MUNICH - Lilium (NASDAQ: LILM), a European electric vertical take-off and landing (eVTOL) jet developer, has established its Asia-Pacific (APAC) regional headquarters in China's Bao'an District, Shenzhen. This move follows a collaboration agreement with the local authorities and is part of the company's broader strategy to penetrate the Chinese and Asia-Pacific markets.
The establishment of the regional headquarters in Bao'an District is a strategic step for Lilium, aiming to support sales, services, and support for the Lilium Jet in the region. The company also plans to undertake certification and validation processes in China, a market expected to represent approximately 25 percent of the global eVTOL market.
Lilium's presence in the Bao'an District aligns with the district's ambition to develop its low altitude economy, with the eVTOL manufacturer contributing to the creation of new employment opportunities in the area. Local recruitment is anticipated to commence within the year, focusing primarily on commercial roles.
Yong Ni, a representative of the Bao'an District, expressed pride in welcoming Lilium, highlighting the partnership's potential to foster new opportunities and support the development of infrastructure necessary for sustainable regional aviation in Shenzhen.
Klaus Roewe, CEO of Lilium, noted China's significant potential for the eVTOL industry and the partnership's role in expanding Lilium's footprint in the country. Roewe acknowledged the district's support and the modern facilities provided, which are expected to encourage growth in the low altitude economy industry.
Lilium, which began producing its Lilium Jet at its headquarters near Munich, Germany, targets the first piloted flight by the end of 2024. The company, founded in 2015, aims to provide a sustainable and accessible mode of high-speed regional transportation with zero operating emissions.
The information in this article is based on a press release statement.
In other recent news, Lilium N.V., an all-electric vertical take-off and landing (eVTOL) jet developer, has raised a total of $114 million in a mix of public and private funding. The raised capital, which includes $40 million in a public offering and $50 million from private placements, will be used to fund the company's operations and upcoming first manned flight test. Investors in the funding round include strategic partners like BIT Capital, Earlybird Venture Capital, and Aceville Pte. Limited, an affiliate of Tencent Holdings (OTC:TCEHY).
In other developments, Canaccord Genuity has revised its stock price target for Lilium to $2.00, down from its previous $3.00, following the company's recent capital raise. Despite the reduction, the firm maintains a positive outlook for Lilium, anticipating future equity raises and the potential for pre-delivery payments from customers in the coming years.
Additionally, in a significant move towards sustainable air travel, Lilium has partnered with UrbanV and Aéroports de la Côte d’Azur (ACA) to establish a network of vertiports across the French Riviera by 2026. The network aims to connect key destinations, including Monaco, Nice, Cannes, and Marseille, promoting environmental sustainability and enhancing regional air mobility. The collaboration is expected to integrate eVTOLs into the existing transport infrastructure, with the Lilium Jet offering a low noise, fully electric air travel solution.
InvestingPro Insights
As Lilium (NASDAQ: LILM) expands its global footprint by establishing its Asia-Pacific headquarters in China, the company's financial health and stock performance remain key considerations for investors. According to InvestingPro data, Lilium currently holds a market capitalization of $514.91 million USD. The company's recent financial performance shows a Price/Book ratio for the last twelve months as of Q4 2023 at 12.86, which indicates a high valuation relative to the company's book value. Operating income, adjusted for the same period, was reported at -$299.67 million USD, reflecting significant operational losses.
InvestingPro Tips highlight several aspects of Lilium's business that investors may find pertinent. The company holds more cash than debt, which can provide flexibility and resilience. However, two important concerns are that Lilium is quickly burning through its cash reserves and has weak gross profit margins, which could be challenging for its long-term financial sustainability. Additionally, analysts do not anticipate the company will be profitable this year, and the stock price has been quite volatile, with a 6-month price total return as of mid-2024 showing a decrease of -39.42%.
For those interested in a deeper analysis of Lilium's financials and future prospects, there are additional InvestingPro Tips available. A total of 15 tips can be accessed, providing a comprehensive view of the company's financial health and market potential. Subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes these valuable insights. The next earnings date for Lilium is scheduled for June 11, 2024, which will be a pivotal moment for investors to assess the company's progress towards its strategic goals in the APAC region.
Investors and interested parties can follow Lilium's financial journey and obtain more detailed analytics by visiting InvestingPro at: https://www.investing.com/pro/LILM.
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