Hesai Group 6-K, filed Mar 24, 2026
Hesai Group (HSAI)
About this 6-K
Hesai Group filed this 6-K on March 24, 2026.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2026
Commission File Number: 001-41611
Hesai Group
10th Floor, Building A
No. 658 Zhaohua Road, Changning District
Shanghai 200050
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Exhibit Index
| 99.1 | Press Release—Hesai Group Reports Fourth Quarter and Full Year 2025 Unaudited Financial Results |
| 99.2 | Announcement—Annual Results Announcement for the Year Ended December 31, 2025 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Hesai Group | |||
| By | : | /s/ Yifan Li | |
| Name | : | Yifan Li | |
| Title | : | Chief Executive Officer | |
Date: March 24, 2026
Exhibit 99.1
Hesai Group Reports Fourth Quarter and Full Year 2025 Unaudited Financial Results
Quarterly net revenues were RMB1,000.5 million (US$143.1 million) 1
Quarterly lidar shipments were 631,095 units
Quarterly net income was RMB153.2 million (US$21.9 million)
Full year 2025 net revenues were RMB3,027.6 million (US$432.9 million)
Full year 2025 lidar shipments were 1,620,406 units
Full year 2025 net income was RMB435.9 million (US$62.3 million)
SHANGHAI, China, Mar. 24, 2026 (GLOBE NEWSWIRE) － Hesai Group (“Hesai” or the “Company”) (NASDAQ: HSAI; HKEX: 2525), the global leader in three-dimensional light detection and ranging (lidar) solutions, today announced its unaudited financial results for the three months and full year ended December 31, 2025.
Management Remarks
“2025 was a landmark year as Hesai became the first lidar company to achieve full-year GAAP profitability, while also ranking No.1 in 2025 with over 40% share of the long-range automotive lidar market, according to Gasgoo.” said Dr. Yifan “David” Li, Hesai’s Co-Founder and CEO. “As lidar emerges as the ‘invisible airbag’ for ADAS safety, we have secured design wins with all top ten Chinese OEMs, expanded into the sub-RMB100,000 mass market, captured the multi-lidar L3 inflection point, and accelerated global expansion through partnerships with NVIDIA and others. These milestones are structurally increasing lidar content per vehicle and broadening our total addressable market. Beyond automotive, substantial opportunities are also opening up, where Hesai ranked No.1 across major robotics submarkets, such as humanoid and quadruped robots, robotaxis, robovans, and robotic lawn mowers, according to GGII, Yole Group, and Frost & Sullivan. To fully capitalize on the surging demand across both ADAS and Robotics, we are scaling our annual production capacity to over 4 million units in 2026.”
Dr. Li continued, “As the AI-driven Fourth Industrial Revolution accelerates, Hesai is positioning to become the key enabler of Physical AI – digitizing the real world, redefining how humans and robotics perceive and act. Over the coming months, we will launch new flagship products, each targeting an addressable market worth trillions of RMB, bringing this vision to life and laying the groundwork for our next decade of growth.”
| 1 | All translations from RMB to USD for the fourth quarter and full year of 2025 were made at the exchange rate of RMB6.9931 to US$1.00, the exchange rate on December 31, 2025, set forth in the H.10 statistical release of the Federal Reserve Board. |
1
“2025 marked a significant milestone for us in both the scale and quality of our financial performance,” said Mr. Andrew Fan, Hesai’s CFO. “We delivered record net revenues of over RMB3 billion (US$433 million), up 46% year-over-year, while tripling total shipments to over 1.6 million units. Importantly, we also achieved industry-first full-year GAAP net income of RMB436 million (US$62 million) and non-GAAP net income2 of RMB551 million (US$79 million) in 2025, driven by robust revenue growth, disciplined cost management, and improved operating leverage through AI-enabled efficiency gains across R&D, manufacturing, and operations. We have also delivered GAAP net income for three consecutive quarters and non-GAAP net income for five consecutive quarters. Alongside this, we also recorded three consecutive years of positive operating cash flow, while our net assets grew to around RMB9 billion (US$1.3 billion).”
Mr. Fan added, “2026 marks a bold new chapter for Hesai. We are raising our outlook for lidar shipments to 3 to 3.5 million units, and will soon launch breakthrough new products that unlock future opportunities, and further advance our vision to empower robotics and elevate lives.”
| · | Business Updates : |
| o | Global: |
| § | Selected as the primary lidar partner for the NVIDIA DRIVE Hyperion 10 platform, positioning Hesai as the default turnkey lidar solution for OEMs building autonomous driving systems on NVIDIA, and joined the NVIDIA Halos AI Systems Inspection Lab to further advance safety in autonomous vehicles and robotics. |
| § | Partnered with Grab as Hesai’s exclusive distributor in Southeast Asia, leveraging its scale and network to rapidly expand regional access to Hesai’s high-quality lidars. |
| § | Accumulated 2,071 lidar patents3 as of 2025. With this robust portfolio, Hesai ranks No.1 globally according to KnowMade, a Yole Group company, further reinforcing Hesai’s leadership in lidar innovation. |
| o | Domestic: |
| § | Secured ADAS design wins with 40 automotive brands globally across over 160 vehicle models, including all top ten OEMs in China. The addition of new customers in the fourth quarter and recently – including BAIC and FAW Bestune – further strengthened the Company’s presence among leading OEMs. |
| 2 | See “Use of Non-GAAP Financial Measures” and “Unaudited Reconciliation of GAAP and Non-GAAP Results” included in this release for further details. |
| 3 | Including patents granted and pending patent applications. |
2
| § | Secured multi-lidar design wins with Li Auto, Xiaomi, and Changan, with start of production (“SOP”) planned for 2026-2027. Multi-lidar models typically feature 3 to 6 lidars per vehicle. |
| § | Selected by Unitree to equip JT128 lidar in all of its humanoid robots featured at the 2026 Spring Festival Gala (China’s largest annual broadcast with peak viewership of 400 million), enabling the precise execution of a complex, synchronized Chinese Kung Fu performance. |
| § | Secured a design win for NIU Technologies’ next-gen electric two-wheel model, marking a new application of FTX lidar and opening the electric two-wheel market to automotive-grade 3D perception. |
| § | Signed orders with clients including Dreame and MOVA for robotic lawn mower lidars, representing a backlog of over 10 million lidar units, with strong follow-on potential as deployments scale. |
| § | According to Gasgoo, GGII, Yole Group, and Frost & Sullivan, ranked No.1 in the long-range automotive lidar market, as well as across major robotics submarkets, including: |
| ⮚ | Humanoid & quadruped robots (new orders from companies such as Unitree, HONOR Robot, Galbot, Magiclab and Vita Dynamics); |
| ⮚ | Robotaxis (new orders from companies such as Pony.ai, WeRide, Baidu Apollo Go, DiDi, and other global players across North America, Asia, and Europe); |
| ⮚ | Robovans (new orders from companies such as Zelos, Neolix, and Meituan); |
| ⮚ | Robotic lawn mowers (new orders from companies such as Dreame, MOVA, and Nexlawn). |
| · | Product Updates : |
| o | Launched the FMC500 system-on-chip (“SoC”) in November 2025, a dedicated lidar master control chip integrating MCU, FPGA, and ADC with on-chip functional safety and cybersecurity. The revamped version of ATX lidar (up to 256 channels), powered by this SoC, is expected to start SOP in April 2026. |
| o | Released patented “Photon Isolation” technology, which eliminates interference between laser channels and is now fully integrated across Hesai’s flagship lidar products, delivering best-in-class safety and reliability. |
3
Hesai Announces Favorable Resolution of IP Dispute and Reaffirms Its Commitment to Innovation and R&D
On September 15, 2025, the arbitral tribunal issued a confidential final decision confirming its interim decision and awarding the Company approximately US$6.4 million in costs and fees, which the Company received from Ouster during the fourth quarter of 2025.
Operational Highlights
| Three
months ended December 31, 2025 | Full
Year 2025 | |||||||
| ADAS lidar shipments | 550,723 | 1,381,133 | ||||||
| Robotics lidar shipments | 80,372 | 239,273 | ||||||
| Total lidar shipments | 631,095 | 1,620,406 | ||||||
| · | Q4 2025 ADAS lidar shipments were 550,723 units, representing an increase of 185.0% from 193,238 units in the corresponding period of 2024. |
| · | Q4 2025 Robotics lidar shipments were 80,372 units, representing an increase of 178.9% from 28,816 units in the corresponding period of 2024. |
| · | Q4 2025 Total lidar shipments were 631,095 units, representing an increase of 184.2% from 222,054 units in the corresponding period of 2024. |
| · | ADAS lidar shipments in the full year of 2025 were 1,381,133 units, representing an increase of 202.6% from 456,386 units in 2024. |
| · | Robotics lidar shipments in the full year of 2025 were 239,273 units, representing an increase of 425.8% from 45,503 units in 2024. |
| · | Total lidar shipments in the full year of 2025 were 1,620,406 units, representing an increase of 222.9% from 501,889 units in 2024. |
Financial Highlights for the Fourth Quarter of 2025
(in RMB millions, except for per ordinary share data and percentage)
| Q4 2025 | Q4 2024 | % Change | ||||||||||
| Net revenues | 1,000.5 | 719.8 | 39.0 | % | ||||||||
| Gross margin | 41.0 | % | 39.0 | % | / | |||||||
| Income from operations | 102.0 | 106.6 | (4.3 | )% | ||||||||
| Non-GAAP income from operations | 129.7 | 130.0 | (0.2 | )% | ||||||||
| Net income | 153.2 | 147.0 | 4.2 | % | ||||||||
| Non-GAAP net income | 180.9 | 170.4 | 6.2 | % | ||||||||
| Net income per ordinary share – basic | 0.98 | 1.13 | (13.3 | )% | ||||||||
| Net income per ordinary share – diluted | 0.94 | 1.08 | (13.0 | )% | ||||||||
| Non-GAAP net income per ordinary share | 1.16 | 1.31 | (11.5 | )% | ||||||||
| Diluted non-GAAP net income per ordinary share | 1.11 | 1.26 | (11.9 | )% | ||||||||
4
| · | Net revenues were RMB1,000.5 million (US$143.1 million) for the fourth quarter of 2025, representing an increase of 39.0% from RMB719.8 million for the same period of 2024. Product revenues were RMB982.7 million (US$140.5 million) for the fourth quarter of 2025, representing an increase of 40.1% from RMB701.6 million for the same period of 2024. The year-over-year increase was mainly attributable to increased revenues from sales of both ADAS and Robotics lidar products due to robust demand, both in China and globally. Service revenues were RMB17.8 million (US$2.5 million) for the fourth quarter of 2025, representing a decrease of 2.2% from RMB18.2 million for the same period of 2024. |
| · | Cost of revenues was RMB590.0 million (US$84.4 million) for the fourth quarter of 2025, representing an increase of 34.5% from RMB438.7 million for the same period of 2024. |
| · | Gross margin was 41.0% for the fourth quarter of 2025, compared with 39.0% for the same period of 2024. The year-over-year increase in gross margin was mainly attributable to effective cost and scale optimization on both Robotics and ADAS lidars, partially offset by a higher revenue contribution from ADAS lidars, which typically carry a lower gross margin than Robotics lidars. |
| · | Sales and marketing expenses were RMB55.5 million (US$7.9 million) for the fourth quarter of 2025, representing an increase of 13.0% from RMB49.1 million for the same period of 2024. The increase was mainly driven by an increase in payroll expenses of RMB8.2 million (US$1.2 million). |
| · | General and administrative expenses were RMB97.6 million (US$14.0 million) for the fourth quarter of 2025, representing a decrease of 7.4% from RMB105.5 million for the same period of 2024. The decrease was mainly driven by a decrease in professional service fees of RMB28.0 million (US$4.0 million), partially offset by an increase in payroll expenses of RMB7.8 million (US$1.1 million). |
| · | Research and development expenses were RMB215.6 million (US$30.8 million) for the fourth quarter of 2025, representing a decrease of 11.1% from RMB242.4 million for the same period of 2024. The year-over-year decrease was mainly due to a decrease in payroll expenses of RMB20.2 million (US$2.9 million) and a decrease in cost of materials of RMB9.3 million (US$1.3 million). The payroll savings were mainly driven by the broader adoption of AI tools within our R&D team. |
| · | Income from operations was RMB102.0 million (US$14.6 million) for the fourth quarter of 2025, representing a decrease of 4.3% from RMB106.6 million for the same period of 2024. Excluding share-based compensation expenses, non-GAAP income from operations was RMB129.7 million (US$18.5 million) for the fourth quarter of 2025, representing a decrease of 0.2% from RMB130.0 million for the fourth quarter of 2024. |
5
| · | Net income was RMB153.2 million (US$21.9 million) for the fourth quarter of 2025, representing an increase of 4.2% from RMB147.0 million for the same period of 2024. Excluding share-based compensation expenses, non-GAAP net income was RMB180.9 million (US$25.9 million) for the fourth quarter of 2025, representing an increase of 6.2% from RMB170.4 million for the same period of 2024. |
| · | Net income attributable to ordinary shareholders of the Company was RMB153.2 million (US$21.9 million) for the fourth quarter of 2025, representing an increase of 4.2% from RMB147.0 million for the same period of 2024. Excluding share-based compensation expenses, non-GAAP net income attributable to ordinary shareholders of the Company was RMB180.9 million (US$25.9 million) for the fourth quarter of 2025, representing an increase of 6.2% from RMB170.4 million for the same period of 2024. |
| · | Basic and diluted net income per ordinary share were RMB0.98 (US$0.14) and RMB0.94 (US$0.13), respectively, for the fourth quarter of 2025. Excluding share-based compensation expenses, non-GAAP basic and diluted net income per ordinary share were RMB1.16 (US$0.17) and RMB1.11 (US$0.16), respectively, for the fourth quarter of 2025. |
| · | Cash reserve4 was RMB7,511.0 million (US$1,074.1 million) as of December 31, 2025, compared with RMB7,368.8 million as of September 30, 2025. |
Financial Highlights for the Full Year of 2025
(in RMB millions, except for per ordinary share data and percentage)
| FY2025 | FY2024 | % Change | ||||||||||
| Net revenues | 3,027.6 | 2,077.2 | 45.8 | % | ||||||||
| Gross margin | 41.8 | % | 42.6 | % | / | |||||||
| Income/(loss) from operations | 168.8 | (204.9 | ) | / | ||||||||
| Non-GAAP income/(loss) from operations | 283.4 | (88.8 | ) | / | ||||||||
| Net income/(loss) | 435.9 | (102.4 | ) | / | ||||||||
| Non-GAAP net income | 550.5 | 13.7 | 3,922.0 | % | ||||||||
| Net income/(loss) per ordinary share – basic | 3.13 | (0.79 | ) | / | ||||||||
| Net income/(loss) per ordinary share – diluted | 2.98 | (0.79 | ) | / | ||||||||
| Non-GAAP net income per ordinary share | 3.96 | 0.11 | 3,500.0 | % | ||||||||
| Diluted non-GAAP net income per ordinary share | 3.76 | 0.10 | 3,660.0 | % | ||||||||
| · | Net revenues were RMB3,027.6 million (US$432.9 million) for the full year of 2025, representing an increase of 45.8% from RMB2,077.2 million for the prior year. Product revenues were RMB2,982.9 million (US$426.6 million) for the full year of 2025, representing an increase of 51.7% from RMB1,966.3 million for the prior year. The year-over-year increase was mainly attributable to increased revenues from sales of both ADAS and Robotics lidar products due to robust demand, both in China and globally. Service revenues were RMB44.6 million (US$6.4 million) for the full year of 2025, representing a decrease of 59.8% from RMB110.8 million for the prior year. The year-over-year decrease was driven by lower revenues from non-recurring engineering services. |
| 4 | Cash reserve represents cash and cash equivalents, restricted cash, short-term investments and long-term time deposits. |
6
| · | Cost of revenues was RMB1,762.5 million (US$252.0 million) for the full year of 2025, representing an increase of 47.8% from RMB1,192.6 million for the prior year. |
| · | Gross margin was 41.8% for the full year of 2025, compared with 42.6% for the prior year. The year-over-year decrease was due to a decrease in revenues from high-margin non-recurring engineering services and a higher revenue contribution from ADAS lidars, which typically carry a lower gross margin than Robotics lidars, partially offset by effective cost and scale optimization on both ADAS and Robotics lidars. |
| · | Sales and marketing expenses were RMB192.0 million (US$27.5 million) for the full year of 2025, representing a decrease of 0.5% from RMB193.0 million for the prior year. The decrease was mainly driven by a decrease in marketing expenses of RMB5.4 million (US$0.8 million). |
| · | General and administrative expenses were RMB288.8 million (US$41.3 million) for the full year of 2025, representing a decrease of 8.9% from RMB316.9 million for the prior year. The decrease was mainly driven by a decrease in professional service fees of RMB40.5 million (US$5.8 million). |
| · | Research and development expenses were RMB796.9 million (US$114.0 million) for the full year of 2025, representing a decrease of 6.9% from RMB855.6 million for the prior year. The year-over-year decrease was mainly due to a decrease in payroll expenses of RMB32.8 million (US$4.7 million) and a decrease in material expenses of RMB17.2 million (US$2.5 million). The payroll savings were mainly driven by the broader adoption of AI tools within our R&D team. |
| · | Income from operations was RMB168.8 million (US$24.1 million) for the full year of 2025, compared with loss from operations of RMB204.9 million for the prior year. Excluding share-based compensation expenses, non-GAAP income from operations was RMB283.4 million (US$40.5 million) for the full year of 2025, compared with non-GAAP loss from operations of RMB88.8 million for the prior year. |
| · | Other income was RMB184.6 million (US$26.4 million) for the full year of 2025, compared with other loss of RMB2.5 million for the prior year. The other income was mainly derived from a gain on disposal of an equity investment in an early-stage tech company. |
| · | Net income was RMB435.9 million (US$62.3 million) for the full year of 2025, compared with net loss of RMB102.4 million for the prior year. Excluding share-based compensation expenses, non-GAAP net income was RMB550.5 million (US$78.7 million) for the full year of 2025, representing an increase of 3,922.0% from RMB13.7 million for the prior year. |
| · | Net income attributable to ordinary shareholders of the Company was RMB435.9 million (US$62.3 million) for the full year of 2025, compared with net loss attributable to ordinary shareholders of the Company of RMB102.4 million for the prior year. Excluding share-based compensation expenses, non-GAAP net income attributable to ordinary shareholders of the Company was RMB550.5 million (US$78.7 million) for the full year of 2025, representing an increase of 3,922.0% from RMB13.7 million for the prior year. |
| · | Basic and diluted net income per ordinary share were RMB3.13 (US$0.45) and RMB2.98 (US$0.43), respectively, for the full year of 2025. Excluding share-based compensation expenses, non-GAAP basic and diluted net income per ordinary share were RMB3.96 (US$0.57) and RMB3.76 (US$0.54), respectively, for the full year of 2025. |
7
Business Outlook
For the first quarter of 2026, the Company expects net revenues to be between RMB650 million (US$93 million) and RMB700 million (US$100 million), representing a year-over-year increase of approximately 24% to 33%.
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 AM U.S. Eastern Time on March 24, 2026 (8:00 PM Beijing/Hong Kong Time on March 24, 2026).
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 Fourth Quarter and Full Year 2025 Earnings Conference Call |
| Pre-registration Link: | https://s1.c-conf.com/diamondpass/10052900-ju87y6.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 March 31, 2026, 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: | 10052900 |
About Hesai
Hesai Technology (Nasdaq: HSAI; HKEX: 2525) is a global leader in lidar solutions. The Company’s lidar products enable a broad spectrum of applications including passenger and commercial vehicles (“ADAS”), as well as autonomous driving vehicles and robotics and other non-automotive applications such as last-mile delivery robots and AGVs (“Robotics”). Hesai seamlessly integrates its in-house manufacturing process with lidar R&D and design, enabling rapid product iteration while ensuring high performance, high quality and affordability. The Company’s commercially validated solutions are backed by superior R&D capabilities across optics, mechanics, and electronics. Hesai has established offices in Shanghai, Palo Alto and Stuttgart, with customers spanning more than 40 countries.
8
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: income/loss from operation excluding share-based compensation expenses, net profit/loss excluding share-based compensation expenses, net profit/loss attributable to ordinary shareholders excluding share-based compensation, and per ordinary share net income/loss 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 RMB6.9931 to US$1.00, the exchange rate on December 31, 2025, 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.
9
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 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. In the event of any inconsistency between the English version of this earnings release and its Chinese translation, the English version of this document shall prevail unless otherwise stated.
For investor and media inquiries, please contact:
Hesai Group
Capital Markets Department
Email: ir@hesaitech.com
Christensen Advisory
Tel: +86-10-5900-1548
Email: hesai@christensencomms.com
Source: Hesai Group
10
HESAI GROUP
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share and per share data or otherwise noted)
| As of | |||||||||
| December 31, 2024 | December 31, 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | 2,838,966 | 1,663,492 | 237,876 | ||||||
| Restricted cash | 3,594 | 4,014 | 574 | ||||||
| Short-term investments | 362,195 | 3,091,856 | 442,130 | ||||||
| Notes receivables | 22,341 | 94,697 | 13,541 | ||||||
| Accounts receivable, net | 765,027 | 1,262,220 | 180,495 | ||||||
| Contract assets | 9,909 | – | – | ||||||
| Amounts due from related parties | 5,039 | – | – | ||||||
| Prepayments and other current assets | 193,448 | 282,431 | 40,387 | ||||||
| Inventories | 482,137 | 670,453 | 95,874 | ||||||
| Total current assets | 4,682,656 | 7,069,163 | 1,010,877 | ||||||
| Non-current assets: | |||||||||
| Property and equipment, net | 944,218 | 1,099,283 | 157,195 | ||||||
| Long-term investments | 31,798 | 2,781,670 | 397,774 | ||||||
| Intangible assets, net | 76,554 | 95,507 | 13,657 | ||||||
| Land-use rights, net | 39,879 | 39,015 | 5,579 | ||||||
| Right-of-use assets | 114,260 | 109,318 | 15,632 | ||||||
| Other non-current assets | 100,246 | 67,322 | 9,627 | ||||||
| Total non-current assets | 1,306,955 | 4,192,115 | 599,464 | ||||||
| TOTAL ASSETS | 5,989,611 | 11,261,278 | 1,610,341 | ||||||
11
| As of | ||||||||||||
| December 31, 2024 | December 31, 2025 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Short-term borrowings | 345,253 | 448,233 | 64,096 | |||||||||
| Notes payable | 10,096 | 150,199 | 21,478 | |||||||||
| Accounts payable | 345,011 | 592,560 | 84,735 | |||||||||
| Contract liabilities | 32,994 | 21,019 | 3,006 | |||||||||
| Amounts due to related parties | 335,253 | – | – | |||||||||
| Accrued warranty liability | 43,607 | 77,672 | 11,107 | |||||||||
| Income tax payable | – | 27,157 | 3,883 | |||||||||
| Accrued expenses and other current liabilities | 516,726 | 578,495 | 82,724 | |||||||||
| Total current liabilities | 1,628,940 | 1,895,335 | 271,029 | |||||||||
| Non-current liabilities: | ||||||||||||
| Operating lease liabilities | 98,370 | 85,555 | 12,234 | |||||||||
| Long-term borrowings | 269,438 | 278,727 | 39,857 | |||||||||
| Other non-current liabilities | 61,132 | 42,907 | 6,137 | |||||||||
| Total non-current liabilities | 428,940 | 407,189 | 58,228 | |||||||||
| TOTAL LIABILITIES | 2,057,880 | 2,302,524 | 329,257 | |||||||||
| Shareholders’ Equity | ||||||||||||
| Class A Ordinary shares | 19 | 17 | 2 | |||||||||
| Class B Ordinary shares | 70 | 90 | 13 | |||||||||
| Additional paid-in capital | 7,577,113 | 11,925,963 | 1,705,390 | |||||||||
| Subscription receivables | (292,721 | ) | – | – | ||||||||
| Accumulated other comprehensive income | 56,975 | 6,530 | 933 | |||||||||
| Accumulated deficit | (3,409,725 | ) | (2,973,846 | ) | (425,254 | ) | ||||||
| TOTAL SHAREHOLDERS’ EQUITY | 3,931,731 | 8,958,754 | 1,281,084 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 5,989,611 | 11,261,278 | 1,610,341 | |||||||||
12
HESAI GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(All amounts in thousands, except share and per share data or otherwise noted)
| Three months ended December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| Net revenues | 719,758 | 1,000,488 | 143,068 | ||||||
| Cost of revenues | (438,725 | ) | (590,004 | ) | (84,370 | ) | |||
| Gross profit | 281,033 | 410,484 | 58,698 | ||||||
| Operating expenses: | |||||||||
| Sales and marketing expenses | (49,105 | ) | (55,487 | ) | (7,935 | ) | |||
| General and administrative expenses | (105,477 | ) | (97,649 | ) | (13,963 | ) | |||
| Research and development expenses | (242,382 | ) | (215,553 | ) | (30,824 | ) | |||
| Other operating income, net | 222,481 | 60,188 | 8,607 | ||||||
| Total operating expenses | (174,483 | ) | (308,501 | ) | (44,115 | ) | |||
| Income from operations | 106,550 | 101,983 | 14,583 | ||||||
| Interest income | 22,495 | 60,756 | 8,688 | ||||||
| Interest expenses | (3,650 | ) | (4,137 | ) | (592 | ) | |||
| Foreign exchange income, net | 23,234 | (14,536 | ) | (2,079 | ) | ||||
| Other (loss)/income, net | (1,070 | ) | 12,412 | 1,776 | |||||
| Net income before income tax and share of loss in equity method investments | 147,559 | 156,478 | 22,376 | ||||||
| Income tax expenses | (583 | ) | (3,308 | ) | (473 | ) | |||
| Share of loss in equity method investment | (12 | ) | – | – | |||||
| Net income | 146,964 | 153,170 | 21,903 | ||||||
| Net income attributable to ordinary shareholders of the Company | 146,964 | 153,170 | 21,903 | ||||||
13
| Three months ended December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| Net earnings per share: | |||||||||
| Basic | 1.13 | 0.98 | 0.14 | ||||||
| Diluted | 1.08 | 0.94 | 0.13 | ||||||
| Weighted average ordinary shares used in calculating net earnings per share: | |||||||||
| Basic | 130,414,178 | 156,083,596 | 156,083,596 | ||||||
| Diluted | 135,612,037 | 162,773,691 | 162,773,691 | ||||||
| Net income | 146,964 | 153,170 | 21,903 | ||||||
| Other comprehensive income/(loss): | |||||||||
| Foreign currency translation adjustments | 21,404 | (63,895 | ) | (9,137 | ) | ||||
| Comprehensive income | 168,368 | 89,275 | 12,766 | ||||||
14
HESAI GROUP
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(All amounts in thousands, except share and per share data or otherwise noted)
| Year ended December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| Net revenues | 2,077,157 | 3,027,573 | 432,937 | ||||||
| Cost of revenues | (1,192,572 | ) | (1,762,477 | ) | (252,031 | ) | |||
| Gross profit | 884,585 | 1,265,096 | 180,906 | ||||||
| Operating expenses: | |||||||||
| Sales and marketing expenses | (193,032 | ) | (191,990 | ) | (27,454 | ) | |||
| General and administrative expenses | (316,913 | ) | (288,828 | ) | (41,302 | ) | |||
| Research and development expenses | (855,641 | ) | (796,940 | ) | (113,961 | ) | |||
| Other operating income, net | 276,093 | 181,415 | 25,942 | ||||||
| Total operating expenses | (1,089,493 | ) | (1,096,343 | ) | (156,775 | ) | |||
| (Loss)/income from operations | (204,908 | ) | 168,753 | 24,131 | |||||
| Interest income | 104,401 | 130,237 | 18,624 | ||||||
| Interest expenses | (12,827 | ) | (18,923 | ) | (2,706 | ) | |||
| Foreign exchange income, net | 14,577 | 2,156 | 308 | ||||||
| Other (loss)/income, net | (2,476 | ) | 184,566 | 26,393 | |||||
| Net (loss)/income before income tax and share of loss in equity method investments | (101,233 | ) | 466,789 | 66,750 | |||||
| Income tax expense | (1,130 | ) | (30,835 | ) | (4,409 | ) | |||
| Share of loss in equity method investment | (13 | ) | (74 | ) | (11 | ) | |||
| Net (loss)/income | (102,376 | ) | 435,880 | 62,330 | |||||
| Net (loss)/income attributable to ordinary shareholders of the Company | (102,376 | ) | 435,880 | 62,330 | |||||
15
| Year ended December 31, | ||||||||||
| 2024 | 2025 | |||||||||
| RMB | RMB | US$ | ||||||||
| Net (loss)/earnings per share: | ||||||||||
| Basic | (0.79 | ) | 3.13 | 0.45 | ||||||
| Diluted | (0.79 | ) | 2.98 | 0.43 | ||||||
| Weighted average ordinary shares used in calculating net (loss)/earnings per share: | ||||||||||
| Basic | 129,188,125 | 139,145,475 | 139,145,475 | |||||||
| Diluted | 129,188,125 | 146,437,135 | 146,437,135 | |||||||
| Net (loss)/income | (102,376 | ) | 435,880 | 62,330 | ||||||
| Other comprehensive income/(loss): | ||||||||||
| Foreign currency translation adjustments | 18,535 | (50,445 | ) | (7,214 | ) | |||||
| Comprehensive (loss)/income | (83,841 | ) | 385,435 | 55,116 | ||||||
16
HESAI GROUP
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except share and per share data or otherwise noted)
| For the three months ended December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| Income from operations | 106,550 | 101,983 | 14,583 | ||||||
| Add: Share-based compensation expenses | 23,406 | 27,717 | 3,964 | ||||||
| Non-GAAP income from operations | 129,956 | 129,700 | 18,547 | ||||||
| Net income | 146,964 | 153,170 | 21,903 | ||||||
| Add: Share-based compensation expenses | 23,406 | 27,717 | 3,964 | ||||||
| Non-GAAP net income | 170,370 | 180,887 | 25,867 | ||||||
| Net income attributable to ordinary shareholders of the Company | 146,964 | 153,170 | 21,903 | ||||||
| Add: Share-based compensation expenses | 23,406 | 27,717 | 3,964 | ||||||
| Non-GAAP net income attributable to ordinary shareholders of the Company | 170,370 | 180,887 | 25,867 | ||||||
| Weighted average shares used in calculating net earnings per share | |||||||||
| Basic | 130,414,178 | 156,083,596 | 156,083,596 | ||||||
| Diluted | 135,612,037 | 162,773,691 | 162,773,691 | ||||||
| Non-GAAP net earnings per share | |||||||||
| Basic | 1.31 | 1.16 | 0.17 | ||||||
| Diluted | 1.26 | 1.11 | 0.16 | ||||||
17
HESAI GROUP
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except share and per share data or otherwise noted)
| Year ended December 31, | ||||||||||||
| 2024 | 2025 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| (Loss)/income from operations | (204,908 | ) | 168,753 | 24,131 | ||||||||
| Add: Share-based compensation expenses | 116,064 | 114,651 | 16,395 | |||||||||
| Non-GAAP (loss)/income from operations | (88,844 | ) | 283,404 | 40,526 | ||||||||
| Net (loss)/income | (102,376 | ) | 435,880 | 62,330 | ||||||||
| Add: Share-based compensation expenses | 116,064 | 114,651 | 16,395 | |||||||||
| Non-GAAP net income | 13,688 | 550,531 | 78,725 | |||||||||
| Net (loss)/income attributable to ordinary shareholders of the Company | (102,376 | ) | 435,880 | 62,330 | ||||||||
| Add: Share-based compensation expenses | 116,064 | 114,651 | 16,395 | |||||||||
| Non-GAAP net income attributable to ordinary shareholders of the Company | 13,688 | 550,531 | 78,725 | |||||||||
| Weighted average shares used in calculating net earnings per share | ||||||||||||
| Basic | 129,188,125 | 139,145,475 | 139,145,475 | |||||||||
| Diluted | 131,897,473 | 146,437,135 | 146,437,135 | |||||||||
| Non-GAAP net earnings per share | ||||||||||||
| Basic | 0.11 | 3.96 | 0.57 | |||||||||
| Diluted | 0.10 | 3.76 | 0.54 | |||||||||
18
Exhibit 99.2
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
Hesai Group
禾賽科技*
(A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited liability)
(HKEX Stock Code: 2525)
(NASDAQ Stock Ticker: HSAI)
ANNUAL RESULTS ANNOUNCEMENT
FOR THE YEAR ENDED DECEMBER 31, 2025
The board (the “Board”) of directors (the “Directors”) of Hesai Group (the “Company”) is pleased to announce the unaudited annual consolidated results of the Company and its subsidiaries (collectively, the “Group”) for the year ended December 31, 2025 (the “Reporting Period”), together with the comparative figures for the corresponding period in 2024. These annual results have been prepared under generally accepted accounting principles in the United States of America (the “GAAP”) and have been reviewed by the audit committee of the Board (the “Audit Committee”).
In this announcement, “we,” “us,” and “our” refer to the Company and where the context otherwise requires, the Group (as defined under the section headed “General Information” heading in the “Notes to the Unaudited Condensed Consolidated Financial Information”).
* For identification purposes only
1
OPERATIONAL AND FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2025
| · | ADAS lidar shipments in the full year of 2025 were 1,381,133 units, representing an increase of 202.6% from 456,386 units in 2024. |
| · | Robotics lidar shipments in the full year of 2025 were 239,273 units, representing an increase of 425.8% from 45,503 units in 2024. |
| · | Total lidar shipments in the full year of 2025 were 1,620,406 units, representing an increase of 222.9% from 501,889 units in 2024. |
| · | Net revenues were RMB3,027.6 million (US$432.9 million)1 for the full year of 2025, representing an increase of 45.8% from RMB2,077.2 million for the prior year. |
| · | Gross margin was 41.8% for the full year of 2025, compared with 42.6% for the prior year. |
| · | Income from operations was RMB168.8 million (US$24.1 million) for the full year of 2025, compared with loss from operations of RMB204.9 million for the prior year. Excluding share-based compensation expenses, non-GAAP2 income from operations was RMB283.4 million (US$40.5 million) for the full year of 2025, compared with non-GAAP loss from operations of RMB88.8 million for the prior year. |
| · | Net income was RMB435.9 million (US$62.3 million) for the full year of 2025, compared with net loss of RMB102.4 million for the prior year. Excluding share-based compensation expenses, non-GAAP net income was RMB550.5 million (US$78.7 million) for the full year of 2025, representing an increase of 3,922.0% from RMB13.7 million for the prior year. |
| · | Basic and diluted net income per ordinary share were RMB3.13 (US$0.45) and RMB2.98 (US$0.43), respectively, for the full year of 2025. Excluding share-based compensation expenses, non-GAAP basic and diluted net income per ordinary share were RMB3.96 (US$0.57) and RMB3.76 (US$0.54), respectively, for the full year of 2025. |
MANAGEMENT COMMENTARY
“2025 was a landmark year as Hesai became the first lidar company to achieve full-year GAAP profitability, while also ranking No.1 in 2025 with over 40% share of the long-range automotive lidar market, according to Gasgoo.” said Dr. Yifan “David” Li, Hesai’s Co-Founder and CEO. “As lidar emerges as the ‘invisible airbag’ for ADAS safety, we have secured design wins with all top ten Chinese OEMs, expanded into the sub-RMB100,000 mass market, captured the multi-lidar L3 inflection point, and accelerated global expansion through partnerships with NVIDIA and others. These milestones are structurally increasing lidar content per vehicle and broadening our total addressable market. Beyond automotive, substantial opportunities are also opening up, where Hesai ranked No.1 across major robotics submarkets, such as humanoid and quadruped robots, robotaxis, robovans, and robotic lawn mowers, according to GGII, Yole Group, and Frost & Sullivan. To fully capitalize on the surging demand across both ADAS and Robotics, we are scaling our annual production capacity to over 4 million units in 2026.”
| 1 | All translations from RMB to USD for the fourth quarter and full year of 2025 were made at the exchange rate of RMB6.9931 to US$1.00, the exchange rate on December 31, 2025, set forth in the H.10 statistical release of the Federal Reserve Board. |
| 2 | See “Use of Non-GAAP Financial Measures” included in this announcement for further details. |
2
Dr. Li continued, “As the AI-driven Fourth Industrial Revolution accelerates, Hesai is positioning to become the key enabler of Physical AI – digitizing the real world, redefining how humans and robotics perceive and act. Over the coming months, we will launch new flagship products, each targeting an addressable market worth trillions of RMB, bringing this vision to life and laying the groundwork for our next decade of growth.”
“2025 marked a significant milestone for us in both the scale and quality of our financial performance,” said Mr. Andrew Fan, Hesai’s CFO. “We delivered record net revenues of over RMB3 billion (US$433 million), up 46% year-over-year, while tripling total shipments to over 1.6 million units. Importantly, we also achieved industry-first full-year GAAP net income of RMB436 million (US$62 million) and non-GAAP net income of RMB551 million (US$79 million) in 2025, driven by robust revenue growth, disciplined cost management, and improved operating leverage through AI-enabled efficiency gains across R&D, manufacturing, and operations. We have also delivered GAAP net income for three consecutive quarters and non-GAAP net income for five consecutive quarters. Alongside this, we recorded three consecutive years of positive operating cash flow, while our net assets grew to around RMB9 billion (US$1.3 billion).”
Mr. Fan added, “2026 marks a bold new chapter for Hesai. We are raising our outlook for lidar shipments to 3 to 3.5 million units, and will soon launch breakthrough new products that unlock future opportunities, and further advance our vision to empower robotics and elevate lives.”
RECENT DEVELOPMENTS
| § | Business Updates |
| o | Global: |
| § | Selected as the primary lidar partner for the NVIDIA DRIVE Hyperion 10 platform, positioning Hesai as the default turnkey lidar solution for OEMs building autonomous driving systems on NVIDIA, and joined the NVIDIA Halos AI Systems Inspection Lab to further advance safety in autonomous vehicles and robotics. |
| § | Partnered with Grab as Hesai’s exclusive distributor in Southeast Asia, leveraging its scale and network to rapidly expand regional access to Hesai’s high-quality lidars. |
| § | Accumulated 2,071 lidar patents3 as of 2025. With this robust portfolio, Hesai ranks No.1 globally according to KnowMade, a Yole Group company, further reinforcing Hesai’s leadership in lidar innovation. |
| o | Domestic: |
| § | Secured ADAS design wins with 40 automotive brands globally across over 160 vehicle models, including all top ten OEMs in China. The addition of new customers in the fourth quarter and recently – including BAIC and FAW Bestune – further strengthened the Company’s presence among leading OEMs. |
| 3 | Including patents granted and pending patent applications. |
3
| § | Secured multi-lidar design wins with Li Auto, Xiaomi, and Changan, with start of production (“SOP”) planned for 2026-2027. Multi-lidar models typically feature 3 to 6 lidars per vehicle. |
| § | Selected by Unitree to equip JT128 lidar in all of its humanoid robots featured at the 2026 Spring Festival Gala (China’s largest annual broadcast with peak viewership of 400 million), enabling the precise execution of a complex, synchronized Chinese Kung Fu performance. |
| § | Secured a design win for NIU Technologies’ next-gen electric two-wheel model, marking a new application of FTX lidar and opening the electric two-wheel market to automotive-grade 3D perception. |
| § | Signed orders with clients including Dreame and MOVA for robotic lawn mower lidars, representing a backlog of over 10 million lidar units, with strong follow-on potential as deployments scale. |
| § | According to Gasgoo, GGII, Yole Group, and Frost & Sullivan, ranked No.1 in the long-range automotive lidar market, as well as across major robotics submarkets, including: |
| ⮚ | Humanoid & quadruped robots (new orders from companies such as Unitree, HONOR Robot, Galbot, Magiclab, and Vita Dynamics); |
| ⮚ | Robotaxis (new orders from companies such as Pony.ai, WeRide, Baidu Apollo Go, DiDi, and other global players across North America, Asia, and Europe); |
| ⮚ | Robovans (new orders from companies such as Zelos, Neolix, and Meituan); |
| ⮚ | Robotic lawn mowers (new orders from companies such as Dreame, MOVA, and Nexlawn). |
| § | Product Updates: |
| o | Launched the FMC500 system-on-chip (“SoC”) in November 2025, a dedicated lidar master control chip integrating MCU, FPGA, and ADC with on-chip functional safety and cybersecurity. The revamped version of ATX lidar (up to 256 channels), powered by this SoC, is expected to start SOP in April 2026. |
| o | Released patented “Photon Isolation” technology, which eliminates interference between laser channels and is now fully integrated across Hesai’s flagship lidar products, delivering best-in-class safety and reliability. |
Hesai Announces Favorable Resolution of IP Dispute and Reaffirms Its Commitment to Innovation and R&D
On September 15, 2025, the arbitral tribunal issued a confidential final decision confirming its interim decision and awarding the Company approximately US$6.4 million in costs and fees, which the Company received from Ouster during the fourth quarter of 2025.
4
UNAUDITED FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025
Net revenues were RMB3,027.6 million (US$432.9 million) for the full year of 2025, representing an increase of 45.8% from RMB2,077.2 million for the prior year. Product revenues were RMB2,982.9 million (US$426.6 million) for the full year of 2025, representing an increase of 51.7% from RMB1,966.3 million for the prior year. The year-over-year increase was mainly attributable to increased revenues from sales of both ADAS and Robotics lidar products due to robust demand, both in China and globally. Service revenues were RMB44.6 million (US$6.4 million) for the full year of 2025, representing a decrease of 59.8% from RMB110.8 million for the prior year. The year-over-year decrease was driven by lower revenues from non-recurring engineering services.
Cost of revenues was RMB1,762.5 million (US$252.0 million) for the full year of 2025, representing an increase of 47.8% from RMB1,192.6 million for the prior year.
Gross margin was 41.8% for the full year of 2025, compared with 42.6% for the prior year. The year-over-year decrease was due to a decrease in revenues from high-margin non-recurring engineering services, and a higher revenue contribution from ADAS lidars, which typically carry a lower gross margin than Robotics lidars, partially offset by effective cost and scale optimization on both ADAS and Robotics lidars.
Sales and marketing expenses were RMB192.0 million (US$27.5 million) for the full year of 2025, representing a decrease of 0.5% from RMB193.0 million for the prior year. The decrease was mainly driven by a decrease in marketing expenses of RMB5.4 million (US$0.8 million).
General and administrative expenses were RMB288.8 million (US$41.3 million) for the full year of 2025, representing a decrease of 8.9% from RMB316.9 million for the prior year. The decrease was mainly driven by a decrease in professional service fees of RMB40.5 million (US$5.8 million).
Research and development expenses were RMB796.9 million (US$114.0 million) for the full year of 2025, representing a decrease of 6.9% from RMB855.6 million for the prior year. The year-over-year decrease was mainly due to a decrease in payroll expenses of RMB32.8 million (US$4.7 million) and a decrease in material expenses of RMB17.2 million (US$2.5 million). The payroll savings were mainly driven by the broader adoption of AI tools within our R&D team.
Income from operations was RMB168.8 million (US$24.1 million) for the full year of 2025, compared with loss from operations of RMB204.9 million for the prior year. Excluding share-based compensation expenses, non-GAAP income from operations was RMB283.4 million (US$40.5 million) for the full year of 2025, compared with non-GAAP loss from operations of RMB88.8 million for the prior year.
Other income was RMB184.6 million (US$26.4 million) for the full year of 2025, compared with other loss of RMB2.5 million for the prior year. The other income was mainly derived from a gain on disposal of an equity investment in an early-stage tech company.
Net income was RMB435.9 million (US$62.3 million) for the full year of 2025, compared with net loss of RMB102.4 million for the prior year. Excluding share-based compensation expenses, non-GAAP net income was RMB550.5 million (US$78.7 million) for the full year of 2025, representing an increase of 3,922.0% from RMB13.7 million for the prior year.
5
Net income attributable to ordinary shareholders of the Company was RMB435.9 million (US$62.3 million) for the full year of 2025, compared with net loss attributable to ordinary shareholders of the Company of RMB102.4 million for the prior year. Excluding share-based compensation expenses, non-GAAP net income attributable to ordinary shareholders of the Company was RMB550.5 million (US$78.7 million) for the full year of 2025, representing an increase of 3,922.0% from RMB13.7 million for the prior year.
Basic and diluted net income per ordinary share were RMB3.13 (US$0.45) and RMB2.98 (US$0.43), respectively, for the full year of 2025. Excluding share-based compensation expenses, non-GAAP basic and diluted net income per ordinary share were RMB3.96 (US$0.57) and RMB3.76 (US$0.54), respectively, for the full year of 2025.
Cash reserve4 was RMB7,511.0 million (US$1,074.1 million) as of December 31, 2025, compared with RMB7,368.8 million as of September 30, 2025.
BUSINESS OUTLOOK
For the first quarter of 2026, the Company expects net revenues to be between RMB650 million (US$93 million) and RMB700 million (US$100 million), representing a year-over-year increase of approximately 24% to 33%.
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.
MANAGEMENT DISCUSSION AND ANALYSIS
Liquidity and Capital Resources
During the year ended December 31, 2025, we funded our cash requirements principally through IPO financing and cash generated from our operations. We had cash reserve of RMB7,511.0 million and RMB3,204.8 million as of December 31, 2025 and 2024, respectively.
Net cash provided by operating activities was RMB117.0 million in 2025, compared with RMB63.5 million in 2024.
Significant Investments
In April 2025, we, through a partnership, indirectly subscribed approximately 10% equity interest in an early-stage technological company (the “Investee”), an associate of Founding Shareholders of the Group, for a cash consideration of US$13.9 million, equivalent to approximately RMB100 million. In August 2025, we, through a partnership, indirectly disposed its entire equity interest in the Investee to two independent third-party investors for a cash consideration of US$38.4 million, equivalent to RMB275 million. The gain on the indirect disposal of the Investee after deduction of the related taxes and expenses would be approximately US$20.7 million, equivalent to RMB148 million. As of December 31, 2025, our short-term and long-term investments were comprised almost entirely of structured bank financial products and time deposits.
| 4 | Cash reserve represents cash and cash equivalents, restricted cash, short-term investments and long-term time deposits. |
6
Material Acquisitions and Disposals
The Group did not have any material acquisitions or disposals of subsidiaries, consolidated affiliated subsidiaries, associated companies or joint ventures during the year ended December 31, 2025.
Pledge of Assets
As at December 31, 2025, land-use rights and constructions with a total book value of RMB362 million were pledged to secure banking facilities.
Future Plans for Material Investments or Capital Assets
The Group did not have detailed future plans for material investments or capital assets as at December 31, 2025.
Gearing Ratio
As at December 31, 2025, the Company’s gearing ratio (i.e., total liabilities divided by total assets, in percentage) was 20.4% (as at December 31, 2024: 34.4%).
Foreign Exchange Exposure
Our expenditures are mainly denominated in Renminbi and, therefore, we are primarily exposed to risks related to movements between Renminbi and U.S. dollars. Our exposure to
U.S. dollars exchange rate fluctuation arises from the Renminbi-denominated cash and cash equivalents, restricted cash, time deposits and short-term investments and long-term financial instruments held by us and our subsidiaries whose functional currency is U.S. dollars, and the
U.S. dollar-denominated cash and cash equivalents, restricted cash, time deposits and short-term investments and long-term financial instruments held by our subsidiaries whose functional currency is Renminbi.
To the extent that we need to convert U.S. dollars into Renminbi for our operations, appreciation of Renminbi against U.S. dollars would have an adverse effect on the Renminbi amount we receive from the conversion. Conversely, if we decide to convert Renminbi into U.S. dollars for the purpose of making payments to suppliers or for dividends on the class B ordinary shares of the Company (the “Class B Ordinary Shares”) or American depositary shares of the Company (the “ADSs”) or for other business purposes, appreciation of U.S. dollars against Renminbi would have a negative effect on the U.S. dollar amounts available to us.
Interest Rate Risk
Our exposure to interest rate risk primarily relates to the interest income generated by excess cash, which is mostly held in interest-bearing bank deposits and wealth management products. Interest-earning instruments carry a degree of interest rate risk. We have not been exposed to material risks due to changes in market interest rates, and we have not used any derivative financial instruments to manage our interest risk exposure.
7
From time to time, we may invest the net proceeds that we receive from our overseas offerings in interest-earning instruments. Investments in both fixed-rate and floating rate interest-earning instruments carry a degree of interest rate risk. Fixed-rate securities may have their fair market value adversely impacted due to a rise in interest rates, while floating-rate securities may produce less income than expected if interest rates fall.
Contingent Liabilities
The Company had no material contingent liabilities as at December 31, 2025.
Capital Commitment
As of December 31, 2025, capital commitment of the Company was RMB38.4 million, compared with RMB132.9 million as at December 31, 2024, primarily attributable to commitments of manufacturing facilities and investment.
Employees and Remuneration
As at December 31, 2025, the Company had a total of 1,118 employees.
As required by the PRC laws and regulations, we participate in various employee social security schemes organized by municipal and provincial governments, including pension, maternity insurance, unemployment insurance, work-related injury insurance, medical insurance and housing provident fund. We are required under PRC laws and regulations to make contributions to employee social security schemes at specified percentages of the salaries, bonuses and certain allowances of our employees, up to a maximum amount specified by the local government from time to time. We also purchase commercial health and accidental insurance for our employees.
Bonuses are generally discretionary and based in part on employee performance and in part on the overall performance of the Group’s business. The Company has granted and plans to continue to grant share-based incentive awards to its employees in the future to incentivize their contributions to its growth and development.
We regularly provide training programs to our employees of different departments. Such training programs include technical and engineering trainings as well as general career development. To attract top talents and cultivate a culture of collaboration, we also invested in mentorship programs that are open to employees of all levels.
Compliance with Corporate Governance Code
As the Class B Ordinary Shares were only listed on The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) on September 16, 2025 (the “Listing Date”), during the period from the Listing Date to the date of this announcement, we have complied with all of the applicable code provisions of the Corporate Governance Code5 (the “Corporate Governance Code”) set forth in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”), save for the following.
| 5 | The amendments to the Corporate Governance Code effective on 1 July 2025 will apply to corporate governance reports and annual reports for financial years commencing on or after 1 July 2025. For this announcement, the Company shall refer to the then effective Corporate Governance Code. |
8
Pursuant to Code Provision C.2.1 of the Corporate Governance Code, companies listed on the Hong Kong Stock Exchange are expected to comply with, but may choose to deviate from the requirement that the responsibilities between the chairperson and the chief executive officer should be segregated and should not be performed by the same individual. We do not have a separate chairman of the Board and chief executive officer and Dr. Yifan Li (“Dr. Li”) currently performs these two roles. The Board believes that, in view of Dr. Li’s experience, personal profile and his roles in our Company, Dr. Li is the Director best suited to identify strategic opportunities and focus on the Board due to his extensive understanding of our business as our chief executive officer. The Board also believes that the combined roles of both chairperson and chief executive officer has the benefit of ensuring consistent leadership within the Group and can promote the effective execution of strategic initiatives and facilitate the flow of information between management and the Board. The Board will continue to review and consider splitting the roles of chairman of the Board and the chief executive officer of the Company if and when it is appropriate taking into account the circumstances of the Group as a whole.
The Board considers that the balance of power and authority will not be impaired due to this arrangement. In addition, all major decisions are made in consultation with members of the Board, including the relevant Board committees, and the independent non-executive Directors. The Board will reassess the division of the roles of chairperson and the chief executive officer from time to time, and may recommend dividing the two roles between different people in the future, taking into account the circumstances of the Group as a whole. The Company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code, and maintain a high standard of corporate governance practices of the Company.
Compliance with the Code for Securities Transactions by Directors
The Company has adopted a code of conduct regarding directors’ securities transactions (the “Code”) on terms no less exacting that the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) as set out in Appendix C3 to the Listing Rules, as its own securities dealing code to regulate all dealings by Directors and relevant employees of securities in the Company and other matters covered by the Model Code.
Specific enquiry has been made of all the Directors and relevant employees, and they have confirmed that they have complied with the Model Code during the period from the Listing Date to the date of this announcement.
Important Events after the Reporting Period
By a special resolution passed at the extraordinary general meeting and class meetings of the Company held on March 3, 2026, the Company had, among others, adopted of its third amended and restated memorandum and articles of association, approved the re-designation of 50,000,000 authorized but unissued and un-designated shares (as defined under the Listing Rules) into Class B Ordinary Shares on a one-for-one basis, and granted a general mandate to the Directors to issue/repurchase shares and/or ADSs. For details, please refer to the circular and poll results announcement of the Company dated January 26, 2026 and March 3, 2026 respectively, and the third amended and restated memorandum and articles of association of the Company.
Save as disclosed above and in this announcement, no other important events affecting the Group occurred since December 31, 2025 and up to the date of this announcement.
9
BOARD COMMITTEES
The Board delegates certain responsibilities to various committees and has formed three Board committees, namely the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee.
Audit Committee
We have established the Audit Committee with written terms of reference in compliance with Rule 3.21 of the Listing Rules and paragraph D.3 of Part 2 of the Corporate Governance Code.
The primary duties of the Audit Committee, among others, are to review and supervise the financial reporting process and the risk management and internal control systems of the Company, review and approve connected transactions and provide advice and comments to the Board.
The Audit Committee consists of three independent non-executive Directors, namely, Ms. Yi Zhang, Dr. Hui Wang and Mr. Jia Ren. Ms. Yi Zhang serves as the chairperson of the Audit Committee.
The Audit Committee has reviewed the unaudited annual results of the Company for the year ended December 31, 2025 and has met with the independent auditor of the Company, Messrs. Deloitte Touche Tohmatsu. The Audit Committee has also discussed matters with respect to the accounting policies and practices adopted by the Company and internal control and financial reporting matters with senior management members of the Company.
Scope of Work of Deloitte Touche Tohmatsu
The unaudited financial information disclosed in this announcement is preliminary. The audit of the financial statements and related notes to be included in the Company’s annual report to shareholders for the year ended December 31, 2025 is still in progress. The figures in respect of the Company’s unaudited condensed consolidated statements of operations and comprehensive (loss) income, unaudited condensed consolidated balance sheets, unaudited condensed consolidated statements of cash flows and the related notes thereto for the year ended December 31, 2025 as set out in this announcement have been agreed by the Company’s auditor, Messrs. Deloitte Touche Tohmatsu, to the amounts set out in the Company’s draft consolidated financial statements for the year. The work performed by Messrs. Deloitte Touche Tohmatsu in this respect did not constitute an assurance engagement and consequently no opinion or assurance conclusion has been expressed by Messrs. Deloitte Touche Tohmatsu on this announcement.
Events or issues may arise during the course of finalizing and issuing the audited consolidated financial statements of the Company that might result in the need to revise amounts in the Company’s consolidated financial statements.
10
OTHER INFORMATION
Purchase, Sale or Redemption of the Company’s Listed Securities or Sale of Treasury Shares
On September 16, 2025, Hesai successfully listed its Class B Ordinary Shares on the Main Board of the Hong Kong Stock Exchange (the “Listing”). The Company issued a total of 19,550,000 Class B Ordinary Shares in the global offering.
On September 19, 2025, 2,932,500 Class B Ordinary Shares were issued pursuant to full exercise of the over-allotment option as disclosed in the announcement of the Company dated September 16, 2025.
Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s securities listed on the Hong Kong Stock Exchange and Nasdaq or sold any treasury shares (as defined under the Listing Rules) during the Reporting Period. As at December 31, 2025, the Company did not hold any treasury shares.
Use of Net Proceeds
Net proceeds from the global offering, after deducting underwriting discounts and commissions, including the over-allotment option, were approximately HK$4,654.1 million, which will be used in accordance with the use of proceeds as disclosed in the prospectus of the Company published on the website of the Hong Kong Stock Exchange on September 8, 2025 (the “Prospectus”). As at the date of this announcement, there was no change in the intended use of net proceeds as previously disclosed in the section headed “Future Plans and Use of Proceeds” in the Prospectus. Since the Listing Date and as at the date of this announcement, the Company has not utilized any net proceeds from the Listing.
Material Litigation
Ouster Arbitration
On September 15, 2025, the arbitral tribunal issued a confidential final decision confirming its interim decision and awarding the Group approximately US$6.4 million in costs and fees, which the Group received from Ouster during the fourth quarter of 2025.
Class Action
On November 3, 2025, the Court appointed lead plaintiff. On November 13, 2025, lead plaintiff filed an amended complaint. On December 29, 2025, the Defendants filed a motion to dismiss the amended complaint, and briefing on the motion to dismiss was completed on January 27, 2026. On February 18, 2026, the Court denied in part and granted in part the motion to dismiss. This is a procedural ruling at the pleading stage and does not constitute a final resolution of the litigation.
DoD Litigation
On March 19, 2026, the D.C. Circuit held oral argument in the Group’s appeal in Washington, D.C. As of the date of this announcement, the Group remains on the Section 1260H List and is unable to predict the outcome of the appeal.
11
While certain legal proceedings are still ongoing, the Directors will monitor these legal proceedings closely and the Company will continue to keep the shareholders of the Company and potential investors informed of any further material development as necessary.
Saved as disclosed above, the Company was not involved in any other material litigation or arbitration during the year ended December 31, 2025, and the Directors are not aware of any material litigations or claims that are pending or threatened against the Group since the Listing Date and up to the date of this announcement.
Dividend
The Board did not recommend the distribution of an annual dividend for the year ended December 31, 2025. (for the year ended December 31, 2024: nil).
Publication of Annual Results and Annual Report
This announcement is published on the website of the Hong Kong Stock Exchange at www.hkexnews.hk and on the website of the Company at investor.hesaitech.com. The 2025 annual report of the Company containing all the information required by the Listing Rules will be dispatched to the shareholders (if applicable) and will be made available on the websites of the Company and the Hong Kong Stock Exchange in due course.
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: income/loss from operation excluding share-based compensation expenses, net profit/loss excluding share-based compensation expenses, net profit/loss attributable to ordinary shareholders excluding share-based compensation, and per ordinary share net income/loss 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 in this announcement.
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.
12
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 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. In the event of any inconsistency between the English version of this earnings release and its Chinese translation, the English version of this document shall prevail unless otherwise stated.
| By order of the Board | |
| Hesai Group | |
| Dr. Yifan Li | |
| Chairman of the Board, Executive Director and Chief Executive Officer |
Hong Kong, Tuesday, March 24, 2026
As of the date of this announcement, the Board comprises: (i) Dr. Yifan Li, Dr. Kai Sun, Mr. Shaoqing Xiang and Ms. Cailian Yang as the executive Directors; and (ii) Ms. Yi Zhang, Mr. Jia Ren and Dr. Hui Wang as the independent non-executive Directors.
13
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
(All amounts in thousands, except for share and per share data)
| Year ended December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| Net revenues | 2,077,157 | 3,027,573 | 432,937 | ||||||
| Cost of revenues | (1,192,572 | ) | (1,762,477 | ) | (252,031 | ) | |||
| Gross Profit | 884,585 | 1,265,096 | 180,906 | ||||||
| Operating expenses: | |||||||||
| Sales and marketing expenses | (193,032 | ) | (191,990 | ) | (27,454 | ) | |||
| General and administrative expenses | (316,913 | ) | (288,828 | ) | (41,302 | ) | |||
| Research and development expenses | (855,641 | ) | (796,940 | ) | (113,961 | ) | |||
| Other operating income, net | 276,093 | 181,415 | 25,942 | ||||||
| Total operating expenses | (1,089,493 | ) | (1,096,343 | ) | (156,775 | ) | |||
| (Loss) Income from operations | (204,908 | ) | 168,753 | 24,131 | |||||
| Interest income | 104,401 | 130,237 | 18,624 | ||||||
| Interest expenses | (12,827 | ) | (18,923 | ) | (2,706 | ) | |||
| Foreign exchange gain, net | 14,577 | 2,156 | 308 | ||||||
| Other (loss) income, net | (2,476 | ) | 184,566 | 26,393 | |||||
| Net (loss) income before income tax and share of loss in equity method investments | (101,233 | ) | 466,789 | 66,750 | |||||
| Income tax expenses | (1,130 | ) | (30,835 | ) | (4,409 | ) | |||
| Share of loss in equity method investment | (13 | ) | (74 | ) | (11 | ) | |||
| Net (loss) income | (102,376 | ) | 435,880 | 62,330 | |||||
| Net (loss) income attributable to ordinary shareholders of the Company | (102,376 | ) | 435,880 | 62,330 | |||||
14
| Year ended December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| (Losses) Earnings per share: | |||||||||
| Basic | (0.79 | ) | 3.13 | 0.45 | |||||
| Diluted | (0.79 | ) | 2.98 | 0.43 | |||||
| Weighted average shares used in calculating net (losses) earnings per share: | |||||||||
| Basic | 129,188,125 | 139,145,475 | 139,145,475 | ||||||
| Diluted | 129,188,125 | 146,437,135 | 146,437,135 | ||||||
| Net (loss) income | (102,376 | ) | 435,880 | 62,330 | |||||
| Other comprehensive (loss) income: | |||||||||
| Foreign currency translation adjustments | 18,535 | (50,445 | ) | (7,214 | ) | ||||
| Comprehensive (loss) income | (83,841 | ) | 385,435 | 55,116 | |||||
15
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except for share and per share data)
| As of December 31, | ||||||||||||
| 2024 | 2025 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 2,838,966 | 1,663,492 | 237,876 | |||||||||
| Restricted cash | 3,594 | 4,014 | 574 | |||||||||
| Short-term investments | 362,195 | 3,091,856 | 442,130 | |||||||||
| Notes receivable | 22,341 | 94,697 | 13,541 | |||||||||
| Accounts receivable, net | 765,027 | 1,262,220 | 180,495 | |||||||||
| Contract assets | 9,909 | – | – | |||||||||
| Amounts due from related parties | 5,039 | – | – | |||||||||
| Inventories | 482,137 | 670,453 | 95,874 | |||||||||
| Prepayments and other current assets | 193,448 | 282,431 | 40,387 | |||||||||
| Total current assets | 4,682,656 | 7,069,163 | 1,010,877 | |||||||||
| Non-current assets: | ||||||||||||
| Property and equipment, net | 944,218 | 1,099,283 | 157,195 | |||||||||
| Intangible assets, net | 76,554 | 95,507 | 13,657 | |||||||||
| Land-use rights, net | 39,879 | 39,015 | 5,579 | |||||||||
| Long-term investments | 31,798 | 2,781,670 | 397,774 | |||||||||
| Right-of-use assets | 114,260 | 109,318 | 15,632 | |||||||||
| Other non-current assets | 100,246 | 67,322 | 9,627 | |||||||||
| Total non-current assets | 1,306,955 | 4,192,115 | 599,464 | |||||||||
| TOTAL ASSETS | 5,989,611 | 11,261,278 | 1,610,341 | |||||||||
16
| As of December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| Current liabilities: | |||||||||
| Short-term borrowings | 345,253 | 448,233 | 64,096 | ||||||
| Notes payable | 10,096 | 150,199 | 21,478 | ||||||
| Accounts payable | 345,011 | 592,560 | 84,735 | ||||||
| Contract liabilities | 32,994 | 21,019 | 3,006 | ||||||
| Amounts due to related parties | 335,253 | – | – | ||||||
| Accrued warranty liability | 43,607 | 77,672 | 11,107 | ||||||
| Income tax payable | – | 27,157 | 3,883 | ||||||
| Accrued expenses and other current liabilities | 516,726 | 578,495 | 82,724 | ||||||
| Total current liabilities | 1,628,940 | 1,895,335 | 271,029 | ||||||
| Non-current liabilities: | |||||||||
| Operating lease liabilities | 98,370 | 85,555 | 12,234 | ||||||
| Long-term borrowings | 269,438 | 278,727 | 39,857 | ||||||
| Other non-current liabilities | 61,132 | 42,907 | 6,137 | ||||||
| Total non-current liabilities | 428,940 | 407,189 | 58,228 | ||||||
| TOTAL LIABILITIES | 2,057,880 | 2,302,524 | 329,257 | ||||||
| Shareholders’ equity | |||||||||
| Class A Ordinary shares | 19 | 17 | 2 | ||||||
| Class B Ordinary shares | 70 | 90 | 13 | ||||||
| Additional paid-in capital | 7,577,113 | 11,925,963 | 1,705,390 | ||||||
| Subscription receivables | (292,721 | ) | – | – | |||||
| Accumulated other comprehensive income | 56,975 | 6,530 | 933 | ||||||
| Accumulated deficit | (3,409,725 | ) | (2,973,846 | ) | (425,254 | ) | |||
| Total Shareholders’ equity | 3,931,731 | 8,958,754 | 1,281,084 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 5,989,611 | 11,261,278 | 1,610,341 | ||||||
17
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands, except for share and per share data)
| Year ended December 31, | ||||||||||||
| 2024 | 2025 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| (Note 2) | ||||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net cash provided by operating activities | 63,503 | 116,987 | 16,732 | |||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of short-term investments | (2,548,575 | ) | (3,725,664 | ) | (532,763 | ) | ||||||
| Maturity of short-term investments | 3,775,809 | 1,021,000 | 146,000 | |||||||||
| Purchases of long-term investments | – | (2,723,660 | ) | (389,479 | ) | |||||||
| Purchases of property and equipment | (259,541 | ) | (309,370 | ) | (44,239 | ) | ||||||
| Purchases of intangible assets | (11,817 | ) | (32,825 | ) | (4,694 | ) | ||||||
| Purchases of equity securities | – | (100,000 | ) | (14,300 | ) | |||||||
| Proceeds from disposal of equity securities | – | 275,563 | 39,405 | |||||||||
| Proceeds from disposal of property and equipment | – | 4,224 | 604 | |||||||||
| Proceeds from disposal of intangible assets | – | 36,967 | 5,286 | |||||||||
| Net cash provided by (used in) investing activities | 955,876 | (5,553,765 | ) | (794,180 | ) | |||||||
| Cash flows from financing activities: | ||||||||||||
| Capital distribution to shareholders in connection with the 2021 Reorganization | – | (292,721 | ) | (41,859 | ) | |||||||
| Capital contribution from shareholders in connection with the 2021 Reorganization | – | 292,721 | 41,859 | |||||||||
| Proceeds from issuance of ordinary shares of in connection to IPO | – | 4,249,946 | 607,734 | |||||||||
| Proceeds from long-term borrowings | 120,275 | 127,734 | 18,266 | |||||||||
| Repayment of long-term borrowings | (20,157 | ) | – | – | ||||||||
| Proceeds from short-term borrowings | 234,100 | 331,776 | 47,443 | |||||||||
| Repayment of short-term borrowings | (117,682 | ) | (347,242 | ) | (49,655 | ) | ||||||
| Payment of offering costs | – | (43,689 | ) | (6,247 | ) | |||||||
| Proceeds from issuance of ordinary shares upon the exercise of share options | 34,139 | 27,346 | 3,910 | |||||||||
| Net cash provided by financing activities | 250,675 | 4,345,871 | 621,451 | |||||||||
18
| Year ended December 31, | ||||||||||||
| 2024 | 2025 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| (Note 2) | ||||||||||||
| Net increase (decrease) in cash and cash equivalents | 1,270,054 | (1,090,907 | ) | (155,997 | ) | |||||||
| Cash, cash equivalents and restricted cash, beginning of the year | 1,558,124 | 2,842,560 | 406,481 | |||||||||
| Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 14,382 | (84,147 | ) | (12,034 | ) | |||||||
| Cash, cash equivalents and restricted cash, end of the year | 2,842,560 | 1,667,506 | 238,450 | |||||||||
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the unaudited condensed consolidated statement of cash flows:
| Cash and cash equivalents | 2,838,966 | 1,663,492 | 237,876 | |||||||||
| Restricted cash | 3,594 | 4,014 | 574 | |||||||||
| Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | 2,842,560 | 1,667,506 | 238,450 |
19
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
| 1 | GENERAL INFORMATION |
Description of Business and Corporate History
Hesai Group (the “Company”) was incorporated under the laws of the Cayman Islands on April 21, 2021. The Company, together with its subsidiaries (collectively, the “Group”) is primarily engaged in the development, manufacture and sales of 3-dimensional light detection and ranging solutions, or lidar.
History of the Group
The Group’s history began in October 2014 with the establishment of Shanghai Hesai Photonics Co., Ltd. (“Hesai Photonics”), a limited liability company established in the PRC by Dr. Kai Sun, Dr. Yifan Li and Mr. Shaoqing Xiang (collectively known as the “Founding Shareholders”). In August 2020, Hesai Photonics was converted by its then shareholders into a joint stock company under the PRC law and changed its name to Shanghai Hesai.
Initial Public Offering (“IPO”)
In February and March 2023, the Group, in connection with its IPO in the United States, issued 10,125,118 Class B ordinary shares with net proceeds of US$179,786 (equivalent to RMB1,225,470).
In September 2025, the Group listed on the Main Board of the Hong Kong Stock Exchange with a global offering of 22,482,500 Class B ordinary shares with net proceeds of HK$4,654,135 (equivalent to RMB4,249,946).
| 2 | SIGNIFICANT ACCOUNTING POLICIES |
Basis of Consolidation
The financial statements presented herein represents the unaudited condensed consolidated financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for annual financial information and the disclosure requirements of the Listing Rules, as amended, supplemented or otherwise modified from time to time. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Certain information and note disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted.
Use of estimates
The preparation of the Historical Financial Information in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial information and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Group’s management reviews these estimates based on information that is currently available. Changes in facts and circumstances may cause the Group to revise its estimates. Significant accounting estimates reflected in the Historical Financial Information mainly includes the estimated project progress towards certain services revenue, warranty reserves, incremental borrowing rate of lease liabilities, inventory write-down, allowance for credit losses, the useful lives and impairment of property and equipment, right-of-use assets, intangible assets and land-use rights, and share-based compensation.
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Functional currency and foreign currency translation
The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiaries located outside of PRC is US$, CHF, EUR and other currencies such as THB, while the functional currency of subsidiaries located in PRC is RMB.
Assets and liabilities are translated from each entity’s functional currency to the reporting currency at the exchange rate on the balance sheet date. Equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year/period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of accumulated other comprehensive (loss) income in the unaudited condensed consolidated balance sheets.
Monetary assets and liabilities denominated in currencies other than the entity’s applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year/period are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized as foreign exchange gain (loss), net in the unaudited condensed consolidated statements of operations and comprehensive (loss) income.
(Loss) earnings per share
Basic (loss) earnings per share is computed by dividing net (loss) income attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The Group had share options, which could potentially dilute basic earnings per ordinary share in the future. To calculate the number of shares for diluted earnings per ordinary share, the effect of the share options is computed using the treasury stock method.
Income taxes
Current income taxes are provided for in accordance with the laws of the relevant tax authorities.
Deferred income taxes are provided using the assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such a determination, the management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. Deferred tax assets are then reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more likely than not that a portion of or all of the deferred tax assets will not be realized.
The Group accounts for uncertainty in income taxes recognized in the financial statements by applying a two-step process to determine the amount of the benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained (based on the technical merits of the tax position), the tax position is then assessed to determine the amount of benefits to recognize in the Historical Financial Information.
Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Group did not recognize any income tax due to uncertain tax position or incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2024 and 2025.
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| 3 | ACCOUNTS RECEIVABLE, NET |
| As of December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| (Audited) | (Unaudited) | (Unaudited) | |||||||
| Accounts receivable | 819,999 | 1,342,172 | 191,928 | ||||||
| Less: allowance for expected credit losses | (54,972 | ) | (79,952 | ) | (11,433 | ) | |||
| Total accounts receivable, net | 765,027 | 1,262,220 | 180,495 | ||||||
The following is an aged analysis of accounts receivable presented based on dates of delivery of goods/ rendering of services.
| As of December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| (Audited) | (Unaudited) | (Unaudited) | |||||||
| Within 6 months | 757,045 | 1,215,057 | 173,750 | ||||||
| 7 months to 1 year | 41,483 | 53,251 | 7,615 | ||||||
| 1 to 2 years | 19,006 | 18,614 | 2,662 | ||||||
| Over 2 years | 2,465 | 55,250 | 7,901 | ||||||
| 819,999 | 1,342,172 | 191,928 | |||||||
| Less: allowance for expected credit losses | (54,972 | ) | (79,952 | ) | (11,433 | ) | |||
| Total accounts receivable, net | 765,027 | 1,262,220 | 180,495 | ||||||
| 4 | ACCOUNTS PAYABLE |
The following is an aged analysis of accounts payable presented based on the invoice date.
| As of December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| (Audited) | (Unaudited) | (Unaudited) | |||||||
| Within 6 months | 344,802 | 591,757 | 84,620 | ||||||
| 7 months to 1 year | – | – | – | ||||||
| 1 to 2 years | – | 803 | 115 | ||||||
| Over 2 years | 209 | – | – | ||||||
| Total | 345,011 | 592,560 | 84,735 | ||||||
The average credit period on purchases of goods is 90 days.
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| 5 | REVENUE |
The following table presents the Group’s net revenues for the years ended December 31, 2024 and 2025.
| For the Year ended December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| (Audited) | (Unaudited) | (Unaudited) | |||||||
| Product revenues | |||||||||
| Revenue from lidar products | 1,946,775 | 2,973,340 | 425,181 | ||||||
| Other product revenues | 19,259 | 9,579 | 1,370 | ||||||
| Service revenues | |||||||||
| Engineering design, development and validation | |||||||||
| service and solution revenue | 100,290 | 36,118 | 5,165 | ||||||
| Other service revenues | 10,833 | 8,536 | 1,221 | ||||||
| Total | 2,077,157 | 3,027,573 | 432,937 | ||||||
The following table summarizes the Group’s revenues recognized at a point in time or over time.
| For the Year ended December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| (Audited) | (Unaudited) | (Unaudited) | |||||||
| Revenue recognized at a point of time | 2,038,302 | 3,023,288 | 432,324 | ||||||
| Revenue recognized over time | 38,855 | 4,285 | 613 | ||||||
| Total | 2,077,157 | 3,027,573 | 432,937 | ||||||
The following table summarizes the Group’s revenues disaggregated by the different geographic location.
| For the Year ended December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| (Audited) | (Unaudited) | (Unaudited) | |||||||
| Revenue by geographic location | |||||||||
| Chinese mainland | 1,542,793 | 2,354,727 | 336,721 | ||||||
| North America | 280,874 | 451,689 | 64,591 | ||||||
| Europe | 161,095 | 140,002 | 20,020 | ||||||
| Other regions | 92,395 | 81,155 | 11,605 | ||||||
| Total | 2,077,157 | 3,027,573 | 432,937 | ||||||
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| 6 | NET (LOSSES) EARNINGS PER SHARE |
The following table sets forth the computation of basic and diluted losses per share for the years indicated:
| For the year ended December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| (Audited) | (Unaudited) | (Unaudited) | |||||||
| Numerator | |||||||||
| Net (loss) earnings attributable to ordinary shareholders of the Company – basic and diluted | (102,376 | ) | 435,880 | 62,330 | |||||
| Denominator | |||||||||
| Weighted average number of ordinary shares outstanding-basic | 129,188,125 | 139,145,475 | 139,145,475 | ||||||
| Incremental weighted-average ordinary shares from assumed exercise of share options and non-vested restricted stocks | – | 7,291,660 | 7,291,660 | ||||||
| Weighted average number of ordinary shares outstanding – diluted | 129,188,125 | 146,437,135 | 146,437,135 | ||||||
| (Losses) Earnings per share – basic | (0.79 | ) | 3.13 | 0.45 | |||||
| (Losses) Earnings per share – diluted | (0.79 | ) | 2.98 | 0.43 | |||||
For the years ended December 31, 2024 and 2025, the following share options were excluded from the calculation of diluted net (losses) earnings per ordinary share, as their inclusion would have been anti-dilutive for the year prescribed.
| For the year ended December 31, | ||||||||
| 2024 | 2025 | |||||||
| (Audited) | (Unaudited) | |||||||
| Shares issuable upon exercise of share options | 9,917,509 | 8,563,859 | ||||||
| Shares issuable upon vest of restricted share units | 550,347 | 671,613 | ||||||
| Total | 10,467,856 | 9,235,472 | ||||||
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| 7 | TAXATION |
The current and deferred portion of income tax expenses included in the consolidated statements of operations and comprehensive (loss) income are as follows:
| For the year ended December 31, | |||||||||
| 2024 | 2025 | ||||||||
| RMB | RMB | US$ | |||||||
| (Audited) | (Unaudited) | (Unaudited) | |||||||
| Current tax expenses (benefits) | 1,130 | 30,835 | 4,409 | ||||||
| Deferred tax (benefits) expenses | – | – | – | ||||||
| Income tax (benefits) expenses | 1,130 | 30,835 | 4,409 | ||||||
The Group’s effective tax rate for the year ended December 31, 2024 and 2025 were (1.12)% (audited) and 6.61% (unaudited), respectively.
| 8 | DIVIDEND |
No dividends have been declared or paid by the Company for the years ended December 31, 2024 and 2025, respectively.
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