Latest news with #Hesai
The Star
3 days ago
- Automotive
- The Star
Chinese lidar maker Hesai zeroes in on South-East Asia for first overseas plant
China's Hesai Group, the world's largest maker of automotive lidar sensors, plans to open its first plant outside the mainland in Southeast Asia next year. Chief financial officer Andrew Fan said on Wednesday the Shanghai-based company recently signed a land lease for the factory, with construction set to start later this year and production in late 2026. He did not give details. The factory will supply light detection and ranging sensors – which employ laser beams to measure distances to objects – to international marques that design and assemble smart vehicles, he added. 'From the end of 2026 or early 2027, Hesai will rely on the plant in Southeast Asia to serve some of our international clients,' Fan said. 'We are building overseas plants to implement our go-global strategy.' The company's announcement came after Hesai on Tuesday reported a 46.3 per cent jump in first-quarter revenue to 530 million yuan (US$73.6 million), while its net loss narrowed 84 per cent to 17.5 million yuan. Fan said the company would generate a profit of 200 million yuan to 350 million yuan for the full year on the back of surging demand for lidar sensors by smart-car and robot makers. Hesai – whose clients include Li Auto, China's largest maker of premium electric vehicles (EVs), and Geely, owner of Volvo Cars – would deliver 1.5 million units to customers this year, he added. Last month, CEO David Li Yifan said that the company would increase its manufacturing capacity fourfold this year to 2 million units, from about 502,000 units in 2024. Fan said an escalating EV price war on the mainland would have minimal impact on Hesai's revenue. 'We firmly believe people's rising awareness about safety and rapid technology advancement in making cars more autonomous will result in stronger demand for lidar sensors,' Fan said. 'Carmakers and consumers need reliable hardware and software to ensure driving safety. They will not try to save costs on driver assistance systems.' The company also plans to set up factories in Europe, where Hesai has formed partnerships with several top carmakers to develop advanced driver assistance systems, a preliminary technology for autonomous driving. In March, Hesai announced that its products would be used in the next-generation cars of a 'leading European' assembler over the next decade, which Reuters reported was Mercedes-Benz. It was the first time that a major European carmaker had picked a Chinese lidar supplier. Hesai's overseas expansion is the latest example of Chinese automotive supply-chain vendors showcasing their superiority in technology and manufacturing. Chinese car-component makers, from EV battery producers like Contemporary Amperex Technology (CATL) to automobile safety glassmaker Fuyao Glass, were being welcomed by developed markets like Europe to establish factories, according to analysts. 'Chinese technology is spreading rapidly in the global auto industry and that [trend] has become more visible,' said Paul Gong, head of China automotive research at UBS. 'The rise of the Chinese auto sector is not only reflected in Chinese-branded cars, but also in its influence on global carmakers amid their transition to EVs and smart mobility.' On May 20, CATL completed the world's largest stock sale this year, raising HK$41 billion (US$5.23 billion), with its Hong Kong shares climbing 16.4 per cent on their trading debut. The company said it would use the proceeds to construct plants overseas. - SOUTH CHINA MORNING POST
Yahoo
5 days ago
- Business
- Yahoo
Goldman Sachs Boosts Hesai Price Target After Strong Margin Performance
Goldman Sachs revised its outlook for Hesai Group (NASDAQ:HSAI) on May 27, reiterating its Buy rating and increasing the price target from $20.40 to $23.30. According to analyst Tina Hou, Hesai's first-quarter 2025 results were impressive, with revenue meeting and net profit surpassing projections. This was primarily due to a larger gross margin and a lower operating expense. Hesai Group (NASDAQ:HSAI) exceeded Goldman Sachs' expectation of 39.5% with a gross margin of 41.7% for the quarter, a 3.0 percentage point increase from the previous year. The increase in revenue from engineering services was primarily responsible for this improvement. Hesai's revenue guidance for the second quarter of 2025 was also 3% higher than Goldman Sachs' earlier projections. The anticipated revenue of RMB 680 million to RMB 720 million is a notable rise year-over-year and quarter-over-quarter. Hesai Group (NASDAQ:HSAI) is a Chinese technology company that develops and markets lidar devices, including sensors. Its products are mostly utilized in the industrial, robotics, ADAS, and vehicle automation industries. While we acknowledge the potential of HSAI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HSAI and that has 100x upside potential, check out our report about the cheapest AI stock. Read Next: and Disclosure: None.
Yahoo
6 days ago
- Business
- Yahoo
Q1 2025 Hesai Group Earnings Call
Yuanting Shi; Head of Capital Markets; Hesai Group Yifan Li; Chief Executive Officer, Co-Founder, Director; Hesai Group Andrew Fan; Chief Financial Officer; Hesai Group Tina Hou; Analyst; Goldman Sachs Jessie Lo; Analyst; BofA Global Research Tim Hsiao; Analyst; Morgan Stanley Jia Lou; Analyst; BOCI Chunsheng Xie; Analyst; Huatai Operator Hello, ladies and gentlemen, thank you for standing by. Welcome to Hesai Group's first-quarter 2025 earnings conference call. (Operator Instructions) Please note that today's conference call is being recorded. I will now turn the call over to our first speaker today, Yuanting Shi, the company's Head of Capital Markets. Please go ahead. Yuanting Shi Thank you, operator. Hello, everyone. Thank you for joining Hesai Group's first-quarter 2025 earnings conference call. Our earnings release is now available on our IR website at as well as our newswire services. Today, you'll hear from our CEO, Dr. David Li, who will provide an overview of our recent updates. Next, our CFO, Mr. Andrew Fan, will address our financial results before we open the call for questions. Before we continue, I refer you to the safe harbor statement in our earnings press release, which applies today's call as we will make forward-looking statements. Please also note that the company will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported on a GAAP in our earnings release and SEC filings. With that, I'm pleased to turn over the call to our CEO, Dr. David Li. David, please go ahead. Yifan Li Thank you, Yuanting, and thank you, everyone, for joining our call today. Let's start with an overview of this quarter's progress. We began with a strong start in 2025, fueled by outstanding momentum in our ADAS and Robotics segment and backed by solid financial results. Our shipments more than tripled year-over-year to nearly 200,000 LiDAR units in the first quarter despite the impact of typical seasonal patterns. This explosive growth fielded an almost 50% year-over-year jump in our net revenue. Thanks to sharp execution, operational discipline and cost control we're also able to reduce our net loss by impressive 84% year over year. Meanwhile, Hesai's leadership is being recognized across the industry. For the fourth consecutive year, Euro Intelligence, a highly respected independent recent form in Europe ranked Hesai the number one global leader in automotive liner market share. According to use 2024 analysis, we rank number one in three major categories that revenue with a 33% share of the global automotive lighter market, a 26% share of the global passenger car LiDAR market and a dominant 61% share of the global robotaxi market. These achievements speak volumes at a pace at which we innovate, scale, deliver and reinforce our position at the forefront of the industry. Next, let's dive into our latest business highlights starting with an accelerating momentum in ADAS market. In the 2025 Shanghai Auto Show, one of the world's largest and the most influential events, featured over 100 vehicle models with cutting-edge LiDAR technology. Hesai stood out with 12 OEMs at the show using our LiDAR technology. And among the 2025 production models making their debut, Hesai had the highest number of model integrations. The event shows that automakers are rapidly implementing intelligent driving across their lineups and that LiDAR is fast becoming a must-have for elevating safety in everyday passenger cars. Our ATX LiDAR is the embodiment of our core belief. Safety is not optional, [Foreign Language], never second-best, [Foreign Language], and without limit, [Foreign Language]. Designed to be affordable outdoor compact and offer best-in-class performance in its pricing category, ATX has been a true champion, driving the democratization of intelligent driving. The sensor has already secured design with 12 major OEMs in May. Li Auto announced its entire L Series EV lineup will be integrated with our ATL LiDAR, a specialized variant of ATX, as standard configuration, delivering even sharper 3D perception. In addition, we recently secured a major design win with Zeekr to integrate ATX across several of its top-selling models, including a standard integration in the newly launched luxury shooting brake sedan, the Zeekr 007 GT. At the same time, ATX is extending its reach with extended partnerships, lending new design wins with Great Wall Motors' EV brand Aura, Chery's iCAR New Energy at lineup and the upcoming model from Geely, aiming at the mass market. With a rapidly growing roster of leading OEMs and flagship vehicles, ATX entered mass production in Q1 and made an immediate impact with close to 40,000 units shipped in its very first quarter on the market, [indiscernible] models such as Leapmotor's D10, the industry's first vehicle offering advanced ADAS at RMB 120,000 price point with LiDAR hardware. According to public data, Leapmotor's D10 saw over 15,000 orders within just the first hour of its launch in March, with more than 70% opting for the LiDAR-equipped version, reflecting its strong appeal in the mass market. As part of our expanded strategic relationship with Leapmotor, we've secured a landmark order for 200,000 units of ZEPATX/LiDAR, which sets to power a wide range of Leapmotor's production model starting in 2025. Internationally, we're also achieving breakthrough in addition to our exclusive design win with a top European OEM, a multiyear program across both ICE and EV platforms that extend into the next decade, we're excited to share that our business in Japan is rapidly gaining momentum. We recently secured a new proof-of-concept POC development project with a top global Tier 1 supplier headquartered in Japan. This achievement marks the first time they've joined our client portfolio and is a significant milestone in our global expansion serving as a powerful endorsement to our LiDAR technology in Japan. Hesai has been actively driving 5 POC programs with 4 top global OEMs and Tier 1 suppliers across Europe and Japan, 3 of these programs were successfully completed in the first quarter of 2025. The evaluation results from these programs will be shared with Hesai, fostering a deeper collaboration between both parties and further refine and enhance the market appeal of a product. While these POCs do not yet constitute pure design wins, they mark significant progress and we're encouraged by the positive momentum as we look ahead to the next phase of development. As domestic and international OEM demand continues to evolve across Level 2 of 3 and Level 4 platform, we took a major step forward this April with the launch of our game-changing Infinity Eye [Foreign Language] LiDAR solution, alongside 3 next-generation automotive grid LiDAR sensors. This new platform, in conjunction with these sensors, is available in 3 configurations: Infinity Eye A is dealed for high-level Level 4 autonomous systems. We achieved this by combining 4 AT1440 ultra-high definition main LiDARs with 4 solid state STX LiDARs acting as the blind-spot detector offering 360-degree coverage without blind spots. Infinity Eye B is designed for Level 3 conditional autonomy. It features 1 new ETX main LiDAR, the world's longest range automotive LiDAR, which can detect up to 400 meters at 10% reflectivity. That, paired with 2 STX LiDARs for enhanced blind spot perception. And for Level 2 ADAS applications, Infinity Eye C brings the perfect balance of performance and cost efficiency using 1 compact yet powerful ATX main LiDAR. A core feature of this new platform is a shared architecture across our AT, ET and the FT series that features more than 85% component commonality. This means faster development, lower cost and seamless scalability. These industry-leading solutions are a direct testament to our products' technical strength and our holistic approach to satisfying customer needs. Beyond delivering superior performance, we created comprehensive solutions that integrate our cutting-edge technological capabilities with cost effectiveness. As a result of the strength, we have won design wins for over 120 vehicle models across 23 OEMs worldwide. Meanwhile, the broader robotics market represents tremendous opportunities, and our LiDAR solution sits at the core of this growth. According to Goldman Sachs estimates, China's autonomous mobility market is set for explosive growth and is expected to expand over the next decade from just USD 54 million in 2025 to USD 47 billion by 2035. China is clearly on track to become the world's largest autonomous mobility market. In recent months, we've been at the forefront of a new wave of robotaxi breakthroughs across China and beyond. As the main LiDAR supplier, we're hiring mass-produced next-generation fleet for Baidu Apollo Go, DiDi, WeRide, some of which have already expanded onto the global stage. Today, we're proud to be the world's largest LiDAR supplier for robotaxis. We're also thrilled to be accelerating L4 autonomy across both long haul and last mile logistics recently. We signed new agreements to bring our ultra-high definition AT1440 sensor to CarboBox Level 4 robot. At the same time, we partnered with [indiscernible] to scale its last-mile delivery operations and the [indiscernible] to deploy its Level 4 vehicles. As Level 4 autonomy moves into commercial deployment, we're proud to be the LiDAR partner, helping customers scale smaller, safer and faster. Beyond transportation, LiDAR is unlocking a world of new possibilities, each bringing fresh opportunities to reimagine the everyday and drive incremental revenue and profit. We believe that every robot needs LiDAR as a core 3D sensor for precise positioning, mapping navigation and protection. Take our JT LiDAR, for example. It's been chosen for the next-generation robotic lawnmowers, delivering superior accuracy, stability and efficiency over traditional [indiscernible] and the camera-based systems, especially in signal challenge or visually complex environments. We also recently expanded our partnership with a leading smart home robotics company in China. Over the next 12 months, we expect to provide 300,000 JT units to this customer, generating meaningful revenue while helping transform everyday consumer products in intelligent LiDAR driven capabilities. In summary, Q1 has laid a powerful foundation for our promises to be another transformative year for Hesai. We stand at a pivotal moment where breakthrough technology needs a real market readiness. With our unmatched technology leadership and scalable production, we're leading in the industry to shape the future of mobility and we're doing it alongside customers who share our mission to make an advanced perception and safety accessible for all. Before I hand over to Andrew, I want to share some exciting news. In early May, the U.S. District Court for the District of Delaware has officially dismissed [indiscernible] patent infringement case against us with no conditions, no financial settlement and no injunctive release. This brings an end to all existing IP actions against us and reaffirm the integrity of our technology. It's a powerful validation of the strength of our IP portfolio and the years of R&D that power it. We are proud that our innovations have not only [indiscernible] legal scrutiny but have also prevailed our deep passion for technology and our wavering commitment to R&D continue to give us a real edge, and no vehicle tactics can change that. With that, I will now turn the call over to Andrew to share more details on our financial performance and outlook. Andrew, please go ahead. Andrew Fan Thank you, David, and hello, everyone. I will now go through our operating and financial figures for the first quarter of 2025. For further details beyond what I covered on this call today, I encourage listeners to refer to our earnings release. Our Q1 results highlight strong sustained momentum. Total revenues saw 46% year-over-year, reaching CNY 525.3 million or USD 72.4 million. This impressive growth was fueled by exceptional shipment performance. Nearly 200,000 units were delivered during the quarter, more than triple the volume from the same period last year. Notably, this marks our third consecutive quarter of over 150% year-over-year shipment growth, a clear reflection of both surging market demand and the strength of our operational execution. The surge in shipments was driven primarily by the rapid adoption of our ATX LiDAR among OEMs, with large-scale mass production commencing in Q1. At the same time, our JT LiDAR gained strong momentum with 45,000 units shipped in the first quarter alone, driving our robotics LiDAR shipments to nearly 50,000 units in the first quarter of 2025 with over 600% year-over-year growth. Meanwhile, our gross margin stood healthy at 42% in Q1 and we cut operating expenses by 9% year-over-year, reflecting the strength of our disciplined cost management. As a result, we narrowed our first quarter net loss by 84% year-over-year to CNY 70.5 million or USD 2.4 million while remaining non-GAAP profitable for the quarter, a performance that was significantly stronger than our earlier guidance and especially notable given that Q1 is typically a seasonally slower period. Looking ahead, we are encouraged by the strong momentum we built in Q1 and remain confident in our outlook for the rest of the year. For Q2, we are expecting net revenues of between CNY 680 million or USD 93.7 million and CNY 720 million or USD 99.2 million, which would be a 48% to 57% increase year-over-year. This forecast conservatively takes into account the current tariff environment as well as some expected short-term shifts in customer demand to Q3, mainly from U.S.-bound robotics LiDAR shipments. Despite these considerations, we are projecting total shipments of over 300,000 units in the second quarter, a substantial increase of almost 250% year-over-year. Even more encouraging we expect to reach GAAP breakeven in Q2 and remain firmly on track to hit our full year profitability targets despite navigating a dynamic tariff environment. As the global environment continues to evolve, we will remain proactive, refining our strategies to ensure minimal disruption to our long-term growth path. We are confident that our products remain highly competitive, even in a tariff-impacted landscape. And if cost adjustments are needed, we will take a measured approach to pricing always focused on delivering strong value to our customers. At the same time, we are prioritizing long-term resilience with strong momentum behind our overseas manufacturing plans to swiftly mitigate geopolitical risks and better serve our global customers. In May, we signed a lease for our new factory in Southeast Asia, a decisive first step forward. To conclude, Q1 represents an exceptional start to 2025 with outstanding performance across revenue, shipments, margins and cost management. We have laid a solid foundation and are confident in our ability to sustain this positive momentum in the coming quarters. This concludes our prepared remarks today. Operator, we are now ready to take questions. Operator (Operator Instructions) Tina Hou, Goldman Sachs. Tina Hou Congrats on the strong results and strong guidance. So my question is mainly regarding our full year guidance. Since we have seen -- I think, starting from the beginning of the year, we have seen a very strong take rate for LiDAR from both premium OEMs as well as mass market ones. So wondering if we're still maintaining our annual shipment guidance for 1.2 million to 1.5 million? Or do we see more like upside from there? And also related to that, as the ADAS LiDAR portion becomes larger for our entire portfolio, how do we see the trajectory for our gross margin? And where could 2025 total company gross margin end up? Yes, that's my main question. Andrew Fan Tina, thanks for the question. Let me take this first. Regarding our 2025 full year guidance, despite the evolving tariff environment, I think we are still maintaining our 2025 revenue guidance at CNY 3 billion to CNY 3.5 billion, the total shipment remained at 1.2 million to 1.5 million and 40% in gross margin with [ CNY 200 million to CNY 350 million ] GAAP net profit for 2025. So we maintain our 2025 full year guidance unchanged. I would also like to share some information about our Q2 guidance. In the upcoming quarter -- in the current quarter, our revenue is expected to reach about CNY 680 billion to RMB 720 million, strong year-over-year growth of about 48% to 57%, driven by the rapid adoption of LiDAR in passenger vehicles in China. This forecast conservatively taking into account the current tariff environment as well as some expected short-term shifts in customer demand to Q3, mainly from the U.S.-bound robotics LiDAR shipments. In Q1, we shipped about nearly 200,000 units in total, up over 200% year-on-year. We expect the shipments to continue accelerating through the year, with 2Q shipments reaching over 300,000 units. The ATX LiDAR, which has a market price at around $200, entered the mass production in Q1 and is ramping up shipments in Q2, expected to account for about 50% to 60% of total deliveries in Q2. With all these ATX LiDAR shipments in consideration, our GP margin is expected to remain healthy at around 40%. As you can tell from our Q1 gross profit margin, with the ATX ramping up, our quarter-over-quarter margin still enjoyed a moderate improvement. Therefore, we are still very positive about reaching the full year gross profit margin target. On the bottom line, despite the typical seasonality in Q1, we achieved a non-GAAP profitability and significantly narrowed our GAAP net loss by 84% for Q1, well above our previous guidance. We anticipate a further quarter-over-quarter improvement in Q2, reaching breakeven point on a GAAP level. That's my responses to the questions of Tina. Hopefully, that can address the question you just mentioned. Tina Hou Yes, that's very clear. Operator Jessie Lo, Bank of America. Jessie Lo My question is regarding to the ADAS LiDAR ASP trend. As we currently supply ATX or ATL and also existing ATP product to our clients, and then after we migrate to AT1440 and also ET, and even potentially like next year for the overseas clients, how do you foresee this ADAS LiDAR ASP trend? Andrew Fan Thank you, Jessie. Regarding we -- starting from Q1, since our product mix has started to shift meaningfully with the ramp-up of ATX mass production our blended average ASP will be naturally brought down. But it doesn't tell the full story, it's more helpful to look at the ASP volume trends by products. For 2025, we have 3 variations of the AT series in production. First, our ATP LiDAR will see a moderate ASP decline in the low teens year-over-year, reaching around $350 in year 2025. The ATP is expected to account for a low 6-figure shipment volume in 2025 with production scheduled to conclude by end of this year. Then we will have the Ultra House performance AT LiDAR built for A3 application -- L3 applications, which carries a higher ASP of about $500 but is being shipped in relatively smaller volume this year. We expect large-scale shipments of 8 of these high-performance LiDAR to ramp up starting 2026. Lastly, our ATX LiDAR, most cost-efficient compact version with a market price at $200, it started mass production in Q1 and has already adopted -- has been adopted as a standard feature for many popular car models. For large volume orders, customers typically receive a modest discount of the market price, a common practice across the supply chain industry. While the ATX brings down the blended ASP, it opens up much larger volume potential. We project ATX to shift in the high 6-digit range, possibly up to 1 million units in year 2025. At present, we do not anticipate new market products pricing another half of the ATX. For the foreseeable future, the ATX will remain our flagship long range from LiDAR, offering high cost performances. Overall, while the mix is shifting, we believe LiDAR content per vehicle will remain stable in the long run given its irreplaceable safety and functional value. With the adoption of L3 driving the need for multiple LiDAR units per vehicle to enable 360-degree coverage, we expect LiDAR content per vehicle to stay in the range of $500 to $1,000. Jessie, that's my response to your question. Jessie Lo And then I have a second question regarding our capacity and CapEx. So earlier in the last conference call, we mentioned that towards end of this year, we will be expanding our capacity in domestically to 2 million units. So could you share some of the progress on that capacity expansion? And then on top of that, you also mentioned that we just signed a lease in DBAsia. And then what's currently like CapEx will look like for the Southeast Asia capacity and also the total production units and potential like profitability from this overseas plants. Andrew Fan Okay. So as of now, as you just mentioned, we have about 2 million production capacity guided by end of this year. To give you an update on that, we are building up new production lines starting from Q1, which will begin mass production in Q3. Therefore, this 2 million production capacity is being installed on track. Also, on top of that, we have more production lines in the planning stage, which might start building up in this year, and it typically takes us 4 to 5 months to set up a new production line in China. Our operations are very lean and efficient. Meanwhile, I would also want to comment on our overseas expansion plans. We are making good progress on our overseas manufacturing plants, which are a key part of strengthening our long-term resilience under the current geopolitical environment. To better manage the risk and support our global customers more effectively, we have signed a lease contract for our new overseas factories in May, making a key step forward. We plan to break ground later this year and expect the facility to be up and running by late 2026 or early 2027 to support the demand of our overseas customers. Our highly automated production technology enables us to set up an overseas production line with controlled and efficient CapEx. To summarize, we expect that our 2025 CapEx should be around USD 30 million to USD 50 million in total. Go ahead, David. Yifan Li Yes, this is David. I want to give you some insight on the ASP. So there are really 2 ways to reduce or improve the cost structure of our products. The first one, I think it's by design. It's really the integrated circuits, ASIC, and it's really the innovation. So for each generation, obviously, we designed that roughly 2 years ahead of the shipment and then -- for domestic market. And the way we look at it is that, okay, we think about the volume, we think about where we should reach at the price, and we sort of reverse that back into the cost structure. And by that time, we already factor in how many were expected to ship for the lifetime of the product, at least for the first 2, 3 years. So that's why if you look at the results of the ASP, it's very predictable, right? It starts with above $500 and slowly decline, but it's within the expectation because we already designed the cost structure based around that. The second reason is that it's still the economies of scale. As you can see, the ATX and ATL product, where we're shipping this year, the volume is much higher than ATP, and then it will grow to another level next year with very high certainty. That's where we see slow decline of the ASP similarly with products like ETX. But you will not be able to expect a decline. That's all linked to the range of halving that simply because, if you look at the original design architecture of such a product, it will have a slow decline on ASP, but it doesn't have the room to continue to the 50% level that isn't designed. So that's how we see the price will change down the road. Operator Your next question comes from Tim Hsiao from Morgan Stanley. Tim Hsiao I've got 2 questions. The first 1 is about the competition because we noticed that [indiscernible] like peers, is reportedly winning the project from the brands like Xiaomi and Leapmotor, which I think both are Hesai's key clients. So is the management team concerned about the potential reshuffles as I think your company used to be the sole supplier to the top-notch car EV makers like Xiaomi? And what's the implication to our orders and the potential price competition? That's my first question. Andrew Fan Okay. Thank you, Tim. We do not want to comment on our market speculations because ultimately, orders and official announcements speak for themselves. The LiDAR industry has been a very competitive arena since its inception. And currently, only few players possess massive production capabilities. Hesai's products have earned a strong reputation for the performance, quality and reliability over time. Notably, we have observed a consistent trend of our ADAS customers switch from our competitors, which underscores Hesai's robust competitive edge. I would say winning contract doesn't mean mass production and doesn't mean they can generate a meaningful revenue from these contracts. Strategically, we chose to collaborate with high-quality promising clients to ensure a reasonable pricing and maintain healthy financials. Our customer bases comprise top-tier OEMs, reflecting our commitment to quality partners. Unlike the Internet industry, the LiDAR vector requires long-term perspective. Our goal is to build a sustainable industry, avoiding short-term gains at the expense of long-term viability. Achieving a win-win scenario with our clients is our ultimate objective. Yifan Li This is David. I think it's kind of unfair for Andrew to ask Andrew to comment on competitors, especially [indiscernible]. So maybe I'll offer some of my market information. I imagine you are aware of that, which you mentioned. I think it's -- the speculation is always maybe difficult for an existing vendor like us to prove the negative. I think it's in every customer's best interest to continue to understand what's available on the market. And they do. Everyone does that. It's just a common practice. But in the end, you have to provide your unique value proposition for your quality, your performance in enterprising as a combo, especially when you already are an incumbent player for OEMs. There's a lot of inertia in this in terms of the data compatibility. And also their vehicles are designed around your sensor, so there is a pretty high bar for a second vendor to be able to step in, especially during a phase where everybody is rushing to upgrade their products to the smaller, better sensor to take it to the next level. So the answer is we're actually aware of it. In the end, you should refer to the announcement of the OEM to know what's really going on. And I would not just make decisions or circulation based on rumors. Tim Hsiao My second question is about the new products because during the presentation, I think David also mentioned about new solutions, the Infinity Eye. So just want to get a little bit more color about when do you think the shipments or mass reduction will start and the potential coin rings. And of course, the value content would be much higher, but do you have the rough idea about the rough range of content and the margin for this new solution. Yes, that's my second question. Andrew Fan Okay. I'll first provide like a response to the question about our launch of Infinity Eye. We are very proud to be the first provider of full stack L2 to L4 LiDAR solutions. We have seen very encouraging feedback from our OEM customers since the launch of our new Infinity Eye. One of its key strengths is its flexibility. Infinity Eye A, B and C are built on a shared architecture but are tailored to different customer needs and system setups. Depending on the OEM's vehicle platform and software stack, each configuration can support anything from L2 all the way to L4 autonomous driving. All of our primary LiDAR sensors deliver outstanding performance, but each is optimized for specific technical priorities. The AT1440, both the world's highest angular resolution, delivering ultrahigh definition, image-level point cloud. The ETX, which is a core part of our Infinity IP solutions is engineered for superior ranging capabilities, offering best-in-class detection distances. Both AT1440 and ETX are high-performance LiDARs, each priced above $500. The ATX, which is a core component for Infinity Eye C, priced around $200, represents our cost-effective solutions, combining compact design with robust performances. The choice among them depends on the specific autonomous driving capabilities of our customers. All 3 models, i.e., AT1440, ETX and ATX are suitable for L2 to L4 applications and have all secured series production design wins. These design wins are a strong validation of the Infinity Eye solutions adaptability and technical differentiation across our LiDAR portfolio. And as we repetitively conveyed our message to the market, though we have different price ranges for our different products, but when we design the pricing, the architecture of the product and also the cost components of the product, we always aim a healthy and relatively stable gross margin targets. Therefore, as you can tell from our historical gross profit margin performances, I would like assure you that the gross profit margin will not fluctuate significantly in the future due to the change of product mix with this new products launching. Tim Hsiao Great. Congratulations on the solid results again. Operator Your next question comes from Bing Qui from [indiscernible]. This is [indiscernible]. Congratulations on the strong results and guidance. So my question is about the tariffs. Could you please share some details about the impact of tariff on pricing, supply chain, et cetera, and how to deal with this problem? Andrew Fan Okay. We are closely monitoring the situations of tariff, which is changing on a daily basis, and have conducted a thorough analysis of the potential impact. While the tariffs do introduce certain cost considerations, we believe that the impact on our overall business will be limited for 3 primary reasons. First, our direct exposure is very limited. The U.S. market is projected to account for only 10% of our total revenue in year 2025. Secondly, only 5% of our total revenue or 50% of the revenue from U.S. is under the so-called DDP terms or delivered duty paid models, where we, as the seller, bear the cost of tariffs. And thirdly, our continued focus on operational efficiency and cost control and also our market position give us the flexibility to effectively manage external challenges like those. And we have a relatively strong market position against our customers. Moreover, we have several levers, including adjusting the pricing strategies and efficiency gains, which will help absorb or offset these tariff-related costs. When we provide -- also, when we provided our profitability outlook in our last earnings call, which is March this year, we had already assumed a 45% tariff as our base case scenario. We have seen some customers front-loaded or rescheduled their orders due to the uncertainty around future policy changes, especially after April. But depending on the current shipments and the delivery schedules, this may shift some of our revenue from Q2 to Q3. That's also part of the reason why our Q2 guidance is presented as a range. For the full year, we are keeping our revenue guidance unchanged at CNY 3 billion to CNY 3.5 billion. We haven't seen our major customers canceling their orders due to these tariff changes. For the full year targets, our gross margin target remains healthy, around 40%, and we expect the current impact from tariffs on our full year gross margin and profitability to be immaterial. Yifan Li Yes, I want to also add to the tariff topic. So first is, obviously, a small percentage of our revenue today already from the U.S. And there are really 2 types of customers when they face the tariff. A small part will treat this as a -- when it was really high and they treat this as unacceptable. So they just pause. They're not canceling because they couldn't find an alternative, but they were pausing for some time until they came back down to where it is now. The other part is actually front loading more because they realize that there is risk down the road that it could go back up again or facing other challenges and they definitely don't see an easier solution just to switch over at all. So they actually try to buy more. And surprise, they're okay, and they feel like it's a reasonable number, especially now they just wanted to make sure the continuity of their supply chain is guaranteed. So that's why we also see some of the customers placing, let's call that, for lack of better word, revenge orders as we see both type of customers. Operator Jia Lou, BOCI. Jia Lou My first question is regarding our new ADAS product ATL and ATX. We noticed that our key client Li Auto newly launched models, all integrated Hesai's ATL LiDAR, which is a customized version based on ATX. But most other OEM customers all choose the standardized ATX version. So for Hesai, is there any difference between ATL and ATX in terms of ASP costs and gross margin? And in future, is this standardized ATX will remain as mainstream solutions for OEM customers or more OEMs will follow Li Auto to adopt a specialized one? Yifan Li Yes. I'll just give some after background of this product. It's a variant, but it's an enhanced and advanced version with enhanced resolution and a few other things. The main idea behind that is that, well, we wanted to keep the standardized platform. For a specific customer like Li Auto, they are very particular about the specific advanced functions of the LiDAR because that's what they see as needed as they develop their AD MAX platform. So in a way, it's a customized version for them to best match the requirements of their software. In an ideal world, maybe every customer have something look differently than others want. But in Li Auto's specific case, we have a very particular requirements that's above the standard ATX and we were able to meet that. And so that's the nature of such a product. And we don't have additional information on the price or the gross margin, but it remains largely in line with the typical platform. Jia Lou Okay. Got it. And my second question is related to the robotaxi LiDAR. Recently, we see that Baidu, DiDi, Pony, all adopt our ADAS product AT series to replace the traditional mechanic LiDAR for cost reduction. Just wondering the usage of ADAS LiDAR by these L4 players, the transitional temporary solution for robotaxi industry. Looking ahead, will Hesai will develop a specialized product series for robotaxi or will continue to sell ADAS LiDAR later to these players? Andrew Fan Okay. I'm glad that you asked this question as Hesai is the largest robotaxi LiDAR supplier globally with 60% to 70% market share. Our main LiDAR products are widely used by all the top robotaxi players in China and outside China. Historically, robotaxi operators have used the mechanical spinning LiDARs for small fleet testing and operations. However, recent trends in China indicates an urgent need for scalability in the robotaxi fleets. By adopting our flagship ADAS LiDAR on robotaxi, our customers achieve a better balance between price and the performance of the sensors, enabling faster fleet growth and helping them become closer to profitability. As a result, we are expecting to receive significantly larger LiDAR orders for use in robotaxi for the years to come. Historically, on the robotaxi side in China, we expect that moving from smaller scale, high-priced mechanical LiDARs to larger-scale ADAS LiDARs will boost our revenue and gross profit in the long run as the robotaxi business grows in China. Meanwhile, global robotaxi companies continue to rely on mechanical spinning LiDARs to ensure the highest sophistication of their AD solutions. Take this, for example, from the earnings, we are the exclusive supplier to a top global robotaxi player, and their fleet has already racked up nearly 1 million autonomous miles in 2024. Now they are gearing up for a bigger expansion in 2025, scaling their self-driving fleets in a big way, all powered by our Panda series LiDARs. With the robotaxi market rapidly advancing towards large-scale commercialization, our technology plays a crucial role in enabling safe and reliable autonomous driving -- autonomous transportation. Also, when our ATX128 or ATX type of LiDAR to be deployed in the robotaxi, these ASIC-based semisolid-state design provides a more cost-efficient solution. However, due to its 120-degree horizontal field of view, a robotaxi typically requires three to four units of our AT series LiDAR to achieve 360-degree perception, also advanced algorithm approach. So that's my response to your question. Hopefully, that can cover that. Operator Chun Xie, Huatai Securities. Chunsheng Xie My first question is about the global market. When will we deliver LiDARs to the global OEMs? And what's the impact of volume for the next 1 or 2 years? And how to estimate the NRE income from the global OEMs this year? Andrew Fan Okay. Hesai has been in active discussion and cooperation with our global customers. Recently, we have been actively driving 5 POC programs with 4 top global OEMs and Tier 1 suppliers across Europe and Japan, including the most recent POC awarded in Q1 by a top 5 global Tier 1 supplier headquartered in Japan. While these POC contracts are not yet full design wins, they play a critical role in the decision-making process. OEMs typically define final product specifications based on POC outcomes and use this phase to validate and codevelop surrounding components. As a result, suppliers engaged earlier in the POC stage are strategically positioned and may have a higher chance of securing the design win once the OEM issues a formal RFQ. We have secured design win partnerships with 5 global OEMs: 4 through their JVs; and most importantly, an exclusive design win with a top European OEM, as we announced in last quarter. This long-term deal extends into the next decade across both their ICE and EV vehicle platforms, representing the largest global program in the automotive LiDAR industry. When we refer to the largest global program, it signifies not only our collaboration with this leading global OEM but also the extensive worldwide reach of our shipments, spanning China and numerous other international markets. Our quality and performance have become our name card and our ability to deliver a comprehensive solution, bundling both long- and short-range LiDARs, makes us the go-to partner for global OEMs. The market potential is just massive. Our global LiDAR penetration is nearly 0 today. But as both ICE and EV started to adopt ADAS and LiDAR, we are unlocking an additional $30 billion to $60 billion market in the overseas market in the long run driven by 60 million overseas vehicles at a 500 to 1,000 LiDAR content per car as we estimated. That's my question to your -- that's my response to your question. Operator Your next question comes from Jiaqu Huang from SPDBI. This is [indiscernible] from SPDBI. And I've got just one question about our delisting plan. As market rumor saying that Hesai confidentially filed for Hong Kong listing, how do we respond to this? Andrew Fan Okay. Thank you for asking this question. Regarding the market speculation about our delisting plan in Hong Kong, I have no comment on that. That said, we periodically evaluate all our possible and available options, including listing on other stock exchanges to protect our investors' interest and sustain our growth trajectory. Rest assured, our commitment to the company's long-term success in the capital markets remains steadfast. I guess the reason why you asked this question or the market is so focused on this is related to the market rumors about potential delisting of China ADRs from U.S. market. But based on the advice of our SEC compliance counsels, there is no legal or factual basis on the current NASDAQ listing rules or past precedents that support the delisting of Hesai from any government bodies. To date, we have received no inquiries, no investigations nor communications from NASDAQ concerning the potential delisting or similar actions. Based on the currently available information, we do not find any concrete legal risk of being delisted from NASDAQ. At this time, we are fully compliant with all the regulatory requirements from NASDAQ market. Yifan Li Yes. We all know people will respond to a confidential filing, the entire point it's confidential. Operator Your next question comes from Joanna Ma from CMBI. Congrats on the solid results. So I have a question regarding -- could you please share with us your review on impact on LiDAR industry development from latest AEBS draft for soliciting opinion? Yifan Li I'll take it on the EV question. Yes, I think it's very important. Can you hear me? Yes. Yifan Li Yes. I think it's taking such a technology to the next level. Historically, the idea is, if you buy a car with a LiDAR, you have a few more functions, some type of NOA, blah, blah, blah, and people can always say, "No, I feel very comfortable driving my own car," or "I feel like I'm safer than the car driving itself." So that's where LiDAR was about. And then starting from last year, EV take us to a new domain in which it will trigger, no matter if you turn it on or not, if it sees a risk, essentially, it becomes a future of invisible airbag, it's even better than airbag because obviously, it can stop a crash before it crashes. So the entire penetration of EV with LiDAR became much faster than the previous round for that reason. And this is what we see. The entire LiDAR industry or the ADAS industry is now rushing to have most of the vehicles have a 100% take rate for LiDARs. Almost everybody is doing that because now you buy a car, you don't want people to see to worry about not having a LiDAR. And now we're also seeing a lot of the discussion at the regulatory level because clearly having advanced ADAS function with the ability to detect in complex environment is a must and most people agree LiDAR is a critical part of such an effort. So that's why you see the penetration rate is quickly going up. And now the marketing for different OEMs are focusing on not only in the computation, but also the LiDAR. Many, many car launches today will explicitly have a page about LiDAR adoption in their car because no one wants to be not future-proof. Okay. Got it. That's really helpful. And my second question, also can management with us your outlook on the room for operating efficiency improvements in the coming years? And also, are there any updates regarding the outlook for your CapEx? Andrew Fan Okay. Let me answer this question. The second question first, the CapEx, I have guided that we expect our full year CapEx will be around USD 30 million to USD 50 million in the current year. For the OpEx, on a non-GAAP basis, our OpEx in year 2024 is about [ $1 billion ]. And about 65% of the OpEx is R&D., and 15% goes to sales and marketing and the rest of G&A. In 2025, we actually guided that we are going to -- we expect that we are going to achieve a CNY 100 million savings in the GAAP basis OpEx. We are committed to taking expense management to the next level, ensuring even better efficiency and financial discipline. As you can tell from our Q1 results, our OpEx declined by about 9% on a quarter-over-quarter basis, which is in line or even slightly better than the full year cost saving target. Our head count for year 2025 currently is about 50% for R&D staff, 15% for production, and the remaining is the sales and marketing and G&A-related employees. Also, I would like to highlight the importance of the operating leverage. We have spent over a decade building a strong and stable organization structure, which is what we call a large mid platform with a lean front end. This allows us to scale our business without significantly increasing R&D expenses, while our revenue and gross profit grows. Therefore, we expect our R&D investments to remain relatively stable on the absolute amount, even as our revenue and gross profit continue to grow at a solid pace. Internationally, our ADAS business is still in the early stage and contributes a relatively modest share of total revenue as of today. At the end of the -- at the same time, we are allocating some of the R&D resources to support our global programs. In our robotics segment, most of the costs are tied up to our global sales network. On the product side, we are benefiting from our platform-based development, so we are not starting from scratch in each application of robotics, which help us scale more efficiently. Yes, that's my answer to the question you just raised. Okay. Got it. That's really helpful. Congrats again. Operator As there are no further questions, I'd like to now turn the conference back over to the company for closing remarks. Yuanting Shi Thank you once again for joining us today. If you have any further questions, please feel free to contact our IR team. This concludes today's call, and we look forward to speaking to you again next quarter. Thank you, and goodbye. Operator This concludes today's conference call. You may now disconnect your line. Thank you. Sign in to access your portfolio
Business Insider
6 days ago
- Automotive
- Business Insider
Hesai reports Q1 EPS RMB 0.06 vs (RMB 0.54) last year
Reports Q1 revenue RMB 525.3M vs RMB 359.1M last year. 'Hesai (HSAI) was ranked as the world's No.1 automotive lidar company by revenue market share for the fourth consecutive year in 2024, according to Yole Group-affirming our industry leadership. 2025 is off to a strong start, and we are ready to build on this momentum,' said Yifan 'David' Li, Hesai's Co-Founder and CEO. 'At the 2025 Shanghai Auto Show, one thing was clear-OEMs are all-in on intelligent driving. Our three core beliefs for lidar echo this vision-safety is not optional, never second-best, and without limits. Our ADAS lidar brings these values to life and continues to secure major design wins with new deals signed recently with Chery, Great Wall Motor, Zeekr, and Geely. Internationally, we've made rapid progress by securing a new development project with a Top 5 global Tier 1 supplier headquartered in Japan. We also empowered the Robotaxi industry as the main lidar supplier for next-generation fleets from Baidu Apollo Go, DiDi, and WeRide, while supporting the global expansion of some partners into key overseas markets. Beyond transportation, we believe every robot needs lidar as a foundational 3D sensor. Our JT series has emerged as a key enabler in this space, attracting strong interest from a wide range of Robotics customers. With accelerating adoption and expanding opportunities across the ADAS and Robotics segments, we are confident in our ability to scale our reach and unlock even greater growth in the quarters to come.'
Yahoo
7 days ago
- Automotive
- Yahoo
Hesai Group Reports First Quarter 2025 Unaudited Financial Results
Quarterly net revenues were RMB525.3 million (US$72.4 million)1Quarterly lidar shipments were 195,818 units SHANGHAI, China, May 26, 2025 (GLOBE NEWSWIRE) -- Hesai Group ('Hesai' or the 'Company'), (NASDAQ: HSAI), the global leader in three-dimensional light detection and ranging (lidar) solutions, today announced its unaudited financial results for the three months ended March 31, 2025. Management Remarks 'Hesai was ranked as the world's No.1 automotive lidar company by revenue market share for the fourth consecutive year in 2024, according to Yole Group—affirming our industry leadership. 2025 is off to a strong start, and we are ready to build on this momentum,' said Yifan 'David' Li, Hesai's Co-Founder and CEO. 'At the 2025 Shanghai Auto Show, one thing was clear—OEMs are all-in on intelligent driving. Our three core beliefs for lidar echo this vision—safety is not optional, never second-best, and without limits. Our ADAS lidar brings these values to life and continues to secure major design wins with new deals signed recently with Chery, Great Wall Motor, Zeekr, and Geely. Internationally, we've made rapid progress by securing a new development project with a Top 5 global Tier 1 supplier headquartered in Japan. We also empowered the Robotaxi industry as the main lidar supplier for next-generation fleets from Baidu Apollo Go, DiDi, and WeRide, while supporting the global expansion of some partners into key overseas markets. Beyond transportation, we believe every robot needs lidar as a foundational 3D sensor. Our JT series has emerged as a key enabler in this space, attracting strong interest from a wide range of Robotics customers. With accelerating adoption and expanding opportunities across the ADAS and Robotics segments, we are confident in our ability to scale our reach and unlock even greater growth in the quarters to come.' 'In the first quarter of 2025, we delivered strong financial and operational results, with net revenues growing nearly 50% year-over-year,' said Mr. Andrew Fan, Hesai's CFO. 'We shipped close to 200,000 lidar units—more than triple the volume from the same period last year. Notably, we significantly narrowed our net loss by 84% year-over-year to RMB17.5 million (US$2.4 million), while remaining Non-GAAP2 profitable for the quarter—a result that exceeded our earlier guidance and stands out given that the first quarter is typically a seasonally slower period.' 'With a solid foundation in place and accelerating demand across both ADAS and Robotics, we are well positioned to maintain growth momentum and remain on track to hit our full-year profitability target, despite a dynamic tariff environment.' _____________________________________1 All translations from RMB to USD for the first quarter of 2025 were made at the exchange rate of RMB7.2567 to US$1.00, the exchange rate on March 31, 2025, set forth in the H.10 statistical release of the Federal Reserve Board.2 See 'Use of Non-GAAP Financial Measures' and 'Unaudited Reconciliation of GAAP and Non-GAAP Results' included in this release for further details. : Global: Secured a new development project, specifically a Proof of Concept (POC) program, with a Top 5 global Tier 1 supplier headquartered in Japan—marking their first inclusion in Hesai's client portfolio. Hesai has been actively driving five POC programs with four top global OEMs and Tier 1 suppliers across Europe and Japan, with three successfully completed in the first quarter of 2025. Domestic: Secured ADAS design wins with 23 OEMs globally across over 120 vehicle models, including recent new model design wins with: Chery (EV brand, iCAR) Great Wall Motor (EV brand, ORA) Zeekr (multiple top-selling models) Geely (an upcoming model) In May, Li Auto's entire L series EV lineup integrated Hesai's ATL lidar—a specialized variant of the ATX—as a standard configuration, delivering sharp 3D perception that's best in its category. The ATX lidar has secured design wins with 12 OEMs to date, with mass production ramping up and close to 40,000 units shipped in Q1 2025. Empowered the Robotaxi industry as the main lidar supplier for next-generation fleets from Baidu Apollo Go, DiDi, and WeRide, while supporting the global expansion of some partners into key overseas markets. Expanded partnership with a leading smart home robotics company in China, under which the Company will provide 300,000 units of JT Robotics lidars over the next 12 months. : New Products: AT1440: World's highest-channel-count automotive lidar, delivering ultra-high-definition point clouds at over 34 million points per second—providing over 45 times the point cloud density of mainstream automotive lidars. FTX: Next-generation solid-state lidar for blind spot detection, with a 180° × 140° field of view—the widest in its class, twice the resolution of its predecessor, FT120, and 40% smaller window for easier integration. ETX: Purpose-built for L3 with the world's longest detection range of up to 400 meters at 10% reflectivity. New Solutions: Unveiled the Infinity Eye (千厘眼) Lidar Solution for L2 to L4 autonomous driving systems through three tailored configurations: Infinity Eye A: Built for high-level L4 autonomous systems, supported by four AT1440 main lidars and four FTX lidars for 360-degree coverage. Infinity Eye B: Designed for L3 conditional autonomy, featuring one ETX main lidar paired with two FTX lidars. Infinity Eye C: Tailored for L2 ADAS applications, using one compact yet powerful ATX main lidar. Hesai Announces Successful Resolution of All IP Related Litigation Against It, Reaffirms Its Unwavering Commitment to Innovation and R&D Hesai today proudly announced that all existing intellectual property (IP) actions brought against it by competitors have been dismissed without any conditions, financial settlement or injunctive relief entered against it. This outcome reaffirms the strength of Hesai's intellectual property position, the robustness of its legal strategy and Hesai's market leadership position based on its innovations. In April 2023, Ouster initiated legal proceedings against Hesai in both the U.S. District Court for the District of Delaware and the United States International Trade Commission (ITC), alleging patent infringement and seeking damages and injunctive relief. In response, the Company immediately took firm legal action to defend its rights. In May 2023, Hesai filed for arbitration to enforce the terms of a prior Settlement Agreement. In response, the ITC terminated its investigation without imposing any conditions or settlement terms. In March of this year, the arbitration tribunal issued a confidential interim decision, finding that Ouster was subject to the Settlement Agreement. As a result, the District Court of Delaware recently dismissed Ouster's patent infringement case without any conditions, financial settlement or injunctive relief imposed. 'This marks the end of all existing IP-related actions against us and validates our long-standing efforts to develop and protect our proprietary technologies. We are proud that the strength of our IP portfolio and research and development has withstood legal scrutiny and prevailed,' said Yifan 'David' Li, Hesai's Co-Founder and CEO. With the largest IP portfolio and biggest R&D team among industry peers by the end of 2024, Hesai continues to lead the sector in innovation. 'Our deep passion for technological advancement and our unwavering commitment to research and development are the foundation of our business, which has given us a powerful technological edge—and no amount of legal maneuvering can undo that,' added Dr. Li. "As we move forward, Hesai remains focused on what we do best: innovating, building and delivering world-class solutions for our partners and customers across the globe," concluded Dr. Li. Operational Highlights Three months ended March 31, 2025 ADAS lidar shipments 146,087 Robotics lidar shipments 49,731 Total lidar shipments 195,818 Q1 2025 ADAS lidar shipments were 146,087 units, representing an increase of 178.5% from 52,462 units in the corresponding period of 2024. Q1 2025 Total lidar shipments were 195,818 units, representing an increase of 231.3% from 59,101 units in the corresponding period of 2024. Financial Highlights for the First Quarter of 2025(in RMB millions, except for per ordinary share data and percentage) Q1 2025 Q1 2024 % Change Net revenues 525.3 359.1 46.3% Gross margin 41.7% 38.8% / Loss from operations (33.4) (138.5) -75.8% Non-GAAP loss from operations (7.3) (100.7) -92.8% Net loss (17.5) (106.9) -83.6% Non-GAAP net income/(loss) 8.6 (69.1) / Net loss per ordinary share – basic and diluted (0.13) (0.84) -84.5% Non-GAAP net income/(loss) per ordinary share 0.07 (0.54) / Diluted non-GAAP net income/(loss) per ordinary share 0.06 (0.54) / Net revenues were RMB525.3 million (US$72.4 million) for the first quarter of 2025, representing an increase of 46.3% from RMB359.1 million for the same period of 2024. Product revenues were RMB510.7 million (US$70.4 million) for the first quarter of 2025, representing an increase of 44.7% from RMB353.0 million for the same period of 2024. The year-over-year increase was mainly attributable to increased revenues from sales of ADAS lidar products due to robust demand in China. Service revenues were RMB14.6 million (US$2.0 million) for the first quarter of 2025, representing an increase of 139.3% from RMB6.1 million for the same period of 2024. The year-over-year increase was driven by an increase in revenue from non-recurring engineering services. Cost of revenues was RMB306.1 million (US$42.2 million) for the first quarter of 2025, representing an increase of 39.2% from RMB219.9 million for the same period of 2024. Gross margin was 41.7% for the first quarter of 2025, compared with 38.8% for the same period of 2024. The year-over-year increase was due to effective cost and scale optimization on both ADAS and Robotics lidars. Sales and marketing expenses were RMB50.5 million (US$7.0 million) for the first quarter of 2025, representing an increase of 20.5% from RMB42.0 million for the same period of 2024. The increase was mainly driven by an increase in payroll expenses of RMB11.1 million (US$1.5 million). General and administrative expenses were RMB54.1 million (US$7.5 million) for the first quarter of 2025, representing a decrease of 21.3% from RMB68.8 million for the same period of 2024. The decrease was mainly driven by a decrease in share-based compensation expenses of RMB10.7 million (US$1.5 million). Research and development expenses were RMB183.3 million (US$25.3 million) for the first quarter of 2025, representing a decrease of 5.7% from RMB194.4 million for the same period of 2024. The year-over-year decrease was mainly due to a decrease in rental expenses of RMB6.4 million (US$0.9 million) and depreciation and amortization expenses of RMB2.9 million (US$0.4 million). Loss from operations was RMB33.4 million (US$4.6 million) for the first quarter of 2025, representing a decrease of 75.8% from RMB138.5 million for the same period of 2024. Excluding share-based compensation expenses, non-GAAP loss from operations for the first quarter of 2025 was significantly narrowed from RMB100.7 million for the first quarter of 2024 to RMB7.3 million (US$1.0 million). Net loss was RMB17.5 million (US$2.4 million) for the first quarter of 2025, representing a decrease of 83.6% from RMB106.9 million for the same period of 2024. Excluding share-based compensation expenses, non-GAAP net income was RMB8.6 million (US$1.2 million) for the first quarter of 2025, compared with non-GAAP net loss of RMB69.1 million for the same period of 2024. Net loss attributable to ordinary shareholders of the Company was RMB17.5 million (US$2.4 million) for the first quarter of 2025, compared with RMB106.9 million for the same period of 2024. Excluding share-based compensation expenses, non-GAAP net income attributable to ordinary shareholders of the Company was RMB8.6 million (US$1.2 million) for the first quarter of 2025, compared with non-GAAP net loss attributable to ordinary shareholders of the Company of RMB69.1 million for the same period of 2024. Basic and diluted net loss per ordinary share were RMB0.13 (US$0.02) for the first quarter of 2025. Excluding share-based compensation expenses, non-GAAP basic and diluted net income per ordinary share were RMB0.07 (US$0.01) and RMB0.06 (US$0.01), respectively, for the first quarter of 2025. Cash and cash equivalents, restricted cash and short-term investments were RMB2,860.7 million (US$394.2 million) as of March 31, 2025, compared with RMB3,204.8 million as of December 31, 2024. Business Outlook For the second quarter of 2025, the Company expects net revenues to be between RMB680 million (US$93.7 million) and RMB720 million (US$99.2 million), representing a year-over-year increase of approximately 48% to 57%. The above outlook is based on the current market conditions and reflects the Company's preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Conference Call The Company's management will host an earnings conference call at 9:00 PM U.S. Eastern Time on May 26, 2025 (9:00 AM Beijing/Hong Kong Time on May 27, 2025). For participants who wish to join the call by phone, please access the link provided below to complete the pre-registration process and dial in 5 minutes prior to the scheduled call start time. Upon registration, each participant will receive dial-in details to join the conference call. Event Title: Hesai Group First Quarter 2025 Earnings Conference Call Pre-registration Link: Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at A replay of the conference call will be accessible approximately an hour after the conclusion of the call until June 03, 2025, by dialing the following telephone numbers: United States: +1-855-883-1031 International: +61-7-3107-6325 Hong Kong, China: 800-930-639 China Mainland: 400-120-9216 Replay PIN: 10046747 About Hesai Hesai Technology (Nasdaq: HSAI) is a global leader in lidar solutions. The company's lidar products enable a broad spectrum of applications including passenger and commercial vehicles ("ADAS"), as well as autonomous driving vehicles and robotics and other non-automotive applications such as last-mile delivery robots and AGVs ("Robotics"). Hesai seamlessly integrates its in-house manufacturing process with lidar R&D and design, enabling rapid product iteration while ensuring high performance, high quality and affordability. The company's commercially validated solutions are backed by superior R&D capabilities across optics, mechanics, and electronics. Hesai has established offices in Shanghai, Palo Alto and Stuttgart, with customers spanning more than 40 countries. Use of Non-GAAP Financial Measures To supplement Hesai's consolidated financial results presented in accordance with GAAP, Hesai uses the following measures defined as non-GAAP financial measures by the SEC: income/loss from operation excluding share-based compensation expenses, net profit/loss excluding share-based compensation expenses, net profit/loss attributable to ordinary shareholders excluding share-based compensation, and per ordinary share net income/loss attributable to ordinary shareholders excluding share-based compensation. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned 'Unaudited Reconciliations of GAAP and Non-GAAP Results' set forth at the end of this release. Hesai believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. Hesai believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Hesai's historical performance and liquidity. Hesai believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that they exclude share-based compensation expenses that have been and will continue to be for the foreseeable future a significant recurring expense in our business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP financial measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.2567 to US$1.00, the exchange rate on March 31, 2025, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollars amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'aims,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates,' 'confident,' 'potential,' 'continue' or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the 'SEC'), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's goals and strategies; the Company's future business development, financial condition and results of operations; expected changes in the Company's revenues, costs or expenditures; the trends in, expected growth and the market size of the ADAS and Robotics industries; the market for and adoption of lidar and related technology; the Company's ability to produce high-quality products with wide market acceptance; the success of the Company's customers in developing and commercializing products using its solutions, and the market acceptance of those products; the Company's ability to introduce new products that meet its customers' requirement; the Company's expectations regarding the effectiveness of its marketing initiatives and the relationship with its third-party partners; competition in the Company's industry; the Company's ability to recruit and retain qualified personnel; relevant government policies and regulations relating to the Company's industry; the Company's ability to protect its systems and infrastructures from cyber-attacks; general economic and business conditions globally and in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: Hesai GroupYuanting 'YT' Shi, Head of Capital MarketsEmail: ir@ Christensen AdvisoryTel: +86-10-5900-1548Email: hesai@ Source: Hesai Group HESAI GROUPUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts in thousands, except share and per share data and otherwise noted) As of December 31,2024 March 31,2025 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 2,838,966 2,826,605 389,517 Restricted cash 3,594 3,589 495 Short-term investments 362,195 30,482 4,201 Notes receivables 22,341 20,579 2,836 Accounts receivable, net 765,027 957,644 131,967 Contract assets 9,909 9,909 1,365 Amounts due from related parties 5,039 5,036 694 Inventories 482,137 489,974 67,520 Prepayments and other current assets, net 193,448 212,088 29,227 Total current assets 4,682,656 4,555,906 627,822 Non-current assets: Property and equipment, net 944,218 980,286 135,087 Long-term investments 31,798 31,787 4,380 Intangible assets, net 76,554 79,763 10,992 Land-use rights, net 39,879 39,663 5,466 Operating lease right-of-use assets 114,260 81,928 11,290 Other non-current assets 100,246 58,049 7,999 Total non-current assets 1,306,955 1,271,476 175,214 TOTAL ASSETS 5,989,611 5,827,382 803,036 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term borrowings 345,253 280,266 38,622 Note payable 10,096 53,982 7,439 Accounts payable 345,011 346,867 47,800 Contract liabilities 32,994 26,978 3,718 Amounts due to related parties 335,253 5,335 735 Accrued warranty liability 43,607 48,180 6,639 Accrued expenses and other current liabilities 516,726 360,743 49,712 Total current liabilities 1,628,940 1,122,351 154,665 Non-current liabilities Long-term borrowings 269,438 300,288 41,381 Lease liabilities 98,370 69,796 9,618 Other non-current liabilities 61,132 57,813 7,967 Total non-current liabilities 428,940 427,897 58,966 TOTAL LIABILITIES 2,057,880 1,550,248 213,631 Shareholders' equity Class A Ordinary shares 19 17 2 Class B Ordinary shares 70 73 11 Additional paid-in capital 7,577,113 7,615,445 1,049,436 Subscription receivables (292,721 ) - - Accumulated other comprehensive income 56,975 88,873 12,247 Accumulated deficit (3,409,725 ) (3,427,274 ) (472,291 ) TOTAL SHAREHOLDERS' EQUITY 3,931,731 4,277,134 589,405 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 5,989,611 5,827,382 803,036HESAI GROUPUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)(All amounts in thousands, except share and per share data and otherwise noted) Three months ended March 31, 2024 2025 RMB RMB US$ Net revenues 359,120 525,302 72,389 Cost of revenues (219,898 ) (306,067 ) (42,177 ) Gross profit 139,222 219,235 30,212 Operating expenses: Sales and marketing expenses (41,964 ) (50,546 ) (6,965 ) General and administrative expenses (68,767 ) (54,087 ) (7,453 ) Research and development expenses (194,402 ) (183,305 ) (25,260 ) Other operating income, net 27,456 35,256 4,858 Total operating expenses (277,677 ) (252,682 ) (34,820 ) Loss from operations (138,455 ) (33,447 ) (4,608 ) Interest income 32,795 20,521 2,828 Interest expenses (2,286 ) (5,007 ) (690 ) Foreign exchange income/(loss), net 1,493 1,024 141 Other loss, net (212 ) (694 ) (96 ) Net loss before income tax and share of loss in equity method investments (106,665 ) (17,603 ) (2,425 ) Income tax benefit/(expense) (248 ) 67 9 Share of loss in equity method investment (12 ) (12 ) (2 ) Net loss (106,925 ) (17,548 ) (2,418 ) Net loss attributable to ordinary shareholders of the Company (106,925 ) (17,548 ) (2,418 ) Net loss per share: Basic and diluted (0.84 ) (0.13 ) (0.02 ) Weighted average ordinary shares used in calculating net loss per share: Basic and diluted 127,336,569 131,456,631 131,456,631 Net loss (106,925 ) (17,548 ) (2,418 ) Other comprehensive loss, net of tax of nil: Foreign currency translation adjustments 3,088 31,898 4,396 Comprehensive income/(loss), net of tax of nil (103,837 ) 14,350 1,978HESAI GROUPUNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS(All amounts in thousands, except share and per share data and otherwise noted) For the three months ended March 31, 2024 2025 RMB RMB US$ Loss from operations (138,455 ) (33,447 ) (4,609 ) Add: Share-based compensation expenses 37,800 26,185 3,608 Non-GAAP loss from operations (100,655 ) (7,262 ) (1,001 ) Net loss (106,925 ) (17,548 ) (2,418 ) Add: Share-based compensation expenses 37,800 26,185 3,608 Non-GAAP net income/(loss) (69,125 ) 8,637 1,190 Net loss attributable to ordinary shareholders of the Company (106,925 ) (17,548 ) (2,418 ) Add: Share-based compensation expenses 37,800 26,185 3,608 Non-GAAP net income/(loss) attributable to ordinary shareholders of the Company (69,125 ) 8,637 1,190 Weighted average shares used in calculating net earnings/(loss) per share Basic 127,336,569 131,456,631 131,456,631 Diluted 127,336,569 138,705,035 138,705,035 Non-GAAP net earnings/(loss) per share Basic (0.54 ) 0.07 0.01 Diluted (0.54 ) 0.06 0.01
