Hesai(HSAI)2024-08-20 17:02Financial 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]