Hesai Group Reports First Quarter 2024 Unaudited Financial Results

Core Insights - Hesai Group reported quarterly net revenues of RMB359.1 million (US $49.7 million) for Q1 2024, a decrease of 16.5% from RMB429.9 million in Q1 2023 [1][8] - Total lidar shipments reached 59,101 units in Q1 2024, marking a 69.7% increase from 34,834 units in the same period of 2023 [2][3] - The company aims to achieve profitability by Q4 2024, driven by effective cost management and strategic initiatives [3] Operational Highlights - ADAS lidar shipments were 52,462 units in Q1 2024, up 86.1% from 28,195 units in Q1 2023 [2] - Autonomous Mobility lidar shipments accounted for 6,639 units in Q1 2024 [2] - The company has launched the ATX, a new ultra-compact high-performance long-range ADAS lidar, expected to begin production in Q1 2025 [5] Business Developments - Hesai secured design wins with four prominent global automotive OEMs, including partnerships with a top global automotive OEM and a major global OEM's joint venture [6] - A strategic partnership was established with Marelli to integrate the ATX into innovative headlamp designs [6] - The company has secured ADAS design wins with 18 OEMs and Tier 1 suppliers globally across approximately 70 vehicle models [6] Financial Performance - Gross margin improved to 38.8% in Q1 2024, compared to 37.8% in Q1 2023 [9] - Loss from operations increased to RMB138.5 million (US$ 19.2 million) in Q1 2024, up 8.2% from RMB128.0 million in Q1 2023 [12] - Net loss for Q1 2024 was RMB106.9 million (US $14.8 million), a decrease of 10.1% from RMB118.9 million in Q1 2023 [13] Future Outlook - For Q2 2024, the company expects net revenues to be between RMB440 million (US$ 60.9 million) and RMB460 million (US$63.7 million), indicating a year-over-year increase of approximately 0% to 4.5% [14]