line method over the estimated useful lives as below:\n\n \n\nCategory\n\n  \n\nEstimated useful life\n\nSoftware\n\n  \n\n3-5\nyears\n\nPatents and trademarks\n\n  \n5 years\n\nThe estimated useful lives of intangible assets with finite lives are reassessed if circumstances occur that indicate the original estimated useful lives have changed.\n\nThere were no intangible assets with indefinite lives as of December 31, 2024 and 2025.\n\n \n\n(o)\n\nImpairment of long-lived assets other than goodwill\n\nThe Group evaluates its long-lived assets or asset group, including intangible assets with finite lives, for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Group evaluates for impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the long-lived assets or asset group, when the market prices are not readily available. No impairment loss was charged for long-lived assets in any of the presented periods.\n\n \n\n(p)\n\nInvestments accounted for using equity method\n\nInvestments in equity investees represent investments in entities in which the Group can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC\n323-10,\n\nInvestments-Equity Method and Joint Ventures: Overall\n\n(“ASC\n323-10”).\nUnder the equity method, the Group initially records its investment at cost and prospectively recognizes its proportionate share of each equity investee’s net profit or loss. The difference between the cost of the equity investee and the amount of the underlying equity in the net assets of the equity investee is recognized as goodwill included in long-term investments on the consolidated balance sheets. The Group evaluates its equity method investments for impairment under ASC\n323-10.\nAn impairment loss on equity method investments is recognized in the consolidated statements of comprehensive loss when the decline in value is determined to be other-than-temporary. No impairment was charged in any of the presented periods.\n\nThe Group eliminates its intercompany profits or losses related to transactions with investees until profits or losses are realized through transactions with third parties.\n\n \n\nF- 2\n6\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(q)\n\nOther investments\n\nThe Group’s other investments consist of equity investments without readily determinable fair value and debt security investments.\n\nEquity Investments without Readily Determinable Fair Values\n\nAccording to ASC 321, the Group elected to use the measurement alternative to measure the investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. The Group’s management regularly evaluates the impairment of its investments based on the performance and financial position of the investee as well as other evidence of estimated market values. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and current and future financing needs. An impairment loss is recognized in the consolidated statements of comprehensive loss equal to the excess of the investment’s cost over its fair value at the balance sheet dates of the reporting periods for which the assessment is made. The fair value would then become the new cost basis of the investment.\n\nDebt Security Investment\n\nAs of December 31, 2024 and 2025, the Group’s long term debt security investment represented minority equity interest with redemption right in an investee. The Group elected to account for the debt investment under the fair value option model including preferred stock redeemable merely by the passage of time and at the option of the Group as a holder. The fair value option model permits the irrevocable election on an\n\ninstrument-by-instrument\n\nbasis at initial recognition or upon an event that gives rise to a new basis of accounting for that instrument. The investment accounted for under the fair value option model is carried at fair value with unrealized gains and losses recorded in “interest and investment income” in the consolidated statements of comprehensive loss.\n\n \n\n(r)\n\nFair value measurements of financial instruments\n\nThe Group applies ASC 820 (“ASC 820”),\n\nFair Value Measurements and Disclosures\n\n. ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided on fair value measurement.\n\nASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:\n\nLevel 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.\n\nLevel 2 — Other inputs that are directly or indirectly observable in the marketplace.\n\nLevel 3 — Unobservable inputs which are supported by little or no market activity.\n\nASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.\n\nWhen available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters.\n\n \n\nF- 2\n7\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(r)\n\nFair value measurements of financial instruments (Continued)\n\n \n\nThe Group’s financial instruments primarily consist of cash and cash equivalents, restricted short-term deposits, short-term investments, loans receivable, accounts receivable and payable, other current assets, bank loans, accrued expenses and other liabilities and mandatorily redeemable\nnon-controlling\ninterests. The carrying values of these financial instruments, except for short-term investments, long-term bank loans and mandatorily redeemable\nnon-controlling\ninterests, are approximated to their fair values due to their short-term maturities.\n\nAs of December 31, 2024 and 2025, financial assets that are measured at fair value on a recurring basis consist of foreign exchange forward contract, short term investments and long-term debt security investment. Foreign exchange forward contract was classified within Level 2 of the fair value hierarchy because the quoted market price of underlying asset is not fully observable. Short term investments with observable inputs that reflected quoted prices for identical assets in active markets were categorized as Level 1, while short term investments without fully observable quoted market price of underlying asset were categorized as Level 2.\nLong-term\ndebt security investment did not have readily determinable market values and was categorized as Level 3 in the fair value hierarchy. The Group measures investments without readily determinable fair values on a\nnon-recurring\nbasis when fair value adjustments can be supported by observable market data. Observable price changes generally arise from new financing rounds of the investee companies. As of December 31, 2024 and 2025, certain equity investments without determinable fair values were categorized within Level 2 of the fair value hierarchy when measured based on qualifying observable price changes. Those measured using significant unobservable inputs were categorized within Level 3. Under these circumstances, the Group has adopted certain valuation techniques using unobservable inputs to measure their respective fair values.\n\n \n\n(s)\n\nRevenue recognition\n\nThe Group’s revenues are primarily derived from the sale of UAVs and related commercial solutions, mainly including air mobility solutions, smart city management solutions, and aerial media solutions.\n\nThe Group enters into legally enforceable and binding agreements with its customers with fixed terms and conditions, including pricing. The Group recognizes revenue in the amount that reflects the consideration to which it expects to be entitled in exchange for the products or services are transferred to its customers. Revenues are presented net of taxes collected on behalf of the government.\n\nWhen either party to a contract has performed, the Group presents the contract in the consolidated balance sheets as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment.\n\nA contract asset is the Group’s right to consideration in exchange for goods and services that the Group has transferred to a customer when the consideration is conditioned other than the passage of time. A receivable is recorded when the Group has an unconditional right to consideration, but for only the passage of time.\n\nIf a customer pays consideration or the Group has receivable, before the Group transfers a good or service to the customer, the Group presents the contract liability when the payment is made or a receivable is recorded (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. The Group’s contract liabilities primarily result from the advance received of sales of UAVs and related commercial solutions, which are recognized as revenue based on the consumption of the services or the delivery of the goods.\n\nThe Group generally does not separately bill its customers for shipping and handling fees and charges. The Group elects to record the costs incurred for shipping and handling in “sales and marketing expenses” in its consolidated statements of comprehensive loss. The shipping and handling costs for the years ended December 31, 2023, 2024 and 2025 were RMB1,427, RMB2,438 and RMB1,208 (US$173), respectively.\n\n \n\nF- 2\n8\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(s)\n\nRevenue recognition (Continued)\n\n \n\nPractical Expedients\n\nThe transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, has not been disclosed as substantially all of the Group contracts have a duration of one year or less.\n\nAir mobility solutions\n\nRevenues from air mobility solutions are primarily product revenues from the sales of passenger-grade UAVs and its software. As the UAVs and software are highly interdependent, the entire bundle of promised goods is considered one performance obligation within the context of the contract. The Group recognizes revenue for this single performance obligation at a point in time when control to the bundle of goods transfers to the customer and other conditions as set out in ASC 606 are met. For domestic sales, control transfers upon delivery to the customer as evidenced by the customer’s acknowledgement of receipt and proof of delivery documentation. For international sales, control transfers at shipping point consistent with the terms of the sales agreements. The transaction price is the amount of consideration the Group expects to receive under the arrangement.\n\nWhen the Group contracts with a customer and determines that it is not probable to collect substantially all of the consideration for the sales transaction at contract inception and no contract is established, any consideration received is recognized as a liability by the Group, subsequently recorded as revenue only when the Group has transferred control of the corresponding goods or services, has no obligation under the contract to transfer additional goods or services, and the consideration received is nonrefundable. The Group will record an asset in “Prepayments and other current assets” representing the value of the inventories recovered should the sale not happen.\n\nThe Group only provides the right of return for defective goods in connection with its warranty policy which is accounted for as an assurance-type warranty. For the extended warranty beyond the standard policy, the Group considers it provides a level of protection beyond defects that existed at the time and accounts for it as a separate performance obligation.\n\nService revenues from air mobility solutions are primarily provision of exhibition income which is satisfied over time.\n\nOthers\n\nSmart city management solutions\n\nThe Group enters into contracts with its customers for designing, building and delivering customized integrated\n\ncommand-and-control\n\ncenters. The duration of the contracts depends on the contract size and ranges from three months to one year, excluding the duration of warranty accounted for as an assurance-type warranty, which ranges from one year to three years. The Group provides a significant service of integrating goods and services including the project design, hardware and software promised in the contract into a combined output; therefore, the goods and services in the contracts are not distinct from each other and the Group determines there is one performance obligation, which is the delivery of the customized integrated\n\ncommand-and-control\n\ncenter. The performance obligation is satisfied, and control is transferred to the customer over time because there is no alternative use for the highly customized and integrated command-control-center and the Group has an enforceable right to payment for performance completed to date. The Group has determined the\n\ncost-to-cost\n\nmethod best depicts the measure of progress towards fulfilling the performance obligation. Under this method, revenue is recognized based on the estimated extent of progress, which is determined by dividing costs incurred to date by the total amount of costs expected to be incurred for designing, building and delivering a customized integrated\n\ncommand-and-control\n\ncenter. Revisions in the estimated total costs of\n\ncommand-and-control\n\ncenter contracts are made in the period in which the circumstances requiring the revision become known. Provisions, if any, are made in the period when anticipated losses become evident on uncompleted contracts. The Group reviews and updates the estimated total costs of\n\ncommand-and-control\n\ncenter contracts periodically. The Group accounts for revisions to contract revenue and estimated total costs of\n\ncommand-and-control\n\ncenter contracts, in the period in which the facts that cause the revision become known as changes in estimates. Unapproved change orders are considered claims. Claims are recognized only when they have been awarded by customers.\n\nThe Group also provides products for smart city management solutions. Product revenues are recognized at a point in time upon customer acceptance of the products.\n\n \n\nF- 2\n9\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(s)\n\nRevenue recognition (Continued)\n\n \n\nAerial media solutions\n\nThe Group generates revenue by providing aerial media performance services and related products. Aerial media performance services allow multiple smart control-based drones to demonstrate and transform their formation to display diversified messages and images in specific airspace, that is tailor made based on different branding or advertising requirements. The Group uses self-produced and purchased drones and customizes the fleet formation performances based on customer’s needs and availability of airspace approval in the area. The performance is usually completed within a day and revenue is recognized when the service is delivered. While the aerial media performance services are delivered to customers over a period of time, the customer simultaneously receives and consumes the benefits of the Group’s performance as and when each service is delivered and revenue is recognized over time.\n\nThe Group also sells hardware and software components of the aerial media performance drones. As the hardware and software components are highly interdependent, the entire bundle of promised goods is considered one performance obligation within the context of the contract. The single performance obligation is satisfied at a point in time, which is upon customer acceptance of the products.\n\nOthers\n\nThe Group generates other revenues mainly from stand-alone sales of consumer drones and their components and spare parts. Revenues are recognized for consumer drones upon shipment which is when control of the drones is transferred to the customers.\n\nContract modifications, defined as changes in the scope or price (or both) of a contract that are approved by the parties to the contract, such as a contract amendment, exist when the parties to a contract approve a modification that either creates new or changes existing enforceable rights and obligations of the parties to the contract. Contract modifications, if any, will be accounting for as one of the following: (i) a separate contract; (ii) a termination of the existing contract and a creation of a new contract; or (iii) a combination of the preceding treatments. A contract modification is accounted for as a separate contract if the scope of the contract increases because of the addition of promised goods or services that are distinct and the price of the contract increases by an amount of consideration that reflects the Group’s standalone selling prices of the additional promised goods or services. When a contract modification is not considered a separate contract and the remaining goods or services are distinct from the goods or services transferred on or before the date of the contract modification, the Group accounts for the contract modification as a termination of the existing contract and a creation of a new contract. When a contract modification is not considered a separate contract and the remaining goods or services are not distinct, the Group accounts for the contract modification as an\nadd-on\nto the existing contract and as an adjustment to revenue on a cumulative\ncatch-up\nbasis.\n\n \n\n(t)\n\nCost of revenues\n\nCost of revenues consists primarily of autonomous aerial vehicle material and manufacturing costs, construction costs of smart city management solutions, product warranty costs, provision for inventories, payroll, employee benefits, rental fees, depreciation and related costs of operations.\n\n \n\nF- \n30\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(u)\n\nProduct warranty liability\n\nThe Group offers standard warranties to replace or repair defects on certain hardware parts of its passenger-grade UAVs for a period of six months to three years typically. The Group does not provide warranties to guarantee that the UAVs will perform as expected or in accordance with published specifications or provide expected benefits. The Group accrues for the estimated costs to repair or replace defective hardware parts and costs to assure software effectiveness as costs of revenues when revenue is recognized. The Group estimates its warranty costs by considering its historical experience of having to replace or repair hardware parts and for software\nde-bugging\nand the historical costs incurred have been insignificant to date. The estimates of warranties are inherently uncertain given the Group’s relatively short history of sales, and changes to the Group’s historical or projected warranty experience may cause material changes to the warranty reserve in the future. The Group reassesses whether warranty accruals are adequate based on actual experience as it becomes available and adjusts its estimates on a prospective basis.\n\nProduct warranty accrual is included in accrued expenses and other current liabilities (Note 11) and other\nnon-current\nliabilities in the consolidated balance sheets.\n\n \n\n(v)\n\nAdvertising expenditures\n\nAdvertising expenditures are expensed as incurred and are included in “sales and marketing expenses”, which amounted to RMB2,918, RMB3,645 and RMB3,385 (US$484) for the years ended December 31, 2023, 2024 and 2025, respectively.\n\n \n\n(w)\n\nGeneral and administrative expenses\n\nGeneral and administrative expenses consist primarily of payroll, employee benefits, share-based compensation, legal and other professional services fees, expected credit losses provision, and other general corporate related expenses.\n\n \n\n(x)\n\nResearch and development expenses\n\nResearch and development expenses include materials and supplies, design and development expenses with new technology, payroll, employee benefits, share-based compensation and other operating expenses such as rent, depreciation and other related expenses.\n\nThe Group capitalizes costs to develop or obtain\ninternal-use\nsoftware and costs of significant upgrades and enhancements resulting in additional functionality of\ninternal-use\nsoftware in accordance with ASC\n350-40\n(“ASC\n350-40”),\n\nInternal-Use\nSoftware\n\n. Costs incurred for internally developed\ninternal-use\nsoftware used for a particular research and development project are expensed as incurred, regardless of whether the software has alternative future uses. Costs incurred for maintenance, training, and minor modifications or enhancements are also expensed as incurred. Capitalized software development costs are amortized on a straight-line basis over the estimated useful life of the applicable software. Capitalized software development costs have not been material for the periods presented.\n\nThe Group also incurs cost to develop software embedded in its products. The software components cannot function or be sold separately from the UAV as a whole. The Group accounts for costs incurred in the development of software embedded in its products in accordance with ASC\n985-20\n(“ASC\n985-20”),\n\nCosts of Software to be Sold, Leased, or Marketed\n\n. Such software development costs consist primarily of salaries and related payroll costs and are capitalized once technological feasibility is established, which is when a completed detail program design or in the absence of a completed detail program design, a working model of the product is available. As a result, capitalized software development costs were immaterial for the years ended December 31, 2023, 2024 and 2025.\n\n \n\nF- \n31\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(y)\n\nLeases\n\nThe Group leases facilities under\nnon-cancellable\noperating leases expiring on different dates. Under ASU\nNo.2016-02(Topic\n842) “Leases”, lessees are required to recognize assets and liabilities on the balance sheet for most leases. A contract is or contains a lease if the contract conveys the right to control the use of identified property or equipment (an identified asset) for a period of time in exchange for consideration. The Group determines whether a contract conveys the right to control the use of an identified asset for a period of time by assessing whether the Group has both the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset.\n\nThe Group has elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at commencement date of the lease and do not include options to purchase or renew that the Group is reasonably certain to exercise. The Group accounts for short-term leases with terms less than 12 months in accordance with ASC\n\n842-20-25-2\n\nto recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred.\n\nOperating leases are included in\n\nright-of-use\n\nassets, current lease liabilities and\nnon-current\nlease liabilities on the consolidated balance sheet. Renewal options are considered within the\n\nright-of-use\n\nassets and lease liability when it is reasonably certain that the Group will exercise that option.\n\nThe Group elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Group to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. In addition, the Group also elected the practical expedient to apply consistently to all of the Group’s leases to use hindsight in determining the lease term (that is, when considering lessee options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of the Group’s\n\nright-of-use\n\nassets.\n\nThe Group has lease agreements with lease and\nnon-lease\ncomponents, and has elected to utilize the practical expedient to account for the\nnon-lease\ncomponents together with the associated lease component as a single combined lease component.\n\nAs most of the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The incremental borrowing rate is a hypothetical rate based on the Group’s understanding of what its credit rating would be to borrow and resulting interest the Group would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term on a collateralized basis.\n\n(i)\n\nRight-of-use\n\nassets\n\nRight-of-use\n\nassets, which mainly comprise of office and production facilities, are initially measured at the present value of the lease payments. Amortization of the\n\nright-of-use\n\nassets is made over the lease term on a generally straight-line basis.\n\n \n\nF- 3\n2\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(y)\n\nLeases (Continued)\n\n \n\n(ii) Lease liabilities\n\nLease liabilities are lessees’ obligations to make the lease payments arising from a lease, measured on a discounted basis.\n\nAs a lessee, the weighted average remaining lease terms of the\n\nright-of-use\n\nassets was 12 years, as of December 31, 2025, the discount rate for the lease is the rate implicit in the lease unless that rate cannot be readily determined and the weighted-average discount rate of the operating lease was 4.20%.\n\nFor the years ended December 31, 2023, 2024 and 2025, operating lease cost were RMB11,527, RMB11,227 and RMB15,642 (US$2,237), and short-term lease cost were RMB172, RMB100 and RMB118 (US$17), respectively. There was no other lease cost other than operating lease cost and short-term lease cost for each of the periods presented. For the years ended December 31, 2023, 2024 and 2025, cash paid for operating leases included in operating cash flows were RMB6,877, RMB7,383 and RMB11,024 (US$1,576), respectively. For the years ended December 31, 2023, 2024 and 2025, leased assets obtained in exchange for operating lease liabilities was RMB9,127, RMB60,590 and RMB1,363 (US$195), respectively.\n\nA maturity analysis of the Company’s operating lease liabilities and reconciliation of the undiscounted cash flows to the operating lease liabilities recognized on the consolidated balance sheet was as below:\n\n \n\n \n  \nOffice and production facilities rental\n \n\n \n  \nAs of December 31, 2025\n \n\n \n  \nRMB\n \n  \nUS$\n \n\n2026\n\n  \n \n16,576\n \n  \n \n2,370\n \n\n2027\n\n  \n \n14,571\n \n  \n \n2,084\n \n\n2028\n\n  \n \n14,141\n \n  \n \n2,022\n \n\n2029\n\n  \n \n12,199\n \n  \n \n1,744\n \n\n2030\n\n  \n \n12,427\n \n  \n \n1,777\n \n\n2031 and thereafter\n\n  \n \n103,063\n \n  \n \n14,738\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nMinimum lease payments\n\n  \n \n172,977\n \n  \n \n24,735\n \n\nLess: imputed interest\n\n  \n \n(42,453\n) \n  \n \n(6,070\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nPresent value of lease liabilities\n\n  \n \n130,524\n \n  \n \n18,665\n \n\nLess: Current portion\n\n  \n \n(16,278\n) \n  \n \n(2,328\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nNon-current\nportion of lease liabilities\n\n  \n \n114,246\n \n  \n \n16,337\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n(z)\n\nGovernment subsidies\n\nGovernment subsidies primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. The government subsidies of operating nature with no further conditions to be met are recorded in “other operating income” when received. The government subsidies with certain operating conditions are recorded as “deferred government subsidies” on the consolidated balance sheets when received and are recorded as “other operating income” when the conditions are met.\n\nFor the years ended December 31, 2023, 2024 and 2025, other operating income mainly represents government grants that recognized upon receipt immediately in profit or loss of RMB6,233, RMB29,869 and RMB10,400 (US$1,487), respectively, as no further performance or conditions is required. Other operating income of RMB1,983 (US$284) were recognized during the year ended December 31, 2025 from deferred government subsidies when the conditions are met.\n\n \n\nF- 3\n3\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(aa)\n\nIncome taxes\n\nThe Group follows the liability method of accounting for income taxes in accordance with ASC 740 (‘‘ASC 740’’),\n\nIncome Taxes\n\n. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Group records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is\nmore-likely-than-not\nthat some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate.\n\nThe Group accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties arising from underpayment of income taxes shall be computed in accordance with the related PRC tax law. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Interest and penalties recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense.\n\nIn December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)\nNo. 2023-09,\nImprovements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The Group adopted this ASU on a prospective basis effective January 1, 2025. Refer to Note 17, Income Taxes for the inclusion of new disclosures required.\n\n \n\n(ab)\n\nShare-based compensation\n\nThe Group applies ASC 718 (‘‘ASC 718’’),\n\nCompensation—Stock Compensation\n\nto account for its employee share-based payments. In accordance with ASC 718, the Group determines whether an award should be classified and accounted for as a liability award or an equity award. All of the Group’s share-based awards granted to employees were classified as equity awards.\n\nThe Group has elected to recognize compensation expense using the straight-line method for share-based awards granted with service conditions that have a graded vesting schedule. Prior to the completion of the IPO, with the assistance of an independent third-party valuation firm, the group determined the grant date fair value of the awards granted to employees. Subsequent to the completion of the IPO, share-based awards granted were measured based on the fair value of ordinary share as of grant date. The fair value is determined using an appropriate valuation model, such as the binomial option pricing model for share options or the market price of the Company’s shares on the grant date for Restricted Stock Units (“RSUs”). The Group accounts for forfeitures as they occur.\n\nA change in any of the terms or conditions of share-based payment awards is accounted for as a modification of awards. The Group measures the incremental compensation cost of a modification as the excess of the fair value of the modified awards over the fair value of the original awards immediately before its terms are modified, based on the share price and other pertinent factors at the modification date. For vested awards, the Group recognizes incremental compensation cost in the period the modification occurred. For unvested awards, the Company recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. If the fair value of the modified award is lower than the fair value of the original award immediately before modification, the minimum compensation cost the Group recognizes is the cost of the original award.\n\n \n\nF- 3\n4\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(ab)\n\nShare-based compensation (Continued)\n\n \n\nThe Group doesn’t reflect reload features and contingent features in the grant-date fair value of an equity award. Reload features and contingent features are that require a grantee to transfer equity shares earned, or realized gains from the sale of equity instruments earned, to the issuing entity for consideration that is less than fair value on the date of transfer (including no consideration), such as a claw back feature. The Group accounted for these features if and when the contingent event occurs by recognizing the consideration received in the corresponding balance sheet account and a credit in the income statement equal to the lesser of the recognized compensation cost of the share-based payment arrangement that contains the contingent feature and the fair value of the consideration received, and debits in additional\npaid-in\ncapital, and treasury shares, if any.\n\n \n\n(ac)\n\nEmployee benefit expenses\n\nFull time employees of the Group in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund, maternity insurance and employment injury insurance are provided to employees. Chinese labor regulations require that PRC subsidiaries and VIEs of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions. The total expenses the Group incurred for the plan were RMB13,298, RMB15,751 and RMB23,989 (US$3,430) for the years ended December 31, 2023, 2024 and 2025, respectively.\n\n \n\n(ad)\n\nStatutory reserve\n\nThe Group’s PRC entities are required to make appropriations to certain\nnon-distributable\nreserve funds.\n\nIn accordance with the Company Laws of the PRC, the Group’s entities registered as PRC domestic companies must make appropriations from its\nafter-tax\nprofit (as determined under the Accounting Standards for Business Enterprises as promulgated by the Ministry of Finance of the People’s Republic of China (“PRC GAAP”)) to\nnon-distributable\nreserve funds including a statutory surplus fund and a discretionary surplus fund . The appropriation to the statutory surplus fund must be at least 10% of the\nafter-tax\nprofits as determined under the PRC GAAP. Appropriation is not required if the surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the company.\n\nPrior to January 1, 2025, in accordance with the laws applicable to China’s Foreign Investment Enterprises, the Group’s subsidiaries registered as\n\nthe WFOE and its subsidiaries (“WFOEs”)\n\nhave to make appropriations from its\nafter-tax\nprofit (as determined under PRC GAAP) to reserve funds including general reserve fund, and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the\nafter-tax\nprofits calculated in accordance with PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the company. Appropriation to the staff bonus and welfare fund is made at the discretion of the company. With effect\n\n from January 1, 2025,\n\nno appropriations shall be made to the general reserve fund, the enterprise expansion fund or the staff welfare and bonus fund. Any distribution of profit shall comply with the Company Laws of the PRC.\n\nThe use of the statutory surplus fund and discretionary surplus fund is restricted to the\noff-setting\nof losses or increasing capital of the respective company. All these reserves are not allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation.\n\nFor the years ended December 31, 2023, 2024 and 2025, appropriations to general reserve fund and statutory surplus fund amounted to RMB48, RMB533 and RMB1,530 (US$219), respectively.\n\n \n\nF- 3\n5\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(ae)\n\nComprehensive loss\n\nComprehensive loss is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220,\n\nComprehensive Income\n\n, requires that all items that are required to be recognized under current accounting standards as components of comprehensive loss be reported in a financial statement that is displayed with the same prominence as other financial statements. For each of the periods presented, the Group’s comprehensive loss includes net loss and foreign currency translation adjustments.\n\n \n\n(af)\n\nDividends\n\nDividends are recognized when declared. No dividends were declared for the years ended December 31, 2023, 2024 and 2025, respectively.\n\n \n\n(ag)\n\nLoss per share\n\nIn accordance with ASC 260 (“ASC 260”),\n\nEarnings per Share\n\n, basic loss per share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the\ntwo-class\nmethod. Under the\ntwo-class\nmethod, net loss is allocated between ordinary shares, and other participating securities based on their participating rights.\n\nFor the years ended December 31, 2023, 2024 and 2025, the\ntwo-class\nmethod is applicable because the Group has two classes of ordinary shares outstanding, Class A and Class B ordinary shares, respectively. The participating rights (liquidation and dividend rights) of the holders of the Company’s Class A and Class B ordinary shares are identical, except with respect to voting and conversion (Note 19). As a result, and in accordance with ASC 260, the undistributed loss for each year is allocated based on the contractual participation rights of the Class A and Class B ordinary shares, respectively. As the liquidation and dividend rights are identical, the undistributed loss is allocated on a proportionate basis.\n\nOrdinary equivalent shares consist of unvested restricted shares units, and ordinary shares issuable upon the exercise of outstanding share options (using the treasury stock method). Ordinary equivalent shares are excluded from the computation of diluted loss per share for all periods presented as their effects would be anti-dilutive.\n\n \n\n(ah)\n\nShort-term debt\n\nIn 2022, the Group entered into a share purchase agreement (the “SPA”) with an investor (the “Investor”) to issue predetermined number of Class A ordinary shares (the “Underlying Shares”) of the Company, at a fixed consideration in US$ (the “Private Placement”), upon meeting the specified preconditions, of which the substantial one is the Investor obtaining the Outbound Direct Investment (“ODI”) approval.\n\nA transitional agreement has been reached to supplement the Private Placement (the “Supplemental Agreement”), according to which before the ODI approval, the Investor provided RMB proceeds (the “RMB Proceeds”) as an interim funding, equivalent to consideration in U.S. dollar of the Private Placement, to the designated subsidiary of the Company.\n\n \n\nF- 3\n6\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(ah)\n\nShort-term debt (Continued)\n\n \n\nThe RMB Proceeds and associated subsequent repayment obligation was accounted for as a liability to the Company, since:\n\n(i) The RMB Proceeds are a loan provided by the Investor to the subsidiary of the Company under the Supplemental Agreement. The Investor is entitled to receive the money back after at least three months if the ODI approval is not obtained due to force majeure or other situations agreed by the Company and Investor.\n\n(ii) Upon the occurrence of dissolution, windup or liquidation of the onshore subsidiary, the Investor could claim its creditor right in accordance with PRC bankruptcy law.\n\nTherefore the instrument is accounted for as a short-term debt under ASC 470,\n\nDebt.\n\nFor the year ended December 31, 2023, the short-term debt was repaid.\n\n \n\n(ai)\n\nWarrants\n\nAccording to the SPA, the Company issued a purchase right to the Investor under which the Company will issue predetermined ordinary shares for a fixed cash consideration at a future date (the “Warrants”).\n\nThe Warrants were accounted for as equity instruments to the Company, since:\n\n \n\n \ni)\n\nThe Warrants were indexed to the Company’s own stock, since:\n\n \n\n \n•\n \n\nThe Warrants will be exercised upon the ODI approval, which is not based on an observable market, or an observable index.\n\n \n\n \n•\n \n\nThe exercise price is fixed by the SPA and Supplement Agreement, and the number of Underlying Shares to be issued is also fixed divided by the fixed purchase price per share.\n\n \n\n \nii)\n\nThe Warrants were classified in shareholders’ equity, since:\n\n \n\n \n•\n \n\nThe Warrants will be settled only by gross physical delivery of ordinary shares by the Company.\n\n \n\n \n•\n \n\nThe Company has the ability to settle the Private Placement in ordinary shares.\n\n \n\n \n•\n \n\nThe number of Underlying Shares to be issued is explicitly fixed at the total consideration divided by the fixed purchase price per share, with no adjustment provision.\n\n \n\n \n•\n \n\nNo requirement for cash settlement in the agreements.\n\n \n\n \n•\n \n\nThere are no cash settled\ntop-off\nor make-whole provisions.\n\nThe Group received the Proceeds and issued short-term debt and Warrants in a bundled transaction. The RMB Proceeds shall be allocated to the two elements based on the relative fair values of the debt instrument without the Warrants and of the Warrants themselves at time of issuance. The portion of the RMB Proceeds so allocated to the Warrants shall be accounted for as additional\npaid-in\ncapital. The remainder of the proceeds shall be allocated to the debt instrument portion of the transaction, the short-term debt. This results in a discount which shall be accounted for as amortization of debt discounts in the following months.\n\nOn January 1, 2022, The Group has elected to early adopt the ASU\nNo. 2020-06,\n\nDebt—Debt with Conversion and Other Options\n\n(Subtopic\n470-20)\nand\n\nDerivatives and Hedging—Contracts in Entity’s Own Equity\n\n(Subtopic\n815-40):\n\nAccounting for Convertible Instruments and Contracts in an Entity’s Own Equity\n\n(ASU\n2020-06),\nwhich simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This adoption of the guidance had no material impact on the treatment of the warrants or short-term debt in Note 2(ah).\n\nThe Group entered into an SPA with similar terms of 2022 SPA with a third-party investor and received a short-term debt of RMB90,000 in June 2024 and repaid the debt in November 2024.\n\n \n\nF- 3\n7\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(aj)\n\nSegment reporting\n\nIn November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU\nNo. 2023-07,\nImprovements to Reportable Segment Disclosures (Topic 280). This ASU updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of a segment’s profit or loss. This ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment’s performance and deciding how to allocate resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. The Group has adopted this ASU retrospectively on January 1, 2024.\n\nIn accordance with ASC 280 (“ASC 280”),\n\nSegment Reporting\n\n, operating segments are defined as components of an enterprise about which separate financial information is available that is provided regularly to the CODM, or decision-making group, in deciding how to allocate resources and in assessing performance. The Group’s Chief Executive Officer as the CODM reviews the consolidated revenues, gross profit and net loss, using only one measure of a segment’s profit or loss when making decisions about allocating resources and assessing the performance of the Group by comparing actual results of consolidated revenues, gross profit and net loss to historical results and previously forecasted financial information. As a whole and hence, the Group has only one reportable segment. The Group’s long-lived assets are substantially all located in the PRC.\n\nFor the operating results of segment provided to and reviewed by CODM, please refer to the consolidated statements of comprehensive loss.\n\nThe following table presents revenue by customer incorporation location for the years ended December 31, 2023, 2024 and 2025, respectively:\n\n \n\n \n\n  \n\nFor the year ended December 31,\n\n \n\n \n\n  \n\n2023\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n  \n\nRMB\n\n \n\n  \n\n%\n\n \n\n \n\nRMB\n\n \n\n  \n\n%\n\n \n\n \n\nRMB\n\n \n\n  \n\nUS$\n\n \n\n  \n\n%\n\n \n\nPRC\n\n  \n \n96,580\n \n  \n \n82\n% \n \n \n431,338\n \n  \n \n95\n% \n \n \n402,333\n \n  \n \n57,532\n \n  \n \n97\n% \n\nEast Asia\n\n  \n \n6,018\n \n  \n \n5\n% \n \n \n3,028\n \n  \n \n1\n% \n \n \n14,369\n \n  \n \n2,055\n \n  \n \n3\n% \n\nWest Asia\n\n  \n \n9,188\n \n  \n \n8\n% \n \n \n14,485\n \n  \n \n3\n% \n \n \n564\n \n  \n \n81\n \n  \n \n0\n% \n\nEurope\n\n  \n \n501\n \n  \n \n1\n% \n \n \n321\n \n  \n \n0\n% \n \n \n372\n \n  \n \n53\n \n  \n \n0\n% \n\nSouth Asia\n\n  \n \n— \n \n  \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n \n217\n \n  \n \n31\n \n  \n \n0\n% \n\nEast Africa\n\n  \n \n— \n \n  \n \n— \n \n \n \n— \n \n  \n \n— \n \n \n \n126\n \n  \n \n18\n \n  \n \n0\n% \n\nWest Africa\n\n  \n \n— \n \n  \n \n— \n \n \n \n1,851\n \n  \n \n0\n% \n \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\nNorth America\n\n  \n \n— \n \n  \n \n— \n \n \n \n2,616\n \n  \n \n1\n% \n \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\nSouth America\n\n  \n \n4,729\n \n  \n \n4\n% \n \n \n2,513\n \n  \n \n0\n% \n \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\nOther\n\n  \n \n410\n \n  \n \n0\n% \n \n \n— \n \n  \n \n— \n \n \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal net revenues\n\n  \n\n \n\n117,426\n\n \n\n  \n\n \n\n100\n\n% \n\n \n\n \n\n456,152\n\n \n\n  \n\n \n\n100\n\n% \n\n \n\n \n\n417,981\n\n \n\n  \n\n \n\n59,770\n\n \n\n  \n\n \n\n100\n\n% \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF- 3\n8\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n2.\n\nSummary of Significant Accounting Policies (Continued)\n\n \n\n(ak)\n\nRecent accounting pronouncements\n\nIn November 2024, the FASB issued ASU\nNo. 2024-03,\nDisaggregation of Income Statement Expenses (Subtopic\n220-40).\nThe ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is also permitted. This ASU will likely result in the required additional disclosures being included in Group’s consolidated financial statements, once adopted. The Group is currently evaluating the impact of the new guidance on its consolidated financial statements.\n\nIn July 2025, the FASB issued ASU\n2025-05,\nFinancial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides all entities an election of a practical expedient to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when developing reasonable and supportable forecasts as part of estimating expected credit losses. This ASU is effective for annual reporting periods beginning after December 15, 2025 (and interim reporting periods within those annual reporting periods). Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. After evaluation, the Group has decided not to elect the practical expedient.\n\nIn September 2025, the FASB issued ASU\nNo. 2025-06,\nIntangibles—Goodwill and\nOther—Internal-Use\nSoftware (Subtopic\n350-40):\nTargeted Improvements to the Accounting for\nInternal-Use\nSoftware. The ASU simplifies the capitalization guidance by removing all references to prescriptive and sequential software development stages (referred to as “project stages”) throughout ASC\n350-40.\nThe ASU is effective for annual periods beginning after December 15, 2027, and interim periods within those fiscal years. Adoption of this ASU can be applied prospectively for reporting periods after its effective date; or follow a modified transition approach that is based on the status of the respective projects and whether software costs were capitalized before the date of adoption; or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is permitted. The Group is currently evaluating the provisions of this ASU and does not expect this ASU to have a material impact on its consolidated financial statements.\n\nIn December 2025, the FASB issued ASU\nNo. 2025-10,\nGovernment Grants (Topic 832): Accounting for Government Grants Received by Business Entities. The ASU establishes authoritative guidance in GAAP about accounting for government grants received by business entities, clarifies the appropriate accounting, in an effort to reduce diversity in practice, and increase consistency of application across business entities. The ASU is effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods. Adoption of this ASU can be applied a modified prospective approach, a modified retrospective approach, or a retrospective approach. Early adoption is permitted. The Group is currently evaluating the impact of the new guidance on its consolidated financial statements.\n\n \n\nF- 3\n9\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n3.\n\nConcentration of Risks\n\n \n\n(a)\n\nConcentration of credit risk\n\nFinancial instruments that potentially subject the Group to significant concentration of credit risk consist primarily of cash and cash equivalents, restricted short-term deposit, short-term investments and accounts receivable. The carrying amounts of these assets represent the Group’s maximum exposure to credit risk as of the balance sheet dates.\n\nAs of December 31, 2024 and 2025, substantially all of the Group’s cash and cash equivalents, restricted short-term deposit, and short-term investments were placed with certain reputable financial institutions in the PRC and overseas. Management believes that these financial institutions are of high credit quality and continually monitors the credit worthiness of these financial institutions. Historically, deposits in Chinese banks are secure due to the state policy on protecting depositors’ interests. The Group selected reputable international financial institutions with high credit ratings to deposit its foreign currencies. The Company regularly monitors the credit ratings of the international financial institutions to avoid any potential defaults. In the event of bankruptcy of one of these financial institutions, the Group may not be able to claim its cash and demand deposits back in full. The Group continues to monitor the financial strength of the financial institutions. There has been no recent history of default in relation to these financial institutions.\n\nAccounts receivable are typically unsecured and derived from revenue earned from customers in the PRC, which are exposed to credit risk. The risk is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. The Group maintains expected credit losses provision and actual losses have generally been within management’s expectations.\n\n \n\n(b)\n\nBusiness supplier risk\n\nThe Group relies on external supplies for raw materials and certain components and parts used in the Group’s products. Some of the components for UAVs are currently selected to be purchased from a single source to improve cost-efficiency.\n\nSuppliers accounting for 10% or more of total purchases of materials for the years presented are as follows:\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nSupplier\n\n  \n\n  \n\n  \n\n  \n\nA\n\n  \n \n— \n \n  \n \n— \n \n  \n \n26,399\n \n  \n \n3,775\n \n\nB\n\n  \n \n*\n \n  \n \n22,576\n \n  \n \n*\n \n  \n \n*\n \n\nC\n\n  \n \n5,585\n \n  \n \n*\n \n  \n \n*\n \n  \n \n*\n \n\n \n\n*\n\nless than 10% of total purchase of materials of the Group.\n\n \n\nF- \n40\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n3.\n\nConcentration of Risks (Continued)\n\n \n\n(c)\n\nCustomer risk\n\nThe success of the Group’s business going forward will rely in part on the Group’s ability to continue to obtain and expand its business from existing customers while also attracting new customers. For the years ended December 31, 2023, 2024 and 2025, the majority of the Group’s revenue generated from sales of passenger-grade UAVs are from a limited number of customers that mainly operate the UAVs on a limited trial basis in tourism locations in China, rather than in broad, mainstream commercial operations.\n\nExternal customers with 10% or more of the Group’s revenues for the years presented are as follows:\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nCustomer\n\n  \n\n  \n\n  \n\n  \n\nA\n\n  \n \n— \n \n  \n \n— \n \n  \n \n100,000\n \n  \n \n14,300\n \n\nB\n\n  \n \n28,673\n \n  \n \n*\n \n  \n \n81,504\n \n  \n \n11,655\n \n\nC\n\n  \n \n— \n \n  \n \n120,796\n \n  \n \n53,540\n \n  \n \n7,656\n \n\nD\n\n  \n \n— \n \n  \n \n100,000\n \n  \n \n— \n \n  \n \n— \n \n\nE\n\n  \n \n— \n \n  \n \n63,451\n \n  \n \n— \n \n  \n \n— \n \n\nF\n\n  \n \n11,752\n \n  \n \n— \n \n  \n \n*\n \n  \n \n*\n \n\n \n\n \n\n*\n\nless than 10% of total revenues of the Group.\n\nAs of December 31, 2024 and 2025, accounts receivable, net of expected credit losses, from the top customers above amounted to RMB49,373 and RMB56,522 (US$8,083\n\n), accounting\n\n for 85% and 51% of the Group’s total balance, respectively.\n\n \n\n(d)\n\nCurrency convertibility risk\n\nThe Group primarily transacts its business in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China (the ‘‘PBOC’’). However, the unification of the exchange rates does not imply that the RMB may be readily convertible into US$ or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts.\n\n \n\n(e)\n\nForeign currency exchange rate risk\n\nThe Group is exposed to foreign currency exchange rate risk, which mainly affects the monetary assets denominated in the currencies other than the functional currencies of the respective entities. Since July 21, 2005, the RMB has been permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. The functional currency and the reporting currency of the Company are the US$ and the RMB, respectively. Most of the Group’s revenues and costs are denominated in RMB, while a portion of cash and cash equivalents, restricted short-term deposits, short-term investments, accounts receivable, other receivables, other payables and accounts payable are denominated in US$. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the US$ in the future.\n\n \n\nF- \n41\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n4.\n\nShort-term Investments\n\nShort-term investments as of December 31, 2024 and 2025 consisted of the following:\n\n \n\n \n  \n\nAs of December 31, 2024\n\n \n\n \n  \n\nCost\n\n \n  \n\nGross\nunrealized gains\n\n \n  \n\nGross\n\nunrealized losses\n\n \n  \n\nForeign currency\nexchange gains\n\n \n  \n\nFair value\ncarrying amount\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n\nWealth management products\n\n  \n \n503,733\n \n  \n \n4,885\n \n  \n \n— \n \n  \n \n5,065\n \n  \n \n513,683\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n  \n\nAs of December 31, 2025\n\n \n\n \n  \n\nCost\n\n \n  \n\nGross\nunrealized gains\n\n \n  \n\nGross\n\nunrealized losses\n\n \n  \n\nForeign currency\nexchange losses\n\n \n  \n\nFair value\ncarrying amount\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n\nWealth management products\n\n  \n \n824,564\n \n  \n \n36,290\n \n  \n \n— \n \n  \n \n(17,622\n) \n  \n \n843,232\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe Group’s short-term investments are primarily investments in trading instruments issued by oversea reputable financial institutions.\n\nFor the years ended December 31, 2023, 2024 and 2025, the Group recognized interest and investment income of RMB806, RMB10,177 and RMB36,748 (US$5,255) from short-term investments, respectively.\n\n \n\n5.\n\nAccounts Receivable, Net\n\nAccounts receivable, net, consisted of the following:\n\n \n\n \n\n  \n\nAs of December 31,\n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n \n\n  \n\nRMB\n\n \n\n  \n\nRMB\n\n \n\n  \n\nUS$\n\n \n\nAccounts receivable\n\n  \n \n161,520\n \n  \n \n222,929\n \n  \n \n31,879\n \n\nLess: expected credit losses provision\n\n  \n \n(103,340\n) \n  \n \n(111,259\n) \n  \n \n(15,910\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nAccounts receivable, net\n\n  \n\n \n\n58,180\n\n \n\n  \n\n \n\n111,670\n\n \n\n  \n\n \n\n15,969\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nIn 2025, the Group received a deposit of RMB7,060 (US$1,010) from a customer, representing a guaranteed payment for consideration\nrecorded\nin accrued expenses and other liabilities (Note 11). The amount was subsequently offset against an account receivable from the customer in April 2026.\n\nThe movements in the expected credit losses were:\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nBeginning balance prior to ASC 326\n\n  \n \n(115,380\n) \n  \n \n \n \n \n \n \n \n \n \n \n \n\nAdoption of ASC Topic 326\n\n  \n \n(1,153\n) \n  \n \n \n \n \n \n \n \n \n \n \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nBalance at the beginning of the years\n\n  \n \n(116,533\n) \n  \n \n(131,826\n) \n  \n \n(103,340\n) \n  \n \n(14,778\n)\n \n\nCurrent period provision\n\n  \n \n(16,170\n) \n  \n \n(12,725\n) \n  \n \n(11,294\n)\n  \n \n(1,615\n)\n \n\nReversal\n\n  \n \n1,773\n \n  \n \n6,039\n \n  \n \n3,356\n \n  \n \n480\n \n\nProvision converted from unbilled revenue\n\n  \n \n(1,269\n) \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\nWrite-off\n\n  \n \n— \n \n  \n \n35,180\n \n  \n \n— \n \n  \n \n— \n \n\nAcquisition of\nnon-controlling\ninterests\n\n  \n \n390\n \n  \n \n— \n \n  \n \n— \n \n  \n\n \n\n— \n\n \n\nOthers\n\n  \n \n(17\n) \n  \n \n(8\n) \n  \n \n19\n \n  \n \n3\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nBalance at the end of the years\n\n  \n\n \n\n(131,826\n\n) \n\n  \n\n \n\n(103,340\n\n) \n\n  \n\n \n\n(111,259\n\n)\n\n  \n\n \n\n(15,910\n\n)\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF- 4\n2\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n6.\n\nInventories\n\nInventories consisted of the following:\n\n \n\n \n  \n\nAs of December 31,\n\n \n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nRaw materials\n\n  \n \n45,319\n \n  \n \n40,687\n \n  \n \n5,818\n \n\nWork in progress\n\n  \n \n9,043\n \n  \n \n20,400\n \n  \n \n2,917\n \n\nFinished goods\n\n  \n \n30,405\n \n  \n \n48,760\n \n  \n \n6,972\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nInventories, total\n\n  \n \n84,767\n \n  \n \n109,847\n \n  \n \n15,707\n \n\nInventories provision\n\n  \n \n(9,080\n) \n  \n \n(8,213\n) \n  \n \n(1,174\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n75,687\n\n \n  \n\n101,634\n\n \n  \n\n14,533\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n7.\n\nPrepayments and Other Current Assets\n\nPrepayments and other current assets consisted of the following:\n\n \n\n \n  \n\nAs of December 31,\n\n \n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nValue-added tax\n\n  \n \n22,706\n \n  \n \n45,741\n \n  \n \n6,541\n \n\nPrepayment for acquisition of inventories\n\n  \n \n20,048\n \n  \n \n32,726\n \n  \n \n4,680\n \n\nRight to recover inventories (i)\n\n  \n \n— \n \n  \n \n30,326\n \n  \n \n4,337\n \n\nPrepayment for services\n\n  \n \n6,733\n \n  \n \n24,716\n \n  \n \n3,534\n \n\nInsurance claims receivable\n\n  \n \n— \n \n  \n \n2,230\n \n  \n \n319\n \n\nLoans and interest receivable from a related party (Note 18(5))\n\n  \n \n— \n \n  \n \n2,070\n \n  \n \n296\n \n\nPrepayment for an equity investment\n\n  \n \n2,000\n \n  \n \n2,000\n \n  \n \n286\n \n\nForeign exchange forward contract\n\n  \n \n8\n \n  \n \n314\n \n  \n \n45\n \n\nDeposits\n\n  \n \n16,082\n \n  \n \n308\n \n  \n \n44\n \n\nOthers\n\n  \n \n721\n \n  \n \n491\n \n  \n \n69\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n68,298\n\n \n  \n\n140,922\n\n \n  \n\n20,151\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n(i)\n\nFor contracts with certain customers where collectability is not probable to support the establishment of contract at contract inception, and no revenue was recognized, the Group recorded the right to recover the transferred inventories as stipulated in the contracts or by relevant laws. As of December 31, 2024 and 2025, right to recover inventories were nil and\n\nRMB30,326 (US$4,337), respectively.\n\n \n\nF- 4\n3\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n7.\n\nPrepayments and Other Current Assets (Continued)\n\n \n\nIn January 2020, the Group entered into a three-year loan agreement with a third-party supplier of key UAV components with a principal amount of RMB52,000 and an interest rate of 3% per annum. The use of the loan proceeds is limited to expanding the supplier’s production capacity. This long-term loan can be repaid by the borrower at any time. The loan balance was guaranteed by the borrower’s sole shareholder and his spouse. In 2020, RMB40,000 of the loan’s principal was repaid by the borrower. In March 2023, the Group entered into a supplementary agreement with the borrower to extend the term of the outstanding loan of RMB12,000 as follows: (1) RMB2,000 of the outstanding amount is extended to September 30, 2023. (2) RMB2,000 of the outstanding amount is extended to December 31, 2023. (3) RMB8,000 of the outstanding amount is extended to March 9, 2025. Subsequently, RMB1,700 was repaid by the borrower in cash and a supplemental agreement was entered into to offset RMB5,800 with the Group’s accounts payable to the borrower. For the years ended December 31, 2023 and 2024, the Group had recognized current expected credit losses of RMB285 and RMB4,215 against the total uncollected loan receivable balance of RMB4,500, respectively. Up to date of the issuance of the financial statements, the borrower did not repay the loan.\n\nIn March 2020, the Group provided a\ntwo-year\nloan to a third-party entity with a principal amount of Euro 243 (equivalent to RMB1,900) and an interest rate of 3.5% per annum. In March 2022, the Group entered into a supplementary agreement with the third-party entity to extend the term of the loan by two years. The use of the loan proceeds is limited to assisting the Group in applying necessary permits from a European country’s aviation authority for the commercial operations of UAVs in this country. In 2024, the Group made a full provision against the total balance. As of the date of issuance of the financial statements, the borrower did not repay the loan.\n\nAs of December 31, 2024 and 2025, expected credit loss provision related to other receivables (including loans receivable) were RMB7,082 and RMB7,249 (US$1,037), respectively.\n\n \n\n8.\n\nProperty and Equipment, Net\n\n \n\n \n  \n\nAs of December 31,\n\n \n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nLeasehold improvements\n\n  \n \n30,236\n \n  \n \n86,648\n \n  \n \n12,391\n \n\nBuilding\n\n  \n \n— \n \n  \n \n84,087\n \n  \n \n12,024\n \n\nElectronic equipment\n\n  \n \n15,828\n \n  \n \n70,302\n \n  \n \n10,053\n \n\nMachinery equipment\n\n  \n \n20,440\n \n  \n \n35,855\n \n  \n \n5,127\n \n\nConstruction in progress\n\n  \n \n16,985\n \n  \n \n12,532\n \n  \n \n1,792\n \n\nMold and tooling\n\n  \n \n6,190\n \n  \n \n11,926\n \n  \n \n1,705\n \n\nTransportation equipment\n\n  \n \n4,224\n \n  \n \n6,766\n \n  \n \n968\n \n\nOffice equipment\n\n  \n \n1,980\n \n  \n \n4,432\n \n  \n \n634\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n95,883\n\n \n  \n\n312,548\n\n \n  \n\n44,694\n\n \n\nLess: accumulated depreciation\n\n  \n \n(34,199\n)\n  \n \n(53,038\n)\n \n\n  \n \n(7,584\n)\n \n\nLess: accumulated impairment\n\n  \n \n(1,460\n)\n \n\n  \n \n(1,460\n)\n  \n \n(209\n)\n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n60,224\n\n \n  \n\n258,050\n\n \n  \n\n36,901\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nFor the years ended December 31, 2023, 2024 and 2025, the Group recorded depreciation expense of RMB12,442, RMB12,774 and RMB18,954 (US$2,710), respectively.\n\nAs of December 31, 2025, certain long-term bank loans (Note 12) were secured by mortgages of the Group’s building with carrying values of approximately RMB\n \n81,952 (US$11,719). There was no property and equipment mortgage securing the long-term loans outstanding as of December 31, 2024.\n\n \n\nF- 4\n4\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n9.\n\nInvestments Accounted for Using Equity Method\n\n \n\n \n  \n\nEquity method\ninvestments\n\n \n\n \n  \n\nRMB\n\n \n\nBalance as of December 31, 2023\n\n  \n\n \n\n13,450\n\n \n\nAdditions\n\n  \n \n14,800\n \n\nShares of results of equity method investees\n\n  \n \n(4,353\n) \n\nBalance as of December 31, 2024\n\n  \n\n \n\n23,897\n\n \n\nAdditions\n\n  \n \n10,200\n \n\nShares of results of equity method investees\n\n  \n \n(5,248\n) \n\n  \n\n \n\n \n\n \n\nBalance as of December 31, 2025\n\n  \n\n \n\n28,849\n\n \n\n  \n\n \n\n \n\n \n\nBalance as of December 31, 2025 (US$)\n\n  \n\n \n\n4,125\n\n \n\n  \n\n \n\n \n\n \n\n \n\n \n(a)\n\nIn June 2021, the Group and a third-party investor jointly set up an entity for the purpose of developing the local urban air mobility and smart city operations in Guangzhou, Guangdong Province. The Group subscribed for a commitment of RMB10,500 and holds 35% of the investee’s equity interests. As of December 31, 2024 and 2025, the Group has contributed aggregated cash consideration of RMB7,000 and RMB7,000 (US$1,001). The Group holds board seats to enable it can exercise significant influence over the operating and financial policies of the investee. Therefore, the equity investment is accounted for using the equity method. Pursuant to the payment schedule of capital contribution as set out in the investment agreement, RMB3,500 (US$500) is recorded as investment payable in accrued expenses and other liabilities (Note 11) as of December 31, 2024 and 2025.\n\n \n\n \n(b)\n\nIn 2024, the Group and several third-party investors entered into investment agreements to jointly set up entities to promote local\nlow-altitude\ntransportation and tourism products in Anhui Province, Jiangsu Province, Guangdong Province and Zhejiang Province, respectively. For the year ended December 31, 2024, the Group invested total cash consideration of RMB13,050 and holds equity interests in the investees with a range from 19% to 31%. The Group holds board seats to enable it can exercise significant influence over the operating and financial policies of the investees. Therefore, the equity investments are accounted for using the equity method.\n\n \n\n \n(c)\n\nIn March 2025, the Group and a third-party investor jointly set up an entity for the purpose of optimizing\nthe\nproduction processes and technology of UAV in Guangdong Province. As of December 31, 2025, the Group has contributed aggregated cash consideration of RMB4,000 (US$572) and holds 40% of the investee’s equity interest. The Group holds board seats to enable it can exercise significant influence over the operating and financial policies of the investee. Therefore, the equity investment is accounted for using the equity method.\n\n \n\n \n(d)\n\nIn September 2025, to support its UAV operation business, the Group invested an additional RMB6,200 (US$887) in an existing investee based in Anhui Province, and holds 31% of the investee’s equity interests. The Group holds board seats to enable it can exercise significant influence over the operating and financial policies.\n\nFor the years ended December 31, 2023, 2024 and 2025, the Group recognized losses of RMB1,560, RMB4,353 and RMB5,248 (US$750) from\nequity method investment, respectively. As of December 31, 2024 and 2025, none of the Group’s equity method investment, neither individually nor in aggregate, was considered as significant under Regulation S-X 4-08(g). No impairment losses were recognized on these investments in any of the presented years. \n\n \n\nF- 4\n5\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n10.\n\nOther Investments\n\n \n\n \n  \n\nEquity investments\nwithout readily\ndeterminable fair\nvalues\n\n \n  \n\nDebt\n\nsecurity\n\ninvestments\n\n \n  \n\nTotal\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n\nBalance as of December 31, 2023\n\n  \n\n \n\n2,919\n\n \n\n  \n\n \n\n2,000\n\n \n\n  \n\n \n\n4,919\n\n \n\nAdditions\n\n  \n \n4,600\n \n  \n \n— \n \n  \n \n4,600\n \n\nFair value gain\n\n  \n \n— \n \n  \n \n348\n \n  \n \n348\n \n\nBalance as of December 31, 2024\n\n  \n\n \n\n7,519\n\n \n\n  \n\n \n\n2,348\n\n \n\n  \n\n \n\n9,867\n\n \n\nAdditions\n\n  \n \n14,500\n \n  \n \n10,000\n \n  \n \n24,500\n \n\nFair value gain\n\n  \n \n8,624\n \n  \n \n2,339\n \n  \n \n10,963\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nBalance as of December 31, 2025\n\n  \n\n \n\n30,643\n\n \n\n  \n\n \n\n14,687\n\n \n\n  \n\n \n\n45,330\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nBalance as of December 31, 2025 (US$)\n\n  \n\n \n\n4,382\n\n \n\n  \n\n \n\n2,100\n\n \n\n  \n\n \n\n6,482\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nEquity investments without readily determinable fair values\n\nIn 2017, the Group assisted a third party in acquiring a land use right from the Guangzhou City government. In return for the Group’s assistance services, the Group received a cash consideration of RMB41,117 and minority equity interests in an entity, whose sole asset is the aforementioned land use right. The Group elected to use the measurement alternative to measure this investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. As of December 31, 2024 and 2025, the carrying value of this investment was RMB2,919 and RMB2,919 (US$417), respectively.\n\nIn 2024, the Group and a third-party vendor entered into an investment agreement to jointly invest in an entity principally engaging in research and development of power cells and batteries for electric vertical\ntake-off\nand landing aircraft. The Group holds 4.12% equity interests and has no significant influence on investee’s business operations and financial decisions. The Group elected to use the measurement alternative to measure this investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. As of December 31, 2024 and 2025, the carrying value of this investment was RMB4,600 and RMB4,600 (US$658), respectively.\n\nIn April 2025, the Group and three third-party investors jointly invested in an entity under control of the Group’s founder and Chairman of the Board, Mr. Huazhi Hu, which principally engages in research and development of unmanned mart yacht. The Group invested RMB14,500 (US$2,073) to hold 4.63% equity interests and has no significant influence on investee’s business operations and financial decisions. The Group elected to use the measurement alternative to measure this investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. For the year ended December 31, 2025, the Group recorded investment income of RMB8,624 (US$1,234) by reference to observable price quoted from latest round of investee’s equity financing from a third-party. As of December 31, 2025, the carrying value of this investment was RMB23,124 (US$3,307).\n\nDebt security investments\n\nIn September 2023 and June 2025, the Group acquired minority equity interests with redemption right in a solid-state lithium metal battery technology company for cash considerations of RMB2,000 and RMB10,000 (US$1,430), respectively. The ordinary shares are redeemable at the option of the Group if the investee fails to launch the initial public offering by June 30, 2031. The Group elected to account for the investment at fair value option by using a combination of valuation methodologies, including the equity allocation model and the pricing of recent rounds of financing of the investee. For the years ended December 31, 2024 and 2025, the Group recognized the fair value change of RMB348 and RMB2,339 (US$334), respectively.\n\n \n\nF- 4\n6\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n11.\n\nAccrued Expenses and Other Liabilities\n\nAccrued expenses and other liabilities consisted of the following:\n\n \n\n \n\n  \n\nAs of December 31,\n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n \n\n  \n\nRMB\n\n \n\n  \n\nRMB\n\n \n\n  \n\nUS$\n\n \n\nPayroll and welfare payables\n\n  \n \n62,548\n \n  \n \n87,406\n \n  \n \n12,499\n \n\nPayables for acquisition of property and equipment\n\n  \n \n1,329\n \n  \n \n47,097\n \n  \n \n6,735\n \n\nOther taxes payables\n\n  \n \n38,770\n \n  \n \n46,630\n \n  \n \n6,668\n \n\nPayables for service fees\n\n  \n \n22,760\n \n  \n \n35,867\n \n  \n \n5,129\n \n\nProduct warranty liabilities (a)\n\n  \n \n9,953\n \n  \n \n20,906\n \n  \n \n2,990\n \n\nDeposit payables\n\n  \n \n— \n \n  \n \n7,060\n \n  \n \n1,010\n \n\nGovernment subsidy\n\n  \n \n5,000\n \n  \n \n5,000\n \n  \n \n715\n \n\nConsideration payable to an equity method investment (Note 9)\n\n  \n \n3,500\n \n  \n \n3,500\n \n  \n \n500\n \n\nAdvance from customers\n \n\n \n\n \n\n— \n\n \n\n \n\n \n\n2,805\n\n \n\n \n\n \n\n \n401\n\n \n\nAccrued interests\n\n  \n \n719\n \n  \n \n569\n \n  \n \n81\n \n\nOthers\n\n  \n \n5,617\n \n  \n \n6,599\n \n  \n \n943\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n150,196\n\n \n  \n\n263,439\n\n \n  \n\n37,671\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n(a)\n\nA reconciliation of the changes in the Group’s product warranty liability is as follows:\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nBalance at the beginning of the years\n\n  \n \n3,780\n \n  \n \n3,886\n \n  \n \n14,492\n \n  \n \n2,072\n \n\nAccruals\n\n  \n \n2,410\n \n  \n \n12,232\n \n  \n \n14,730\n \n  \n \n2,106\n \n\nClaims\n\n  \n \n(594\n) \n  \n \n(124\n) \n  \n \n(2,496\n) \n  \n \n(357\n) \n\nReversal\n\n  \n \n(1,710\n) \n  \n \n(1,502\n) \n  \n \n(1,514\n)\n  \n \n(216\n)\n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nBalance at the end of the years\n\n  \n \n3,886\n \n  \n \n14,492\n \n  \n \n25,212\n \n  \n \n3,605\n \n\nLess:\nNon-current\nportion of warranty\n\n  \n \n(1,053\n) \n  \n \n(4,539\n) \n  \n \n(4,306\n)\n  \n \n(615\n)\n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nCurrent portion of warranty\n\n  \n\n \n\n2,833\n\n \n\n  \n\n \n\n9,953\n\n \n\n  \n\n \n\n20,906\n\n \n\n  \n\n \n\n2,990\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n12.\n\nBank Loans\n\nAs of December 31, 2024 and 2025, certain bank loans were pledged by some of Group’s intellectual property rights.\n\nShort-term bank loans\n\nIn 2024, the Group obtained guaranteed bank loans amounted to RMB34,472 from several financial institutions in the PRC. The weighted average effective interest rate of the short-term bank loans was 3.6% per annum. The loans were repayable within one year with interests paid on a monthly or quarterly basis and guaranteed by the Group’s founder and Chairman of the Board, Mr. Huazhi Hu. The loans were repaid in full and on schedule in 2025.\n\nIn April 2024, the Group obtained a loan guaranteed by letter of credit amounting to RMB29,778. The weighted average effective interest rate on short-term bank loan is 2.2% per annum. The loan was repaid in April 2025.\n\nIn 2025, the Group obtained bank loans amounted to RMB219,582 (US$31,400) from several financial institutions in the PRC, among which RMB49,823(US$7,125) was guaranteed by the Group’s founder and director, Mr. Huazhi Hu. The weighted average effective interest rate of the short-term bank loans was 2.6% per annum. The loans are repayable within one year with interests paid on a monthly or quarterly basis. Among the short-term bank loans obtained in 2025, an amount of RMB20,000 (US$2,860) was repaid within the same year.\n\n \n\nF- 4\n7\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n12.\n\nBank Loans (Continued)\n\n \n\nShort-term bank loans (Continued)\n\n \n\nIn April 2025, the Group obtained a loan guaranteed by letter of credit amounting to RMB29,561 (US$4,227). The weighted average effective interest rate on short-term bank loan is 1.5% per annum. The loan is repayable within one year with interest recognized monthly.\n\nLong-term bank loans\n\nIn 2024, the Group entered into long-term agreements with two banks in the PRC of total principals of RMB25,000, subject to effective interest rates of 3.0% per annum and 2.9% per annum, with maturity dates on March 24, 2027 and on December 14, 2027.\n\nIn 2025, the Group entered into long-term agreements with two banks in the PRC of total principals of RMB75,000 (US$10,725), subject to effective interest rates of 2.4% per annum, 2.9% per annum and 3.0% per annum, with maturity dates on August 1, 2028, December 24, 2027 and on January 13, 2035.\n\nAs of December 31, 2024 and 2025, the principal amount of RMB10,500 and RMB9,800 (US$1,401), respectively, was due within 12 months after the balance sheet date and presented as current liabilities in the consolidated balance sheet.\n\nThe combined aggregate amounts of maturities and sinking fund requirements for each of the five years are as follows:\n\n \n\n \n  \n\nAs of December 31,\n\n \n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nLess than 1 year\n\n  \n \n10,500\n \n  \n \n9,800\n \n  \n \n1,401\n \n\nBetween 1 and 2 years\n\n  \n \n3,500\n \n  \n \n33,800\n \n  \n \n4,833\n \n\nBetween 2 and 3 years\n\n  \n \n17,000\n \n  \n \n29,400\n \n  \n \n4,204\n \n\nBetween 3 and 4 years\n\n  \n \n— \n \n  \n \n3,000\n \n  \n \n429\n \n\nover 4 years\n\n  \n \n— \n \n  \n \n16,500\n \n  \n \n2,360\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n31,000\n\n \n  \n\n92,500\n\n \n  \n\n13,227\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nAs of December 31, 2025, long-term bank loans amounted to RMB55,500 (US$7,936) were secured by mortgages of the Group’s building, in which approximately RMB6,000 (US$858) will mature before December 31, 2026, in accordance with the repayment timeline under the relevant loan agreements. There was no property and equipment mortgage securing the long-term loans outstanding as of December 31, 2024.\n\nAs of December 31, 2024 and 2025, long-term bank loans amounted to RMB16,000 and RMB7,000 (US$1,001) were guaranteed by the Group’s Chairman of the Board, Mr. Huazhi Hu, in which approximately RMB9,000 and RMB2,000 (US$286) will mature within one year after the balance sheet dates, in accordance with the repayment timeline under the relevant loan agreements.\n\nThe carrying value of the long-term bank loans approximates its fair value as of December 31, 2024 and 2025. The interest rates under the loan agreements with the banks were determined based on the prevailing interest rates in the market. The Group classifies the valuation techniques that use these inputs as Level 2.\n\nCertain Group’s banking facilities are subject to the fulfillment of certain fin\nanci\nal covenants, including gearing ratio. The Group regularly monitors its compliance with these covenants. As of December 31, 2024 and 2025, none of the covenants was breached.\n\n \n\nF- 4\n8\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n13.\n\nMandatorily Redeemable\nNon-controlling\nInterests\n\nOn June 15, 2020, the Group established a subsidiary named EHang Yunfu (Note 1). On June 30, 2020, the Group entered into an agreement with a third-party investor who subscribed 30% of the equity interests of EHang Yunfu for cash consideration of RMB40,000. At the sole discretion of the investor, the Group is obligated to repurchase the 30%\nnon-controlling\ninterest or with the consent of the investor, guarantee a third-party to repurchase the 30%\nnon-controlling\ninterests at the investor’s investment cost at the end of the five-year investment term. The\nnon-controlling\ninterests do not participate in any dividend distributions of EHang Yunfu but earn an\nafter-tax\ninterest of 1.5% per year, payable on a quarterly basis. As EHang Yunfu’s\nnon-controlling\ninterests are mandatorily redeemable at the sole discretion of the investor, it is classified as liability and subsequently measured at the amount that would be paid if settlement occurred at the reporting date.\n\nIn 2025, the Group repaid RMB40,000 (US$5,720) to the investor, who has been deregistered from equity interests holder of Ehang Yunfu.\n\n \n\n14.\n\nRevenues\n\nThe following table presents the disaggregation of revenue from contracts with the customers:\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nRevenues - Products\n\n  \n\n  \n\n  \n\n  \n\nAir mobility solutions\n\n  \n \n99,470\n \n  \n \n439,533\n \n  \n \n390,542\n \n  \n \n55,846\n \n\nOthers\n\n  \n \n1,490\n \n  \n \n1,108\n \n  \n \n14,495\n \n  \n \n2,073\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nSubtotal-Products\n\n  \n \n100,960\n \n  \n \n440,641\n \n  \n \n405,037\n \n  \n \n57,919\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nRevenues - Services\n\n  \n\n  \n\n  \n\n  \n\nAir mobility solutions\n\n  \n \n5,259\n \n  \n \n3,787\n \n  \n \n4,612\n \n  \n \n660\n \n\nOthers\n\n  \n \n11,207\n \n  \n \n11,724\n \n  \n \n8,332\n \n  \n \n1,191\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nSubtotal-Services\n\n  \n \n16,466\n \n  \n \n15,511\n \n  \n \n12,944\n \n  \n \n1,851\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal Revenues\n\n  \n\n \n\n117,426\n\n \n\n  \n\n \n\n456,152\n\n \n\n  \n\n \n\n417,981\n\n \n\n  \n\n \n\n59,770\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nPayment terms\n\nFor the Group’s Air mobility solutions and Aerial media solutions, the Group typically requires a portion of payments upfront and the remaining amounts are contractually due ranging from three to six months. Regarding the Smart city management solutions, the timing of billing varies depending on contractual payment schedules with milestone billings and the completion of the quality-assurance warranty period. In instances where the timing of revenue recognition differs from the timing of invoicing, the Group has determined that its contracts do not include a significant financing component at the inception of the contracts.\n\nContract balances\n\nContract balances include accounts receivable. Accounts receivable re\npre\nsents the billed amounts related to the Company’s rights to consideration as performance obligations are satisfied and the rights to payment become unconditional but for the passage of time.\n\nContract liabilities represent payments received from customers for which the corresponding products or services have not yet been transferred to customers. The contract liabilities were primarily contributed by advance from customers of sales of passenger-grade UAVs. Revenue of RMB4,309, RMB16,118 and RMB10,723 (US$1,533) were recognized during the years ended December 31, 2023, 2024 and 2025 from the balance included in the contract liabilities on January 1, 2023, 2024 and 2025, respectively.\n\n \n\nF- 4\n9\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n15.\n\nShare-based Compensation\n\nIn order to provide additional incentives to employees and to promote the success of the Group’s business, the Group adopted a share incentive plan that was approved by the Board of Directors on December 23, 2016 (“the 2015 Plan”). As of December 31, 2025, under the 2015 Plan, the maximum aggregate number of ordinary shares that may be issued pursuant to all share-based awards (including restricted shares, RSUs and share options) is 8,867,053 ordinary shares.\n\nIn September 2019, the Company’s Board of Directors approved the 2019 Share Incentive Plan (“the 2019 Plan”), which become effective upon the completion of the Company’s IPO on December 12, 2019. As of December 31, 2025, under the 2019 Plan, the maximum aggregate number of ordinary shares that may be issued pursuant to all share-based awards (including restricted shares, RSUs and share options) is 13,941,558 ordinary shares.\n\nIn December 2023, the Company’s Board of Directors approved the 2023 Share Incentive Plan (“the 2023 Plan”), which become effective on December 22, 2023. As of December 31, 2025, under the 2023 Plan, the maximum aggregate number of ordinary shares that may be issued pursuant to all share-based awards (including restricted shares, RSUs and share options) is 11,905,990 ordinary shares.\n\nPursuant to 2015 Plan, 2029 Plan and 2023 Plan (collectively, the “Plans”), the members of the Board, consultant or employees are entitled to be granted share-based awards.\n\nFor the year ended December 31,2023, the Company granted a total of 6,114,000 RSUs to the Group’s employees under the 2019 Plan. For the year ended December 31, 2024, the Company granted a total of 394,820 share options to the Group’s employees under the 2019 Plan and a total of 2,305,100 RSUs and 5,124,500 share options to the Group’s employees under the 2023 Plan. For the year ended December 31, 2025, the Company granted a total of 2,030,000 RSUs and 2,370,000 share options to the Group’s employees under the 2023 Plan. All of the RSUs and shares options are subject to service conditions and vest over the periods ranging from three months to four years, starting from the vesting inception date.\n\nRSUs\n\nThe following table summarizes the Company’s RSUs activity under the Plans:\n\n \n\n \n  \nNumber of RSUs\n \n  \nWeighted average\ngrant date fair\nvalue\n \n  \nWeighted average\nremaining\ncontractual life\n \n\n \n  \n \n \n  \n(US$ per share)\n \n  \n(Years)\n \n\nUnvested, December 31, 2022\n\n  \n \n2,678,000\n \n  \n \n8.8740\n \n  \n \n1.90\n \n\nGranted\n\n  \n \n6,114,000\n \n  \n \n8.9809\n \n  \n\nVested\n\n  \n \n(2,255,250\n) \n  \n \n7.8054\n \n  \n\nForfeited\n\n  \n \n(9,000\n) \n  \n \n3.8500\n \n  \n\nUnvested, December 31, 2023\n\n  \n \n6,527,750\n \n  \n \n9.3503\n \n  \n \n3.12\n \n\nGranted\n\n  \n \n2,305,100\n \n  \n \n7.1700\n \n  \n\nVested\n\n  \n \n(2,460,000\n) \n  \n \n9.4054\n \n  \n\nForfeited\n\n  \n \n(4,000\n) \n  \n \n2.3500\n \n  \n\nUnvested, December 31, 2024\n\n  \n \n6,368,850\n \n  \n \n8.5449\n \n  \n \n2.09\n \n\nGranted\n\n  \n \n2,030,000\n \n  \n \n8.1417\n \n  \n\nVested\n\n  \n \n(2,292,025\n) \n  \n \n8.2877\n \n  \n\nForfeited\n\n  \n \n(25,000\n) \n  \n \n— \n \n  \n\n  \n\n \n\n \n\n \n  \n\n  \n\nUnvested, December 31, 2025\n\n  \n \n6,081,825\n \n  \n \n8.2322\n \n  \n \n2.14\n \n\n  \n\n \n\n \n\n \n  \n\n  \n\nExpected to vest as of December 31, 2025\n\n  \n \n6,081,825\n \n  \n\n  \n\n  \n\n \n\n \n\n \n  \n\n  \n\n \n\nF- \n50\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n15.\n\nShare-based Compensation (Continued)\n\n \n\nThe total share-based compensation expenses relating to RSUs for the years ended December 31, 2023, 2024 and 2025 were RMB\n151,485\n, RMB180,748 and RMB161,911 (US$23,153), respectively. Total share-based compensation expense relating to RSUs capitalized to inventory was not material for any of the years presented.\n\nAs of December 31, 2025, there was RMB271,598 (US$38,838) of unrecognized share-based compensation expenses related to RSUs which is expected to be recognized over a weighted average vesting period of\n2.14\nyears. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future.\n\nShare options\n\nThe following table summarizes the Company’s share options activity under the 2015 Plan:\n\n \n\n \n  \nNumber of\nshare options\n \n  \nWeighted average\ngrant date fair value\n \n  \nWeighted average\nexercise price\n \n\n \n  \n \n \n  \n(US$ per share)\n \n  \n(US$ per share)\n \n\nOutstanding as of January 1 2023, 2024 and 2025\n\n  \n \n53,737\n \n  \n \n2.2624\n \n  \n \n5.8853\n \n\n  \n\n \n\n \n\n \n  \n\n  \n\nVested as of December 31, 2023, 2024 and 2025\n\n  \n \n53,737\n \n  \n \n2.2624\n \n  \n \n5.8853\n \n\n  \n\n \n\n \n\n \n  \n\n  \n\nExercisable as of December 31, 2025\n\n  \n \n53,737\n \n  \n \n2.2624\n \n  \n \n5.8853\n \n\n  \n\n \n\n \n\n \n  \n\n  \n\nThe following table summarizes the Company’s share options activity under the 2023 Plan:\n\n \n\n \n  \nNumber of\noptions\n \n  \nWeighted average\ngrant date fair value\n \n  \nWeighted average\nexercise price\n \n\n \n  \n \n \n  \n(US$ per share)\n \n  \n(US$ per share)\n \n\nUnvested, December 31, 2023\n\n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\nGranted\n\n  \n \n5,519,320\n \n  \n \n5.1312\n \n  \n \n0.0001\n \n\nVested\n\n  \n \n(2,413,570\n) \n  \n \n5.1487\n \n  \n \n0.0001\n \n\nForfeited\n\n  \n \n(34,500\n) \n  \n \n4.7675\n \n  \n \n0.0001\n \n\nUnvested, December 31, 2024\n\n  \n \n3,071,250\n \n  \n \n5.0436\n \n  \n \n0.0001\n \n\nGranted\n\n  \n \n2,370,000\n \n  \n \n7.2700\n \n  \n \n0.0001\n \n\nVested\n\n  \n \n(1,299,150\n) \n  \n \n5.5448\n \n  \n \n0.0001\n \n\nForfeited\n\n  \n \n(216,500\n) \n  \n \n5.5364\n \n  \n \n0.0001\n \n\n  \n\n \n\n \n\n \n  \n\n  \n\nUnvested, December 31, 2025\n\n  \n \n3,925,600\n \n  \n \n6.1375\n \n  \n \n0.0001\n \n\n  \n\n \n\n \n\n \n  \n\n  \n\nExpected to vest as of December 31, 2025\n\n  \n \n3,925,600\n \n  \n\n  \n\n  \n\n \n\n \n\n \n  \n\n  \n\nThe Group calculated the estimated fair value of the share options under the 2023 Plan on the grant date using the Black-Scholes valuation model. Assumptions used to determine the fair value of the share options granted under the 2023 Plan are summarized in the following table:\n\n \n\n \n  \nFor the year ended December 31,\n \n\n \n  \n2024\n \n \n2025\n \n\n \n  \nBatch 1\n \n \nBatch 2\n \n \nBatch 3\n \n\nTerm in years\n\n  \n \n9.9\n \n \n \n9.3\n \n \n \n9.7\n \n\nVolatility\n\n  \n \n78.00\n% \n \n \n74.30\n% \n \n \n79.70\n% \n\nDiscount rate\n\n  \n \n4.20\n% \n \n \n3.70\n% \n \n \n4.40\n% \n\nFair value per ordinary share (US$ per share)\n\n  \n \n4.77\n \n \n \n7.17\n \n \n \n7.27\n \n\n \n\nF- \n51\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n15.\n\nShare-based Compensation (Continued)\n\n \n\nThe total share-based compensation expenses relating to share options for the years ended December 31, 2023, 2024 and 2025 were nil, RMB92,376 and RMB84,247 (US$12,047), respectively. Total share-based compensation expense relating to share options capitalized to inventory was not material for any of the periods presented.\n\nAs of December 31, 2025, there was RMB134,390 (US$19,218) of unrecognized share-based compensation expenses related to share options which is expected to be recognized over a weighted average vesting period of 2.38 years. Total unrecognized compensation cost may be adjusted for actual forfeitures occurring in the future.\n\nTotal share-based compensation expenses relating to RSUs and share options granted to employees recognized for the years ended December 31, 2023, 2024 and 2025 were as follows:\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nCost of revenues\n\n  \n \n— \n \n  \n \n— \n \n  \n \n416\n \n  \n \n59\n \n\nSales and marketing expenses\n\n  \n \n18,958\n \n  \n \n65,597\n \n  \n \n45,537\n \n  \n \n6,512\n \n\nGeneral and administrative expenses\n\n  \n \n79,327\n \n  \n \n134,984\n \n  \n \n154,838\n \n  \n \n22,142\n \n\nResearch and development expenses\n\n  \n \n53,200\n \n  \n \n72,543\n \n  \n \n45,367\n \n  \n \n6,487\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n  \n\n151,485\n\n \n  \n\n273,124\n\n \n  \n\n246,158\n\n \n  \n\n35,200\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nIn July 2024, the Company’s Board of Directors approved the share-based compensation modification by accelerating and adjusting the vesting of 562,500 share options which shall be vested in next three years according to original vesting schedule, resulting in share-based compensation expense of RMB19,028 for the year ended December 31, 2024.\n\n \n\n16.\n\nOther\nnon-operating\nexpenses\n\nOn December 4, 2023, a securities class action complaint (captioned Pujo v. EHang Holdings Limited, No.\n\n2:23-cv-10165\n\n(C.D. Cal.)) was filed by purported holders of the Company’s ADSs in federal court (“the Court”). The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and generally alleged that the Company and certain of its officers and directors made false and misleading statements regarding the Company’s business, operations, and prospects, among other allegations. The complaint was based in large part on a November 7, 2023, report issued by short seller Hindenburg Research. The complaint named as defendants certain of the Company’s officers and directors. The complaint seeks unspecified monetary damages on behalf of the putative class and an award of costs and expenses, including reasonable attorneys’ fees.\n\nThe Company and the lead plaintiff (“The Parties”) participated in private mediation on July 1, 2025 and on July 3, 2025, the Parties agreed to settle the matter for US$1,985. On July 7, 2025, the Parties notified the Court that they had reached an agreement in principle and anticipated filing a motion for preliminary approval of the settlement. The Parties have executed stipulation of settlement by their undersigned counsel effective as of August 11, 2025, and determined the settlement fee of US$1,985. As of December 31, 2025, Ehang has paid a settlement amount of US$1,985. On January 12, 2026, the Court granted final approval of the class action settlement.\n\nFor the year ended December 31, 2025, the Company recorded the settlement fee of US$1,985 (equivalent to RMB14,254) in other\nnon-operating\nexpenses as the loss from aforementioned shareholder securities litigation.\n\n \n\nF- 5\n2\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n17.\n\nIncome Taxes\n\nCayman Islands\n\nUnder the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain arising in Cayman Islands.\n\nAustria\n\nEHang GmbH is subject to Austria profits tax of 23% on its activities conducted in Austria.\n\nFrance\n\nEHang France was subject to France profits tax of 28% on its activities conducted in France.\n\nSpain\n\nEHang Spain is subject to Spain profits tax of 23% on its activities conducted in Spain.\n\nHong Kong\n\nEhfly and EHang HK are incorporated in Hong Kong and are subject to Hong Kong profits tax. Hong Kong profits tax for a corporation from the year of assessment 2018 and 2019 onwards is generally 8.25% on assessable profits up to HK$2.0 million; and 16.5% on any part of assessable profits over HK$2.0 million.\n\nPRC\n\nThe Company’s subsidiaries and the VIEs in the PRC are subject to the statutory rate of 25%, in accordance with the Enterprise Income Tax law (the ‘‘EIT Law’’), which was effective since January 1, 2008 except for certain entities eligible for preferential tax rates.\n\nIn accordance with the PRC Income Tax Laws, an enterprise awarded with the High and New Technology Enterprise (“HNTE”) certificate may enjoy a reduced EIT rate of 15%. For the year ended December 31, 2023, 2024 and 2025, EHang Intelligent and EHang GZ were qualified as HNTE and eligible for a 15% preferential rate.\n\nAccording to a policy promulgated by the State Tax Bureau of the PRC and effective from 2008 onwards, enterprises engaged in R&D activities are entitled to claim an additional tax deduction amounting to 50% of the qualified R&D expenses incurred in determining its tax assessable profits for that year. The additional tax deduction amount of the qualified R&D expenses has been increased from 50% to 75%, effective from 2018 to 2020, according to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018 (“Super Deduction”). According to Announcement of the Ministry of Finance and the State Taxation Administration [2021] No.13 (“Circular 13”), manufacturing enterprise with qualified R&D expenses could enjoy R&D Super Deduction, i.e. to claim additional 100% R&D expenses on top of those actually incurred. Subsequently, pursuant to Announcement of the Ministry of Finance and the State Taxation Administration 2023 No. 7, effective from January 1, 2023, all eligible enterprises are entitled to claim an additional\n100\n% deduction for qualified R&D expenses. EHang GZ, EHang Intelligent ,EHang Yunfu and Hefei EHang Intelligent Equipment Co., Ltd. were entitled to 100% super deduction.\n\nDividends, interests, rent or royalties payable by the Company’s PRC subsidiaries, to\nnon-PRC\nresident enterprises, and proceeds from any such\nnon-resident\nenterprise investor’s disposition of assets (after deducting the net value of such assets) shall be subject to 10% withholding tax, unless the respective\nnon-PRC\nresident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with China that provides for a reduced withholding tax rate or an exemption from withholding tax.\n\n \n\nF- 5\n3\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n17.\n\nIncome Taxes (Continued)\n\n \n\nIncome tax expenses (benefits) comprises of:\n\n \n\n \n  \n\nFor the year ended December \n31\n,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nIncome tax expenses applicable to PRC operations\n\n  \n\n  \n\n  \n\n  \n\nCurrent income tax expenses\n\n  \n \n181\n \n  \n \n281\n \n  \n \n2,297\n \n  \n \n329\n \n\nDeferred income tax benefits\n\n  \n \n— \n \n  \n \n— \n \n  \n \n(6,969\n)\n  \n \n(997\n)\n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nSubtotal income tax expenses (benefits) applicable to PRC operations\n\n  \n \n181\n \n  \n \n281\n \n  \n \n(4,672\n) \n  \n \n(668\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nIncome tax expenses applicable to\nNon-PRC\noperations\n\n  \n\n  \n\n  \n\n  \n\nCurrent income tax expenses\n\n  \n \n25\n \n  \n \n105\n \n  \n \n263\n \n  \n \n38\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nSubtotal income tax expenses applicable to\nNon-PRC\noperations\n\n  \n \n25\n \n  \n \n105\n \n  \n \n263\n \n  \n \n38\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal income tax expenses (benefits)\n\n  \n\n \n\n206\n\n \n\n  \n\n \n\n386\n\n \n\n  \n\n \n\n(4,409\n\n)\n\n  \n\n \n\n(630\n\n)\n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nUpon adoption of ASU\n2023-09,\nImprovements to Income Tax Disclosures, reconciliations of the income tax expenses (benefits) computed\nby\napplying the PRC statutory income tax rate of 25% to the Group’s income tax expenses (benefits)\nfor\nthe year ended December 31, 2025\nis\npresented as follows:\n\n \n\n \n\n  \n\nFor the year ended December 31, 2025\n\n \n\n \n\n  \n\nAmount\n\n \n\n  \n\nPercent\n\n \n\n \n\n  \n\nRMB\n\n \n\n  \n\nUS$\n\n \n\n  \n\n \n\n \n\nIncome tax benefits at PRC statutory tax rate of 25%\n\n(1)\n\n  \n\n \n\n(70,205\n\n) \n\n  \n\n \n\n(10,039\n\n) \n\n  \n\n \n\n25.0\n\n% \n\nOther jurisdictions tax effects\n\n  \n\n  \n\n  \n\nCayman\n\n  \n\n  \n\n  \n\nEffect of different tax rates in different jurisdictions\n\n  \n \n(2,055\n) \n  \n \n(294\n) \n  \n \n0.7\n \n\nOther jurisdictions\n\n  \n \n92\n \n  \n \n13\n \n  \n \n— \n \n\nChange in valuation allowance\n\n  \n \n18,812\n \n  \n \n2,690\n \n  \n \n(6.7\n)\n\nNontaxable or non-deductible items\n\n  \n\n  \n\n  \n\nShare-based compensation expenses\n\n  \n \n36,605\n \n  \n \n5,234\n \n  \n \n(13.0\n)\n\nAdditional deduction for qualified R&D expenses\n\n  \n \n(19,822\n)\n  \n \n(2,835\n)\n  \n \n7.1\n \n\nOthers\n\n  \n \n1,231\n \n  \n \n177\n \n  \n \n(0.5\n)\n\nOthers\n\n  \n\n  \n\n  \n\nEffect on adoption of preferential tax rate\n\n \n\n \n\n30,933\n\n \n\n \n\n \n\n4,424\n\n \n\n \n\n \n\n(11.0\n\n)\n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nIncome tax expenses (benefits)\n\n  \n\n \n\n(4,409\n\n)\n\n  \n\n \n\n(630\n\n)\n\n  \n\n \n\n1.6\n\n%\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nEffect of preferential tax rate inside the PRC on basic and dilutive loss per share\n\n  \n \n— \n \n  \n \n— \n \n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n(1)\n\nThe PRC statutory tax rate is used for the reconciliation as the majority of the Group’s operations are based in the PRC.\n\n \n\nF- 5\n4\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n17.\n\nIncome Taxes (Continued)\n\n \n\nReconciliations of the income tax expense computed by applying the PRC statutory income tax rate of 25% to the Group’s income tax expense for the years ended December 31,2023 and 2024 in accordance with the guidance prior to the adoption of ASU\n2023-09\npresented are as follows:\n\n \n\n \n  \n\nFor the year ended\nDecember 31,\n\n \n\n \n  \n\n2023\n\n \n \n\n2024\n\n \n\n \n  \n\nRMB\n\n \n \n\nRMB\n\n \n\nLoss before income tax expense\n\n  \n \n(302,135\n) \n \n \n(229,646\n) \n\nPRC statutory tax rate\n(1)\n\n  \n \n25\n% \n \n \n25\n% \n\nIncome tax benefits at PRC statutory tax rate of 25%\n\n  \n \n(75,534\n) \n \n \n(57,412\n) \n\nEffect of different tax rates in different jurisdictions\n\n  \n \n(354\n) \n \n \n(547\n) \n\nNon-deductible\nexpenses\n(2)\n\n  \n \n24,855\n \n \n \n42,563\n \n\nAdditional deduction for qualified R&D expenses\n\n  \n \n(16,012\n) \n \n \n(17,941\n) \n\nEffect on adoption of preferential tax rate\n\n  \n \n27,227\n \n \n \n24,566\n \n\nOthers\n\n  \n \n252\n \n \n \n163\n \n\nChange in valuation allowance\n\n  \n \n39,772\n \n \n \n8,994\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nIncome tax expenses\n\n  \n\n \n\n206\n\n \n\n \n\n \n\n386\n\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nEffect of preferential tax rate inside the PRC on basic and dilutive loss per share\n\n  \n \n— \n \n \n \n— \n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\n(1)\n\nThe PRC statutory tax rate is used for the reconciliation as the majority of the Group’s operations are based in the PRC.\n\n(2)\n\nFor the years ended December 31, 2023 and 2024,\nnon-deductible\nexpenses mainly represent the share-based compensation expenses.\n\nUpon adoption of ASU\n2023-09,\nImprovements to Income Tax Disclosures, cash paid for income taxes, net of refunds, during the year ended December 31, 2025 was as follows:\n\n \n\n \n\n  \n\nFor the year ended\nDecember 31, 2025\n\n \n\n \n\n  \n\nRMB\n\n \n\n  \n\nUS$\n\n \n\nPRC\n\n  \n \n781\n \n  \n \n112\n  \n\nHong Kong\n\n  \n \n82\n \n  \n \n12\n \n\nOther jurisdictions\n\n \n\n \n\n16\n\n \n\n \n\n \n\n2\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal cash paid for income tax\n\n  \n\n \n\n879\n\n \n\n  \n\n \n\n126\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nCash paid for income taxes, net of refunds, during the years ended December 31, 2023 and 2024 was RMB184 and RMB101, respectively.\n\n \n\nF- 5\n5\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n17.\n\nIncome Taxes (Continued)\n\n \n\nThe significant components of the Group’s deferred tax assets(liabilities) were as follows:\n\n \n\n \n  \n\nAs of December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nNon-current\ndeferred tax assets\n\n  \n\n  \n\n  \n\n  \n\nTax losses\n\n  \n \n160,563\n \n  \n \n169,879\n \n  \n \n189,984\n \n  \n \n27,167\n \n\nLease liabilities\n\n  \n \n13,103\n \n  \n \n21,477\n \n  \n \n20,522\n \n  \n \n2,935\n \n\nExpected credit losses\n\n  \n \n20,337\n \n  \n \n16,264\n \n  \n \n18,102\n \n  \n \n2,589\n \n\nWelfare payables\n\n  \n \n5,208\n \n  \n \n6,382\n \n  \n \n8,093\n \n  \n \n1,157\n \n\nAccruals and others\n\n  \n \n875\n \n  \n \n2,527\n \n  \n \n4,122\n \n  \n \n589\n \n\nUnrealized profit arising from elimination of\n\ninter-company transactions\n\n  \n \n(146\n) \n  \n \n132\n \n  \n \n2,753\n \n  \n \n394\n \n\nInventory provision\n\n  \n \n1,397\n \n  \n \n1,421\n \n  \n \n1,357\n \n  \n \n194\n \n\nIntangible assets\n\n  \n \n— \n \n  \n \n65\n \n  \n \n101\n \n  \n \n14\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal deferred tax assets\n\n  \n \n201,337\n \n  \n \n218,147\n \n  \n \n245,034\n \n  \n \n35,039\n \n\nLess: valuation allowance\n\n  \n \n(189,418\n) \n  \n \n(198,412\n) \n  \n \n(218,223\n)\n  \n \n(31,205\n)\n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nDeferred tax assets, net of valuation allowance\n\n  \n\n \n\n11,919\n\n \n\n  \n\n \n\n19,735\n\n \n\n  \n\n \n\n26,811\n\n \n\n  \n\n \n\n3,834\n\n \n\nNon-current\ndeferred tax liabilities\n\n  \n\n  \n\n  \n\n  \n\nRight-of-use\n\nassets\n\n  \n \n(11,919\n) \n  \n \n(19,682\n) \n  \n \n(18,039\n)\n  \n \n(2,579\n)\n\nUnrealized gain on investments accounted for using equity method and other investments\n\n  \n \n(292\n) \n  \n \n(345\n) \n  \n \n(2,095\n)\n  \n \n(300\n)\n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal deferred tax liabilities\n\n  \n\n \n\n(12,211\n\n) \n\n  \n\n \n\n(20,027\n\n) \n\n  \n\n \n\n(20,134\n\n)\n\n  \n\n \n\n(2,879\n\n)\n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nDeferred tax assets, net\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n6,969\n\n \n\n  \n\n \n\n997\n\n \n\nDeferred tax liabilities, net\n\n  \n\n \n\n(292\n\n) \n\n  \n\n \n\n(292\n\n) \n\n  \n\n \n\n(292\n\n) \n\n  \n\n \n\n(42\n\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nMovement of valuation allowance is as follows:\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nValuation allowance\n\n  \n\n  \n\n  \n\n  \n\nBalance at the beginning of the years\n\n  \n \n149,646\n \n  \n \n189,418\n \n  \n \n198,412\n \n  \n \n28,372\n \n\nAdditions\n\n  \n \n39,853\n \n  \n \n21,550\n \n  \n \n31,526\n \n  \n \n4,508\n \n\nTax loss utilized\n\n  \n \n(81\n) \n  \n \n(12,556\n) \n  \n \n(11,715\n) \n  \n \n(1,675\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nBalance at the end of the years\n\n  \n\n \n\n189,418\n\n \n\n  \n\n \n\n198,412\n\n \n\n  \n\n \n\n218,223\n\n \n\n  \n\n \n\n31,205\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF- 5\n6\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n17.\n\nIncome Taxes (Continued)\n\n \n\nFor the years ended December 31, 2024 and 2025, with the growth of its business performance, some subsidiaries of the Group are generating profits and utilizing tax losses brought forward from prior years.\n\nAs of December 31, 2023, 2024 and 2025, the Group had deductible tax losses of RMB976,068, RMB1,034,638 and RMB1,154,646 (US$165,112) derived from entities in the PRC. The tax losses in PRC can be carried forward for five years to offset future taxable profit, and the period was extended to ten years for entities qualified as HNTE in 2018 and thereafter. The tax losses of entities in the PRC began to expire from December 31, 2026 to 2035 if not utilized.\n\nAs of December 31, 2023, 2024 and 2025, the Group had deductible tax losses of RMB31,890, RMB32,893 and RMB29,463\n \n(US$4,213) derived from entities in Hong Kong that will not expire if not utilized.\n\nUnrecognized Tax Benefit\n\nAs of December 31, 2024 and 2025, the Group had unrecognized tax benefit of RMB5,480 and RMB5,480\n \n(US$784), respectively. The unrecognized tax benefit was mainly related to the withholding tax accrued for the facilitating service in the acquisition of land use right from Guangzhou government by EHang HK on behalf of a third-party buyer in 2017 and under-reported statutory profits before tax. The Group does not anticipate that the amount of existing unrecognized tax benefits will significantly change within the next 12 months; however, an estimate of the range of the possible change cannot be made at this moment. The unrecognized tax benefits of RMB5,480\n \n(US$784), if ultimately recognized, will impact the effective tax rate.\n\nA reconciliation of the beginning and ending amount of unrecognized tax benefit was as follows:\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nBalance at the beginning of the years\n\n  \n \n(5,480\n) \n  \n \n(5,480\n) \n  \n \n(5,480\n) \n  \n \n(784\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nBalance at the end of the years\n\n  \n\n \n\n(5,480\n\n) \n\n  \n\n \n\n(5,480\n\n) \n\n  \n\n \n\n(5,480\n\n) \n\n  \n\n \n\n(784\n\n) \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe Group did not record any significant interest and penalties related to an uncertain tax position for the years ended December 31, 2023, 2024 and 2025. No accumulated interest expenses and penalties were recorded in unrecognized tax benefit as of December 31, 2023, 2024 and 2025, respectively.\n\nThe material jurisdictions in which the Group is subject to potential examination is China. In general, the PRC tax authorities have up to five years to review a company’s tax filings. As of December 31, 2025, the tax years ended December 31, 2020 through year ended as of the reporting dates for WFOE, the VIEs remain open to examination by the PRC tax authorities.\n\n \n\nF- 5\n7\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n18.\n\nRelated Party Transactions\n\nThe principal related parties with which the Group had transactions during the years presented are as follows:\n\n \n\nName of Entity or Individual\n\n  \n\nRelationship with the Company\n\nMr. Huazhi Hu\n\n  \n\nPrincipal Shareholder of the Company, Chairman of the Board and Chief Executive Officer\n\nHefei Heyi Aviation Co., LTD (“Hefei Heyi”)\n\n  \n\nA company over which the Group has significant influence\n\nZhejiang Zhiyi Navigation Co., Ltd. (“Zhejiang Zhiyi”)\n\n  \n\nA company over which the Group has significant influence\n\nGuangzhou Yitong Zhihang Technology Co., Ltd. (“Yitong Zhihang”)\n\n  \n\nA company over which the Group has significant influence\n\nHangzhou Zhongan Aviation Co., LTD (“Hangzhou Zhongan”)\n\n  \n\nA company over which the Group has significant influence\n\nWanyi Tianxia (Zhuhai) Aviation Co., LTD (“Wanyi Tianxia”)\n\n  \n\nA company over which the Group has significant influence\n\nGuangxi Fengshan Fengyi Aviation Service Co., LTD (“Fengshan Fengyi”)\n\n  \n\nA company over which the Group has significant influence\n\nXinjiang Xiyu Qingniao General Aviation Co., Ltd. (“Xiyu Qingniao”)\n\n  \n\nA company over which the Group has significant influence\n\nWuxi Liangyun\nlow-altitude\ncommercial operation management Co., LTD (“Wuxi Liangyun”)\n\n  \n\nA company over which the Group has significant influence\n\nShenzhen Pengcheng Wing General Aviation Co., Ltd. (“Pengcheng Wing”)\n\n  \n\nA company over which the Group has significant influence\n\nYihang Zhifang Equipment (Guangzhou) Co., Ltd. (“Zhifang”)\n\n  \n\nA company controlled by the Group’s founder and director\n\nRedChip Strategy Limited (“RedChip”)\n\n \n\nA company wholly owned by a director, classified as a related party of the Group on November 24, 2025 upon its shareholder’s appointment to the Group’s director\n\n \n\n \n\n(1)\n\nTransaction with related parties\n\n(i) Sales of products\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nHefei Heyi\n\n  \n \n— \n \n  \n \n106\n \n  \n \n13,278\n \n  \n \n1,899\n \n\nZhejiang Zhiyi\n\n  \n \n— \n \n  \n \n— \n \n  \n \n16\n \n  \n \n2\n \n\nYitong Zhihang\n\n  \n \n3,009\n \n  \n \n— \n \n  \n \n13\n \n  \n \n2\n \n\nHangzhou Zhongan\n\n  \n \n— \n \n  \n \n— \n \n  \n \n9\n \n  \n \n1\n \n\nWanyi Tianxia\n\n  \n \n— \n \n  \n \n18\n \n  \n \n— \n \n  \n \n— \n \n\nFengshan Fengyi\n\n  \n \n— \n \n  \n \n9\n \n  \n \n— \n \n  \n \n— \n \n\nXiyu Qingniao\n\n  \n \n8,850\n \n  \n \n— \n \n  \n \n— \n \n  \n \n— \n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n11,859\n\n \n\n  \n\n \n\n133\n\n \n\n  \n\n \n\n13,316\n\n \n\n  \n\n \n\n1,904\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\nF- 5\n8\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n18.\n\nRelated Party Transactions (Continued)\n\n \n\n \n\n(1)\n\nTransaction with related parties (Continued)\n\n(ii) Provision of services\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n  \n\n2024\n\n \n  \n\n2025\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nUS$\n\n \n\nWanyi Tianxia\n\n  \n \n— \n \n  \n \n94\n \n  \n \n132\n \n  \n \n19\n \n\nFengshan Fengyi\n\n  \n \n— \n \n  \n \n— \n \n  \n \n89\n \n  \n \n12\n \n\nHefei Heyi\n\n  \n \n— \n \n  \n \n599\n \n  \n \n85\n \n  \n \n12\n \n\nWuxi Liangyun\n\n  \n \n— \n \n  \n \n33\n \n  \n \n41\n \n  \n \n6\n \n\nPengcheng Wing\n\n  \n \n— \n \n  \n \n— \n \n  \n \n28\n \n  \n \n4\n \n\nYitong Zhihang\n\n  \n \n— \n \n  \n \n499\n \n  \n \n19\n \n  \n \n3\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n  \n\n \n\n— \n\n \n\n  \n\n \n\n1,225\n\n \n\n  \n\n \n\n394\n\n \n\n  \n\n \n\n56\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n(iii) Receipt of services\n\nThe Group maintained a consulting agreement with consulting firm RedChip. The consulting fees incurred during the period from November 24, 2025 to December 31, 2025 amounted to RMB1,127 (US$161), which were settled via a combination of cash and RSUs.\n\n \n\n \n\n(2)\n\nContract liabilities from sales of products\n\n \n\n \n\n  \n\n \n\n \n\n  \n\nAs of December 31,\n\n \n\n \n\n  \n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n \n\n  \n\n \n\n \n\n  \n\nRMB\n\n \n\n  \n\nRMB\n\n \n\n  \n\nUS$\n\n \n\nXiyu Qingniao\n\n \n\n \n\n \n\n \n\n  \n \n2,000\n \n  \n \n2,279\n \n  \n \n326\n \n\nFengshan Fengyi\n\n \n\n \n\n  \n\n \n\n  \n \n— \n \n  \n \n28\n \n  \n \n4\n \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n \n\n \n\n \n\n \n\n  \n\n \n\n2,000\n\n \n\n  \n\n \n\n2,307\n\n \n\n  \n\n \n\n330\n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n\n(3)\n\nAmount due from related parties for the sales of products and services\n\n \n\n \n\n  \n\n \n\n \n\n  \n\nAs of December 31,\n\n \n\n \n\n  \n\n \n\n \n\n  \n\n2024\n\n \n\n  \n\n2025\n\n \n\n \n\n  \n\n \n\n \n\n  \n\nRMB\n\n \n\n  \n\nRMB\n\n \n\n  \n\nUS$\n\n \n\nHefei Heyi\n\n \n\n \n\n \n\n \n\n  \n \n465\n \n  \n \n5,380\n \n  \n \n769\n \n\nPengcheng Wing\n\n \n\n \n\n \n\n \n\n  \n \n— \n \n  \n \n30\n \n  \n \n4\n \n\nWanyi Tianxia\n\n \n\n \n\n   \n\n \n\n  \n \n40\n \n  \n \n— \n \n  \n \n— \n \n\nLess: expected credit losses provision\n\n \n\n \n\n \n\n \n\n  \n \n(47\n) \n  \n \n(222\n) \n  \n \n(32\n) \n\n  \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal\n\n \n\n \n\n \n\n \n\n  \n\n \n\n458\n\n \n\n  \n\n \n\n5,188\n\n \n\n  \n\n \n\n741\n\n \n\n \n\n \n\n \n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n\n(4)\n\nGuarantee received for borrowings\n\nAs of December 31, 2024 and 2025, RMB34,472 and RMB29,941 (US$4,282) short-term bank loans, and RMB16,000 and RMB7,000 (US$1,001) long-term bank loans were guaranteed by the Group’s founder and Chairman of the Board, Mr. Huazhi Hu.\n\n \n\n \n\n(5)\n\nLoans to a related party\n\nIn 2025, the Group extended several loans amounting to RMB\n\n5,000 (US$715) to Hefei Heyi, with an annual interest rate of 3%. A partial repayment of RMB3,000 (US$429) was received in December 2025, and as of December 31, 2025, the outstanding principal and interest totaled RM\n\nB\n2,070\n(US$\n296\n)\n. The remaining balance of the loans were settled in March 2026.\n\n \n\n \n\n(6)\n\nInvestment in a related entity\n\nIn\n\n \n\nApril 2025, the Group invested in Zhifang under the control of the Group’s founder and Chairman of the Board, Mr. Huazhi Hu, which principally engages in research and development of unmanned mart yacht, for a total consideration of RMB\n14,500\n(US$\n2,073\n) to acquire\n4.63\n% equity interests of the investee.\n\n \n\nF- 5\n9\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n19.\n\nShareholders’ Equity\n\nOrdinary Shares\n\nIn April 2023, the Company completed its issuance of 3,466,204 Class A ordinary shares to Qingdao investor in private placement for a total consideration of RMB66,486, net of issuance costs amounting to RMB2,374. In July 2023, the Company completed its issuance of 4,183,510 Class A ordinary shares to private placement led by South Korean strategic investor for a consideration of RMB163,563, net of issuance costs amounting to RMB1,000. Under the 2019 Plans approved by the Board, the Company issued 221,224 Class A ordinary shares at market price for cash consideration of RMB12,355 in 2023, resulting in the increase of additional\npaid-in\ncapital.\n\nOn October 20, 2023, the Company issued and transferred 236,000 Class A ordinary shares to The Bank of New York Mellon, its depositary bank to be issued to employees upon the vesting of restricted share units under the 2019 Plans.\n\nFor the year ended December 31, 2023,\nno\nClass B ordinary share was converted to Class A ordinary share. As of December 31, 2023, 461,516 Class A ordinary shares remain available for future issuance. These shares are legally issued but not outstanding for the purpose of accounting and thus are excluded from the basic net loss per share calculation.\n\nOn January 8, 2024 and May 8, 2024, the Company issued and transferred 778,890 ordinary shares to The Bank of New York Mellon, its depositary bank to be issued to employees upon the vesting of restricted share units under the 2019 Plans and 2023 Plans.\n\nIn April 2024, the Company entered into an At Market Issuance Sales Agreement with China Renaissance Securities (Hong Kong) Limited relating to the sale of ADSs for an aggregate offering price of up to US$100 million from time to time through or to the sales agent, as agent or principal. In 2024, the company issued and transferred 10,800,000 ordinary shares to The Bank of New York Mellon for\n\nat-the-market\n\noffering. For the year ended December 31, 2024, the Company had raised gross proceeds of US$76,243 (equivalent to RMB541,997) including issuance costs of US$2,324 (equivalent to RMB16,518) through sales of 9,231,510 ordinary shares in the\n\nat-the-market\n\noffering.\n\nIn November 2024, the Company completed its issuance of 1,351,488 Class A ordinary shares to a strategic investor from the Middle East in private placement for a total gross consideration of US$10,000 (equivalent to RMB71,786). In November 2024, the Company completed its issuance of 1,866,666 Class A ordinary shares to a Zhuhai investor in private placement for a total gross consideration of US$12,600 (equivalent to RMB90,603). The aggregate amount of issuance costs for aforementioned private placements was RMB271 (US$37). Under the 2019 Plans approved by the Board, the Company issued 110,180 Class A ordinary shares at market price for cash consideration of RMB5,999 (US$822) in 2024, resulting in the increase of additional\npaid-in\ncapital.\n\nIn November 2024, the Board of Directors of the Company authorized a share repurchase program (“Share Repurchase Program”) under which the Company may repurchase up to US$30 million worth of its Class A ordinary shares, including those in the form of ADSs over the following 12 months. The share repurchases may be made in accordance with applicable laws and regulations through open market transactions, privately negotiated transactions or other legally permissible means as determined by the management. For the year ended December 31, 2024, the Company repurchased 100,000 ADSs for RMB10,085 on the open market, at a weighted average price of US$13.99 per ADS. The Company accounts for the repurchased ordinary shares under the cost method and includes such treasury shares as a component of the shareholders’ equity.\n\nFor the year ended December 31, 2024, no Class B ordinary share was converted to Class A ordinary share. As of December 31, 2024, 1,704,790 Class A ordinary shares remain available for future issuance. These shares are legally issued but not outstanding for the purpose of accounting and thus are excluded from the basic net loss per share calculation.\n\n \n\nF- \n60\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n19.\n\nShareholders’ Equity (Continued)\n\n \n\nOrdinary Shares (Continued)\n\n \n\nOn June 27, 2025, the Company issued and transferred 1,400,000 ordinary shares to The Bank of New York Mellon for\n\nat-the-market\n\noffering. The Company had raised gross consideration of US$23,757 (equivalent to RMB170,146 ) through sales of 2,769,184 ordinary shares in the\n\nat-the-market\n\noffering. The corresponding issuance costs was US$639 (equivalent to RMB4,577).\n\nOn December 1, 2025, the Company issued and transferred 1,000,000 ordinary shares to The Bank of New York Mellon, its depositary bank to be issued to employees upon the vesting of restricted share units under the 2019 Plans and 2023 Plans. For the year ended December 31, 2025, 3,614,413 Class A ordinary shares were issued pursuant to the vesting of restricted share units, among which 811,138 Class A ordinary shares were settled with shares held by the depositary bank.\n\nFor the year ended December 31, 2025, no Class B ordinary shares were converted to Class A ordinary shares. As of December 31, 2025, 520,486 Class A ordinary shares remain available for future issuance. These shares are legally issued but not outstanding for the purpose of accounting and thus are excluded from the basic net loss per share calculation.\n\nAs of December 31, 2025, there were 111,215,614 Class A and 39,026,560 Class B ordinary shares outstanding.\n\nAdditional\nPaid-in\nCapital\n\nAs detailed above, for the year ended December 31, 2023, issuance of Class A ordinary shares to the Qingdao investor and South Korean investors arising from private placements resulted in the increase of additional\npaid-in\ncapital amounted to RMB66,484 and RMB163,560, respectively, and the issuance of Class A ordinary shares at market price for cash resulted in the increase of additional\npaid-in\ncapital amounted to RMB12,355.\n\nFor the year ended December 31, 2024, the issuance of Class A ordinary shares to the strategic investor from the Middle East and Zhuhai investors arising from private placements resulted in the increase of additional\npaid-in\ncapital amounted to RMB71,786 and RMB90,330, respectively, and the issuance of Class A ordinary shares at market price for cash and the issuance of Class A ordinary shares in the\n\nat-the-market\n\noffering resulted in the increase of additional\npaid-in\ncapital amounted to RMB5,999 and RMB525,471, respectively.\n\nFor the year ended December 31, 2025, the issuance of Class A ordinary shares in the\n\nat-the-market\n\noffering resulted in the increase of additional\npaid-in\ncapital amounting to RMB165,567 (US$23,676).\n\nIn January 2022, the Company withheld the individual income tax of RMB11,230 for employees’ vested share-based awards and made the cash payment to tax authorities. Concurrently, the Company withheld and received equivalent ADSs shares with fair value of RMB11,230 on that day from the employees for clearance of the individual income tax. The amount was debited to additional\npaid-in\ncapital. For the year ended December 31, 2023, 2024 and 2025, the Company has sold ADSs shares for cash consideration of RMB7,795, RMB4,532 and RMB76 (US$11), respectively.\n\n \n\nF- \n61\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n19.\n\nShareholders’ Equity (Continued)\n\n \n\nAccumulated Other Comprehensive Income\n\n \n\n \n\n  \n\nForeign currency translation adjustment\n\n \n\n \n\n  \n\nRMB\n\n \n\nBalance as of December 31, 2022\n\n  \n\n \n\n15,010\n\n \n\nOther comprehensive income\n\n  \n \n69\n \n\n  \n\n \n\n \n\n \n\nBalance as of December 31, 2023\n\n  \n\n \n\n15,079\n\n \n\nOther comprehensive income\n\n  \n \n10,460\n \n\n  \n\n \n\n \n\n \n\nBalance as of December 31, 2024\n\n  \n\n \n\n25,539\n\n \n\n  \n\n \n\n \n\n \n\nOther comprehensive loss\n\n  \n \n(22,934\n) \n\nBalance as of December 31, 2025\n\n  \n\n \n\n2,605\n\n \n\n  \n\n \n\n \n\n \n\nBalance as of December 31, 2025 (US$)\n\n  \n\n \n\n373\n\n \n\n  \n\n \n\n \n\n \n\n \n\n20.\n\nAcquisition of\nnon-controlling\ninterests\n\nThe Group, via Ehang GZ, held 60% interest in EHang Egret GD, which in turn held 60% interest in Xi’an EHang Egret Media Technology Co. Ltd. (“EHang Egret Xi’an”). In March 2023, to further develop the aerial media solutions business under the brand of “Egret” of Ehang Egret GD, the Group entered into an agreement to acquire 40% interest of EHang Egret GD from the\nnon-controlling\nshareholder and dispose of 60% equity interests in EHang Egret Xi’an to the same\nnon-controlling\nshareholder. Total consideration was RMB10,711, comprising of cash consideration of RMB4,000 and the Group’s share of net asset value in EHang Egret Xi’an amounting to RMB6,711, including cash of RMB2,920. The difference between the total consideration and\nnon-controlling\ninterest was charged to additional\npaid-in\ncapital. Total cash outflow for the acquisition was RMB6,920.\n\nUpon completion of the transactions, Ehang GZ holds 100% interest of EHang Egret GD and no longer had any interest in Ehang Egret Xi’an. Subsequently, Ehang Egret Xi’an eliminated “Ehang” and “Egret” in its name and did not have further business with the Group.\n\n \n\n21.\n\nLoss Per Share\n\nThe following table sets forth the computation of basic and diluted net loss per share for the following periods:\n\n \n\n \n  \n\nFor the year ended December 31,\n\n \n\n \n  \n\n2023\n\n \n \n\n2024\n\n \n \n\n2025\n\n \n \n\n2025\n\n \n\n \n  \n\nClass A\n\n \n \n\nClass B\n\n \n \n\nClass A\n\n \n \n\nClass B\n\n \n \n\nClass A\n\n \n \n\nClass B\n\n \n\n \n  \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nRMB\n\n \n \n\nUS$\n\n \n \n\nRMB\n\n \n \n\nUS$\n\n \n\nNumerator:\n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet loss attributable to EHang Holdings Limited\n\n  \n \n(204,787\n) \n \n \n(96,913\n) \n \n \n(163,038\n) \n \n \n(66,738\n) \n \n \n(202,541\n)\n \n \n(28,963\n)\n \n \n(73,436\n)\n \n \n(10,502\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nNet loss attributable to EHang Holdings Limited’s ordinary shareholders\n\n  \n\n \n\n(204,787\n\n) \n\n \n\n \n\n(96,913\n\n) \n\n \n\n \n\n(163,038\n\n) \n\n \n\n \n\n(66,738\n\n) \n\n \n\n \n\n(202,541\n\n)\n\n \n\n \n\n(28,963\n\n)\n\n \n\n \n\n(73,436\n\n)\n\n \n\n \n\n(10,502\n\n)\n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nDenominator (in thousands of shares):\n\n  \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted-average number of ordinary shares outstanding – basic and diluted (in thousands of shares)\n\n  \n\n \n\n82,467\n\n \n\n \n\n \n\n39,027\n\n \n\n \n\n \n\n95,340\n\n \n\n \n\n \n\n39,027\n\n \n\n \n\n \n\n107,638\n\n \n\n \n\n \n\n107,638\n\n \n\n \n\n \n\n39,027\n\n \n\n \n\n \n\n39,027\n\n \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\nLoss per share – basic and diluted\n\n  \n\n \n\n(2.48\n\n) \n\n \n\n \n\n(2.48\n\n) \n\n \n\n \n\n(1.71\n\n) \n\n \n\n \n\n(1.71\n\n) \n\n \n\n \n\n(1.88\n\n) \n\n \n\n \n\n(0.27\n\n) \n\n \n\n \n\n(1.88\n\n) \n\n \n\n \n\n(0.27\n\n) \n\n  \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n \n\n \n\n \n\n \n\n \n\nF- 6\n2\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n21.\n\nLoss Per Share (Continued)\n\n \n\nThe Company had potential dilutive securities such as unvested RSUs and options granted. As the Group incurred losses for the years ended December 31, 2023, 2024 and 2025, these potential ordinary shares were anti-dilutive and excluded from the calculation of diluted net loss per share of the Company. The weighted-average numbers of\nnon-vested\nRSUs and\nnon-vested\nshare options excluded from the calculation of diluted net loss per share of the Company were 2,606,391, 9,771,921 and 8,861,587 as of December 31, 2023, 2024 and 2025, respectively.\n\n \n\n22.\n\nRestricted Net Assets\n\nThe Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiary and the VIEs. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries, the VIEs only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries and VIEs.\n\nPrior to January 1, 2025, in accordance with the laws applicable to China’s Foreign Investment Enterprises, the Group’s subsidiaries registered as WFOEs have to make appropriations from its\nafter-tax\nprofit (as determined under the PRC GAAP) to reserve funds including general reserve fund, and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the\nafter-tax\nprofits calculated in accordance with PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the company. Appropriation to the staff bonus and welfare fund is made at the discretion of the company. With effect from\n\nJanuary 1, 2025, no appropriations shall\n\nbe made to the general reserve fund, the enterprise expansion fund or the staff welfare and bonus fund. Any distribution of profit shall comply with the Company Laws of the PRC. For the years ended December 31, 2023, 2024 and 2025, the WFOEs made appropriations to general reserve fund and statutory surplus fund of nil, nil and RMB1,421 (US$203), respectively.\n\nAdditionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide statutory surplus fund at least 10% of its annual\nafter-tax\nprofits until such statutory surplus fund has reached 50% of its registered capital based on the enterprise’s PRC statutory financial statements. A domestic enterprise is also required to provide discretionary surplus fund, at the discretion of the board of directors, from the net profits reported in the enterprise’s PRC statutory financial statements. The aforementioned reserve funds can only be used for specific purposes and are not distributable as cash dividends.\n\nForeign exchange and other regulations in the PRC may further restrict the Group’s VIEs from transferring funds to the Company in the form of dividends, loans and advances. Amounts restricted include\npaid-in\ncapital and statutory reserves of the Group’s PRC subsidiaries and the equity of the VIEs, as determined pursuant to PRC generally accepted accounting principles. As of December 31, 2025, restricted net assets of the Company’s PRC subsidiaries and the VIEs was RMB201,401 (US$28,800).\n\nFor the year ended December 31, 2025, the Company performed a test on the restricted net assets of its consolidated subsidiaries and VIEs in accordance with Securities and Exchange Commission Regulation\nS-X\nRule\n4-08\n(e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets do not exceed 25% of the consolidated net assets of the Company as of December 31, 2025 and the condensed financial information of the Company are not required to be presented.\n\n \n\nF- 6\n3\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n23.\n\nFair Value Measurements\n\nFair value measurements on a recurring basis\n\nAssets measured or disclosed at fair value on a recurring basis as of December 31, 2024 and 2025 are summarized below:\n\n \n\n \n  \n\nFair Value Measurements as of December 31, 2024 using\n\n \n\n \n  \n\nQuoted Price in\nActive Market\nfor Identical\nAssets\n\n \n  \n\nSignificant\nOther\nObservable\nInputs\n\n \n  \n\nUnobservable\nInputs\n\n \n  \n\nTotal\n\n \n\n \n  \n\n(Level 1)\n\n \n  \n\n(Level 2)\n\n \n  \n\n(Level 3)\n\n \n  \n\nfair value\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n\nFair value measurement\ns\n\n  \n\n  \n\n  \n\n  \n\nDerivative assets\n– foreign exchange forward contracts\n\n  \n \n— \n \n  \n \n8\n \n  \n \n— \n \n  \n \n8\n \n\nShort-term investments\n\n  \n \n119,928\n \n  \n \n393,755\n \n  \n \n— \n \n  \n \n513,683\n \n\nDebt security investment\n\n  \n \n— \n \n  \n \n— \n \n  \n \n2,348\n \n  \n \n2,348\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal asset\ns\nmeasured at fair value\n\n  \n\n \n\n119,928\n\n \n\n  \n\n \n\n393,763\n\n \n\n  \n\n \n\n2,348\n\n \n\n  \n\n \n\n516,039\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\n \n\n \n  \n\nFair Value Measurements as of December 31, 2025 using\n\n \n\n \n  \n\nQuoted Price in\nActive Market\nfor Identical\nAssets\n\n \n  \n\nSignificant\nOther\nObservable\nInputs\n\n \n  \n\nUnobservable\nInputs\n\n \n  \n\nTotal\n\n \n\n \n  \n\n(Level 1)\n\n \n  \n\n(Level 2)\n\n \n  \n\n(Level 3)\n\n \n  \n\nfair value\n\n \n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n  \n\nRMB\n\n \n\nFair value measurement\ns\n\n  \n\n  \n\n  \n\n  \n\nDerivative assets\n– foreign exchange forward contracts\n\n  \n \n—\n \n  \n \n314\n \n  \n \n—\n \n  \n \n314\n \n\nShort-term investments\n\n  \n \n224,327\n \n  \n \n618,905\n \n  \n \n—\n \n  \n \n843,232\n \n\nDebt security investment\n\n  \n \n—\n \n  \n \n—\n \n  \n \n14,687\n \n  \n \n14,687\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nTotal asset\ns\nmeasured at fair value\n\n  \n\n \n\n224,327\n\n \n\n  \n\n \n\n619,219\n\n \n\n  \n\n \n\n14,687\n\n \n\n  \n\n \n\n858,233\n\n \n\n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n  \n\n \n\n \n\n \n\nThe Group values its derivative instruments using the redemption forward rate by the issuing financial institutions that are not market observable inputs, and accordingly the Group classifies the valuation techniques that use these inputs as Level 2.\n\nThe fair value of short-term investments with observable inputs are determined based on unadjusted quoted prices in active market, while the fair value of short-term investments without fully observable quoted price are measured using the market approach, based on quoted prices for identical or similar instrument and other significant inputs derived from or corroborated by observable market data. The Group classifies the valuation techniques that use the unadjusted quoted prices as Level 1 of fair value measurements, and classifies the valuation techniques that use market approach as Level 2.\n\nDebt security investment did not have readily determinable market values and are categorized as Level 3 in the fair value hierarchy. The Group used a combination of valuation methodologies, including the equity allocation model, market and income approaches based on the Group’s best estimate, which were determined by using information including but not limited to the pricing of recent rounds of financing of the investees.\n\n \n\nF- 6\n4\n\n[Table of Contents](#toc)\n\nEHANG HOLDINGS LIMITED\n\nNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)\n\n(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),\n\nexcept for number of shares and per share data)\n\n \n\n \n\n23.\n\nFair Value Measurements (Continued)\n\n \n\nFair value measurements on\nnon-recurring\nbasis\n\nThe Group measures investments without readily determinable fair values on a\nnon-recurring\nbasis when changes in fair value can be determined based on observable and relevant market information. Related adjustments, primarily those related to impairment, are recorded as appropriate based on such observable information. Observable price changes generally result from new financing rounds of the investees. The Group determines whether the securities issued in these new financing rounds are similar to the equity securities it holds by comparing the rights and obligations associated with each. If the securities issued in the new financing rounds are determined to be similar to those held by the Group, it directly uses or adjusts the observable price of the similar security to determine the adjustment amount to be recorded. Investments for which the Group directly applies a qualifying observable price are classified within Level 2. Those measured using a combination of valuation methodologies, including the backsolve method based on an equity allocation, are categorized within Level 3.\n\nFor the years ended December 31, 2023, 2024 and 2025, the Company recorded investment income of nil, nil and RMB8,624 (US$1,234), respectively, from the fair value gain on investments without readily determinable fair values. No impairment losses were recognized on these investments in any of the presented years.\n\nThere were\n\nno\n\nother assets or liabilities measured at a recurring or\nnon-recurring\nbasis as of December 31, 2024 and 2025. The Group measures certain financial and\nnon-financial\nassets, including long-lived assets, at fair value on a non-recurring basis when impairment charges are recognized.\n\n24.\n\nCommitments and Contingencies\n\n \n\n(a)\n\nCapital Commitments\n\nProperty, plant and equipment commitments\n\nThe Group’s capital commitments primarily relate to commitments in connection with the improvement of its office building. Total capital commitments contracted but not yet reflected in the financial statements amounted to RMB10,184 and RMB30,064 (US$4,299) as of December 31, 2024 and 2025, respectively. Almost all of the commitments relating to the improvement of the office building are to be fulfilled within one year.\n\nInvestment commitments\n\nThe Group’s investment commitments primarily relate to capital contribution obligations under certain arrangements. The total investment commitments contracted but not yet reflected in the consolidated financial statements amounted to RMB3,150 and RMB29,880 (US$4,273) as of December 31, 2024 and 2025. As of December 31, 2025, capital contribution obligations of RMB20,880 (US$2,986) are to be fulfilled within one year and RMB9,000 (US$1,287) are to be fulfilled over one year.\n\n(b)\n\nContingencies\n\nThe Group is subject to legal and regulatory actions that arise from time to time. The assessment as to whether a loss is probable or reasonably possible, and as to whether such loss or a range of such loss is estimable, often involves significant judgment about future events, and the outcome of litigation is inherently uncertain. The Group is currently not in any legal or administrative proceedings that may have a material adverse impact on the financial position, results of operations or cash flows of the Group.\n\n25.\n\nSubsequent Events\n\n \n\n(a)\n\nGrant of RSUs and Share Options\n\nIn March 2026, the Company’s Board of Directors has granted 2,100,000 RSUs and 2,680,000\n\nshare options to executives and employees under the 2019 Share Incentive Plan and the 2023 Share Incentive Plan. The fair value of RSUs and share options granted are US$9,587 and US$12,234, respectively.\n\n \n\n(b)\n\nInvestment in a limited partnership\n\nIn February 2026, the Group entered into a subscription agreement with a limited partnership to become a general partner and paid total consideration of RMB12,500\n\n. Management is still in progress assessing the accounting impact for this investment.\n\n \n\nF\n- 6\n5"}