Hesai Group Reports Third Quarter 2024 Unaudited Financial Results

Quarterly net revenues were RMB539.4 million (US$76.9 million)(1)

Quarterly lidar shipments were 134,208 units

SHANGHAI, Nov. 25, 2024 (GLOBE NEWSWIRE) -- Hesai Group ("Hesai" or the "Company"), $(HSAI)$, the global leader in three-dimensional light detection and ranging (lidar) solutions, today announced its unaudited financial results for the three months ended September 30, 2024.

Operational Highlights

 
                                         Three months      Nine months 
                                             ended             ended 
                                         September 30,     September 30, 
                                             2024              2024 
                                      ----------------  ---------------- 
ADAS lidar shipments                           129,913           263,148 
Autonomous Mobility lidar shipments              4,295            16,687 
Total lidar shipments                          134,208           279,835 
 
 
   -- Q3 2024 ADAS lidar shipments were 129,913 units, representing an increase 
      of 220.0% from 40,593 units in the corresponding period of 2023. 
 
   -- Q3 2024 Total lidar shipments were 134,208 units, representing an 
      increase of 182.9% from 47,440 units in the corresponding period of 2023. 
 
   -- ADAS lidar shipments in the first nine months of 2024 were 263,148 units, 
      representing an increase of 129.9% from 114,482 units in the 
      corresponding period of 2023. 
 
   -- Total lidar shipments in the first nine months of 2024 were 279,835 units, 
      representing an increase of 108.2% from 134,380 units in the 
      corresponding period of 2023. 

Management Remarks

"We are thrilled to share that our business continues to thrive and advance on a strong growth path," said Yifan "David" Li, Hesai's Co-Founder and CEO. "This quarter, we have made significant strides in the ADAS market, securing new design wins, partnerships, and development programs with key players, including a Top 3 OEM in Japan, SAIC Volkswagen, Leapmotor, and a premium EV brand backed by a leading Chinese automotive group. We also have reached a key milestone in our global expansion by successfully delivering B-sample units for our worldwide shipping programs with a leading global automotive OEM. OEMs at home and abroad have widely recognized lidar's essential safety features as a critical component in their holistic safety systems, similar to an 'active' seat belt or airbag. Furthermore, lidar's versatility, with applications in emerging areas such as industrial robotics, smart factories and logistics, continues to garner attention. Our latest flagship product, OT128, a 360deg mechanical, automotive-grade long-range lidar, is designed for scalable deployment in robotaxi and industrial applications. We are actively exploring new use cases and engaging with customers across both ADAS and AM sectors, leveraging our full lineup of versatile lidars.

"I am also delighted to announce that Andrew Fan has joined us as our Chief Financial Officer. Andrew brings a wealth of experience in financial strategy and corporate finance, as well as an impressive track record of driving growth and operational efficiency in dynamic industries. His insights and leadership will be invaluable as we navigate the evolving landscape and continue to strengthen our position in the global lidar industry," Dr. Li continued. "Andrew's strategic vision aligns seamlessly with our goals, and I believe his commitment to innovation and financial rigor will help us unlock new levels of success. I am confident that with his expertise and dedication, we are well-positioned for another exciting chapter of growth and accomplishment."

Mr. Andrew Fan, Hesai's CFO, added, "Our strong third quarter financial performance was highlighted by robust operational execution across all key metrics. Quarterly shipment volume reached 134,208 units, marking our second consecutive quarter of nearly 50% sequential growth and propelling net revenues to RMB539.4 million (US$76.9 million), surpassing the upper range of our guidance. We maintained a robust blended gross margin of 47.7%, driven by effective cost management and our flywheel approach to cost and scale optimization. The margin was further bolstered by NRE revenues from our L4 lidar, which is being prepared for potential large-scale deployment by a leading global robotaxi player in the coming years. Our strong commitment to operational efficiency and financial discipline has also enabled us to consistently reduce our GAAP net loss for four consecutive quarters. Looking ahead, we're expecting a record-breaking fourth quarter, with lidar shipments projected to reach 200,000 units--an astounding volume nearly matching our total shipments in 2023. Based on our current estimates, fourth quarter net revenues are expected to soar to nearly US$100 million, delivering an estimated net profit of US$20 million and a positive operating cash flow. Additionally, we anticipate achieving full-year profitability on a non-GAAP basis for 2024, positioning us to become the first automotive lidar company worldwide to achieve this remarkable milestone. This anticipated explosive growth underscores our robust momentum as we drive toward a landmark fiscal year finish!"

   -- Product Updates: 
 
          -- Launched the OT128, the Company's latest flagship 360deg 
             mechanical automotive-grade long-range lidar product, at the 2024 
             IAA Transportation Fair in Germany. 
 
          -- Inheriting 95% of the key components from Hesai's best-selling 
             AT128P ADAS lidar, the OT128 boasts a point rate of 3.45 million 
             per second and a 200-meter detection range at 10% reflectivity. 
             This high-performance, 360-degree perception lidar with a 
             market-proven, vertically integrated architecture makes OT128 an 
             ideal solution for scalable applications, including robotaxis, 
             industrial robotics, smart factories, and logistics. 
 
          -- Since its launch, the OT128 has secured contracts with 90+ global 
             and domestic clients, including WeRide, Westwell, Embotech and 
             EasyMile. Production and delivery of the OT128 have already begun. 
   -- Business Updates: 
 
          -- Global: 
 
                 -- Hesai's worldwide shipping programs with a leading global 
                    automotive OEM have progressed to the successful delivery 
                    of B-sample units, a key step in validating the performance 
                    of the Company's technology and ensuring alignment with the 
                    partner's rigorous standards. 
 
                 -- Secured two new development projects, specifically Proof of 
                    Concept (POC) programs, in the Asia market with a Top 3 OEM 
                    in Japan, covering both L2+ passenger vehicles and L4 
                    robotaxi applications. Hesai currently has four POC 
                    programs underway with three global OEMs, each holding 
                    strong potential as these partnerships move toward the next 
                    phase. 
 
          -- Domestic: 
 
                 -- Secured another new platform with Leapmotor, a leading EV 
                    automaker in China, as well as facelifts for two flagship 
                    models with a premium EV brand backed by a leading Chinese 
                    automotive group. 
 
                 -- A leading EV manufacturer in China has signed agreements to 
                    exclusively adopt Hesai's L3 ultra-high-performance lidar 
                    and cost-efficient ATX lidar for their 2025 models. The ATX 
                    is advancing toward the SOP phase, generating strong 
                    interest as a standard feature in 2025 OEM lineups. 
 
                 -- Signed a cooperative framework with SAIC Volkswagen for an 
                    automotive lidar program, elevating the Company's position 
                    to a strategic supplier for this top-selling automotive 
                    joint venture in China by sales volume. 
 
          -- Hesai has secured ADAS design wins with 20 OEMs globally across 75 
             vehicle models. 
 
   -- Management Change The Board of Directors of the Company (the "Board") has 
      approved the appointment of Mr. Andrew Fan as the Company's Chief 
      Financial Officer, effective November 25, 2024. Mr. Fan has over 18 years 
      of experience in accounting and corporate financing. From May 2021 to 
      September 2024, Mr. Fan held the position of chief financial officer at a 
      leading automotive technology company. Prior to that, Mr. Fan held senior 
      finance-related roles at listed companies including Hailiang Education 
      Group Inc., Aesthetic Medical International Holdings Group Limited, and 
      Dali Foods Group Company Limited, and various roles at financial 
      institutions including Deutsche Bank, HSBC, and Macquarie. Additionally, 
      Mr. Fan has served as an independent non-executive director of Jiangsu 
      Innovative Ecological New Materials Limited (HKEX: 2116) since 2018. Mr. 
      Fan graduated from Tsinghua University, with bachelor's and master's 
      degrees in accounting in 2004 and 2006, respectively. 

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November 25, 2024 17:00 ET (22:00 GMT)