EHang Holdings (EH 16.44%) was on a high at the end of the trading week. On Thursday, American Depositary Receipts (ADRs) exploded on the stock exchange, recording a daily gain of over 16%. This was no surprise, as the Chinese aircraft company reported a surprising net profit in the last quarter. In contrast, S&P500 The index remained flat, recording a decline of 0.8%.

Soaring in the second quarter

EHang reported a significant and strong increase in its second quarter revenue, which rose an incredible 920% year-on-year to over 102 million yuan ($14 million). In addition, the company reported non-GAAP (adjusted) net income for the period; this was 1.2 million yuan ($168,330), or 0.02 yuan ($0.01 per share). The net loss in the second quarter of 2023 was significant, at nearly 52 million yuan ($7.3 million).

With this performance, EHang nearly beat analysts’ estimates. Forecasters tracking the stock had only expected revenue of 92 million yuan ($12.9 million) and modeled an adjusted loss of 0.84 yuan ($0.12).

Much of this outperformance was due to sheer volume, as a number of Chinese customers placed large orders with the company. In addition, the award of three production licenses by China’s aviation authority led to a “significant increase in demand and orders,” it said.

Forecasts indicate continuation of triple-digit growth

With this tailwind, EHang expects to continue to achieve triple-digit growth. For the current (third) quarter, the company gave a revenue forecast of around 123 million yuan (US$17.3 million). If achieved, this would represent an improvement of around 330% year-on-year.