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 September 30, 2023.
Operational Highlights
|
Three months endedSeptember 30,
2023 |
|
Nine months endedSeptember 30,
2023 |
ADAS lidar shipments |
40,593 |
|
114,482 |
Autonomous Mobility lidar
shipments |
6,847 |
|
19,898 |
Total lidar shipments |
47,440 |
|
134,380 |
- Q3 2023
ADAS lidar shipments were 40,593 units, compared to 16,694
units in the corresponding period of 2022.
- Q3 2023
Total lidar shipments were 47,440 units, representing an
increase of 125.5% from 21,042 units in the corresponding period of
2022.
- ADAS
lidar shipments in the first nine months of 2023 were
114,482 units, representing an increase of 516.6% from 18,567 units
in the corresponding period of 2022.
- Total
lidar shipments in the first nine months of 2023 were
134,380 units, representing an increase of 307.9% from 32,947 units
in the corresponding period of 2022.
Management Remarks
“We are excited to report that in the third
quarter, our performance across topline, deliveries, and gross
margin surpassed our expectations. Even more encouragingly, we
achieved meaningful positive operating cash flow for the third
consecutive quarter. These accomplishments confirm our position as
the global lidar market leader,” said Yifan “David” Li, Hesai’s
Co-Founder and CEO. “We advanced our efforts to extend our leading
ADAS lidar offerings globally during the quarter and are deeply
engaged in nine RFI/RFQ discussions with six leading global OEMs
from North America and Europe. Furthermore, we are making excellent
progress in several advanced development projects for
next-generation ADAS systems with several of these global OEMs and
expect to have positive updates soon. We also continue to
successfully capitalize on opportunities to expand our business,
including the world’s first design win for our long-range,
ultra-thin in-cabin ET25 lidar with FAW Group, one of the top OEMs
in China, and an expansion of our flagship AT series’ customer
portfolio with multiple exclusive design wins from Great Wall
Motor, one of the largest automakers in China, as well as Leapmotor
and Neta, two leading EV automakers in the Chinese market. It is
noteworthy that among these recent design wins, several of them
have prior engagements with our industry peers. Their choice to
switch to our lidar products for certain existing or future models
is a strong endorsement of the superior performance of our
high-quality lidar products and our proven track record of timely
deliveries. Looking ahead, our steadfast commitment to performance,
quality, safety, and reliability will continue to guide our
endeavors as we remain dedicated to advancing the cause of
autonomous transportation by enhancing safety systems and saving
lives worldwide.”
Louis T. Hsieh, Hesai’s Global CFO, added,
“While the third quarter was considered a product transition
period, we were pleased to exceed the top end of our revenue
guidance and expectations for other key financial measures as well.
In the third quarter, our net revenues increased by 33.5%
year-over-year, reaching another record high of RMB445.6 million
(US$61.1 million). We achieved this growth against the high
comparable third quarter last year, which benefited from the
bounce-back after the Shanghai Covid lockdowns in the second
quarter of 2022. Our lidar shipments in this third quarter more
than doubled year-over-year to over 47,000 units, further
solidifying our leading position in the global lidar market.
Moreover, we successfully navigated our ADAS product transition to
our upgraded AT128P long-range lidar product manufactured in our
Hertz Center in Hangzhou during the quarter. At the same time, we
further optimized our manufacturing cost structure, boosting our
gross margin to 30.6%, which significantly exceeded our
expectations. Continued robust demand for our autonomous mobility
products also contributed to this quarter’s margin uptick.
Furthermore, our relentless efforts to improve manufacturing scale
and optimize cost structure led to our third consecutive quarter of
positive operating cash flow, which reached RMB47.6 million (US$6.5
million) in the quarter.”
Mr. Hsieh continued, “Our robust third quarter
results bode well for our seasonally strongest fourth quarter. We
are pleased to announce that we are on track to deliver on our
target of 220,000 lidars for 2023. In fact, we are seeing growing
adoption of ADAS systems equipped with lidar by OEMs globally and
we anticipate this momentum will accelerate into 2024. For that
reason, we expect our lidar volume to more than double to
approximately half a million units next year. Based on our
customers’ order forecasts, by the end of 2024, we anticipate 13
ADAS OEM customers will reach SOP, expanding our portfolio to
include over 40 SOP vehicle models. As of now, we have secured
design wins with 14 ADAS OEMs covering over 50 vehicle models in
total, and we expect these figures to climb significantly
throughout 2024.”
Business Developments
- Business
Update:
- Global: Currently
engaged in nine RFI/RFQ discussions with six leading global OEMs
from North America and Europe and making excellent progress on
multiple strategic development projects for next-generation ADAS
systems with several of them. The Company expects to announce
positive updates on these fronts in the near term.
- Domestic: Landed
the world’s first in-cabin lidar design win with FAW Group, whose
next-generation EV model, under the Hongqi brand, will be equipped
with ET25 in the first half of 2025. Hesai’s flagship AT series
lidar recorded multiple exclusive new design wins with Great Wall
Motor, one of the largest automakers in China, as well as Leapmotor
and Neta, two leading EV automakers in the Chinese market, for
their upcoming car models with SOP beginning in 2024 and 2025. As
of now, the Company has secured design wins with 14 OEMs and Tier 1
suppliers (including the Top 5 OEMs in China) across over 50
vehicle models.
- Given the Company’s accelerating
number of global and domestic OEM design wins, it is becoming clear
that OEMs prefer Hesai lidars’ superior performance (in range and
resolution) and quality to that of our competitors’ offerings.
- Production
transition: Smoothly transitioned production line for mass
production to Hertz Center, Hesai’s manufacturing facility in
Hangzhou, where the Company has begun producing its AT128P model,
the upgraded iteration of our flagship AT128 ADAS long-range lidar.
The Company is also benefiting from greater economies of scale
through Hertz Center’s highly automated production process.
- Manufacturing
facility: Completed the construction of Maxwell Center,
our R&D innovation center and in-house manufacturing and
testing facility in Jiading, Shanghai. Maxwell Center is currently
actively preparing to produce the Company’s FT120 lidar, the
world’s first fully solid-state blind-spot lidar to attain SOP
authorization and to be installed on a series-production vehicle
model.
IP Litigation Update and Response to Competitor Ouster’s
False Claims
On October 10, 2023, the U.S. International
Trade Commission (“ITC”) affirmed an earlier ruling on August 24,
2023, that terminated an investigation of alleged patent
infringement (the “ITC Action”) initiated by our competitor Ouster
against Hesai. The earlier ITC ruling granted Hesai’s motion to
terminate the ITC investigation.
Hesai adamantly denies and refutes all
allegations of wrongdoing as baseless and meritless, including
patent infringement and other false accusations regarding the
capabilities and intended use of Hesai’s lidar technology. As Hesai
has previously stated, our lidar products are independently
developed, based on years of research and engineering investment.
Hesai has over 400 granted patents and over 900 pending patent
applications. The Company’s leading products and position in the
global lidar market are the result of that R&D investment.
Timeline of Legal
Developments
- On April 11, 2023, Ouster filed a
complaint with the ITC alleging that Hesai infringed on its lidar
IP and seeking to enjoin the import of Hesai lidars into the
U.S.
- On June 22, 2023, Hesai filed a
motion to terminate the ITC Action.
- On August 24, 2023, the presiding
ITC Administrative Law Judge granted Hesai’s motion to terminate
the ITC Action.
- On appeal on October 10, 2023, the
ITC Commissioners affirmed the ruling terminating the ITC
Action.
- The ITC ruled that Ouster is bound
by the Litigation Settlement and Patent Cross-Licensing Agreement
(“the Agreement”) entered by Velodyne and Hesai in 2020, as Ouster
is an affiliate of Velodyne via merger of equals in February 2023,
and must abide by its contractual obligations therein. These
obligations state Ouster’s legal recourse for disputes is
arbitration as set forth in the Agreement. Hesai welcomes
arbitration as that dispute resolution forum will address the same
legal issues addressed in the ITC final ruling, upon which Hesai
has already prevailed.
- Hesai has also filed five actions
with the USPTO Patent Trial and Appeal Board to invalidate Ouster’s
five patents and claims that Ouster invented digital lidar. Digital
lidar was invented and in widespread use prior to Ouster’s patent
applications, which Hesai believes are overly broad and
unsupported.
Background on Patent Cross-Licensing
Agreement
- In 2019, Velodyne sued Hesai for
patent infringement. Hesai then also sued Velodyne for patent
infringement. Velodyne also sued Robosense and then sued
Ouster for patent infringement, which led to the
Ouster-Velodyne merger of equals in February 2023.
- In 2020, Hesai was in the midst of
a capital market fundraising exercise and the Velodyne litigation
was hampering that effort. For that sole reason, Hesai entered into
the Litigation Settlement and Patent Cross-Licensing Agreement with
Velodyne.
- Key takeaways of the Patent
Cross-Licensing Agreement
- The Agreement binds the original
parties AND future affiliates, i.e., Ouster.
- The parties agreed to a
full lidar patent cross-license and use of each other’s lidar IP,
existing and future patents, for 10 years until 2030.
- Hesai’s position is that the
Agreement gives Hesai a license to use Ouster’s lidar patents until
2030. Ouster is bound by the Agreement, as Ouster is an affiliate
of Velodyne via merger of equals.
- All disputes under the Agreement
are to go to arbitration and the parties shall refrain from
litigation against each other. Ouster is in direct breach of its
contractual obligations by bringing the ITC Action and Delaware
action.
Hesai’s Position on Ouster’s Media and
Lobbying Campaign Against Hesai
Amid Ouster’s contracting market share and
deliveries, legal setbacks, and mounting net losses (US$335 million
net loss on revenues of US$59 million in the first nine months of
2023), Ouster and its agents have initiated a series of political
lobbying campaigns spending over US$800,000 in lobbying fees alone.
We believe these efforts have resulted in disparaging media
articles targeting Hesai, claiming Hesai lidars pose national
security, cybersecurity and privacy risks to the United States.
Hesai refutes all such allegations as blatantly false and
misleading. Hesai believes these false allegations are xenophobic
fearmongering and nothing more.
We believe our competitors’ media smear campaign
against Hesai and attempts at patent litigation are tactics being
used to distract from Ouster’s poor performance in the lidar and
capital markets while capitalizing on growing geopolitical tensions
between China and the United States. Hesai has repeatedly disputed
these claims as baseless and false and will continue to do so.
A point-by-point discussion of our competitors’
false claims regarding Hesai’s lidar technology and Hesai’s
responses can be found in the Company’s October 12, 2023 press
release available on its website and a presentation available on
Hesai’s IR website at
https://investor.hesaitech.com/financials-filings/quarterly-results.
-
Hesai lidars are not a data security or privacy
risk. Hesai lidars do not store and cannot wirelessly
transmit data. All images are transmitted through a secure one-way
cable to a vehicle’s onboard computer. All data is owned, stored
and controlled by the vehicle owner and vehicle manufacturer. At no
point does Hesai have access to that data. Two renowned global
engineering testing companies, TÜV Rheinland and DEKRA, have
separately certified to these facts.
-
Lidar images are not a privacy threat. Lidar
images are not suitable for surveillance and do not pose a privacy
threat. Hesai’s lidar images cannot discern identifiable facial
features or biometric data. Lidar images measure 3-D shapes and
distance to avoid collisions, making lidars ideal for collision
avoidance in autonomous vehicles while safeguarding individual
privacy.
-
Hesai lidars are expressly for civilian use. Hesai
lidars are designed and built for civilian commercial use in
vehicles to save lives. Hesai lidars are not sold to the military
and use in military applications is expressly forbidden in Hesai
contracts. Furthermore, they do not meet the strict military
standards of fitness, endurance and performance.
-
The Chinese government does not direct Hesai’s
business. To the best of Hesai’s knowledge, the Chinese
government does not own shares in Hesai, nor has it sought to
influence Hesai’s business or management.
- Hesai
develops its own IP. Hesai does not steal or infringe on
any parties’ IP. Hesai spends over 60% of its annual budget on
R&D and manufacturing to develop its proprietary lidar
technology for which it holds over 1,300 worldwide patents and
pending patents.
Financial
Highlights for the Third
Quarter of 2023(in RMB millions, except
for per ordinary share data and percentage)
|
Q3 2023 |
|
Q3 2022 |
|
% Change |
|
|
|
|
Net revenues |
445.6 |
|
|
333.9 |
|
|
33.5 |
% |
Gross margin |
30.6 |
% |
|
37.1 |
% |
|
|
Loss from operations |
(167.2 |
) |
|
(102.1 |
) |
|
63.8 |
% |
Non-GAAP3 loss from operations |
(127.4 |
) |
|
(76.6 |
) |
|
66.3 |
% |
Net loss |
(141.8 |
) |
|
(70.8 |
) |
|
100.6 |
% |
Non-GAAP net loss |
(101.9 |
) |
|
(45.2 |
) |
|
125.4 |
% |
Net loss attributable to ordinary shareholders |
(141.8 |
) |
|
(284.2 |
) |
|
-50.1 |
% |
Net loss per ordinary share-basic and diluted |
(1.13 |
) |
|
(2.46 |
) |
|
-54.3 |
% |
Non-GAAP net loss per ordinary share – basic and diluted |
(0.81 |
) |
|
(0.39 |
) |
|
107.7 |
% |
- Net
revenues were RMB445.6 million (US$61.1 million) for the
third quarter of 2023, representing an increase of 33.5% from the
same period of 2022. Product revenues were
RMB425.8 million (US$58.4 million) for the third quarter of 2023,
representing an increase of 31.7% from RMB323.2 million (US$44.3
million) for the same period of 2022. The year-over-year increase
was mainly attributable to increased demand and deliveries for both
Autonomous Mobility and ADAS lidar products. Service
revenues were RMB19.7 million (US$2.7 million) for the
third quarter of 2023, representing an increase of 85.3% from
RMB10.7 million (US$1.5 million) for the same period of 2022. The
year-over-year increase was mainly attributable to increased
solutions revenue.
- Cost of revenues
was RMB309.4 million (US$42.4 million) for the third quarter of
2023, representing an increase of 47.3% from RMB210.1 million
(US$28.8 million) for the same period of 2022. The year-over-year
increase was due to increased shipments of lidar products,
partially offset by the decrease in unit cost.
- Gross margin was
30.6% for the third quarter of 2023, compared with 37.1% for the
same period of 2022. The decrease in gross margin was mainly
attributable to increased shipments of lower-priced ADAS lidar
products.
- Sales and marketing
expenses were RMB36.8 million (US$5.1 million) for the
third quarter of 2023, representing an increase of 55.1% from
RMB23.8 million (US$3.3 million) for the same period of 2022. The
year-over-year increase was mainly due to increased payroll and
share-based compensation expenses of RMB6.4 million (US$0.8
million) attributable to an expanded sales and marketing team.
- General and administrative
expenses were RMB80.5 million (US$11.0 million) for the
third quarter of 2023, representing an increase of 94.9% from
RMB41.3 million (US$5.7 million) for the same period of 2022. The
year-over-year increase was mainly driven by an increase in
professional service expenses of RMB26.1 million (US$3.6 million),
as well as an increase in payroll and share-based compensation
expenses of RMB7.1 million (US$1.0 million).
- Research and development
expenses were RMB192.6 million (US$26.4 million) for the
third quarter of 2023, representing an increase of 17.6% from
RMB163.7 million (US$22.4 million) for the same period of 2022. The
year-over-year increase was mainly due to increased payroll and
share-based compensation expenses of RM41.8 million (US$5.7
million) attributable to higher R&D headcount, partially offset
by a decrease in development and testing expenses of RMB10.3
million (US$1.4 million) as more testing work occurred during the
AT128 volume production ramp-up in the third quarter of 2022.
- Loss from
operations was RMB167.2 million (US$22.9 million) for the
third quarter of 2023, representing an increase of 63.7% from
RMB102.1 million (US$14.0 million) from the same period of 2022.
Excluding share-based compensation expenses, non-GAAP loss from
operations was RMB127.4 million (US$17.5 million) for the third
quarter of 2023, compared with RMB76.6 million (US$10.5 million)
for the same period of 2022.
- Net loss was
RMB141.8 million (US$19.4 million) for the third quarter of 2023,
compared with RMB70.7 million (US$9.7 million) for the same period
of 2022. Excluding share-based compensation expenses, non-GAAP net
loss was RMB101.9 million (US$14.0 million) in the third quarter of
2023, compared with RMB45.2 million (US$6.2 million) for the same
period of 2022.
- Net loss attributable to
ordinary shareholders of Hesai was RMB141.8 million
(US$19.4 million) for the third quarter of 2023, compared with
RMB284.2 million (US$36.4 million) for the same period of 2022.
Excluding share-based compensation expenses and deemed dividends,
non-GAAP net loss attributable to ordinary shareholders of Hesai
was RMB101.9 million (US$14.0 million) for the third quarter of
2023, compared with RMB45.2 million (US$6.2 million) for the same
period of 2022.
- Basic and
diluted net loss per ordinary share were both RMB1.13
(US$0.15) for the third quarter of 2023. Excluding share-based
compensation expenses and deemed dividends, non-GAAP basic net loss
per ordinary share and non-GAAP diluted net loss per ordinary share
were both RMB0.81 (US$0.11) for the third quarter of 2023.
- Cash
and cash equivalents,
restricted cash and short-term
investments were RMB3,207.1 million (US$439.6
million) as of September 30, 2023, compared with RMB3,254.7 million
(US$448.8 million) as of June 30, 2023.
Business Outlook
For the fourth quarter of 2023, the Company
expects net revenues to be between RMB535 million (US$73.3 million)
and RMB555 million (US$76.1 million), representing a year-over-year
increase of approximately 30.7% to 35.6%.
The above outlook is based on 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 8:00 PM U.S. Eastern Time on November 13, 2023
(9:00 AM Beijing/Hong Kong Time on November 14, 2023).
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 Third Quarter 2023 Earnings Conference Call |
Pre-registration Link: |
https://s1.c-conf.com/diamondpass/10034246-jfsltx.html |
Additionally, a live and archived webcast of the
conference call will be available on the Company’s investor
relations website at https://investor.hesaitech.com.
A replay of the conference call will be
accessible approximately an hour after the conclusion of the call
until November 21, 2023, 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: |
10034246 |
About Hesai
Hesai is the global leader in three-dimensional
light detection and ranging (lidar) solutions. The Company’s lidar
products enable a broad spectrum of applications across passenger
and commercial vehicles with advanced driver assistance systems
(ADAS) and autonomous vehicle fleets (autonomous mobility). Hesai's
technology also empowers robotics applications such as last-mile
delivery robots and logistics robots in restricted areas. The
Company’s commercially validated solutions are backed by superior
research and development capabilities across optics, mechanics,
electronics, and software. Hesai integrates lidar designs with an
in-house manufacturing process, facilitating rapid product
development while ensuring high performance, consistent quality and
affordability. Hesai has established strong relationships with
leading automotive OEMs, autonomous vehicle, and robotics companies
worldwide, covering over 90 cities in 40 countries as of December
31, 2022.
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: loss
from operation excluding share-based compensation expenses, net
income excluding share-based compensation expenses, net income
attributable to ordinary shareholders excluding share-based
compensation and deemed dividend, and per ordinary share net income
attributable to ordinary shareholders excluding share-based
compensation and deemed dividend. 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 and deemed dividend 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 measures is that they exclude
share-based compensation expenses and deemed dividend that has 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 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 RMB7.2960 to US$1.00, the exchange rate on
September 29, 2023, 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,
autonomous mobility 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:
In China:Hesai GroupYuanting “YT” Shi, Investor
Relations Director Email: ir@hesaitech.com
Piacente Financial CommunicationsJenny CaiTel:
+86 (10) 6508-0677Email: hesai@tpg-ir.com
In the United States:Piacente Financial
Communications Brandi PiacenteTel:
+1-212-481-2050Email: hesai@tpg-ir.com
Source: Hesai Group
|
HESAI GROUP |
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
(All amounts in thousands, except share and per share data and
otherwise noted) |
|
|
|
As of |
|
|
December 31,2022 |
|
September 30,2023 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
913,277 |
|
|
1,315,919 |
|
|
180,362 |
|
Restricted cash |
|
- |
|
|
3,590 |
|
|
492 |
|
Short-term investments |
|
945,865 |
|
|
1,887,611 |
|
|
258,719 |
|
Accounts receivable |
|
484,586 |
|
|
407,711 |
|
|
55,881 |
|
Contract assets |
|
13,058 |
|
|
9,350 |
|
|
1,282 |
|
Amounts due from related parties |
|
5,021 |
|
|
5,081 |
|
|
696 |
|
Inventories |
|
646,852 |
|
|
500,286 |
|
|
68,570 |
|
Prepayments and other current assets |
|
126,452 |
|
|
149,840 |
|
|
20,537 |
|
Total current
assets |
|
3,135,111 |
|
|
4,279,388 |
|
|
586,539 |
|
Non-current
assets: |
|
|
|
|
Property and equipment, net |
|
504,953 |
|
|
728,610 |
|
|
99,864 |
|
Long-term investments |
|
31,856 |
|
|
31,822 |
|
|
4,362 |
|
Intangible assets, net |
|
20,600 |
|
|
21,760 |
|
|
2,982 |
|
Land-use rights, net |
|
41,606 |
|
|
40,959 |
|
|
5,614 |
|
Goodwill |
|
3,823 |
|
|
3,665 |
|
|
502 |
|
Right-of-use assets |
|
44,349 |
|
|
18,418 |
|
|
2,524 |
|
Other non-current assets |
|
57,098 |
|
|
98,857 |
|
|
13,549 |
|
Total non-current
assets |
|
704,285 |
|
|
944,091 |
|
|
129,397 |
|
TOTAL
ASSETS |
|
3,839,396 |
|
|
5,223,479 |
|
|
715,936 |
|
LIABILITIES, MEZZANINE
EQUITY AND SHAREHOLDERS’ DEFICIT |
|
|
|
|
Current
liabilities: |
|
|
|
|
Short-term borrowings |
|
- |
|
|
109,900 |
|
|
15,063 |
|
Note payable |
|
- |
|
|
4,000 |
|
|
548 |
|
Accounts payable |
|
206,681 |
|
|
219,715 |
|
|
30,114 |
|
Contract liabilities |
|
40,378 |
|
|
36,859 |
|
|
5,052 |
|
Amounts due to related parties |
|
334,283 |
|
|
344,071 |
|
|
47,159 |
|
Accrued warranty liability |
|
17,694 |
|
|
23,415 |
|
|
3,209 |
|
Accrued expenses and other current liabilities |
|
356,502 |
|
|
266,630 |
|
|
36,545 |
|
Total current
liabilities |
|
955,538 |
|
|
1,004,590 |
|
|
137,690 |
|
Non-current
liabilities |
|
|
|
|
Long-term borrowings |
|
18,472 |
|
|
238,730 |
|
|
32,721 |
|
Deferred tax liabilities |
|
439 |
|
|
404 |
|
|
55 |
|
Lease liabilities |
|
10,139 |
|
|
4,300 |
|
|
589 |
|
Other non-current liabilities |
|
13,075 |
|
|
18,052 |
|
|
2,474 |
|
Total non-current
liabilities |
|
42,125 |
|
|
261,486 |
|
|
35,839 |
|
TOTAL
LIABILITIES |
|
997,663 |
|
|
1,266,076 |
|
|
173,529 |
|
Mezzanine
equity: |
|
|
|
|
Redeemable shares |
|
5,986,910 |
|
|
- |
|
|
- |
|
|
|
|
|
|
Shareholders’
Deficit |
|
|
|
|
Class A Ordinary shares |
|
19 |
|
|
19 |
|
|
3 |
|
Class B Ordinary shares |
|
20 |
|
|
62 |
|
|
8 |
|
Additional paid-in capital |
|
- |
|
|
7,380,034 |
|
|
1,011,518 |
|
Subscription receivables |
|
(310,227 |
) |
|
(310,227 |
) |
|
(42,520 |
) |
Accumulated other comprehensive income (loss) |
|
(3,608 |
) |
|
53,955 |
|
|
7,395 |
|
Accumulated deficit |
|
(2,831,381 |
) |
|
(3,166,440 |
) |
|
(433,997 |
) |
TOTAL SHAREHOLDERS’
DEFICIT |
|
(3,145,177 |
) |
|
3,957,403 |
|
|
542,407 |
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT |
|
3,839,396 |
|
|
5,223,479 |
|
|
715,936 |
|
|
HESAI GROUP |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS |
(All amounts in thousands, except share and per share data and
otherwise noted) |
|
|
|
Three months ended September 30, |
|
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
Net revenues |
|
333,854 |
|
|
445,562 |
|
|
61,069 |
|
Cost of revenues |
|
(210,127 |
) |
|
(309,429 |
) |
|
(42,411 |
) |
Gross
profit |
|
123,727 |
|
|
136,133 |
|
|
18,658 |
|
Operating
expenses: |
|
|
|
|
Sales and marketing expenses |
|
(23,755 |
) |
|
(36,848 |
) |
|
(5,050 |
) |
General and administrative expenses |
|
(41,296 |
) |
|
(80,496 |
) |
|
(11,033 |
) |
Research and development expenses |
|
(163,691 |
) |
|
(192,574 |
) |
|
(26,394 |
) |
Other operating income, net |
|
2,878 |
|
|
6,542 |
|
|
897 |
|
Total operating
expenses |
|
(225,864 |
) |
|
(303,376 |
) |
|
(41,580 |
) |
Loss from
operations |
|
(102,137 |
) |
|
(167,243 |
) |
|
(22,922 |
) |
Interest income |
|
15,669 |
|
|
28,899 |
|
|
3,961 |
|
Interest expense |
|
- |
|
|
(1,166 |
) |
|
(160 |
) |
Foreign exchange gain/(loss), net |
|
15,776 |
|
|
(2,260 |
) |
|
(310 |
) |
Other loss, net |
|
(64 |
) |
|
(24 |
) |
|
(3 |
) |
Net loss before income
tax and share of loss in equity method investments |
|
(70,756 |
) |
|
(141,794 |
) |
|
(19,434 |
) |
Income tax benefit |
|
20 |
|
|
40 |
|
|
5 |
|
Share of loss in equity method investment |
|
(12 |
) |
|
(11 |
) |
|
(2 |
) |
Net loss |
|
(70,748 |
) |
|
(141,765 |
) |
|
(19,431 |
) |
Deemed dividend |
|
(213,505 |
) |
|
- |
|
|
- |
|
Net loss attributable
to ordinary shareholders of the Company |
|
(284,253 |
) |
|
(141,765 |
) |
|
(19,431 |
) |
Net loss per
share: |
|
|
|
|
Basic and diluted |
|
(2.46 |
) |
|
(1.13 |
) |
|
(0.15 |
) |
Weighted average
ordinary shares used in calculating net loss per
share: |
|
|
|
|
Basic and diluted |
|
115,534,593 |
|
|
125,797,264 |
|
|
125,797,264 |
|
Net loss |
|
(70,748 |
) |
|
(141,765 |
) |
|
(19,431 |
) |
Other comprehensive
loss, net of tax of nil: |
|
|
|
|
Foreign currency translation adjustments |
|
(8,073 |
) |
|
(10,874 |
) |
|
(1,490 |
) |
Comprehensive loss,
net of tax of nil |
|
(78,812 |
) |
|
(152,639 |
) |
|
(20,921 |
) |
|
HESAI GROUP |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS-continued |
(All amounts in thousands, except share and per share data and
otherwise noted) |
|
|
|
Nine months ended September 30, |
|
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
Net revenues |
|
793,485 |
|
|
1,315,805 |
|
|
180,346 |
|
Cost of revenues |
|
(444,339 |
) |
|
(885,894 |
) |
|
(121,422 |
) |
Gross
profit |
|
349,146 |
|
|
429,911 |
|
|
58,924 |
|
Operating
expenses: |
|
|
|
|
Sales and marketing expenses |
|
(63,475 |
) |
|
(99,137 |
) |
|
(13,588 |
) |
General and administrative expenses |
|
(153,380 |
) |
|
(186,735 |
) |
|
(25,594 |
) |
Research and development expenses |
|
(376,362 |
) |
|
(562,071 |
) |
|
(77,038 |
) |
Other operating income, net |
|
5,948 |
|
|
9,275 |
|
|
1,271 |
|
Total operating
expenses |
|
(587,269 |
) |
|
(838,668 |
) |
|
(114,949 |
) |
Loss from
operations |
|
(238,123 |
) |
|
(408,757 |
) |
|
(56,025 |
) |
Interest income |
|
49,284 |
|
|
69,024 |
|
|
9,461 |
|
Interest expense |
|
- |
|
|
(2,236 |
) |
|
(306 |
) |
Foreign exchange gain, net |
|
25,430 |
|
|
6,837 |
|
|
937 |
|
Other income/(loss), net |
|
(2,079 |
) |
|
34 |
|
|
5 |
|
Net loss before income
tax and share of loss in equity method investments |
|
(165,488 |
) |
|
(335,098 |
) |
|
(45,928 |
) |
Income tax benefit |
|
46 |
|
|
75 |
|
|
10 |
|
Share of loss in equity method investment |
|
(36 |
) |
|
(34 |
) |
|
(5 |
) |
Net loss |
|
(165,478 |
) |
|
(335,057 |
) |
|
(45,923 |
) |
Deemed dividend |
|
(446,022 |
) |
|
- |
|
|
- |
|
Net loss attributable to ordinary shareholders of the
Company |
|
(611,500 |
) |
|
(335,057 |
) |
|
(45,923 |
) |
Net loss per
share: |
|
|
|
|
Basic and diluted |
|
(5.29 |
) |
|
(2.70 |
) |
|
(0.37 |
) |
Weighted average ordinary shares used in calculating net
loss per share: |
|
|
|
|
Basic and diluted |
|
115,534,593 |
|
|
124,206,950 |
|
|
124,206,950 |
|
Net loss |
|
(165,478 |
) |
|
(335,057 |
) |
|
(45,923 |
) |
Other comprehensive
loss, net of tax of nil: |
|
|
|
|
Foreign currency translation adjustments |
|
(14,763 |
) |
|
57,563 |
|
|
7,890 |
|
Comprehensive loss,
net of tax of nil |
|
(180,241 |
) |
|
(277,494 |
) |
|
(38,033 |
) |
|
HESAI GROUP |
|
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP
RESULTS |
(All amounts in thousands, except share and per share data and
otherwise noted) |
|
|
Three months ended September 30, |
|
2022 |
|
2023 |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
Loss from operations |
(102,137 |
) |
|
(167,243 |
) |
|
(22,922 |
) |
Add:
Share-based compensation expenses, net of tax |
25,549 |
|
|
39,820 |
|
|
5,458 |
|
Non-GAAP loss from operations |
(76,588 |
) |
|
(127,423 |
) |
|
(17,464 |
) |
|
|
|
|
Net
loss |
(70,748 |
) |
|
(141,765 |
) |
|
(19,431 |
) |
Add:
Share-based compensation expenses, net of tax |
25,549 |
|
|
39,820 |
|
|
5,458 |
|
Non-GAAP net loss |
(45,199 |
) |
|
(101,945 |
) |
|
(13,973 |
) |
|
|
|
|
Net
loss attributable to ordinary shareholders of the Company |
(284,253 |
) |
|
(141,765 |
) |
|
(19,431 |
) |
Add:
Share-based compensation expenses, net of tax |
25,549 |
|
|
39,820 |
|
|
5,458 |
|
Add:
Deemed dividend |
213,505 |
|
|
- |
|
|
- |
|
Non-GAAP net loss attributable to ordinary shareholders of
the Company |
(45,199 |
) |
|
(101,945 |
) |
|
(13,973 |
) |
|
|
|
|
Loss
per share: Basic and diluted |
(2.46 |
) |
|
(1.13 |
) |
|
(0.15 |
) |
Add:
Share-based compensation expenses, net of tax |
0.22 |
|
|
0.32 |
|
|
0.04 |
|
Add:
Deemed dividend |
1.85 |
|
|
- |
|
|
- |
|
Non-GAAP net loss per
ordinary share – basic and diluted |
(0.39 |
) |
|
(0.81 |
) |
|
(0.11 |
) |
|
HESAI GROUP |
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP
RESULTS-continued |
(All amounts in thousands, except share and per share data and
otherwise noted) |
|
|
|
Nine months ended September 30, |
|
2022 |
|
2023 |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
Loss from operations |
(238,123 |
) |
|
(408,757 |
) |
|
(56,025 |
) |
Add: Share-based compensation
expenses, net of tax |
80,142 |
|
|
194,057 |
|
|
26,598 |
|
Non-GAAP loss from
operations |
(157,981 |
) |
|
(214,700 |
) |
|
(29,427 |
) |
|
|
|
|
Net loss |
(165,478 |
) |
|
(335,057 |
) |
|
(45,923 |
) |
Add: Share-based compensation
expenses, net of tax |
80,142 |
|
|
194,057 |
|
|
26,598 |
|
Non-GAAP net
loss |
(85,336 |
) |
|
(141,000 |
) |
|
(19,325 |
) |
|
|
|
|
Net loss attributable to
ordinary shareholders of the Company |
(611,500 |
) |
|
(335,057 |
) |
|
(45,923 |
) |
Add: Share-based compensation
expenses, net of tax |
80,142 |
|
|
194,057 |
|
|
26,598 |
|
Add: Deemed dividend |
446,022 |
|
|
- |
|
|
- |
|
Non-GAAP net loss
attributable to ordinary shareholders of the Company |
(85,336 |
) |
|
(141,000 |
) |
|
(19,325 |
) |
|
|
|
|
Loss per share: Basic and
diluted |
(5.29 |
) |
|
(2.70 |
) |
|
(0.37 |
) |
Add: Share-based compensation
expenses, net of tax |
0.69 |
|
|
1.56 |
|
|
0.21 |
|
Add: Deemed dividend |
3.86 |
|
|
- |
|
|
- |
|
Non-GAAP net loss per
ordinary share – basic and diluted |
(0.74 |
) |
|
(1.14 |
) |
|
(0.16 |
) |
________________________________
1All translations from RMB to USD for the third
quarter of 2023 were made at the exchange rate of RMB7.2960 to
US$1.00, the exchange rate on September 29, 2023, set forth in the
H.10 statistical release of the Federal Reserve Board.2Hesai
commenced volume shipments of ADAS lidar in July 2022.3See “Use of
Non-GAAP measures” and “Unaudited reconciliation of GAAP and
Non-GAAP results” included in this release for further details.
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