On November 14th, laser radar company HSAI released unaudited financial data for the third quarter of 2023. In this quarter, Hesai Technology achieved a revenue of 450 million yuan, a year-on-year increase of 33.5%, exceeding the upper limit of the company's revenue guidelines. In the first three quarters, Hesai Technology achieved a revenue of 1.32 billion yuan, a year-on-year increase of 65.8%.
In terms of laser radar delivery, the delivery volume of Hesai Technology's laser radar in the third quarter was 47440 units, a year-on-year increase of 125.5%; The delivery volume of ADAS LiDAR was 40593 units, an increase of 143.2% year-on-year. Meanwhile, the total delivery volume of LiDAR in the first three quarters of 2023 was 13.44 units, a year-on-year increase of 307.9%; The delivery volume of ADAS LiDAR reached 114500 units, a year-on-year increase of 516.6%.
It is worth noting that Hesai Technology has achieved positive operating cash flow for three consecutive quarters, reaching 47.6 million yuan. As of the end of the third quarter, the company has abundant cash reserves, reaching 3.2 billion yuan. Hesai Technology believes that this will provide strong guarantees for the company's product iteration and technological innovation.
It is reported that in the third quarter, Hesai Technology continued to maintain high-speed growth in the ADAS front end mass production business and obtained the designated production point for new models of FAW Hongqi. The next generation flagship pure electric model of Hongqi brand will take the lead in adopting Hesai Racing's ultra-thin long-range LiDAR ET25, jointly creating the world's first in cabin LiDAR intelligent driving solution. At the same time, Hesai Technology has also reached exclusive partnerships with Great Wall Motors, Nezha Motors, and Zero Run Motors. Multiple new models under its umbrella will be equipped with Hesai Ultra High Definition Long Range Lidar AT128, which is expected to be launched from 2024 to 2025.
As of now, Hesai Technology has established mass production partnerships with 14 mainstream OEM and Tier-1 customers, and has obtained more than 50 laser radar mass production targets for vehicle models. In terms of international ADAS business, Hesai is also negotiating cooperation with six leading OEMs in North America and Europe, and has made phased progress.
Li Yifan, co-founder and CEO of Hesai, stated that in terms of business, Hesai Technology is actively accelerating global ADAS business expansion. Currently, Hesai Technology is conducting in-depth negotiations with six top overseas OEMs in North America and Europe, and has made significant progress. In China, the designated projects of Hesai Technology are also constantly growing, with some customers having previously collaborated. They choose to transition their existing models or next-generation new models to Hesai Technology's LiDAR products, which is the greatest recognition of the company's product quality and delivery capabilities.
Xie Dongying, CFO of Hesai Global, revealed that the third quarter of this year was the product transition period for Hesai Technology, but the company's performance remained impressive, not only exceeding the original guidelines, but also laying a solid foundation for strong performance throughout the year. Meanwhile, in this quarter, Hesai Technology further optimized its cost structure and increased its gross profit margin to 30.6%.
It is worth mentioning that in this quarter, Hesai Technology's Maxwell Intelligent Manufacturing Center located in Jiading, Shanghai was officially completed. Insiders of Hesai Technology told Securities Times reporters that the company has always firmly believed that only by closely integrating manufacturing and research and development can we maximize product iteration speed and ensure that the emerging intelligent sensor of LiDAR maintains a high level of quality while achieving large-scale production.
It is reported that Maxwell included functional modules such as research and development, vehicle specification testing, and production of LiDAR at the beginning of its design, achieving a comprehensive closed-loop from research and development design to production. It is reported that the intelligent manufacturing center will produce Hesai Technology FT120 pure solid-state LiDAR. As the world's first pure solid-state LiDAR to achieve mass production on vehicles, this product has started small-scale delivery to some car companies.