Chinese AAM Leader Demonstrates Confidence with New UAM Facility in Hefei and Continued Progress Toward Mass Production of Passenger Drones
by DRONELIFE Staff Writer Ian J. McNabb
Guangzhou-based advanced air mobility company EHang recently announced that their board of directors had pproved a Share Repurchase Program, pursuant to which the Company may repurchase up to US$30 million of its American Depositary Shares (“ADSs”) or ordinary shares over the next 12 months.
This move signals confidence for the Chinese AAM developer, who recently announced a new UAM (unmanned air mobility) center at Luogang Central Park in Hefei, the capital of Anhui province. The facility, designed for 10-20 EH216-S unmanned passenger drones, includes passenger waiting, boarding, and ticketing areas, will also include educational facilities for the local community. It will begin operations after the Civil Aviation Authority of China issues an operating license, which is projected to be within the next year.
Mr. Huazhi Hu, Founder, Chairman and CEO of EHang, commented, “This Share Repurchase Program underscores our confidence in EHang’s long-term growth potential as well as our capability in continuously delivering value to our shareholders. Looking ahead, we remain focused on advancing our leadership in providing safe, pilotless, and sustainable eVTOL solutions in the Urban Air Mobility sector, while maintaining a disciplined approach to capital allocation to ensure sustainable growth and profitability.”
The press release contained the following disclaimer, saying, “The Company’s proposed repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable federal securities laws, including Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and amount of any share repurchases under the Share Repurchase Program will be determined by the Company’s management at its discretion based on ongoing assessments of price, trading volume and general market conditions, along with the Company’s working capital requirements, general business conditions and other factors. The Company expects to fund repurchases made under this program from its existing cash balance and cash generated from operations.”
This spring, EHang announced that they had received permission from the civil air authority to begin mass-production of their EH216-S AAM vehicle. Other recent announcements include successful flight testing in Guangzhou and Hefei, making them a leader in the Chinese AAM space and a company to watch as air taxis and other small aircraft begin to enter global airspace.
More information on EHang is available here.
Miriam McNabb is the Editor-in-Chief of DRONELIFE and CEO of JobForDrones, a professional drone services marketplace, and a fascinated observer of the emerging drone industry and the regulatory environment for drones. Miriam has penned over 3,000 articles focused on the commercial drone space and is an international speaker and recognized figure in the industry. Miriam has a degree from the University of Chicago and over 20 years of experience in high tech sales and marketing for new technologies.
For drone industry consulting or writing, Email Miriam.
TWITTER:@spaldingbarker
Subscribe to DroneLife here.
Leave a Reply