Hesai Group Q4 FY2024 earnings call

• 2024 was a transformational year with record LiDAR shipments and net revenues, solidifying Hesai's industry leadership.
• ATX LiDAR, priced at $200, has secured design wins with 11 OEMs and is set for mass production in Q1 2025.
• Robotics segment saw strong growth with JT Series, including partnerships for robotic lawnmowers and shipments of ~7,000 robotics LiDAR units in Q4 2024.
• ADAS market in China is poised for explosive growth with LiDAR adoption expected to surge, driven by OEMs' strategic upgrades.

In 2024, Hesai Group achieved record net revenues of RMB2 billion (USD285 million), with shipments exceeding 500,000 units. The fourth quarter 2024 blended gross margin was 39%, and the company achieved full-year non-GAAP net profit of RMB14 million (USD1.9 million) and positive operating cash flow of RMB63 million (USD8.6 million). For 2025, the company expects net revenues between RMB3.0 billion to RMB3.5 billion, total shipments of 1.2 million to 1.5 million units (over 80% from ADAS segment), and robotics LiDAR shipments nearly 200,000 units. First quarter 2025 revenue is expected to be between RMB520 million to RMB540 million with shipments of approximately 200,000 units.

• 2025 net revenues projected at RMB3.0 billion to RMB3.5 billion, representing a year-over-year increase of ~44% to 69%.
• Total shipments expected to be 1.2 million to 1.5 million units, with over 80% from ADAS and nearly 200,000 from robotics.
• First quarter 2025 revenue expected between RMB520 million to RMB540 million, shipments ~200,000 units.
• GAAP profitability projected at RMB200 million to RMB350 million, non-GAAP profits to be RMB350 million to RMB500 million.

Q: Jessie Lo asked about ADAS LiDAR adoption pace in overseas markets and robotics humanoid outlook.

A: David Li responded that the top European OEM deal includes ICE and EV, and overseas shipments will start by end of 2024 and increase in 2025. On humanoid robots, LiDAR is used for localization, leveraging Hesai's platform semiconductor technology.

Q: Zhang Yu asked about guidance achievement and robotics LiDAR function.

A: Andrew Fan explained that guidance is achievable through strong client orders and expense management. David Li stated that robotics LiDAR is used for functions like SLAM in robotic vacuum cleaners, essential for mapping and navigation.

Q: Sia Huang asked about capacity and CapEx plan.

A: Andrew Fan responded that 2025 CapEx will be used for new production lines, with annualized capacity reaching 2 million units by end of 2025, and potential overseas facilities in Southeast Asia.