EH · EHang Holdings Limited

EHang Holdings Limited's Form 6-K/A discloses material errors in revenue recognition for 2025 interim and annual periods, stemming from collectibility issues on certain customer orders under ASC 606. The company determined it was not probable to collect substantially all consideration, leading to revenue reversals and corresponding adjustments to accounts receivable, contract liabilities, and costs. This cascades into corrections for warranty provisions, expected credit losses, VAT, and income taxes. Key impacts include Q2 revenues dropping 23% from previously reported 147,162 to 113,321 RMB thousands, worsening the net loss to 102,959 RMB thousands and EPS to -0.71 RMB per ordinary share. Full-year revenues fell 18% to 417,981 RMB thousands, with net loss expanding to 276,411 RMB thousands and EPS to -1.88 RMB. Balance sheet effects show accounts receivable net reduced significantly—to 111,670 RMB thousands at year-end from 210,412—while total assets declined to 1,991,533 RMB thousands and shareholders' equity to 1,068,342 RMB thousands. Investors are explicitly warned against relying on prior 6-K disclosures, including all financial highlights and statements. The restatement also affects the Form F-3ASR shelf registration, with the company losing well-known seasoned issuer status ahead of its 20-F filing, restricting future securities offerings without SEC approval of a post-effective amendment. This raises concerns over internal controls, revenue quality, and customer credit risk in EHang's eVTOL operations.