The net loss of Hesai Technology, the first stock of LiDAR in China, narrowed in the third quarter.
On November 26th, Shanghai Hesai Technology Co., Ltd. ("Hesai Technology", Nasdaq: HSAI) released its third quarter 2024 performance report as of September 30th. During the reporting period, Hesai Technology achieved a revenue of RMB 540 million, a year-on-year increase of 21.1%; The net loss was RMB 70.4 million, compared to a net loss of RMB 72.1 million in the previous quarter and RMB 141.8 million in the same period last year, a year-on-year decrease of 50.4%; Diluted loss per share under Non GAAP is 0.34 yuan.
In terms of sales, the company's total quarterly delivery of LiDAR reached 134000 units, a significant increase of 182.9% year-on-year; The delivery volume of ADAS (Advanced Driver Assistance Systems) products was 129900 units, a year-on-year increase of 220%. During the reporting period, thanks to the flywheel effect of a virtuous cycle of cost and scale, as well as the assistance of development service revenue, the company's gross profit margin reached 47.7%, compared to 30.6% in the same period last year; The research and development expenses in the third quarter reached 220 million yuan, a year-on-year increase of 14.3%.
In terms of performance guidance, Hesai Technology expects its fourth quarter revenue to approach $100 million (approximately RMB 702 million), and is expected to ship 200000 LiDAR units in the quarter, which is expected to drive the company to achieve a GAAP profit of $20 million (approximately RMB 145 million) in the fourth quarter and a full year profit under Non GAAP.
Summary of Q3 performance of Hesai Technology. Source: Financial report of Hesai Technology
Li Yifan, co-founder and CEO of Hesai, said, "In the third quarter, our business maintained strong growth and gained multiple new customers and projects. This quarter, Hesai established cooperative relationships with a top three Japanese car company, SAIC Volkswagen, Leapmotor, and a high-end electric car brand under a leading Chinese car group. In addition, our cooperation project with a top international car brand for global production models has successfully entered the next new stage, which is a key milestone for Hesai's international expansion
Li Yifan also pointed out that currently, domestic and foreign car manufacturers have widely recognized that LiDAR is the "safety component" of intelligent driving: "Lidar is being widely applied as the" invisible airbag "of intelligent cars. At the same time, LiDAR has broad application prospects in industrial robots, smart factories, logistics and other fields
In the first three quarters of this year, the total delivery volume of Hesai LiDAR was 279800 units, a year-on-year increase of 108.2%; Among them, the total delivery volume of ADAS products was 263100 units, a year-on-year increase of 129.9%. Hesai Technology's LiDAR delivery volume has achieved a nearly 50% month on month surge for two consecutive quarters, significantly driving revenue growth. As of the third quarter of this year, Hesai Technology has established mass production partnerships with 75 models from 20 domestic and foreign automobile manufacturers.
During the reporting period, Hesai Technology launched a new generation flagship level 360& deg; The long-range LiDAR OT128 has established partnerships with over 90 domestic and foreign companies, including Wenyuan Zhixing, Xijing Technology, Embotech, and EasyMile. In addition, the company's board of directors has approved the appointment of Fan Peng as the company's Chief Financial Officer, effective from November 25, 2024.
Public information shows that Hesai Technology was founded in 2014 and is a global laser radar research and manufacturing enterprise. It initially focused on developing laser gas sensors and began exploring unmanned driving laser radar products in 2016. At present, the company's products are widely used in passenger cars, commercial vehicles, autonomous vehicle that support the Advanced Assisted Driving System (ADAS), as well as various intelligent robot applications such as unmanned distribution vehicles, AGV (autonomous mobile vehicles).
Hesai Technology submitted its prospectus to the Science and Technology Innovation Board in 2021, but voluntarily withdrew its application materials two months later and officially submitted its prospectus to the US Securities and Exchange Commission on January 17, 2023. On February 9, 2023, Hesai Technology officially went public on NASDAQ in the United States.
On November 25th local time, Hesai Technology rose 0.21% to close at $4.75 per share, with a total market value of $606 million (approximately RMB 4.354 billion).