Core Insights - Hesai Group's AT series lidar has been selected by SAIC-GM for integration into Cadillac's new all-electric VISTIQ SUV, marking a significant advancement in automotive lidar technology [1][2] - The VISTIQ features the industry's first in-cabin lidar deployment, which enhances environmental sensing capabilities while maintaining the vehicle's design integrity [2][3] - This partnership positions Hesai as a key digital ecosystem partner for SAIC-GM, focusing on delivering high-performance lidar solutions for the future of electric mobility [3] Company Overview - Hesai Group is recognized as a global leader in lidar technology, specifically for automotive and robotic applications [1] - The company has established a designated supplier partnership with SAIC-GM, emphasizing its role in the development of intelligent electric vehicles [3] Industry Impact - The integration of lidar technology into the VISTIQ SUV sets a new standard for sensor systems in passenger vehicles, particularly with its innovative behind-the-windshield placement [2] - The deployment of the AT series lidar enhances the vehicle's autonomous sensing capabilities, contributing to the advancement of smart and safe electric vehicles [3]

Group 1 - Hesai Group Sponsored ADR (HSAI) is outperforming its sector, with a year-to-date gain of 4.1% compared to an average loss of 26.2% for Auto-Tires-Trucks stocks [4] - The Zacks Consensus Estimate for HSAI's full-year earnings has increased by 21.7% over the past 90 days, indicating improved analyst sentiment [4] - HSAI holds a Zacks Rank of 1 (Strong Buy), suggesting strong potential for future performance [3][4] Group 2 - Suzuki Motor (SZKMY) is another stock in the Auto-Tires-Trucks group that has shown strong performance, with a year-to-date return of 4.6% and a Zacks Rank of 1 (Strong Buy) [5] - The consensus estimate for Suzuki Motor's current year EPS has risen by 7.3% over the past three months [5] - HSAI belongs to the Automotive - Original Equipment industry, which has an average loss of 10.8% this year, further highlighting HSAI's strong performance [6] Group 3 - The Auto-Tires-Trucks group is currently ranked 14 within the Zacks Sector Rank, which evaluates 16 different sector groups [2] - The Automotive - Original Equipment industry, to which HSAI belongs, is ranked 160 in the Zacks Industry Rank [6] - The Automotive - Foreign industry, which includes Suzuki Motor, is ranked 165 and has experienced a decline of 5.8% this year [6]

Group 1 - Hesai Group's AT128 lidar has been selected as the primary lidar solution for Pony AI's new seventh-generation Robotaxi models, highlighting its critical role in autonomous driving technology [1][3] - Pony.ai's new autonomous driving platform features a 70% reduction in bill-of-materials costs compared to the previous generation, indicating significant cost efficiency in production [2][3] - The Robotaxi fleet has achieved over 500,000 hours of fully autonomous operation, demonstrating a tenfold improvement in safety compared to human drivers, showcasing the effectiveness of the technology [3] Group 2 - The AT128 lidar sensor offers a 120° ultra-high-resolution field of view and a 200-meter detection range, providing comprehensive obstacle detection for safe navigation in complex environments [4] - The collaboration between Hesai and Pony.ai strengthens Hesai's position in the autonomous driving industry and reflects ongoing investment in R&D for next-generation lidar technologies [5]

Core Insights - Despite escalating trade tensions and tariffs of 145% on Chinese exports to the U.S., Chinese technology stocks are showing resilience and growth potential in 2025, driven by increased technological self-reliance and innovation capabilities [1][2][3] Group 1: Market Opportunities - President Xi Jinping's Southeast Asian tour has strengthened regional ties, creating new market opportunities for Chinese technology exports as U.S. markets face restrictions [2] - Major Chinese tech companies are making strategic investments in AI infrastructure and emerging technologies, enhancing China's digital ecosystem and creating new growth opportunities [5] - China's semiconductor sector has adapted well to Western export controls, dominating advanced packaging technologies with over 25% of the global market share [6] Group 2: Technological Advancements - Chinese companies have made significant advancements across various sectors, including robotics and electric vehicles, showcasing a comprehensive technological approach [7] - DeepSeek, an AI startup, has developed the R1 model that rivals Western counterparts at a lower cost, with the upcoming R2 model promising enhanced capabilities [4] Group 3: Company-Specific Developments - Alibaba is experiencing growth with customer management revenues increasing by 9% year over year and a 27% rise in U.S. orders for AliExpress, alongside a robust financial position with $51.9 billion in net cash [9][10] - JD.com is executing initiatives to incubate 600 bestsellers and has seen a 130% year-over-year increase in new product launches, maintaining a 30% compound annual growth in the durian market [12][13] - Baidu is positioning itself in the autonomous vehicle sector through a partnership with CATL, while also launching the upgraded Ernie 4.5 AI model, enhancing its capabilities in AI [14][15] - Tencent's Hunyuan Turbo S model is gaining attention for its speed and cost efficiency, positioning the company to capture market share in the AI sector [16][17]

Industry Overview - China's technology landscape in 2025 is characterized by significant advancements across various sectors, positioning the nation as a global technology powerhouse with major players like Tencent, Alibaba, Baidu, JD.com, and PDD Holdings investing heavily in AI and emerging technologies [1] - The semiconductor sector is making strategic advances, holding over 25% of the global market share in semiconductor packaging and more than 50% in advanced packaging, despite not leading in cutting-edge chip fabrication [3] - Robotics innovations are showcased at CES 2025, with companies like Unitree Robotics demonstrating advanced humanoid and quadrupedal robots, while electric vehicles are highlighted by firms like Zeekr and Great Wall Motor [4] - Augmented reality is gaining traction, with companies like Xreal and Rokid presenting innovative AR solutions, reflecting China's comprehensive approach to technological innovation [5] Company Highlights - DeepSeek, an AI startup, has accelerated the release of its R2 model, promising improved coding capabilities and multilingual reasoning at a lower cost compared to Western competitors [2] - Tencent has unveiled its Hunyuan Turbo S model, which delivers responses within a second and matches the capabilities of competitors like DeepSeek, positioning itself to capture substantial market share in the AI sector [7][8] - Alibaba is investing $53 billion in cloud and AI infrastructure over the next three years, aiming to democratize AI technology with the upcoming release of its QwQ-Max model and open-sourcing initiatives [10][11] - Baidu is focusing on autonomous driving through a partnership with CATL to develop competitive driverless vehicles and plans to launch its upgraded Ernie 4.5 AI model, which will also be made open source [12][13][14]

Financial Data and Key Metrics - Q3 2024 net revenue reached RMB 539.4 million (USD 76.9 million), surpassing the high end of revenue guidance [6][30] - LiDAR shipments exceeded 134,000 units in Q3, marking a second consecutive quarter of nearly 50% sequential growth [6][30] - Blended gross margin remained robust at 47.7%, supported by effective cost management and NRE revenues from L4 LiDAR [31] - GAAP net loss narrowed for four consecutive quarters, reflecting operational efficiency and financial discipline [7][32] - Q4 2024 projected revenue is nearly USD 100 million with an estimated net profit of USD 20 million, achieving full-year profitability on a non-GAAP basis [7][33][34] Business Line Data and Key Metrics - LiDAR adoption accelerated, with over 134,000 units shipped in Q3, driven by strong demand in the ADAS sector [6][30] - The company secured new platform wins with Leapmotor and a premium EV brand, with production expected to commence in 2025 [14] - The ATX LiDAR is nearing SOP phase, with significant interest from multiple customers planning to adopt it as a standard feature in their 2025 line-ups [15] - The OT128 LiDAR, designed for scalable applications like robotaxis and industrial robotics, has secured contracts with over 90 global and domestic clients [23][24] Market Data and Key Metrics - LiDAR adoption in China is growing, with 2/3 of highway NOA models and 100% of city NOA models equipped with LiDAR [9] - Level 2 and Level 2+ ADAS adoption in China is projected to reach 40% penetration in 2024 and 50% by 2025 [9] - The company expanded its global reach, securing design wins with 5 prominent global OEMs, including joint ventures in China and collaborations with SAIC Volkswagen [16][17][19] - Two new development projects were secured with top 3 OEMs in Japan, covering Level 2+ passenger vehicles and Level 4 robotaxi applications [20] Company Strategy and Industry Competition - The company aims to capitalize on the growing recognition of LiDAR technology in autonomous driving, with a focus on both ADAS and autonomous mobility markets [22] - The OT128 LiDAR, with its 360-degree perception and all-weather capabilities, positions the company as a leader in scalable applications like robotaxis and industrial robotics [23][24] - The company is leveraging its strong position in the ADAS sector to explore opportunities in the broader autonomous mobility market, where performance is prioritized over price sensitivity [22] Management Commentary on Operating Environment and Future Outlook - Management highlighted the critical role of LiDAR in vehicle safety systems, especially in low visibility conditions, as demonstrated by recent NHTSA investigations [11][12] - The company is confident in its momentum, projecting full-year profitability on a non-GAAP basis for 2024, a first for an automotive LiDAR company [7][34] - The introduction of Level 3 autonomous driving solutions in 2026 is expected to drive further demand for LiDAR technology, with multiple LiDAR units likely to be employed for enhanced safety [10] Other Important Information - The company introduced its new CFO, Andrew Fan, who brings over 18 years of expertise in accounting and corporate finance [26] - The OT128 LiDAR played a key role in the success of the Champion Autonomous Race car at Formula Student Germany 2024, showcasing its advanced capabilities [25] Q&A Session Summary Question: Updates on the contention with the U.S. DoD and its impact on 2025 projects - The company was removed from the 1260H list in October but was relisted on a different basis, with ongoing legal challenges to correct the DoD's erroneous claims [38][39][40][41][42][43] Question: Expectations for GAAP profitability in 2025 - The company is on track for GAAP profitability in Q4 2024 and is targeting full-year profitability in 2025, driven by strong revenue growth and cost control [44][45][46][47][48][49] Question: 2025 volume, revenue, and margin guidance - The company expects significant design wins for new car models in 2025, with millions of units projected to be shipped, supported by three different AT modules [52][53] - Normalized LiDAR gross margin, excluding NRE impact, is expected to remain around 40% [54] Question: LiDAR production for robotics and ASP differences - Robotics LiDARs have higher ASPs compared to ADAS due to lower volumes and different technical requirements, with the company leveraging its ADAS capabilities to maintain high profitability in robotics [59][60][61][62][63][64] Question: ATX shipment proportion and long-term outlook - The company expects ATX shipments to grow rapidly in 2025, with a focus on maintaining healthy blended gross margins through effective cost management [65][66] Question: Cooperation with Huawei in the intelligent driving market - The company views Huawei as a strong competitor within its ecosystem but remains focused on maximizing market share outside of Huawei's supply chain [68][69][70][71] Question: OT128 adoption and partnership with Cruise - OT128 has secured deals with over 90 clients, with production and deliveries already underway, while the partnership with Cruise remains strong, with NRE revenues recorded in Q3 [73][74][75][76][77][78] Question: Normalized OpEx and Q1 2025 margin guidance - OpEx growth is expected to be less than 5% on a GAAP basis and 10-15% on a non-GAAP basis in 2024, with active expense management planned for 2025 [81][82] Question: ATX design wins and potential switching from AT128 - The ATX is a cost-effective alternative to the AT128, with many customers expected to switch to ATX for better cost structures, while premium models will adopt higher-performance LiDARs like the AT512 [84][85][86][87][88][89]

Financial Data and Key Metrics Changes - In Q2 2024, the company achieved quarterly revenue of RMB 458.9 million (USD 63.1 million), reaching the high end of guidance [18] - LiDAR shipments rose to over 86,000 units, marking a 56% year-over-year and 46% quarter-over-quarter increase [18] - The blended gross margin was approximately 45%, improving quarter-over-quarter due to effective cost management [18] - The quarterly net loss narrowed significantly by 33% quarter-over-quarter to RMB 72.1 million (USD 9.9 million) [18] - For Q3 2024, the company expects net revenue between RMB 450 million (USD 61.9 million) and RMB 500 million (USD 68.8 million), representing a year-over-year increase of approximately 1% to 12.2% [19] - The full-year revenue forecast was revised to a range of RMB 2.0 billion to RMB 2.3 billion (approximately USD 280 million to USD 320 million) [19] Business Line Data and Key Metrics Changes - The company captured 37% of the global LiDAR market and 74% of the global robotaxi LiDAR market in 2023 [7] - The overall LiDAR penetration rate in China reached 22% in June 2024, with installations increasing by approximately 250% year-over-year [10][11] - The company secured design wins with 19 OEMs globally across over 70 vehicle models, including 13 exclusive long-range LiDAR suppliers [16][17] Market Data and Key Metrics Changes - The robotaxi market in China is thriving, with Baidu's Apollo Go providing over 6 million rides since 2019 [9] - The average LiDAR adoption rate among the top 10 best-selling new EV makers in China exceeds 60% [11] - The ADAS market is projected to see a LiDAR adoption rate among EVs priced above RMB 150,000 surpassing 16% in 2024 [10] Company Strategy and Development Direction - The company aims to capitalize on the rapid growth of the robotaxi market, particularly in China, with significant partnerships and design wins [22] - The strategic approach includes offering both high-performance and value-to-cost products to meet diverse client needs [12] - The company is focused on enhancing its product lineup and securing design wins for new car models scheduled for SOP in 2025 and beyond [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stronger performance in the second half of the year, driven by robust demand for LiDAR technology [19] - The company anticipates that less than 20% of total revenue will come from the U.S. market, with the majority generated outside the U.S. [20] - Management highlighted the importance of regulations mandating higher safety standards, which are expected to drive demand for LiDAR technology [26] Other Important Information - The company published its inaugural ESG report, outlining efforts in sustainable development and commitment to ESG best practices [27] - The company is optimistic about achieving profitability in Q4 2024, supported by effective expense controls and operational efficiencies [21] Q&A Session Summary Question: Update on U.S. Defense Department status - Management clarified that being on the DoD list impacted reputation and business opportunities, but they have never sold to the DoD and do not plan to in the future [29][30] Question: Market opportunities for robotaxi - Management stated that they are the largest robotaxi LiDAR supplier globally and expect significant orders for robotaxis in the coming years [33][36] Question: Breakdown of LiDAR shipments and pricing - Management confirmed that the AT128 LiDAR is included in autonomous mobility shipments and that pricing for robotaxi customers is higher due to lower volumes [42][44] Question: Gross margin improvement factors - Management attributed gross margin improvement to product mix, economies of scale, and a one-off high-margin service fee [47][50] Question: Future shipment guidance - Management revised the shipment expectation for the second half of 2024 to 300,000 to 350,000 units due to client adjustments [64]

Hesai Group (NASDAQ:HSAI) Q1 2024 Results Conference Call May 21, 2024 9:00 PM ET Company Participants Yuanting Shi - Investor Relations Director Yifan Li - Co-Founder, CEO & Director Conference Call Participants Stanley Wang - Morgan Stanley Jeff Chung - Citi Tina Hou - Goldman Sachs Bin Wang - Deutsche Bank Jessie Lo - BofA Zhang Yu - Huatai Securities Michelle Jing - HTI Operator Hello, ladies and gentlemen. Thank you for standing by for Hesai Group's First Quarter 2024 Earnings Conference Call. [Operato ...

Table of Contents Title of Each Class Trading Symbol Name of Each Exchange On Which Registered American depositary shares, each representing one Class B ordinary share Class B ordinary share, par value US$0.0001 per share* HSAI The Nasdaq Stock Market LLC The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION ...

Hesai Group (NASDAQ:HSAI) Q4 2023 Earnings Conference Call March 11, 2024 9:00 PM ET Company Participants Yuanting Shi - IR Director David Li - Co-Founder, CEO & Director Louis Hsieh - Global CFO & Director Conference Call Participants Cindy Huang - Morgan Stanley Tina Hou - Goldman Sachs Jessie Lo - Bank of America Merrill Lynch Bin Wang - Deutsche Bank Michelle Jing - Haitong International Operator Hello, ladies and gentlemen. Thank you for standing by for Hesai Group's Fourth Quarter and Full Year 2023 E ...