Hesai(HSAI) - 2023 Q3 - Quarterly Report

Financial Performance - Quarterly net revenues reached RMB440.3 million (US $60.7 million), marking a 108.5% year-over-year increase[1] - Net revenues for Q2 2023 reached RMB 440,313 thousand, a significant increase from RMB 211,184 thousand in Q2 2022, representing a growth of approximately 108.5%[29] - Net revenues for the six months ended June 2023 were RMB 870,243, representing a 89.5% increase from RMB 459,631 in the same period of 2022[31] - Gross profit for Q2 2023 was RMB 131,152 thousand, compared to RMB 98,924 thousand in Q2 2022, indicating a gross margin improvement[29] - Gross profit for the six months ended June 2023 was RMB 293,778, up 30.3% from RMB 225,418 in the prior year[31] - The net loss attributable to ordinary shareholders was RMB74.4 million (US$ 10.3 million) for Q2 2023, a significant reduction from RMB265.5 million (US $36.6 million) in Q2 2022, representing a 72.0% decrease[13] - The net loss attributable to ordinary shareholders for the six months ended June 2023 was RMB 193,292, a decrease from RMB 327,244 in the same period of 2022[31] - Basic and diluted net loss per share improved to RMB (1.57) for the six months ended June 2023, compared to RMB (2.83) in the same period of 2022[31] - Non-GAAP net loss attributable to ordinary shareholders for the six months ended June 2023 was RMB (39,055), a slight improvement from RMB (40,134) in the same period of 2022[35] LiDAR Shipments - Total LiDAR shipments for Q2 2023 were 52,106 units, a significant increase of 946.5% from 4,979 units in Q2 2022[2] - ADAS LiDAR shipments in Q2 2023 were 45,694 units, compared to just 1,651 units in the same period of 2022, representing a year-over-year increase of 2,770.5%[2] Cash Flow and Assets - The company achieved positive operating cash flow of approximately RMB58.3 million (US$ 8.0 million) for the second consecutive quarter, a 4-fold increase quarter-over-quarter[5] - Total current assets increased from RMB 3,135,111 thousand as of December 31, 2022, to RMB 4,340,445 thousand as of June 2023, marking a growth of about 38.4%[26] - Cash and cash equivalents rose significantly from RMB 913,277 thousand at the end of 2022 to RMB 2,063,261 thousand by June 2023, an increase of approximately 126.5%[26] - Total assets increased from RMB 3,839,396 thousand at the end of 2022 to RMB 5,239,111 thousand by June 2023, representing a growth of about 36.4%[26] Expenses - Research and development expenses for Q2 2023 were RMB161.0 million (US $22.2 million), an increase of 49.1% from RMB108.0 million (US$ 14.9 million) in Q2 2022[11] - Operating expenses for Q2 2023 totaled RMB 244,660 thousand, up from RMB 193,256 thousand in Q2 2022, reflecting an increase of approximately 26.6%[29] - Research and development expenses rose to RMB 161,001 thousand in Q2 2023 from RMB 107,999 thousand in Q2 2022, indicating a growth of about 49.0%[29] - Total operating expenses increased to RMB 535,292 for the six months ended June 2023, compared to RMB 361,403 in the same period of 2022, reflecting a 48.1% rise[31] - Share-based compensation expenses, net of tax, increased to RMB 154,237 for the six months ended June 2023, compared to RMB 54,593 in the same period of 2022[35] Market Position - Hesai was named the No. 1 global automotive LiDAR supplier for the second consecutive year, capturing 47% of the worldwide LiDAR market share by revenue in 2022[6] - The company is on track to commence full-scale production of its AT series LiDAR in Q3 2023, featuring upgraded design and lower power consumption[7] Foreign Exchange and Liabilities - The company reported a foreign exchange loss of RMB 15,512 thousand in Q2 2023, compared to a gain of RMB 10,331 thousand in Q2 2022[29] - As of June 2023, total liabilities increased to RMB 1,176,715 thousand from RMB 997,663 thousand at the end of 2022, reflecting a rise of approximately 18%[26] - The company reported a foreign currency translation adjustment of RMB 68,437 for the six months ended June 2023, compared to a loss of RMB 6,690 in the same period of 2022[31] - The company experienced a net loss before income tax and share of loss in equity method investments of RMB 193,304 for the six months ended June 2023, compared to RMB 94,729 in the same period of 2022[31]