Hesai(HSAI) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenues increased by 46% year over year, reaching RMB 525.3 million or USD 72.4 million [20] - Shipments more than tripled year over year to nearly 200,000 LiDAR units in Q1 [5][21] - Net loss narrowed by 84% year over year to RMB 70.5 million or USD 2.4 million, while remaining non-GAAP profitable for the quarter [22] - Gross margins stood at 42% in Q1, with operating expenses reduced by 9% year over year [21][22] Business Line Data and Key Metrics Changes - ADAS and robotics segments showed outstanding momentum, with ATX LiDAR shipments driving significant growth [5][21] - JT LiDAR shipments reached 45,000 units in Q1, contributing to nearly 50,000 units shipped in the robotics LiDAR segment, reflecting over 600% year over year growth [21] - ATX entered mass production in Q1, with close to 40,000 units shipped in its first quarter [9] Market Data and Key Metrics Changes - The company holds a 33% share of the global automotive LiDAR market and a 61% share of the global robotaxi market [6] - The autonomous mobility market in China is projected to grow from USD 54 million in 2025 to USD 47 billion by 2035 [14] - The company is the largest LiDAR supplier for robotaxis, powering fleets from major players like Baidu and Didi [14][84] Company Strategy and Development Direction - The company aims to maintain its leadership in the automotive LiDAR market through innovation and strategic partnerships with leading OEMs [6][8] - Expansion into overseas manufacturing is prioritized to mitigate geopolitical risks and better serve global customers [24][42] - The launch of the Infinity Eye LiDAR solution aims to cater to various levels of autonomous driving, enhancing the product portfolio [11][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining full-year revenue guidance of RMB 3 billion to RMB 3.5 billion despite tariff challenges [28][72] - The company anticipates reaching GAAP breakeven in Q2 and is on track for full-year profitability targets [22][31] - Management highlighted the importance of operational efficiency and cost control in navigating external challenges [71] Other Important Information - The US District Court dismissed a patent infringement case against the company, reaffirming the integrity of its technology [18] - The company is actively driving five proof of concept programs with top global OEMs and Tier one suppliers across Europe and Japan [10][89] Q&A Session Summary Question: Full year guidance and ADAS LiDAR portion impact on gross margin - The company maintains its 2025 revenue guidance at RMB 3 billion to RMB 3.5 billion, with gross margin expected to remain around 40% [28][30] Question: Capacity expansion and CapEx for Southeast Asia - The company is on track to expand production capacity to 2 million units by the end of the year, with CapEx expected to be around USD 30 million to USD 50 million [41][44] Question: Competition and potential reshuffles in client orders - Management emphasized the competitive nature of the LiDAR industry and the importance of maintaining quality partnerships to ensure reasonable pricing [52][53] Question: New product launches and mass production timelines - The Infinity Eye LiDAR solution has secured design wins and is expected to support various autonomous driving capabilities [62][63] Question: Impact of tariffs on pricing and supply chain - The company has limited direct exposure to tariffs, with only 10% of total revenue projected from the US market [70][72] Question: Differences between ATL and ATX products - ATL is a customized version of ATX for specific client needs, while ATX remains the mainstream solution for OEM customers [78][79] Question: Future of ADAS LiDAR in robotaxi applications - The company expects to see larger LiDAR orders for robotaxis as the market shifts from mechanical LiDAR to more cost-effective ADAS solutions [83][84] Question: Dual listing plans and regulatory compliance - The company is evaluating options for potential dual listings but remains compliant with all regulatory requirements for its current NASDAQ listing [94][95]