According to the prospectus, Yihang UAV is an intelligent autonomous aircraft technology innovation company, which provides solutions for customers in the fields of passenger transport, logistics, smart city management and air media through the design, development, manufacturing, sales and operation of autonomous aircraft (AAV).
In January 2016, Yihang UAV released the worlds first manned AAV model ehang184 at CES (International Consumer Electronics Exhibition); in March 2018, Yihang UAV delivered the first two seater AAV ehang216 to customers for test training and demonstration purposes. In addition, Yihang UAV has launched a number of non passenger autopilot aircraft suitable for industrial or commercial use.
By the time of the prospectus, a total of 38 manned AAVS have been delivered for testing, training and demonstration purposes, and 28 outstanding orders for manned AAVS have been placed. At the same time, two command and control centers for smart city management have been developed.
As of September 30, 2019, the R & D team of Yihang UAV consists of 125 members, accounting for more than half of all employees of the company, including many experts in electrical engineering, aviation engineering, mechanical engineering, automation, material engineering and software development; in the same period, Yihang UAV has 138 authorized patents in China, including core technologies such as flight control and command and control system.
In terms of financial data, in 2017 and 2018, the operating revenue of Yihang UAV was 31.7 million yuan and 66.49 million yuan respectively, with a year-on-year increase of 109.8%; the net loss was 86.58 million yuan and 80.46 million yuan respectively, with a year-on-year decrease of 7.1%.
From the perspective of revenue structure, air traffic solutions have become the core revenue source of Yihang UAV, which mainly includes sales revenue and logistics service revenue of manned AAV, accounting for 73.7% of the revenue in the first half of 2019, while this figure is only 6.1% in the first half of 2018. Correspondingly, the proportion of revenue of smart management city and air media decreased significantly, the former from 48.5% in the first half of 2018 to 0.4% in the same period of 2019, and the latter from 43.4% in the first half of 2018 to 24.0% in the same period of 2019.
In the current disclosed shareholder structure, Hu Huazhi, founder and CEO of Yihang UAV directly holds 45.6%, Xiong Yifang, co-founder and CMO, holds 3.4% and Liu Jian, CFO, holds 1.3%. Among institutional investors, GGV Jiyuan capital and Zhenge capital respectively hold 10.8% and 7.6% shares, with Jenny, managing partner of GGV, as the director of the company.
Yihang said that the funds raised from the IPO will be mainly used in five aspects, including further research and development of products, services and technologies; sales and marketing, including the development of global sales channels; continued expansion of production capacity; development of urban air traffic solutions; and potential strategic investment and acquisition.