Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Hesai Group Reports First Quarter 2024 Unaudited Financial Results By: Hesai Group via GlobeNewswire May 20, 2024 at 17:00 PM EDT Quarterly net revenues were RMB359.1 million (US$49.7 million)1Quarterly lidar shipments were 59,101 units SHANGHAI, China, May 20, 2024 (GLOBE NEWSWIRE) -- 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 March 31, 2024. Operational Highlights Three monthsended March 31, 2024ADAS lidar shipments52,462Autonomous Mobility lidar shipments6,639Total lidar shipments59,101 Q1 2024 ADAS lidar shipments were 52,462 units, representing an increase of 86.1% from 28,195 units in the corresponding period of 2023.Q1 2024 Total lidar shipments were 59,101 units, representing an increase of 69.7% from 34,834 units in the corresponding period of 2023. Management Remarks Yifan “David” Li, Hesai’s Co-Founder and CEO, commented, “In the first quarter, we delivered a resilient financial performance amid typical seasonal factors as well as slower demand in our robotaxi business compared with the previous year. Despite the challenges, our dedicated efforts yielded net revenues of RMB359.1 million (US$49.7 million) and total lidar shipments of 59,101 units in the first quarter, both exceeding our earlier forecasts. Moreover, our effective cost management endeavors and flywheel strategy are steadily driving us closer to attaining profitability by the fourth quarter of this fiscal year. “The automotive sector continues to evolve rapidly, highlighted by the expanding integration of lidar technology into intelligent vehicles across a broader spectrum of price ranges. To navigate this trend, we maintain dual strategic development pathways for our ADAS product roadmap: ultimate performance and ultimate value-to-cost, exemplified by our two latest long-range ADAS products, the AT512 and ATX. These offerings provide appealing solutions at various price points to ensure that safety becomes a standard feature in every intelligent vehicle,” added Dr. Li. “On the business front, our leading-edge technology and proven track record continue to create tailwinds that propel our ongoing success. We are beyond thrilled to unveil recent collaborations with two esteemed new customers: a top global automotive OEM and a major global OEM’s joint venture. Notably, some of these customers had prior engagements with our peers, but have now chosen to partner with us for the first time. These partnerships are landmark commercial wins for us and reflect the substantial and steady stream of opportunities that lie ahead. As always, we remain committed to leading and fostering growth through innovation and leveraging technology to enhance safety, save lives and create a more intelligent global transportation system.” Product Updates: Launched a new ultra-compact high-performance long-range ADAS lidar, the ATX. The ATX inherits the key capabilities of Hesai’s best-selling AT128P lidar, retaining its market-validated one-dimensional scanning architecture. The ATX also incorporates state-of-the-art technological features such as 7x optical zoom and Hesai’s proprietary Intelligent Point Cloud Engine, setting it apart as a unique and innovative offering in the market.With optimized optical and mechanical design, the ATX boasts a maximum detection range of 300 meters with a 140° horizontal FOV for expansive visibility of complex road conditions such as nearby vehicles or pedestrians. It also weighs 50% less and occupies 60% less space than the AT128, offering versatile installation options.The ATX has received design wins and collaborative programs from four global and domestic leading OEMs. Production of the ATX is expected to begin in the first quarter of 2025. Business Updates: Global: Recently selected by two additional Top 10 (by revenues) global automotive OEMs to provide ADAS lidars for their upcoming series production programs. Hesai has now secured design wins with four prominent global OEMs, including three global OEMs' joint ventures and one global automotive OEM with worldwide shipping programs.Established a strategic partnership with Marelli, a global leading automotive lighting supplier, to integrate the ATX into its innovative headlamp designs. Domestic: Forged a partnership with GAC, one of China's leading OEMs, to collaboratively develop and integrate Hesai's next-generation lidar products into GAC's forthcoming lineup of passenger vehicles. Hesai has secured ADAS design wins with 18 OEMs and Tier 1 suppliers globally across approximately 70 vehicle models. Financial Highlights for the First Quarter of 2024(in RMB millions, except for per ordinary share data and percentage) Q1 2024 Q1 2023 % Change Net revenues359.1 429.9 -16.5% Gross margin38.8% 37.8% Loss from operations(138.5) (128.0) 8.2% Non-GAAP2 loss from operations(100.7) (7.5) 1237.8% Net loss(106.9) (118.9) -10.1% Non-GAAP net income/(loss)(69.1) 1.6 Net loss attributable to ordinary shareholders(106.9) (118.9) -10.1% Net loss per ordinary share-basic and diluted(0.84) (0.98) -14.3% Non-GAAP net income/(loss) per ordinary share – basic and diluted(0.54) 0.01 Net revenues were RMB359.1 million (US$49.7 million) for the first quarter of 2024, representing a decrease of 16.5% from RMB429.9 million for the same period of 2023. Product revenues were RMB353.0 million (US$48.9 million) for the first quarter of 2024, representing a decrease of 16.8% from RMB424.1 million for the same period of 2023. The year-over-year decrease was mainly attributable to decreased revenues from sales of autonomous mobility lidar products due to slower demand in our robotaxi business, partially offset by our increased revenues from sales of ADAS lidar products. Service revenues were RMB6.1 million (US$0.9 million) for the first quarter of 2024, representing an increase of 5.2% from RMB5.8 million for the same period of 2023. Cost of revenues was RMB219.9 million (US$30.5 million) for the first quarter of 2024, representing a decrease of 17.7% from RMB267.3 million for the same period of 2023. The year-over-year decrease was due to decreased shipments of autonomous mobility lidar products.Gross margin was 38.8% for the first quarter of 2024, compared with 37.8% for the same period of 2023. Sales and marketing expenses were RMB42.0 million (US$5.8 million) for the first quarter of 2024, representing an increase of 18.7% from RMB35.4 million for the same period of 2023. The year-over-year increase was mainly due to increased payroll expenses of RMB12.0 million (US$1.7 million) attributable to an expanded sales and marketing team, offset by the decrease in share-based compensation expenses of RMB9.9 million (US$1.4 million).General and administrative expenses were RMB68.8 million (US$9.5 million) for the first quarter of 2024, representing an increase of 38.8% from RMB49.5 million for the same period of 2023. The year-over-year increase was mainly driven by an increase in professional service expenses of RMB8.6 million (US$1.2 million) and an increase in payroll expenses of RMB5.0 million (US$0.7 million).Research and development expenses were RMB194.4 million (US$26.9 million) for the first quarter of 2024, representing a decrease of 6.8% from RMB208.5 million for the same period of 2023. The year-over-year decrease was mainly due to decreased share-based compensation expenses of RMB62.1 million (US$8.6 million) mainly attributable to one-off share-based compensation related to the stock options granted with an IPO performance condition recognized in the first quarter of 2023, offset by the increase in payroll expenses of RMB26.4 million (US$3.7 million) due to increased R&D headcount.Loss from operations was RMB138.5 million (US$19.2 million) for the first quarter of 2024, representing an increase of 8.2% from RMB128.0 million from the same period of 2023. Excluding share-based compensation expenses, non-GAAP loss from operations was RMB100.7 million (US$13.9 million) for the first quarter of 2024, compared with RMB7.5 million for the same period of 2023.Net loss was RMB106.9 million (US$14.8 million) for the first quarter of 2024, compared with RMB118.9 million for the same period of 2023. Excluding share-based compensation expenses, non-GAAP net loss was RMB69.1 million (US$9.6 million) for the first quarter of 2024, compared with non-GAAP net income of RMB1.6 million for the same period of 2023.Net loss attributable to ordinary shareholders of Hesai was RMB106.9 million (US$14.8 million) for the first quarter of 2024, compared with RMB118.9 million for the same period of 2023. Excluding share-based compensation expenses, non-GAAP net loss attributable to ordinary shareholders of Hesai was RMB69.1 million (US$9.6 million) for the first quarter of 2024, compared with non-GAAP net income attributable to ordinary shareholders of Hesai of RMB1.6 million for the same period of 2023.Basic and diluted net loss per ordinary share were both RMB0.84 (US$0.12) for the first quarter of 2024. Excluding share-based compensation expenses, non-GAAP basic net loss per ordinary share and non-GAAP diluted net loss per ordinary share were both RMB0.54 (US$0.08) for the first quarter of 2024. Cash and cash equivalents, restricted cash and short-term investments were RMB2,829.9 million (US$391.9 million) as of March 31, 2024, compared with RMB3,144.1 million as of December 31, 2023. Business Outlook For the second quarter of 2024, the Company expects net revenues to be between RMB440 million (US$60.9 million) and RMB460 million (US$63.7 million), representing a year-over-year increase of approximately 0% to 4.5%. The above outlook is based on the 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 9:00 PM U.S. Eastern Time on May 20, 2024 (9:00 AM Beijing/Hong Kong Time on May 21, 2024). 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 First Quarter 2024 Earnings Conference CallPre-registration Link:https://s1.c-conf.com/diamondpass/10038728-9ct32d.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 May 30, 2024, by dialing the following telephone numbers: United States:+1-855-883-1031International:+61-7-3107-6325Hong Kong, China:800-930-639China Mainland:400-120-9216Replay PIN:10038728 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 40 countries as of December 31, 2023. 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 per ordinary share net income attributable to ordinary shareholders excluding share-based compensation. 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 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 financial measures is that they exclude share-based compensation expenses that have 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 financial 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 RMB7.2203 to US$1.00, the exchange rate on March 29, 2024, 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 CommunicationsBrandi PiacenteTel: +1-212-481-2050Email: hesai@tpg-ir.com Source: Hesai Group HESAI GROUPUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts in thousands, except share and per share data and otherwise noted) As of December 31,2023 March 31,2024 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 1,554,583 1,563,496 216,542 Restricted cash 3,541 3,548 491 Short-term investments 1,586,005 1,262,855 174,903 Notes receivables - 717 99 Accounts receivable, net 524,818 570,376 78,996 Contract assets 19,688 19,688 2,727 Amounts due from related parties 5,015 5,018 695 Inventories 495,877 634,686 87,903 Prepayments and other current assets 208,082 230,157 31,876 Total current assets 4,397,609 4,290,541 594,232 Non-current assets: Property and equipment, net 871,611 904,567 125,281 Long-term investments 78,730 31,800 4,404 Intangible assets, net 40,743 75,113 10,403 Land-use rights, net - 40,527 5,613 Goodwill 31,811 - - Right-of-use assets 151,871 137,768 19,081 Other non-current assets 90,168 106,010 14,682 Total non-current assets 1,264,934 1,295,785 179,464 TOTAL ASSETS . 5,662,543 5,586,326 773,696 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term borrowings 111,682 161,750 22,402 Notes payable 7,255 26,568 3,680 Accounts payable 269,439 336,110 46,551 Contract liabilities 79,925 41,584 5,759 Amounts due to related parties 340,051 337,923 46,802 Accrued warranty liability 28,425 29,815 4,129 Accrued expenses and other current liabilities 498,324 354,492 49,094 Total current liabilities 1,335,101 1,288,242 178,417 Non-current liabilities Operating lease liabilities 119,413 115,452 15,990 Long-term borrowings 285,898 326,553 45,227 Other non-current liabilities 59,813 56,018 7,758 Total non-current liabilities 465,124 498,023 68,975 TOTAL LIABILITIES 1,800,225 1,786,265 247,392 Shareholders’ Equity Class A Ordinary shares 19 19 3 Class B Ordinary shares 67 67 9 Additional paid-in capital 7,423,862 7,465,442 1,033,952 Subscription receivables (292,721) (292,721) (40,541)Accumulated other comprehensive income (loss) 38,440 41,528 5,752 Accumulated deficit (3,307,349) (3,414,274) (472,871)TOTAL SHAREHOLDERS’ EQUITY 3,862,318 3,800,061 526,304 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 5,662,543 5,586,326 773,696 HESAI GROUPUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(All amounts in thousands, except share and per share data and otherwise noted) Three months ended March 31, 2023 2024 RMBRMB US$ Net revenues 429,930 359,120 49,738 Cost of revenues (267,304) (219,898) (30,456)Gross profit 162,626 139,222 19,282 Operating expenses: Sales and marketing expenses (35,363) (41,964) (5,812)General and administrative expenses (49,544) (68,767) (9,524)Research and development expenses (208,496) (194,402) (26,924)Other operating income, net 2,771 27,456 3,803 Total operating expenses (290,632) (277,677) (38,457)Loss from operations (128,006) (138,455) (19,175)Interest income 16,134 32,795 4,542 Interest expenses (461) (2,286) (317)Foreign exchange income/(loss), net (6,415) 1,493 207 Other loss, net (167) (212) (29)Net loss before income tax and share of loss in equity method investments (118,915) (106,665) (14,772)Income tax benefit/(expense) 17 (248) (34)Share of loss in equity method investment (11) (12) (2)Net loss (118,909) (106,925) (14,808)Net loss attributable to ordinary shareholders of the Company (118,909) (106,925) (14,808)Net loss per share: Basic and diluted (0.98) (0.84) (0.12)Weighted average ordinary shares used in calculating net loss per share: Basic and diluted 121,175,064 127,336,569 127,336,569 Net loss (118,909) (106,925) (14,809)Other comprehensive loss, net of tax of nil: Foreign currency translation adjustments 12,948 3,088 428 Comprehensive loss, net of tax of nil (105,961) (103,837) (14,380) HESAI GROUP UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except share and per share data and otherwise noted) For the three months ended March 31, 2023 2024 RMBRMB US$ Loss from operations(128,006) (138,455) (19,175)Add: Share-based compensation expenses120,481 37,800 5,235 Non-GAAP loss from operations(7,525) (100,655) (13,940) Net loss(118,909) (106,925) (14,808)Add: Share-based compensation expenses120,481 37,800 5,235 Non-GAAP net income/(loss)1,572 (69,125) (9,573) Net loss attributable to ordinary shareholders of the Company(118,909) (106,925) (14,808)Add: Share-based compensation expenses120,481 37,800 5,235 Non-GAAP net income/(loss) attributable to ordinary shareholders of the Company1,572 (69,125) (9,573) Loss per share: Basic and diluted(0.98) (0.84) (0.12)Add: Share-based compensation expenses0.99 0.30 0.04 Non-GAAP net income/(loss) per ordinary share – basic and diluted 0.01 (0.54) (0.08) ____________________________ 1 All translations from RMB to USD for the first quarter of 2024 were made at the exchange rate of RMB7.2203 to US$1.00, the exchange rate on March 29, 2024, set forth in the H.10 statistical release of the Federal Reserve Board.2 See “Use of Non-GAAP Financial Measures” and “Unaudited Reconciliation of GAAP and Non-GAAP Results” included in this release for further details. Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Hesai Group Reports First Quarter 2024 Unaudited Financial Results By: Hesai Group via GlobeNewswire May 20, 2024 at 17:00 PM EDT Quarterly net revenues were RMB359.1 million (US$49.7 million)1Quarterly lidar shipments were 59,101 units SHANGHAI, China, May 20, 2024 (GLOBE NEWSWIRE) -- 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 March 31, 2024. Operational Highlights Three monthsended March 31, 2024ADAS lidar shipments52,462Autonomous Mobility lidar shipments6,639Total lidar shipments59,101 Q1 2024 ADAS lidar shipments were 52,462 units, representing an increase of 86.1% from 28,195 units in the corresponding period of 2023.Q1 2024 Total lidar shipments were 59,101 units, representing an increase of 69.7% from 34,834 units in the corresponding period of 2023. Management Remarks Yifan “David” Li, Hesai’s Co-Founder and CEO, commented, “In the first quarter, we delivered a resilient financial performance amid typical seasonal factors as well as slower demand in our robotaxi business compared with the previous year. Despite the challenges, our dedicated efforts yielded net revenues of RMB359.1 million (US$49.7 million) and total lidar shipments of 59,101 units in the first quarter, both exceeding our earlier forecasts. Moreover, our effective cost management endeavors and flywheel strategy are steadily driving us closer to attaining profitability by the fourth quarter of this fiscal year. “The automotive sector continues to evolve rapidly, highlighted by the expanding integration of lidar technology into intelligent vehicles across a broader spectrum of price ranges. To navigate this trend, we maintain dual strategic development pathways for our ADAS product roadmap: ultimate performance and ultimate value-to-cost, exemplified by our two latest long-range ADAS products, the AT512 and ATX. These offerings provide appealing solutions at various price points to ensure that safety becomes a standard feature in every intelligent vehicle,” added Dr. Li. “On the business front, our leading-edge technology and proven track record continue to create tailwinds that propel our ongoing success. We are beyond thrilled to unveil recent collaborations with two esteemed new customers: a top global automotive OEM and a major global OEM’s joint venture. Notably, some of these customers had prior engagements with our peers, but have now chosen to partner with us for the first time. These partnerships are landmark commercial wins for us and reflect the substantial and steady stream of opportunities that lie ahead. As always, we remain committed to leading and fostering growth through innovation and leveraging technology to enhance safety, save lives and create a more intelligent global transportation system.” Product Updates: Launched a new ultra-compact high-performance long-range ADAS lidar, the ATX. The ATX inherits the key capabilities of Hesai’s best-selling AT128P lidar, retaining its market-validated one-dimensional scanning architecture. The ATX also incorporates state-of-the-art technological features such as 7x optical zoom and Hesai’s proprietary Intelligent Point Cloud Engine, setting it apart as a unique and innovative offering in the market.With optimized optical and mechanical design, the ATX boasts a maximum detection range of 300 meters with a 140° horizontal FOV for expansive visibility of complex road conditions such as nearby vehicles or pedestrians. It also weighs 50% less and occupies 60% less space than the AT128, offering versatile installation options.The ATX has received design wins and collaborative programs from four global and domestic leading OEMs. Production of the ATX is expected to begin in the first quarter of 2025. Business Updates: Global: Recently selected by two additional Top 10 (by revenues) global automotive OEMs to provide ADAS lidars for their upcoming series production programs. Hesai has now secured design wins with four prominent global OEMs, including three global OEMs' joint ventures and one global automotive OEM with worldwide shipping programs.Established a strategic partnership with Marelli, a global leading automotive lighting supplier, to integrate the ATX into its innovative headlamp designs. Domestic: Forged a partnership with GAC, one of China's leading OEMs, to collaboratively develop and integrate Hesai's next-generation lidar products into GAC's forthcoming lineup of passenger vehicles. Hesai has secured ADAS design wins with 18 OEMs and Tier 1 suppliers globally across approximately 70 vehicle models. Financial Highlights for the First Quarter of 2024(in RMB millions, except for per ordinary share data and percentage) Q1 2024 Q1 2023 % Change Net revenues359.1 429.9 -16.5% Gross margin38.8% 37.8% Loss from operations(138.5) (128.0) 8.2% Non-GAAP2 loss from operations(100.7) (7.5) 1237.8% Net loss(106.9) (118.9) -10.1% Non-GAAP net income/(loss)(69.1) 1.6 Net loss attributable to ordinary shareholders(106.9) (118.9) -10.1% Net loss per ordinary share-basic and diluted(0.84) (0.98) -14.3% Non-GAAP net income/(loss) per ordinary share – basic and diluted(0.54) 0.01 Net revenues were RMB359.1 million (US$49.7 million) for the first quarter of 2024, representing a decrease of 16.5% from RMB429.9 million for the same period of 2023. Product revenues were RMB353.0 million (US$48.9 million) for the first quarter of 2024, representing a decrease of 16.8% from RMB424.1 million for the same period of 2023. The year-over-year decrease was mainly attributable to decreased revenues from sales of autonomous mobility lidar products due to slower demand in our robotaxi business, partially offset by our increased revenues from sales of ADAS lidar products. Service revenues were RMB6.1 million (US$0.9 million) for the first quarter of 2024, representing an increase of 5.2% from RMB5.8 million for the same period of 2023. Cost of revenues was RMB219.9 million (US$30.5 million) for the first quarter of 2024, representing a decrease of 17.7% from RMB267.3 million for the same period of 2023. The year-over-year decrease was due to decreased shipments of autonomous mobility lidar products.Gross margin was 38.8% for the first quarter of 2024, compared with 37.8% for the same period of 2023. Sales and marketing expenses were RMB42.0 million (US$5.8 million) for the first quarter of 2024, representing an increase of 18.7% from RMB35.4 million for the same period of 2023. The year-over-year increase was mainly due to increased payroll expenses of RMB12.0 million (US$1.7 million) attributable to an expanded sales and marketing team, offset by the decrease in share-based compensation expenses of RMB9.9 million (US$1.4 million).General and administrative expenses were RMB68.8 million (US$9.5 million) for the first quarter of 2024, representing an increase of 38.8% from RMB49.5 million for the same period of 2023. The year-over-year increase was mainly driven by an increase in professional service expenses of RMB8.6 million (US$1.2 million) and an increase in payroll expenses of RMB5.0 million (US$0.7 million).Research and development expenses were RMB194.4 million (US$26.9 million) for the first quarter of 2024, representing a decrease of 6.8% from RMB208.5 million for the same period of 2023. The year-over-year decrease was mainly due to decreased share-based compensation expenses of RMB62.1 million (US$8.6 million) mainly attributable to one-off share-based compensation related to the stock options granted with an IPO performance condition recognized in the first quarter of 2023, offset by the increase in payroll expenses of RMB26.4 million (US$3.7 million) due to increased R&D headcount.Loss from operations was RMB138.5 million (US$19.2 million) for the first quarter of 2024, representing an increase of 8.2% from RMB128.0 million from the same period of 2023. Excluding share-based compensation expenses, non-GAAP loss from operations was RMB100.7 million (US$13.9 million) for the first quarter of 2024, compared with RMB7.5 million for the same period of 2023.Net loss was RMB106.9 million (US$14.8 million) for the first quarter of 2024, compared with RMB118.9 million for the same period of 2023. Excluding share-based compensation expenses, non-GAAP net loss was RMB69.1 million (US$9.6 million) for the first quarter of 2024, compared with non-GAAP net income of RMB1.6 million for the same period of 2023.Net loss attributable to ordinary shareholders of Hesai was RMB106.9 million (US$14.8 million) for the first quarter of 2024, compared with RMB118.9 million for the same period of 2023. Excluding share-based compensation expenses, non-GAAP net loss attributable to ordinary shareholders of Hesai was RMB69.1 million (US$9.6 million) for the first quarter of 2024, compared with non-GAAP net income attributable to ordinary shareholders of Hesai of RMB1.6 million for the same period of 2023.Basic and diluted net loss per ordinary share were both RMB0.84 (US$0.12) for the first quarter of 2024. Excluding share-based compensation expenses, non-GAAP basic net loss per ordinary share and non-GAAP diluted net loss per ordinary share were both RMB0.54 (US$0.08) for the first quarter of 2024. Cash and cash equivalents, restricted cash and short-term investments were RMB2,829.9 million (US$391.9 million) as of March 31, 2024, compared with RMB3,144.1 million as of December 31, 2023. Business Outlook For the second quarter of 2024, the Company expects net revenues to be between RMB440 million (US$60.9 million) and RMB460 million (US$63.7 million), representing a year-over-year increase of approximately 0% to 4.5%. The above outlook is based on the 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 9:00 PM U.S. Eastern Time on May 20, 2024 (9:00 AM Beijing/Hong Kong Time on May 21, 2024). 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 First Quarter 2024 Earnings Conference CallPre-registration Link:https://s1.c-conf.com/diamondpass/10038728-9ct32d.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 May 30, 2024, by dialing the following telephone numbers: United States:+1-855-883-1031International:+61-7-3107-6325Hong Kong, China:800-930-639China Mainland:400-120-9216Replay PIN:10038728 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 40 countries as of December 31, 2023. 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 per ordinary share net income attributable to ordinary shareholders excluding share-based compensation. 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 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 financial measures is that they exclude share-based compensation expenses that have 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 financial 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 RMB7.2203 to US$1.00, the exchange rate on March 29, 2024, 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 CommunicationsBrandi PiacenteTel: +1-212-481-2050Email: hesai@tpg-ir.com Source: Hesai Group HESAI GROUPUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts in thousands, except share and per share data and otherwise noted) As of December 31,2023 March 31,2024 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 1,554,583 1,563,496 216,542 Restricted cash 3,541 3,548 491 Short-term investments 1,586,005 1,262,855 174,903 Notes receivables - 717 99 Accounts receivable, net 524,818 570,376 78,996 Contract assets 19,688 19,688 2,727 Amounts due from related parties 5,015 5,018 695 Inventories 495,877 634,686 87,903 Prepayments and other current assets 208,082 230,157 31,876 Total current assets 4,397,609 4,290,541 594,232 Non-current assets: Property and equipment, net 871,611 904,567 125,281 Long-term investments 78,730 31,800 4,404 Intangible assets, net 40,743 75,113 10,403 Land-use rights, net - 40,527 5,613 Goodwill 31,811 - - Right-of-use assets 151,871 137,768 19,081 Other non-current assets 90,168 106,010 14,682 Total non-current assets 1,264,934 1,295,785 179,464 TOTAL ASSETS . 5,662,543 5,586,326 773,696 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term borrowings 111,682 161,750 22,402 Notes payable 7,255 26,568 3,680 Accounts payable 269,439 336,110 46,551 Contract liabilities 79,925 41,584 5,759 Amounts due to related parties 340,051 337,923 46,802 Accrued warranty liability 28,425 29,815 4,129 Accrued expenses and other current liabilities 498,324 354,492 49,094 Total current liabilities 1,335,101 1,288,242 178,417 Non-current liabilities Operating lease liabilities 119,413 115,452 15,990 Long-term borrowings 285,898 326,553 45,227 Other non-current liabilities 59,813 56,018 7,758 Total non-current liabilities 465,124 498,023 68,975 TOTAL LIABILITIES 1,800,225 1,786,265 247,392 Shareholders’ Equity Class A Ordinary shares 19 19 3 Class B Ordinary shares 67 67 9 Additional paid-in capital 7,423,862 7,465,442 1,033,952 Subscription receivables (292,721) (292,721) (40,541)Accumulated other comprehensive income (loss) 38,440 41,528 5,752 Accumulated deficit (3,307,349) (3,414,274) (472,871)TOTAL SHAREHOLDERS’ EQUITY 3,862,318 3,800,061 526,304 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 5,662,543 5,586,326 773,696 HESAI GROUPUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(All amounts in thousands, except share and per share data and otherwise noted) Three months ended March 31, 2023 2024 RMBRMB US$ Net revenues 429,930 359,120 49,738 Cost of revenues (267,304) (219,898) (30,456)Gross profit 162,626 139,222 19,282 Operating expenses: Sales and marketing expenses (35,363) (41,964) (5,812)General and administrative expenses (49,544) (68,767) (9,524)Research and development expenses (208,496) (194,402) (26,924)Other operating income, net 2,771 27,456 3,803 Total operating expenses (290,632) (277,677) (38,457)Loss from operations (128,006) (138,455) (19,175)Interest income 16,134 32,795 4,542 Interest expenses (461) (2,286) (317)Foreign exchange income/(loss), net (6,415) 1,493 207 Other loss, net (167) (212) (29)Net loss before income tax and share of loss in equity method investments (118,915) (106,665) (14,772)Income tax benefit/(expense) 17 (248) (34)Share of loss in equity method investment (11) (12) (2)Net loss (118,909) (106,925) (14,808)Net loss attributable to ordinary shareholders of the Company (118,909) (106,925) (14,808)Net loss per share: Basic and diluted (0.98) (0.84) (0.12)Weighted average ordinary shares used in calculating net loss per share: Basic and diluted 121,175,064 127,336,569 127,336,569 Net loss (118,909) (106,925) (14,809)Other comprehensive loss, net of tax of nil: Foreign currency translation adjustments 12,948 3,088 428 Comprehensive loss, net of tax of nil (105,961) (103,837) (14,380) HESAI GROUP UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except share and per share data and otherwise noted) For the three months ended March 31, 2023 2024 RMBRMB US$ Loss from operations(128,006) (138,455) (19,175)Add: Share-based compensation expenses120,481 37,800 5,235 Non-GAAP loss from operations(7,525) (100,655) (13,940) Net loss(118,909) (106,925) (14,808)Add: Share-based compensation expenses120,481 37,800 5,235 Non-GAAP net income/(loss)1,572 (69,125) (9,573) Net loss attributable to ordinary shareholders of the Company(118,909) (106,925) (14,808)Add: Share-based compensation expenses120,481 37,800 5,235 Non-GAAP net income/(loss) attributable to ordinary shareholders of the Company1,572 (69,125) (9,573) Loss per share: Basic and diluted(0.98) (0.84) (0.12)Add: Share-based compensation expenses0.99 0.30 0.04 Non-GAAP net income/(loss) per ordinary share – basic and diluted 0.01 (0.54) (0.08) ____________________________ 1 All translations from RMB to USD for the first quarter of 2024 were made at the exchange rate of RMB7.2203 to US$1.00, the exchange rate on March 29, 2024, set forth in the H.10 statistical release of the Federal Reserve Board.2 See “Use of Non-GAAP Financial Measures” and “Unaudited Reconciliation of GAAP and Non-GAAP Results” included in this release for further details.
Quarterly net revenues were RMB359.1 million (US$49.7 million)1Quarterly lidar shipments were 59,101 units SHANGHAI, China, May 20, 2024 (GLOBE NEWSWIRE) -- 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 March 31, 2024. Operational Highlights Three monthsended March 31, 2024ADAS lidar shipments52,462Autonomous Mobility lidar shipments6,639Total lidar shipments59,101 Q1 2024 ADAS lidar shipments were 52,462 units, representing an increase of 86.1% from 28,195 units in the corresponding period of 2023.Q1 2024 Total lidar shipments were 59,101 units, representing an increase of 69.7% from 34,834 units in the corresponding period of 2023. Management Remarks Yifan “David” Li, Hesai’s Co-Founder and CEO, commented, “In the first quarter, we delivered a resilient financial performance amid typical seasonal factors as well as slower demand in our robotaxi business compared with the previous year. Despite the challenges, our dedicated efforts yielded net revenues of RMB359.1 million (US$49.7 million) and total lidar shipments of 59,101 units in the first quarter, both exceeding our earlier forecasts. Moreover, our effective cost management endeavors and flywheel strategy are steadily driving us closer to attaining profitability by the fourth quarter of this fiscal year. “The automotive sector continues to evolve rapidly, highlighted by the expanding integration of lidar technology into intelligent vehicles across a broader spectrum of price ranges. To navigate this trend, we maintain dual strategic development pathways for our ADAS product roadmap: ultimate performance and ultimate value-to-cost, exemplified by our two latest long-range ADAS products, the AT512 and ATX. These offerings provide appealing solutions at various price points to ensure that safety becomes a standard feature in every intelligent vehicle,” added Dr. Li. “On the business front, our leading-edge technology and proven track record continue to create tailwinds that propel our ongoing success. We are beyond thrilled to unveil recent collaborations with two esteemed new customers: a top global automotive OEM and a major global OEM’s joint venture. Notably, some of these customers had prior engagements with our peers, but have now chosen to partner with us for the first time. These partnerships are landmark commercial wins for us and reflect the substantial and steady stream of opportunities that lie ahead. As always, we remain committed to leading and fostering growth through innovation and leveraging technology to enhance safety, save lives and create a more intelligent global transportation system.” Product Updates: Launched a new ultra-compact high-performance long-range ADAS lidar, the ATX. The ATX inherits the key capabilities of Hesai’s best-selling AT128P lidar, retaining its market-validated one-dimensional scanning architecture. The ATX also incorporates state-of-the-art technological features such as 7x optical zoom and Hesai’s proprietary Intelligent Point Cloud Engine, setting it apart as a unique and innovative offering in the market.With optimized optical and mechanical design, the ATX boasts a maximum detection range of 300 meters with a 140° horizontal FOV for expansive visibility of complex road conditions such as nearby vehicles or pedestrians. It also weighs 50% less and occupies 60% less space than the AT128, offering versatile installation options.The ATX has received design wins and collaborative programs from four global and domestic leading OEMs. Production of the ATX is expected to begin in the first quarter of 2025. Business Updates: Global: Recently selected by two additional Top 10 (by revenues) global automotive OEMs to provide ADAS lidars for their upcoming series production programs. Hesai has now secured design wins with four prominent global OEMs, including three global OEMs' joint ventures and one global automotive OEM with worldwide shipping programs.Established a strategic partnership with Marelli, a global leading automotive lighting supplier, to integrate the ATX into its innovative headlamp designs. Domestic: Forged a partnership with GAC, one of China's leading OEMs, to collaboratively develop and integrate Hesai's next-generation lidar products into GAC's forthcoming lineup of passenger vehicles. Hesai has secured ADAS design wins with 18 OEMs and Tier 1 suppliers globally across approximately 70 vehicle models. Financial Highlights for the First Quarter of 2024(in RMB millions, except for per ordinary share data and percentage) Q1 2024 Q1 2023 % Change Net revenues359.1 429.9 -16.5% Gross margin38.8% 37.8% Loss from operations(138.5) (128.0) 8.2% Non-GAAP2 loss from operations(100.7) (7.5) 1237.8% Net loss(106.9) (118.9) -10.1% Non-GAAP net income/(loss)(69.1) 1.6 Net loss attributable to ordinary shareholders(106.9) (118.9) -10.1% Net loss per ordinary share-basic and diluted(0.84) (0.98) -14.3% Non-GAAP net income/(loss) per ordinary share – basic and diluted(0.54) 0.01 Net revenues were RMB359.1 million (US$49.7 million) for the first quarter of 2024, representing a decrease of 16.5% from RMB429.9 million for the same period of 2023. Product revenues were RMB353.0 million (US$48.9 million) for the first quarter of 2024, representing a decrease of 16.8% from RMB424.1 million for the same period of 2023. The year-over-year decrease was mainly attributable to decreased revenues from sales of autonomous mobility lidar products due to slower demand in our robotaxi business, partially offset by our increased revenues from sales of ADAS lidar products. Service revenues were RMB6.1 million (US$0.9 million) for the first quarter of 2024, representing an increase of 5.2% from RMB5.8 million for the same period of 2023. Cost of revenues was RMB219.9 million (US$30.5 million) for the first quarter of 2024, representing a decrease of 17.7% from RMB267.3 million for the same period of 2023. The year-over-year decrease was due to decreased shipments of autonomous mobility lidar products.Gross margin was 38.8% for the first quarter of 2024, compared with 37.8% for the same period of 2023. Sales and marketing expenses were RMB42.0 million (US$5.8 million) for the first quarter of 2024, representing an increase of 18.7% from RMB35.4 million for the same period of 2023. The year-over-year increase was mainly due to increased payroll expenses of RMB12.0 million (US$1.7 million) attributable to an expanded sales and marketing team, offset by the decrease in share-based compensation expenses of RMB9.9 million (US$1.4 million).General and administrative expenses were RMB68.8 million (US$9.5 million) for the first quarter of 2024, representing an increase of 38.8% from RMB49.5 million for the same period of 2023. The year-over-year increase was mainly driven by an increase in professional service expenses of RMB8.6 million (US$1.2 million) and an increase in payroll expenses of RMB5.0 million (US$0.7 million).Research and development expenses were RMB194.4 million (US$26.9 million) for the first quarter of 2024, representing a decrease of 6.8% from RMB208.5 million for the same period of 2023. The year-over-year decrease was mainly due to decreased share-based compensation expenses of RMB62.1 million (US$8.6 million) mainly attributable to one-off share-based compensation related to the stock options granted with an IPO performance condition recognized in the first quarter of 2023, offset by the increase in payroll expenses of RMB26.4 million (US$3.7 million) due to increased R&D headcount.Loss from operations was RMB138.5 million (US$19.2 million) for the first quarter of 2024, representing an increase of 8.2% from RMB128.0 million from the same period of 2023. Excluding share-based compensation expenses, non-GAAP loss from operations was RMB100.7 million (US$13.9 million) for the first quarter of 2024, compared with RMB7.5 million for the same period of 2023.Net loss was RMB106.9 million (US$14.8 million) for the first quarter of 2024, compared with RMB118.9 million for the same period of 2023. Excluding share-based compensation expenses, non-GAAP net loss was RMB69.1 million (US$9.6 million) for the first quarter of 2024, compared with non-GAAP net income of RMB1.6 million for the same period of 2023.Net loss attributable to ordinary shareholders of Hesai was RMB106.9 million (US$14.8 million) for the first quarter of 2024, compared with RMB118.9 million for the same period of 2023. Excluding share-based compensation expenses, non-GAAP net loss attributable to ordinary shareholders of Hesai was RMB69.1 million (US$9.6 million) for the first quarter of 2024, compared with non-GAAP net income attributable to ordinary shareholders of Hesai of RMB1.6 million for the same period of 2023.Basic and diluted net loss per ordinary share were both RMB0.84 (US$0.12) for the first quarter of 2024. Excluding share-based compensation expenses, non-GAAP basic net loss per ordinary share and non-GAAP diluted net loss per ordinary share were both RMB0.54 (US$0.08) for the first quarter of 2024. Cash and cash equivalents, restricted cash and short-term investments were RMB2,829.9 million (US$391.9 million) as of March 31, 2024, compared with RMB3,144.1 million as of December 31, 2023. Business Outlook For the second quarter of 2024, the Company expects net revenues to be between RMB440 million (US$60.9 million) and RMB460 million (US$63.7 million), representing a year-over-year increase of approximately 0% to 4.5%. The above outlook is based on the 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 9:00 PM U.S. Eastern Time on May 20, 2024 (9:00 AM Beijing/Hong Kong Time on May 21, 2024). 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 First Quarter 2024 Earnings Conference CallPre-registration Link:https://s1.c-conf.com/diamondpass/10038728-9ct32d.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 May 30, 2024, by dialing the following telephone numbers: United States:+1-855-883-1031International:+61-7-3107-6325Hong Kong, China:800-930-639China Mainland:400-120-9216Replay PIN:10038728 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 40 countries as of December 31, 2023. 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 per ordinary share net income attributable to ordinary shareholders excluding share-based compensation. 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 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 financial measures is that they exclude share-based compensation expenses that have 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 financial 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 RMB7.2203 to US$1.00, the exchange rate on March 29, 2024, 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 CommunicationsBrandi PiacenteTel: +1-212-481-2050Email: hesai@tpg-ir.com Source: Hesai Group HESAI GROUPUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts in thousands, except share and per share data and otherwise noted) As of December 31,2023 March 31,2024 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 1,554,583 1,563,496 216,542 Restricted cash 3,541 3,548 491 Short-term investments 1,586,005 1,262,855 174,903 Notes receivables - 717 99 Accounts receivable, net 524,818 570,376 78,996 Contract assets 19,688 19,688 2,727 Amounts due from related parties 5,015 5,018 695 Inventories 495,877 634,686 87,903 Prepayments and other current assets 208,082 230,157 31,876 Total current assets 4,397,609 4,290,541 594,232 Non-current assets: Property and equipment, net 871,611 904,567 125,281 Long-term investments 78,730 31,800 4,404 Intangible assets, net 40,743 75,113 10,403 Land-use rights, net - 40,527 5,613 Goodwill 31,811 - - Right-of-use assets 151,871 137,768 19,081 Other non-current assets 90,168 106,010 14,682 Total non-current assets 1,264,934 1,295,785 179,464 TOTAL ASSETS . 5,662,543 5,586,326 773,696 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term borrowings 111,682 161,750 22,402 Notes payable 7,255 26,568 3,680 Accounts payable 269,439 336,110 46,551 Contract liabilities 79,925 41,584 5,759 Amounts due to related parties 340,051 337,923 46,802 Accrued warranty liability 28,425 29,815 4,129 Accrued expenses and other current liabilities 498,324 354,492 49,094 Total current liabilities 1,335,101 1,288,242 178,417 Non-current liabilities Operating lease liabilities 119,413 115,452 15,990 Long-term borrowings 285,898 326,553 45,227 Other non-current liabilities 59,813 56,018 7,758 Total non-current liabilities 465,124 498,023 68,975 TOTAL LIABILITIES 1,800,225 1,786,265 247,392 Shareholders’ Equity Class A Ordinary shares 19 19 3 Class B Ordinary shares 67 67 9 Additional paid-in capital 7,423,862 7,465,442 1,033,952 Subscription receivables (292,721) (292,721) (40,541)Accumulated other comprehensive income (loss) 38,440 41,528 5,752 Accumulated deficit (3,307,349) (3,414,274) (472,871)TOTAL SHAREHOLDERS’ EQUITY 3,862,318 3,800,061 526,304 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 5,662,543 5,586,326 773,696 HESAI GROUPUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(All amounts in thousands, except share and per share data and otherwise noted) Three months ended March 31, 2023 2024 RMBRMB US$ Net revenues 429,930 359,120 49,738 Cost of revenues (267,304) (219,898) (30,456)Gross profit 162,626 139,222 19,282 Operating expenses: Sales and marketing expenses (35,363) (41,964) (5,812)General and administrative expenses (49,544) (68,767) (9,524)Research and development expenses (208,496) (194,402) (26,924)Other operating income, net 2,771 27,456 3,803 Total operating expenses (290,632) (277,677) (38,457)Loss from operations (128,006) (138,455) (19,175)Interest income 16,134 32,795 4,542 Interest expenses (461) (2,286) (317)Foreign exchange income/(loss), net (6,415) 1,493 207 Other loss, net (167) (212) (29)Net loss before income tax and share of loss in equity method investments (118,915) (106,665) (14,772)Income tax benefit/(expense) 17 (248) (34)Share of loss in equity method investment (11) (12) (2)Net loss (118,909) (106,925) (14,808)Net loss attributable to ordinary shareholders of the Company (118,909) (106,925) (14,808)Net loss per share: Basic and diluted (0.98) (0.84) (0.12)Weighted average ordinary shares used in calculating net loss per share: Basic and diluted 121,175,064 127,336,569 127,336,569 Net loss (118,909) (106,925) (14,809)Other comprehensive loss, net of tax of nil: Foreign currency translation adjustments 12,948 3,088 428 Comprehensive loss, net of tax of nil (105,961) (103,837) (14,380) HESAI GROUP UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (All amounts in thousands, except share and per share data and otherwise noted) For the three months ended March 31, 2023 2024 RMBRMB US$ Loss from operations(128,006) (138,455) (19,175)Add: Share-based compensation expenses120,481 37,800 5,235 Non-GAAP loss from operations(7,525) (100,655) (13,940) Net loss(118,909) (106,925) (14,808)Add: Share-based compensation expenses120,481 37,800 5,235 Non-GAAP net income/(loss)1,572 (69,125) (9,573) Net loss attributable to ordinary shareholders of the Company(118,909) (106,925) (14,808)Add: Share-based compensation expenses120,481 37,800 5,235 Non-GAAP net income/(loss) attributable to ordinary shareholders of the Company1,572 (69,125) (9,573) Loss per share: Basic and diluted(0.98) (0.84) (0.12)Add: Share-based compensation expenses0.99 0.30 0.04 Non-GAAP net income/(loss) per ordinary share – basic and diluted 0.01 (0.54) (0.08) ____________________________ 1 All translations from RMB to USD for the first quarter of 2024 were made at the exchange rate of RMB7.2203 to US$1.00, the exchange rate on March 29, 2024, set forth in the H.10 statistical release of the Federal Reserve Board.2 See “Use of Non-GAAP Financial Measures” and “Unaudited Reconciliation of GAAP and Non-GAAP Results” included in this release for further details.
