EX-99.3 4 tm2521875d2_exh99x3.htm EXHIBIT 99.3 tm2521875-2_6k_DIV_101-exh99x3 - none - 9.9576707s
 
HESAI GROUP
CONDENSED CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2025
(Amounts in thousands, except share and per share data and otherwise noted)
​ ​ ​
As of
December 31,
2024
​ ​
As of
June 30,
2025
​
​ ​ ​
RMB
(audited)
​ ​
RMB
(unaudited)
​ ​
US$
(Note 2)
​
ASSETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Current assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Cash and cash equivalents
​ ​ ​ ​ 2,838,966 ​ ​ ​ ​ ​ 2,734,345 ​ ​ ​ ​ ​ 381,700 ​ ​
Restricted cash
​ ​ ​ ​ 3,594 ​ ​ ​ ​ ​ 4,079 ​ ​ ​ ​ ​ 569 ​ ​
Short-term investments
​ ​ ​ ​ 362,195 ​ ​ ​ ​ ​ 110,514 ​ ​ ​ ​ ​ 15,427 ​ ​
Notes receivable
​ ​ ​ ​ 22,341 ​ ​ ​ ​ ​ 33,020 ​ ​ ​ ​ ​ 4,609 ​ ​
Accounts receivable, net (net of allowance of RMB54,972 and RMB59,213
as of December 31, 2024 and June 30, 2025, respectively)
​ ​ ​ ​ 765,027 ​ ​ ​ ​ ​ 1,057,372 ​ ​ ​ ​ ​ 147,603 ​ ​
Contract assets, net (net of allowance of RMB9,901 and RMB9,901 as of December 31, 2024 and June 30, 2025, respectively)
​ ​ ​ ​ 9,909 ​ ​ ​ ​ ​ 9,909 ​ ​ ​ ​ ​ 1,383 ​ ​
Amounts due from related parties
​ ​ ​ ​ 5,039 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Inventories
​ ​ ​ ​ 482,137 ​ ​ ​ ​ ​ 599,252 ​ ​ ​ ​ ​ 83,652 ​ ​
Prepayments and other current assets, net
​ ​ ​ ​ 193,448 ​ ​ ​ ​ ​ 273,777 ​ ​ ​ ​ ​ 38,218 ​ ​
Total current assets
​ ​ ​ ​ 4,682,656 ​ ​ ​ ​ ​ 4,822,268 ​ ​ ​ ​ ​ 673,161 ​ ​
Property and equipment, net
​ ​ ​ ​ 944,218 ​ ​ ​ ​ ​ 1,014,431 ​ ​ ​ ​ ​ 141,609 ​ ​
Intangible assets, net
​ ​ ​ ​ 76,554 ​ ​ ​ ​ ​ 89,844 ​ ​ ​ ​ ​ 12,542 ​ ​
Land-use rights, net
​ ​ ​ ​ 39,879 ​ ​ ​ ​ ​ 39,447 ​ ​ ​ ​ ​ 5,507 ​ ​
Long-term investments
​ ​ ​ ​ 31,798 ​ ​ ​ ​ ​ 131,776 ​ ​ ​ ​ ​ 18,395 ​ ​
Operating lease right-of-use assets
​ ​ ​ ​ 114,260 ​ ​ ​ ​ ​ 92,580 ​ ​ ​ ​ ​ 12,924 ​ ​
Other non-current assets
​ ​ ​ ​ 100,246 ​ ​ ​ ​ ​ 71,739 ​ ​ ​ ​ ​ 10,014 ​ ​
Total non-current assets
​ ​ ​ ​ 1,306,955 ​ ​ ​ ​ ​ 1,439,817 ​ ​ ​ ​ ​ 200,991 ​ ​
TOTAL ASSETS
​ ​ ​ ​ 5,989,611 ​ ​ ​ ​ ​ 6,262,085 ​ ​ ​ ​ ​ 874,152 ​ ​
LIABILITIES AND SHAREHOLDERS’ EQUITY ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Current liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Short-term borrowings
​ ​ ​ ​ 345,253 ​ ​ ​ ​ ​ 478,230 ​ ​ ​ ​ ​ 66,758 ​ ​
Notes payable
​ ​ ​ ​ 10,096 ​ ​ ​ ​ ​ 120,498 ​ ​ ​ ​ ​ 16,821 ​ ​
Accounts payable
​ ​ ​ ​ 345,011 ​ ​ ​ ​ ​ 461,879 ​ ​ ​ ​ ​ 64,476 ​ ​
Contract liabilities
​ ​ ​ ​ 32,994 ​ ​ ​ ​ ​ 31,669 ​ ​ ​ ​ ​ 4,421 ​ ​
Amounts due to related parties
​ ​ ​ ​ 335,253 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Accrued warranty liability
​ ​ ​ ​ 43,607 ​ ​ ​ ​ ​ 57,605 ​ ​ ​ ​ ​ 8,041 ​ ​
Accrued expenses and other current liabilities
​ ​ ​ ​ 516,726 ​ ​ ​ ​ ​ 365,951 ​ ​ ​ ​ ​ 51,084 ​ ​
Total current liabilities
​ ​ ​ ​ 1,628,940 ​ ​ ​ ​ ​ 1,515,832 ​ ​ ​ ​ ​ 211,601 ​ ​
Operating lease liabilities
​ ​ ​ ​ 98,370 ​ ​ ​ ​ ​ 77,313 ​ ​ ​ ​ ​ 10,792 ​ ​
Long-term borrowings
​ ​ ​ ​ 269,438 ​ ​ ​ ​ ​ 273,435 ​ ​ ​ ​ ​ 38,170 ​ ​
Other non-current liabilities
​ ​ ​ ​ 61,132 ​ ​ ​ ​ ​ 40,271 ​ ​ ​ ​ ​ 5,622 ​ ​
Total non-current liabilities
​ ​ ​ ​ 428,940 ​ ​ ​ ​ ​ 391,019 ​ ​ ​ ​ ​ 54,584 ​ ​
TOTAL LIABILITIES
​ ​ ​ ​ 2,057,880 ​ ​ ​ ​ ​ 1,906,851 ​ ​ ​ ​ ​ 266,185 ​ ​
Commitments and contingencies (Note 16) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Shareholders’ equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Class A Ordinary shares (US$0.0001 par value, 50,000,000 shares authorized, 30,015,905 and 26,998,861 shares issued and outstanding as of December 31, 2024 and June 30, 2025, respectively)
​ ​ ​ ​ 19 ​ ​ ​ ​ ​ 17 ​ ​ ​ ​ ​ 2 ​ ​
Class B Ordinary shares (US$0.0001 par value, 900,000,000 shares authorized, 101,143,806 and 106,660,850 shares issued, 101,143,806 and 105,877,327 shares outstanding as of December 31, 2024 and June 30, 2025, respectively)
​ ​ ​ ​ 70 ​ ​ ​ ​ ​ 73 ​ ​ ​ ​ ​ 11 ​ ​
Additional paid-in capital
​ ​ ​ ​ 7,577,113 ​ ​ ​ ​ ​ 7,651,112 ​ ​ ​ ​ ​ 1,068,054 ​ ​
Subscription receivables
​ ​ ​ ​ (292,721) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Accumulated other comprehensive income
​ ​ ​ ​ 56,975 ​ ​ ​ ​ ​ 87,220 ​ ​ ​ ​ ​ 12,175 ​ ​
Accumulated deficit
​ ​ ​ ​ (3,409,725) ​ ​ ​ ​ ​ (3,383,188) ​ ​ ​ ​ ​ (472,275) ​ ​
Total Shareholders’ equity
​ ​ ​ ​ 3,931,731 ​ ​ ​ ​ ​ 4,355,234 ​ ​ ​ ​ ​ 607,967 ​ ​
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
​ ​ ​ ​ 5,989,611 ​ ​ ​ ​ ​ 6,262,085 ​ ​ ​ ​ ​ 874,152 ​ ​
 
F-2
 
HESAI GROUP
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
AND COMPREHENSIVE (LOSS) INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(Amounts in thousands, except share and per share data and otherwise noted)
​ ​ ​
Six months ended June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​ ​
US$
(Note 2)
​
Net revenues
​ ​ ​ ​ 817,982 ​ ​ ​ ​ ​ 1,231,690 ​ ​ ​ ​ ​ 171,937 ​ ​
Cost of revenues
​ ​ ​ ​ (471,934) ​ ​ ​ ​ ​ (711,977) ​ ​ ​ ​ ​ (99,388) ​ ​
Gross Profit
​ ​ ​ ​ 346,048 ​ ​ ​ ​ ​ 519,713 ​ ​ ​ ​ ​ 72,549 ​ ​
Operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Sales and marketing expenses
​ ​ ​ ​ (97,709) ​ ​ ​ ​ ​ (92,857) ​ ​ ​ ​ ​ (12,962) ​ ​
General and administrative expenses
​ ​ ​ ​ (134,913) ​ ​ ​ ​ ​ (117,807) ​ ​ ​ ​ ​ (16,445) ​ ​
Research and development expenses
​ ​ ​ ​ (393,011) ​ ​ ​ ​ ​ (382,525) ​ ​ ​ ​ ​ (53,398) ​ ​
Other operating income, net
​ ​ ​ ​ 45,354 ​ ​ ​ ​ ​ 62,880 ​ ​ ​ ​ ​ 8,778 ​ ​
Total operating expenses
​ ​ ​ ​ (580,279) ​ ​ ​ ​ ​ (530,309) ​ ​ ​ ​ ​ (74,027) ​ ​
Loss from operations
​ ​ ​ ​ (234,231) ​ ​ ​ ​ ​ (10,596) ​ ​ ​ ​ ​ (1,478) ​ ​
Interest income
​ ​ ​ ​ 56,392 ​ ​ ​ ​ ​ 41,488 ​ ​ ​ ​ ​ 5,792 ​ ​
Interest expenses
​ ​ ​ ​ (5,620) ​ ​ ​ ​ ​ (11,552) ​ ​ ​ ​ ​ (1,613) ​ ​
Foreign exchange gain, net
​ ​ ​ ​ 5,038 ​ ​ ​ ​ ​ 7,960 ​ ​ ​ ​ ​ 1,111 ​ ​
Other loss, net
​ ​ ​ ​ 71 ​ ​ ​ ​ ​ (713) ​ ​ ​ ​ ​ (100) ​ ​
Net (loss) income before income tax and share of loss in equity method investments
​ ​ ​ ​ (178,350) ​ ​ ​ ​ ​ 26,587 ​ ​ ​ ​ ​ 3,712 ​ ​
Income tax expenses
​ ​ ​ ​ (615) ​ ​ ​ ​ ​ (27) ​ ​ ​ ​ ​ (4) ​ ​
Share of loss in equity method investment
​ ​ ​ ​ (19) ​ ​ ​ ​ ​ (23) ​ ​ ​ ​ ​ (3) ​ ​
Net (loss) income attributable to ordinary shareholders of the Company
​ ​ ​ ​ (178,984) ​ ​ ​ ​ ​ 26,537 ​ ​ ​ ​ ​ 3,705 ​ ​
(Losses) Earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Basic
​ ​ ​ ​ (1.40) ​ ​ ​ ​ ​ 0.20 ​ ​ ​ ​ ​ 0.03 ​ ​
Diluted
​ ​ ​ ​ (1.40) ​ ​ ​ ​ ​ 0.19 ​ ​ ​ ​ ​ 0.03 ​ ​
Weighted average shares used in computation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Basic
​ ​ ​ ​ 128,208,174 ​ ​ ​ ​ ​ 131,937,885 ​ ​ ​ ​ ​ 131,937,885 ​ ​
Diluted
​ ​ ​ ​ 128,208,174 ​ ​ ​ ​ ​ 138,952,264 ​ ​ ​ ​ ​ 138,952,264 ​ ​
Net (loss) income
​ ​ ​ ​ (178,984) ​ ​ ​ ​ ​ 26,537 ​ ​ ​ ​ ​ 3,705 ​ ​
Other comprehensive income, net of tax of nil: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Foreign currency translation adjustments
​ ​ ​ ​ 6,021 ​ ​ ​ ​ ​ 30,245 ​ ​ ​ ​ ​ 4,222 ​ ​
Comprehensive (loss) income, net of tax of nil
​ ​ ​ ​ (172,963) ​ ​ ​ ​ ​ 56,782 ​ ​ ​ ​ ​ 7,927 ​ ​
 
F-3
 
HESAI GROUP
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(Amounts in thousands, except share and per share data and otherwise noted)
​ ​ ​
Class A
Ordinary shares
​ ​
Class B
Ordinary shares
​ ​
Additional
paid-in
capital
​ ​
Subscription
receivables
​ ​
Accumulated
deficit
​ ​
Accumulated
other
comprehensive
income
​ ​
Total
Shareholders’
equity
​
​ ​ ​
Number
​ ​
RMB
​ ​
Number
​ ​
RMB
​ ​
RMB
​ ​
RMB
​ ​
RMB
​ ​
RMB
​ ​
RMB
​
Balance as of December 31, 2023
​ ​ ​ ​ 30,033,379 ​ ​ ​ ​ ​ 19 ​ ​ ​ ​ ​ 96,995,110 ​ ​ ​ ​ ​ 67 ​ ​ ​ ​ ​ 7,423,862 ​ ​ ​ ​ ​ (292,721) ​ ​ ​ ​ ​ (3,307,349) ​ ​ ​ ​ ​ 38,440 ​ ​ ​ ​ ​ 3,862,318 ​ ​
Net loss
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (178,984) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (178,984) ​ ​
Foreign currency translation
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 6,021 ​ ​ ​ ​ ​ 6,021 ​ ​
Share-based compensation
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 65,962 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 65,962 ​ ​
Issuance of ordinary shares upon the exercise of share options and vesting of restricted share units
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 2,729,425 ​ ​ ​ ​ ​ 2 ​ ​ ​ ​ ​ 17,379 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 17,381 ​ ​
Balance as of June 30, 2024 (unaudited)
​ ​ ​ ​ 30,033,379 ​ ​ ​ ​ ​ 19 ​ ​ ​ ​ ​ 99,724,535 ​ ​ ​ ​ ​ 69 ​ ​ ​ ​ ​ 7,507,203 ​ ​ ​ ​ ​ (292,721) ​ ​ ​ ​ ​ (3,486,333) ​ ​ ​ ​ ​ 44,461 ​ ​ ​ ​ ​ 3,772,698 ​ ​
Balance as of December 31, 2024
​ ​ ​ ​ 30,015,905 ​ ​ ​ ​ ​ 19 ​ ​ ​ ​ ​ 101,143,806 ​ ​ ​ ​ ​ 70 ​ ​ ​ ​ ​ 7,577,113 ​ ​ ​ ​ ​ (292,721) ​ ​ ​ ​ ​ (3,409,725) ​ ​ ​ ​ ​ 56,975 ​ ​ ​ ​ ​ 3,931,731 ​ ​
Net income
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 26,537 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 26,537 ​ ​
Foreign currency translation
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 30,245 ​ ​ ​ ​ ​ 30,245 ​ ​
Share-based compensation
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 55,384 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 55,384 ​ ​
Issuance of ordinary shares upon the exercise of share options and vesting of restricted share units
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 1,716,477 ​ ​ ​ ​ ​ 1 ​ ​ ​ ​ ​ 18,615 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 18,616 ​ ​
Conversion of Class A Ordinary shares into Class B Ordinary shares
​ ​ ​ ​ (3,017,044) ​ ​ ​ ​ ​ (2) ​ ​ ​ ​ ​ 3,017,044 ​ ​ ​ ​ ​ 2 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Settlement of subscription receivables in connection the 2021 reorganization
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 292,721 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 292,721 ​ ​
Balance as of June 30, 2025 (unaudited)
​ ​ ​ ​ 26,998,861 ​ ​ ​ ​ ​ 17 ​ ​ ​ ​ ​ 105,877,327 ​ ​ ​ ​ ​ 73 ​ ​ ​ ​ ​ 7,651,112 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (3,383,188) ​ ​ ​ ​ ​ 87,220 ​ ​ ​ ​ ​ 4,355,234 ​ ​
 
F-4
 
HESAI GROUP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(Amounts in thousands, except share and per share data and otherwise noted)
​ ​ ​
Six months ended June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​ ​
US$
(Note 2)
​
Cash flows from operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net (loss) income
​ ​ ​ ​ (178,984) ​ ​ ​ ​ ​ 26,537 ​ ​ ​ ​ ​ 3,705 ​ ​
Adjustments to reconcile net (loss) income to net cash used in operating
activities:
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Depreciation and amortization
​ ​ ​ ​ 61,419 ​ ​ ​ ​ ​ 77,477 ​ ​ ​ ​ ​ 10,815 ​ ​
Share-based compensation
​ ​ ​ ​ 66,294 ​ ​ ​ ​ ​ 55,384 ​ ​ ​ ​ ​ 7,731 ​ ​
Provision for allowance for credit loss
​ ​ ​ ​ 823 ​ ​ ​ ​ ​ 7,862 ​ ​ ​ ​ ​ 1,097 ​ ​
Loss from disposal of property and equipment
​ ​ ​ ​ 8,729 ​ ​ ​ ​ ​ 1,466 ​ ​ ​ ​ ​ 205 ​ ​
Fair value change of short-term investments
​ ​ ​ ​ 1,240 ​ ​ ​ ​ ​ (319) ​ ​ ​ ​ ​ (45) ​ ​
Share of loss in equity method investee
​ ​ ​ ​ 19 ​ ​ ​ ​ ​ 23 ​ ​ ​ ​ ​ 3 ​ ​
Foreign exchange (gain) loss, net
​ ​ ​ ​ (994) ​ ​ ​ ​ ​ 806 ​ ​ ​ ​ ​ 113 ​ ​
Non-cash lease expenses
​ ​ ​ ​ 24,797 ​ ​ ​ ​ ​ 9,206 ​ ​ ​ ​ ​ 1,285 ​ ​
Inventory write-down
​ ​ ​ ​ 25,900 ​ ​ ​ ​ ​ 18,333 ​ ​ ​ ​ ​ 2,559 ​ ​
Changes in operating assets and liabilities:
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Notes receivable
​ ​ ​ ​ (4,250) ​ ​ ​ ​ ​ (10,679) ​ ​ ​ ​ ​ (1,491) ​ ​
Accounts receivable
​ ​ ​ ​ (174,091) ​ ​ ​ ​ ​ (301,382) ​ ​ ​ ​ ​ (42,071) ​ ​
Inventories
​ ​ ​ ​ (207,435) ​ ​ ​ ​ ​ (141,694) ​ ​ ​ ​ ​ (19,780) ​ ​
Prepayments and other current assets
​ ​ ​ ​ (34,334) ​ ​ ​ ​ ​ (74,571) ​ ​ ​ ​ ​ (10,410) ​ ​
Amounts due from related parties
​ ​ ​ ​ — ​ ​ ​ ​ ​ 5,039 ​ ​ ​ ​ ​ 703 ​ ​
Other non-current assets
​ ​ ​ ​ — ​ ​ ​ ​ ​ (1,738) ​ ​ ​ ​ ​ (243) ​ ​
Amounts due to related parties
​ ​ ​ ​ — ​ ​ ​ ​ ​ (8,997) ​ ​ ​ ​ ​ (1,256) ​ ​
Contract liabilities
​ ​ ​ ​ (35,490) ​ ​ ​ ​ ​ (1,323) ​ ​ ​ ​ ​ (185) ​ ​
Accounts payable
​ ​ ​ ​ 91,225 ​ ​ ​ ​ ​ 116,876 ​ ​ ​ ​ ​ 16,315 ​ ​
Notes payable
​ ​ ​ ​ 20,924 ​ ​ ​ ​ ​ 110,402 ​ ​ ​ ​ ​ 15,412 ​ ​
Accrued expenses and other current liabilities
​ ​ ​ ​ (22,060) ​ ​ ​ ​ ​ (125,547) ​ ​ ​ ​ ​ (17,526) ​ ​
Operating leases liabilities
​ ​ ​ ​ (11,324) ​ ​ ​ ​ ​ (7,733) ​ ​ ​ ​ ​ (1,079) ​ ​
Other non-current liabilities
​ ​ ​ ​ (5,770) ​ ​ ​ ​ ​ (20,860) ​ ​ ​ ​ ​ (2,912) ​ ​
Net cash used in operating activities
​ ​ ​ ​ (373,362) ​ ​ ​ ​ ​ (265,432) ​ ​ ​ ​ ​ (37,055) ​ ​
Cash flows from investing activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Purchases of short-term investments
​ ​ ​ ​ (3,185,144) ​ ​ ​ ​ ​ (180,000) ​ ​ ​ ​ ​ (25,127) ​ ​
Maturity of short-term investments
​ ​ ​ ​ 4,263,392 ​ ​ ​ ​ ​ 432,000 ​ ​ ​ ​ ​ 60,304 ​ ​
Purchases of property and equipment
​ ​ ​ ​ (135,906) ​ ​ ​ ​ ​ (114,874) ​ ​ ​ ​ ​ (16,036) ​ ​
Purchases of intangible assets
​ ​ ​ ​ (2,982) ​ ​ ​ ​ ​ (17,744) ​ ​ ​ ​ ​ (2,477) ​ ​
Purchases of equity securities
​ ​ ​ ​ — ​ ​ ​ ​ ​ (100,000) ​ ​ ​ ​ ​ (13,959) ​ ​
Net cash provided by investing activities
​ ​ ​ ​ 939,360 ​ ​ ​ ​ ​ 19,382 ​ ​ ​ ​ ​ 2,705 ​ ​
 
F-5
 
HESAI GROUP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (continued)
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(Amounts in thousands, except share and per share data and otherwise noted)
​ ​ ​
Six months ended June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​ ​
US$
(Note 2)
​
Cash flows from financing activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Cash distribution to former shareholders of Shanghai Hesai in connection with the 2021 Reorganization
​ ​ ​ ​ — ​ ​ ​ ​ ​ (292,721) ​ ​ ​ ​ ​ (40,862) ​ ​
Cash contribution from shareholders in connection with the 2021 Reorganization
​ ​ ​ ​ — ​ ​ ​ ​ ​ 292,721 ​ ​ ​ ​ ​ 40,862 ​ ​
Proceeds from long-term borrowings
​ ​ ​ ​ 56,632 ​ ​ ​ ​ ​ 64,216 ​ ​ ​ ​ ​ 8,964 ​ ​
Repayment of long-term borrowings
​ ​ ​ ​ (8,077) ​ ​ ​ ​ ​ (58,225) ​ ​ ​ ​ ​ (8,128) ​ ​
Proceeds from short-term borrowings
​ ​ ​ ​ 168,263 ​ ​ ​ ​ ​ 311,777 ​ ​ ​ ​ ​ 43,522 ​ ​
Repayment of short-term borrowings
​ ​ ​ ​ (111,682) ​ ​ ​ ​ ​ (180,794) ​ ​ ​ ​ ​ (25,238) ​ ​
Payment of offering costs
​ ​ ​ ​ — ​ ​ ​ ​ ​ (12,242) ​ ​ ​ ​ ​ (1,709) ​ ​
Proceeds from issuance of ordinary shares upon the exercise of share options
​ ​ ​ ​ 12,951 ​ ​ ​ ​ ​ 18,217 ​ ​ ​ ​ ​ 2,543 ​ ​
Net cash provided by financing activities
​ ​ ​ ​ 118,087 ​ ​ ​ ​ ​ 142,949 ​ ​ ​ ​ ​ 19,954 ​ ​
Net increase (decrease) in cash and cash equivalents
​ ​ ​ ​ 684,085 ​ ​ ​ ​ ​ (103,101) ​ ​ ​ ​ ​ (14,396) ​ ​
Cash, cash equivalents and restricted cash, beginning of the period
​ ​ ​ ​ 1,558,124 ​ ​ ​ ​ ​ 2,842,560 ​ ​ ​ ​ ​ 396,806 ​ ​
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
​ ​ ​ ​ 1,985 ​ ​ ​ ​ ​ (1,035) ​ ​ ​ ​ ​ (141) ​ ​
Cash, cash equivalents and restricted cash, end of the period
​ ​ ​ ​ 2,244,194 ​ ​ ​ ​ ​ 2,738,424 ​ ​ ​ ​ ​ 382,269 ​ ​
Cash paid during the period for: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Income taxes
​ ​ ​ ​ — ​ ​ ​ ​ ​ 425 ​ ​ ​ ​ ​ 59 ​ ​
Interest (net of capitalized amount of RMB756 and RMB651 for the six months ended June 30, 2024 and 2025, respectively)
​ ​ ​ ​ 5,537 ​ ​ ​ ​ ​ 11,668 ​ ​ ​ ​ ​ 1,629 ​ ​
Supplemental disclosure of non-cash investing and financing activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Accrued purchases of property and equipment
​ ​ ​ ​ 163,304 ​ ​ ​ ​ ​ 118,185 ​ ​ ​ ​ ​ 16,498 ​ ​
Accrued offering cost
​ ​ ​ ​ — ​ ​ ​ ​ ​ 11,281 ​ ​ ​ ​ ​ 1,575 ​ ​
Decrease in lease liabilities due to partial termination of lease contact
​ ​ ​ ​ — ​ ​ ​ ​ ​ 28,787 ​ ​ ​ ​ ​ 4,019 ​ ​
Increase in right-of-use assets in exchange for leases liabilities
​ ​ ​ ​ — ​ ​ ​ ​ ​ 16,324 ​ ​ ​ ​ ​ 2,279 ​ ​
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheet that sum to the total of the same such amounts shown in the statement of cash flows:
​ ​ ​
As of June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​ ​
US$
(Note 2)
​
Cash and cash equivalents
​ ​ ​ ​ 2,240,631 ​ ​ ​ ​ ​ 2,734,345 ​ ​ ​ ​ ​ 381,700 ​ ​
Restricted cash
​ ​ ​ ​ 3,563 ​ ​ ​ ​ ​ 4,079 ​ ​ ​ ​ ​ 569 ​ ​
Cash, cash equivalents and restricted cash
​ ​ ​ ​ 2,244,194 ​ ​ ​ ​ ​ 2,738,424 ​ ​ ​ ​ ​ 382,269 ​ ​
 
F-6
 
1.   ORGANIZATION AND NATURE OF OPERATIONS
Hesai Group (the “Company”) was incorporated under the laws of the Cayman Islands on April 21, 2021. The Company, together with its subsidiaries (collectively, the “Group”) is primarily engaged in the development, manufacture and sales of 3-dimensional light detection and ranging solutions, or LiDAR.
2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission, regarding interim financial reporting, and include all normal and recurring adjustments that management of the Group considers necessary for a fair presentation of its financial position and operation results. Certain information and footnote disclosures normally included in financial statements prepared in conformity with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these statements should be read in conjunction with the Group’s consolidated financial statements as of and for the year ended December 31, 2024. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year.
Basis of consolidation
The financial statements presented herein represent the condensed consolidated financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.
Use of estimates
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Group’s management reviews these estimates based on information that is currently available. Changes in facts and circumstances may cause the Group to revise its estimates. Significant accounting estimates reflected in the Group’s condensed consolidated financial statements mainly include the estimated project progress towards certain services revenue, warranty reserves, incremental borrowing rate of lease liabilities, inventory write-down, allowance for credit losses, the useful lives and impairment of property and equipment, right-of-use assets, intangible assets and land-use rights, valuation of share-based compensation.
Fair value measurements
The established fair value hierarchy as defined by U.S. GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include:
Level 1 Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured.
Level 2 Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques.
 
F-7
 
2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Level 3 Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
The Group’s financial instruments include cash and cash equivalents, time deposits with maturities between three months and one year included in short-term investments, accounts receivable, notes receivable, contract assets, amounts due from/to related parties, other receivables included in other current assets, accounts payable, notes payable, other current liabilities, and short/long-term borrowings. All carrying amounts of these short-term financial instruments measured at amortized cost approximate their fair values due to their short-term nature. The fair value of long-term borrowings is approximate to their carry amounts because the annual interest rates of such borrowings are the similar to the prevailing market annual interest rate.
The following table presents our assets that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy.
As of December 31, 2024 (audited)
​ ​ ​
Fair Value Measurements at Reporting Date Using
​
Description
​ ​
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
​ ​
Significant Other
Observable Inputs
(Level 2)
​ ​
Significant
Unobservable
Inputs (Level 3)
​
​ ​ ​
RMB
​ ​
RMB
​ ​
RMB
​
Short-term investments – structured financial products
​ ​ ​ ​ — ​ ​ ​ ​ ​ 362,195 ​ ​ ​ ​ ​ — ​ ​
As of June 30, 2025 (unaudited)
​ ​ ​
Fair Value Measurements at Reporting Date Using
​
Description
​ ​
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
​ ​
Significant Other
Observable Inputs
(Level 2)
​ ​
Significant
Unobservable
Inputs (Level 3)
​
​ ​ ​
RMB
​ ​
RMB
​ ​
RMB
​
Short-term investments – structured financial products
​ ​ ​ ​ — ​ ​ ​ ​ ​ 110,514 ​ ​ ​ ​ ​ — ​ ​
The structured financial products with commercial banks in the PRC are financial instruments with variable interest rates indexed mainly to exchange rates and/or price of commodities. In accordance with ASC 820, Fair Value Measurement, the Group elected the fair value option at the date of initial recognition to measure structured financial products at fair value on a recurring basis with changes in the fair value are recorded as interest income in the condensed consolidated statement of operations and comprehensive (loss) income. The fair values of these structured financial products were using Level 2 significant other observable input by applying the interest rate implied by the current quotation of underlying indices. For the six months ended June 30, 2024 and 2025, the Group recorded fair value changes of short-term investments of RMB10,110 (unaudited) and RMB1,994 (unaudited) as interest income in the condensed consolidated statement of operations and comprehensive (loss) income, respectively.
Revenue recognition
The Group recognizes revenue from sales of LiDAR products and other products at a point in time when control of the products is transferred to the customers, which generally occurs upon delivery according to the terms of the underlying contracts. Product sales to certain customers may require customer acceptance due to performance acceptance criteria that is considered more than a formality. For these product sales, revenue is recognized upon the expiration of the customer acceptance period. The Group’s general terms and conditions for its contracts do not contain a right of return that allows the customer to return products and receive a credit, and therefore the Group does not estimate returns. The Group’s standalone selling prices are based on the prices charged to customers for the single performance obligation which is transfer of control of products
 
F-8
 
2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
upon delivery to the customers or upon expiration of the customer acceptance period. Revenue is measured as the amount of consideration expect to receive in exchange for transferring the promised goods, adjusted for any variable consideration such as price concessions or annual price adjustments as estimated at contract inception. The Group estimate variable consideration at the most likely amount they will receive from customers and reduce revenues recognized accordingly. The Group includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Group estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of their anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Group. The Group adjusts the estimate of revenue at the earlier of when the value of consideration they expect to receive changes or when the consideration becomes fixed. Amounts billed to customers for shipping and handling are included in revenue. Taxes collected from customers and remitted to governmental authorities are excluded from revenue on the net basis of accounting. Accounts receivables are due under normal trade terms, typically within 30 to 90 days.
For LiDAR solution that the Group offers customers with a combination of hardware, software, deployment and professional services and engineering design, development and validation service projects, control of the goods and services may be transferred over time or at a point in time depending on the terms of the contract. Control of the goods and services is transferred over time when the Group’s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. The Group recognizes revenue over time using an input method based on contract cost incurred to date compared to total estimated contract cost (cost-to-cost) as the services are provided. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services.
The Group typically provides standard product warranties on LiDARs. For LiDARs used in Robotics market, such warranties last one or two years. For those used in advanced driver assistance system market, such warranties cover five years or 100 thousand kilometers, whichever comes first. Standard warranties are considered to be assurance type warranties and are not accounted for as separate performance obligations. The Group accrues estimated future warranty costs and charges to cost of revenues in the period that the related revenue is recognized. These estimates are based on historical warranty experience and any known or expected changes in warranty exposure, such as trends of product reliability and costs of repairing and replacing defective products. The Group also provides extended warranties as a service for an additional term ranging one to two additional years. For service type extended warranty contracts, the Group allocates revenue to this performance obligation on a relative standalone selling price basis and recognizes the revenue ratably over time during the effective period of the services. The Group recognized RMB5,719 (unaudited) and RMB3,006 (unaudited) for extended warranty services, for the six months ended June 30, 2024 and 2025, respectively.
Changes in the Group’s accrued warranty liability was as follows:
​ ​ ​
For the six months ended
June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​
Balance as of the beginning of the period
​ ​ ​ ​ 28,425 ​ ​ ​ ​ ​ 43,607 ​ ​
Warranty provision
​ ​ ​ ​ 11,416 ​ ​ ​ ​ ​ 20,264 ​ ​
Consumption
​ ​ ​ ​ (6,314) ​ ​ ​ ​ ​ (6,266) ​ ​
Balance as of the end of the period
​ ​ ​ ​ 33,527 ​ ​ ​ ​ ​ 57,605 ​ ​
Segment
The Chief Executive Officer, Chief Scientist and Chief Technology Officer, namely the “Founding Shareholders”, are identified as the chief operating decision maker (“CODM”).
 
F-9
 
2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The Group operates in one operating segment, which includes all activities related to the development, manufacturing, and delivery of LiDAR products. The determination of a single operating segment is consistent with the condensed consolidated financial information regularly provided to the Group’s CODM.
As a single reportable segment entity, segment asset information is not used by the CODM to allocate resources. The measure used by CODM to assess performance and make operating decisions is net loss as reported on the Group’s consolidated statements of operations. The CODM uses performance measure to monitor budget versus actual results. See Note 18 for a description of the Group’s disaggregated revenues by product line and geographic location.
Further, the CODM reviews and utilizes cost of revenues which are presented in the Group’s consolidated statements to manage the Group’s operation. Additional disaggregated significant segment expenses that are not separately presented on the Group’s consolidated statements of operations, are presented below for disaggregated payroll expenses recorded in sales and marketing expenses, general and administrative expenses and research and development expenses which are independently reviewed by our CODM.
The following table presents the significant segment expenses and other segment items regularly reviewed by our CODM:
​ ​ ​
For the six months ended
June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​
Net Revenues
​ ​ ​ ​ 817,982 ​ ​ ​ ​ ​ 1,231,690 ​ ​
Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Cost of revenues
​ ​ ​ ​ 471,934 ​ ​ ​ ​ ​ 711,977 ​ ​
Payroll expenses in sales and marketing expenses*
​ ​ ​ ​ 63,589 ​ ​ ​ ​ ​ 70,067 ​ ​
Payroll expenses in general and administrative expenses
​ ​ ​ ​ 75,658 ​ ​ ​ ​ ​ 62,250 ​ ​
Payroll expenses in research and development expenses
​ ​ ​ ​ 274,247 ​ ​ ​ ​ ​ 269,330 ​ ​
Other segment items**
​ ​ ​ ​ 111,538 ​ ​ ​ ​ ​ 91,529 ​ ​
Net (loss) income
​ ​ ​ ​ (178,984) ​ ​ ​ ​ ​ 26,537 ​ ​
​
*
Payroll expenses mainly consist of salaries, bonus, defined contribution plans, other social insurances, share-based compensation and other employee benefits.
​
**
Other segment items primarily include other operating income, net, interest income, interest expenses, other income (loss), net and professional service expenses as reported in Group’s condensed consolidated statement of operations.
​
Concentration of risks
Concentration of credit risk
Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, accounts receivable, contract assets, amount due from related parties, and prepayments and other current assets.
The Group places its cash and cash equivalents and short-term investments in various financial institutions in the PRC, Hong Kong Special Administrative Region, and the United States. The Group believes that no significant credit risk exists as all of the Group’s cash and cash equivalents are held with financial institutions that Group’s management believes to be high credit quality.
Accounts receivable and contract assets are typically unsecured and are derived from revenue earned from the customers. The Group conducts credit evaluations of customers to whom credit terms are extended.
 
F-10
 
2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The Group establishes an allowance for credit losses based on CECL model developed by the Group, which considers historical collection experience, the age of the accounts receivable balances, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers.
Prepayments and other current assets mainly consist of deposits of rent, and prepaid expenses, which can be applied for deduction of future payments for expenses. The Group has no significant concentrations of credit risk with respect to its prepayments and other current assets.
Concentration of customers
The following customers accounted for 10% or more of revenue for the six months ended June 30, 2024 and 2025:
​ ​ ​
For the six months ended
June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
(unaudited)
​ ​
(unaudited)
​
Customer A
​ ​ ​ ​ 32.4% ​ ​ ​ ​ ​ 23.7% ​ ​
Customer B
​ ​ ​ ​  * ​ ​ ​ ​ ​ 21.0% ​ ​
The following customers accounted for 10% or more of the Group’s accounts receivable and contract assets as of December 31, 2024 and June 30, 2025:
​ ​ ​
As of
December 31,
2024
​ ​
As of
June 30,
2025
​
​ ​ ​
(audited)
​ ​
(unaudited)
​
Customer A
​ ​ ​ ​ 23.5% ​ ​ ​ ​ ​ 27.7% ​ ​
Customer B
​ ​ ​ ​ 16.8% ​ ​ ​ ​ ​ 14.0% ​ ​
Customer C
​ ​ ​ ​ 11.8% ​ ​ ​ ​ ​  * ​ ​
Convenience translation
The Group’s business is primarily conducted in China and most of its revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into US$ using the then current exchange rates, for the convenience of the readers. Translations of balances in the condensed consolidated balance sheet, condensed consolidated statement of operations and comprehensive (loss) income and condensed consolidated statement of cash flows from RMB into US$ as of and for the six months ended June 30, 2025 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.1636 representing the noon buying rate set forth in the H.10 statistical release of the United States as of June 30, 2025.
3.   SHORT-TERM INVESTMENTS
The following table summarizes the Group’s balances of short-term investments:
​ ​ ​
As of
December 31,
2024
​ ​
As of
June 30,
2025
​
​ ​ ​
RMB
(audited)
​ ​
RMB
(unaudited)
​
Structured bank financial products
​ ​ ​ ​ 362,195 ​ ​ ​ ​ ​ 110,514 ​ ​
 
F-11
 
4.   ACCOUNTS RECEIVABLE, NET
Accounts receivable and expected credit losses as of December 31, 2024 and June 30, 2025 are as follows:
​ ​ ​
As of
December 31,
2024
​ ​
As of
June 30,
2025
​
​ ​ ​
RMB
(audited)
​ ​
RMB
(unaudited)
​
Accounts receivable
​ ​ ​ ​ 819,999 ​ ​ ​ ​ ​ 1,116,585 ​ ​
Less: allowance for expected credit losses
​ ​ ​ ​ (54,972) ​ ​ ​ ​ ​ (59,213) ​ ​
Total accounts receivable, net
​ ​ ​ ​ 765,027 ​ ​ ​ ​ ​ 1,057,372 ​ ​
The roll-forward of the allowance for credit losses related to accounts receivable for the year ended December 31, 2024 and the six months ended June 30, 2025 consists of the following activity:
​ ​ ​
For the year ended
December 31,
2024
​ ​
For the six months ended
June 30,
2025
​
​ ​ ​
RMB
(audited)
​ ​
RMB
(unaudited)
​
Balance at beginning of year/period
​ ​ ​ ​ 49,132 ​ ​ ​ ​ ​ 54,972 ​ ​
Provision for expected credit losses
​ ​ ​ ​ 5,840 ​ ​ ​ ​ ​ 7,862 ​ ​
Write-off
​ ​ ​ ​ — ​ ​ ​ ​ ​ (3,621) ​ ​
Balance at end of year/period
​ ​ ​ ​ 54,972 ​ ​ ​ ​ ​ 59,213 ​ ​
5.   INVENTORIES
​ ​ ​
As of
December 31,
2024
​ ​
As of
June 30,
2025
​
​ ​ ​
RMB
(audited)
​ ​
RMB
(unaudited)
​
Raw materials
​ ​ ​ ​ 191,578 ​ ​ ​ ​ ​ 333,231 ​ ​
Work-in-process
​ ​ ​ ​ 225,726 ​ ​ ​ ​ ​ 195,970 ​ ​
Finished goods
​ ​ ​ ​ 64,833 ​ ​ ​ ​ ​ 70,051 ​ ​
Inventories ​ ​ ​ ​ 482,137 ​ ​ ​ ​ ​ 599,252 ​ ​
Inventory write-off was RMB25,900 (unaudited) and RMB18,333 (unaudited) respectively, for the six months ended June 30, 2024 and 2025.
6.   PREPAYMENTS AND OTHER CURRENT ASSETS, NET
Prepayments and other current assets, as of December 31, 2024 and June 30, 2025 were as follows:
​ ​ ​
As of
December 31,
2024
​ ​
As of
June 30,
2025
​
​ ​ ​
RMB
(audited)
​ ​
RMB
(unaudited)
​
Advances to suppliers
​ ​ ​ ​ 112,385 ​ ​ ​ ​ ​ 151,158 ​ ​
Deposits
​ ​ ​ ​ 11,033 ​ ​ ​ ​ ​ 10,897 ​ ​
Prepaid expenses
​ ​ ​ ​ 23,076 ​ ​ ​ ​ ​ 46,661 ​ ​
Value-added tax recoverable
​ ​ ​ ​ 28,468 ​ ​ ​ ​ ​ 45,611 ​ ​
Others
​ ​ ​ ​ 18,486 ​ ​ ​ ​ ​ 19,450 ​ ​
Total ​ ​ ​ ​ 193,448 ​ ​ ​ ​ ​ 273,777 ​ ​
 
F-12
 
7.   PROPERTY AND EQUIPMENT, NET
Property and equipment, as of December 31, 2024 and June 30, 2025 are as follows:
​ ​ ​
As of
December 31,
2024
​ ​
As of
June 30,
2025
​
​ ​ ​
RMB
(audited)
​ ​
RMB
(unaudited)
​
Cost ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Land
​ ​ ​ ​ 39,312 ​ ​ ​ ​ ​ 41,902 ​ ​
Buildings
​ ​ ​ ​ 342,673 ​ ​ ​ ​ ​ 342,717 ​ ​
Electronic equipment
​ ​ ​ ​ 139,418 ​ ​ ​ ​ ​ 184,656 ​ ​
Leasehold improvements
​ ​ ​ ​ 81,431 ​ ​ ​ ​ ​ 89,822 ​ ​
Machinery and equipment
​ ​ ​ ​ 350,483 ​ ​ ​ ​ ​ 393,044 ​ ​
Furniture and fixture
​ ​ ​ ​ 193,190 ​ ​ ​ ​ ​ 200,427 ​ ​
Transportation vehicles
​ ​ ​ ​ 6,487 ​ ​ ​ ​ ​ 8,024 ​ ​
Total cost
​ ​ ​ ​ 1,152,994 ​ ​ ​ ​ ​ 1,260,592 ​ ​
Less: Accumulated depreciation
​ ​ ​ ​ (274,177) ​ ​ ​ ​ ​ (340,722) ​ ​
Property and equipment, net
​ ​ ​ ​ 878,817 ​ ​ ​ ​ ​ 919,870 ​ ​
Construction in Progress
​ ​ ​ ​ 65,401 ​ ​ ​ ​ ​ 94,561 ​ ​
Total ​ ​ ​ ​ 944,218 ​ ​ ​ ​ ​ 1,014,431 ​ ​
The buildings as of June 30, 2025 represents the Group’s new research, development and intelligent manufacturing center in Shanghai, PRC. The Group completed the construction of this center and put it into use in January 2024. Construction in progress as of June 30, 2025 represents the Group’s renovation and upgrade of certain production line in Hertz factory. Depreciation expenses were RMB58,512 (unaudited) and RMB67,628 (unaudited) for the six months ended June 30, 2024 and 2025, respectively.
8.   LONG-TERM INVESTMENTS
​ ​ ​
As of
December 31,
2024
​ ​
As of
June 30,
2025
​
​ ​ ​
RMB
(audited)
​ ​
RMB
(unaudited)
​
Investments in equity securities without readily determinable fair
value
​ ​ ​ ​ 30,000 ​ ​ ​ ​ ​ 130,000 ​ ​
Investments in equity method investee
​ ​ ​ ​ 1,798 ​ ​ ​ ​ ​ 1,776 ​ ​
Total ​ ​ ​ ​ 31,798 ​ ​ ​ ​ ​ 131,776 ​ ​
In April 2025, the Company, through a partnership, indirectly subscribed approximately 10% equity interest in an early-stage technological company (the “Investee”), an associate of Founding Shareholders of the Group, for a cash consideration of US$13.9 million, equivalent to approximately RMB100,000. The Group recorded this investment in equity securities without readily determinable fair value.
 
F-13
 
9.   BORROWINGS
The short-term and long-term borrowings as of December 31, 2024 and June 30, 2025 were as follows:
​ ​ ​
As of
December 31,
2024
​ ​
As of
June 30,
2025
​
​ ​ ​
RMB
(audited)
​ ​
RMB
(unaudited)
​
Short-term borrowings: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Short-term bank borrowings
​ ​ ​ ​ 148,800 ​ ​ ​ ​ ​ 51,776 ​ ​
Secured bank borrowings related to discounted intercompany notes receivable
​ ​ ​ ​ 80,000 ​ ​ ​ ​ ​ 310,000 ​ ​
Long-term bank borrowings, current portion
​ ​ ​ ​ 116,453 ​ ​ ​ ​ ​ 116,454 ​ ​
Total ​ ​ ​ ​ 345,253 ​ ​ ​ ​ ​ 478,230 ​ ​
Long-term borrowings: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Long-term bank borrowings
​ ​ ​ ​ 269,438 ​ ​ ​ ​ ​ 273,435 ​ ​
The principal maturities of the long-term borrowings as of December 31, 2024 and June 30, 2025 are as follows:
​ ​ ​
As of
December 31,
2024
​ ​
As of
June 30,
2025
​
​ ​ ​
RMB
(audited)
​ ​
RMB
(unaudited)
​
2026
​ ​ ​ ​ 116,453 ​ ​ ​ ​ ​ 58,227 ​ ​
2027
​ ​ ​ ​ 119,355 ​ ​ ​ ​ ​ 119,355 ​ ​
2028 and after
​ ​ ​ ​ 33,630 ​ ​ ​ ​ ​ 95,853 ​ ​
Total ​ ​ ​ ​ 269,438 ​ ​ ​ ​ ​ 273,435 ​ ​
10.   ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities as of December 31, 2024 and June 30, 2025 are as follows:
​ ​ ​
As of
December 31,
2024
​ ​
As of
June 30,
2025
​
​ ​ ​
RMB
(audited)
​ ​
RMB
(unaudited)
​
Salaries and welfare payables
​ ​ ​ ​ 232,927 ​ ​ ​ ​ ​ 131,363 ​ ​
Payables for purchase of property and equipment
​ ​ ​ ​ 124,333 ​ ​ ​ ​ ​ 118,185 ​ ​
Accrued expenses
​ ​ ​ ​ 111,877 ​ ​ ​ ​ ​ 65,209 ​ ​
Current portion of operating lease liabilities
​ ​ ​ ​ 16,103 ​ ​ ​ ​ ​ 21,933 ​ ​
VAT and other tax payables
​ ​ ​ ​ 28,563 ​ ​ ​ ​ ​ 26,736 ​ ​
Advances from employees
​ ​ ​ ​ 2,923 ​ ​ ​ ​ ​ 2,525 ​ ​
Total ​ ​ ​ ​ 516,726 ​ ​ ​ ​ ​ 365,951 ​ ​
 
F-14
 
11.   LEASES
The Group has operating leases for offices and factories. For the six months ended June 30, 2024 and 2025, operating lease expenses were RMB26,727 (unaudited) and RMB10,502 (unaudited), respectively.
The maturities of lease liabilities as of December 31, 2024 and June 30, 2025 were as follows:
​ ​ ​
As of
December 31,
2024
​ ​
As of
June 30,
2025
​
​ ​ ​
RMB
(audited)
​ ​
RMB
(unaudited)
​
2025
​ ​ ​ ​ 18,963 ​ ​ ​ ​ ​ 12,227 ​ ​
2026
​ ​ ​ ​ 24,672 ​ ​ ​ ​ ​ 24,411 ​ ​
2027
​ ​ ​ ​ 24,672 ​ ​ ​ ​ ​ 24,411 ​ ​
2028
​ ​ ​ ​ 27,139 ​ ​ ​ ​ ​ 23,799 ​ ​
2029
​ ​ ​ ​ 27,139 ​ ​ ​ ​ ​ 20,352 ​ ​
Total lease payment
​ ​ ​ ​ 122,585 ​ ​ ​ ​ ​ 105,200 ​ ​
Less: imputed interest
​ ​ ​ ​ (8,112) ​ ​ ​ ​ ​ (5,954) ​ ​
Present value of minimum operating lease payments
​ ​ ​ ​ 114,473 ​ ​ ​ ​ ​ 99,246 ​ ​
Less: Current operating lease liabilities
​ ​ ​ ​ (16,103) ​ ​ ​ ​ ​ (21,933) ​ ​
Long-term operating lease liabilities
​ ​ ​ ​ 98,370 ​ ​ ​ ​ ​ 77,313 ​ ​
12.   NET REVENUES
The following table presents the Group’s net revenues for the six months ended June 30, 2024 and 2025.
​ ​ ​
For the six months ended June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​
Product revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Revenue from LiDAR products
​ ​ ​ ​ 759,881 ​ ​ ​ ​ ​ 1,205,621 ​ ​
Other product revenues
​ ​ ​ ​ 3,662 ​ ​ ​ ​ ​ 4,467 ​ ​
Service revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Engineering design, development and validation services
​ ​ ​ ​ 47,419 ​ ​ ​ ​ ​ 16,843 ​ ​
Other services
​ ​ ​ ​ 7,020 ​ ​ ​ ​ ​ 4,759 ​ ​
Total ​ ​ ​ ​ 817,982 ​ ​ ​ ​ ​ 1,231,690 ​ ​
The following table summarizes the Group’s revenues recognized at a point in time or over time.
​ ​ ​
For the six months ended June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​
Revenue recognized at a point of time
​ ​ ​ ​ 817,982 ​ ​ ​ ​ ​ 1,231,690 ​ ​
 
F-15
 
12.   NET REVENUES (continued)
The following table summarizes the Group’s revenues disaggregated by the different geographic location.
​ ​ ​
For the six months ended June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​
Revenue by geographic location ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Mainland China
​ ​ ​ ​ 527,895 ​ ​ ​ ​ ​ 998,299 ​ ​
North America
​ ​ ​ ​ 146,419 ​ ​ ​ ​ ​ 142,906 ​ ​
Europe
​ ​ ​ ​ 110,057 ​ ​ ​ ​ ​ 59,599 ​ ​
Other regions
​ ​ ​ ​ 33,611 ​ ​ ​ ​ ​ 30,886 ​ ​
Total ​ ​ ​ ​ 817,982 ​ ​ ​ ​ ​ 1,231,690 ​ ​
13.   SHARE-BASED COMPENSATION
Employee share options
On March 10, April 22 and May 26, 2025 under the 2021 Plan, the Company granted 1,228,800 share options to certain employees, the vesting schedule of the awards include:
1)
Twenty-five percent (25%) of the 1,186,212 options to be vested on each of the first, second, third and fourth anniversaries of the vesting commencement date.
​
2)
One forty-eighth (1/48) of the 42,588 options to be vested on each calendar month, from the first full calendar month following the vesting commencement date though the forty-eighth (48th) month.
​
The binomial option pricing model was applied in determining the estimated fair value of the options granted. The model requires the input of subjective assumptions. The following table presents the assumptions used to estimate the fair values of the share options granted for the six months ended June 30, 2024 and 2025:
​ ​ ​
For the six months ended June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
(unaudited)
​ ​
(unaudited)
​
Expected volatility
​ ​
84.00% – 86.00%
​ ​
99.00% – 103.00%
​
Risk-free interest rate (per annum)
​ ​
4.25% – 4.50%
​ ​
4.10% – 4.22%
​
Expected dividend yield
​ ​
0.00%
​ ​
0.00%
​
Employee forfeiture rate (per annum)
​ ​
7.50% – 11.30%
​ ​
15.06% – 15.63%
​
Exercise multiples
​ ​
2.50
​ ​
2.50
​
Expected term
​ ​
7.00
​ ​
7.00
​
Fair value of underlying ordinary share (per share)
​ ​
US$3.62 – 4.53
​ ​
US$13.09 – 21.26
​
Fair value of awards on valuation date
​ ​
US$3.14 – 4.44
​ ​
US$11.65 – 17.11
​
 
F-16
 
13.   SHARE-BASED COMPENSATION (continued)
The following table summarizes the activities of the Group’s share options classified as equity for the six months ended June 30, 2025:
​ ​ ​
Number of
options
​ ​
Weighted
average
exercise
price
​ ​
Weighted
average
grant date
fair value
​ ​
Weighted
average
remaining
contract life
​ ​
Aggregate
intrinsic
value
​
​ ​ ​ ​ ​ ​ ​ ​ ​
RMB
​ ​
RMB
​ ​
Years
​ ​
RMB
​
Outstanding at January 1, 2025
​ ​ ​ ​ 9,917,509 ​ ​ ​ ​ ​ 11.52 ​ ​ ​ ​ ​ 42.10 ​ ​ ​ ​ ​ 5.41 ​ ​ ​ ​ ​ 887,259 ​ ​
Granted
​ ​ ​ ​ 1,228,800 ​ ​ ​ ​ ​ 21.00 ​ ​ ​ ​ ​ 93.06 ​ ​ ​ ​
​
—
 ​ ​ ​ ​ ​ — ​ ​
Forfeited
​ ​ ​ ​ 407,283 ​ ​ ​ ​ ​ 10.89 ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
—
 ​ ​
Exercised
​ ​ ​ ​ 1,620,230 ​ ​ ​ ​ ​ 11.66 ​ ​ ​ ​
​
—
 ​ ​ ​ ​
​
—
 ​ ​ ​ ​ ​ 150,805 ​ ​
Outstanding at June 30, 2025
​ ​ ​ ​ 9,118,796 ​ ​ ​ ​ ​ 12.24 ​ ​ ​ ​ ​ 47.39 ​ ​ ​ ​ ​ 5.32 ​ ​ ​ ​ ​ 878,390 ​ ​
Vested and expected to vest as of June 30, 2025 (unaudited)
​ ​ ​ ​ 9,118,796 ​ ​ ​ ​ ​ 12.24 ​ ​ ​ ​ ​ 47.39 ​ ​ ​ ​ ​ 5.32 ​ ​ ​ ​ ​ 878,390 ​ ​
Exercisable as of June 30, 2025 (unaudited)
​ ​ ​ ​ 2,512,610 ​ ​ ​ ​ ​ 16.32 ​ ​ ​ ​ ​ 49.41 ​ ​ ​ ​ ​ 3.65 ​ ​ ​ ​ ​ 240,140 ​ ​
The weighted-average grant-date fair value of options granted during the six months ended June 30, 2024 and 2025 was RMB24.49 (unaudited) and RMB93.06 (unaudited), respectively. The total intrinsic value of options exercised during the six months ended June 30, 2024 and 2025, was RMB30,010 (unaudited) and RMB150,805 (unaudited), respectively.
Total compensation expense recognized for the six months ended June 30, 2024 and 2025 was RMB62,746 (unaudited) and RMB51,997 (unaudited), respectively.
As of June 30, 2025, there was RMB252,394 (unaudited) of unrecognized compensation expenses, which is expected to be recognized over a weighted average period of 3.07 years.
Restricted share units (“RSUs”)
On February 7, March 10 and April 22, 2025 under the 2021 Plan, the Company granted 30,608 RSUs to eligible management team, the vesting schedule of the awards include:
1)
Fifty percent (50%) of the 17,858 RSUs to be vested on each of the first and second anniversaries of the vesting commencement date.
​
2)
Twenty-five percent (25%) of the 12,750 RSUs to be vested on each of the first, second, third and fourth anniversaries of the vesting commencement date.
​
The following table summarizes the activities of the Group’s RSUs classified as equity for the six months ended June 30, 2025:
​ ​ ​
Numbers of
RSUs
​ ​
Weighted average
grant date fair value
​
​ ​ ​ ​ ​ ​ ​ ​ ​
RMB
​
Outstanding at January 1, 2025
​ ​ ​ ​ 550,347 ​ ​ ​ ​ ​ 38.25 ​ ​
Granted
​ ​ ​ ​ 30,608 ​ ​ ​ ​ ​ 112.50 ​ ​
Forfeited
​ ​ ​ ​ 42,579 ​ ​ ​ ​ ​ 39.43 ​ ​
Vested
​ ​ ​ ​ 96,247 ​ ​ ​ ​ ​ 47.98 ​ ​
Outstanding at June 30, 2025
​ ​ ​ ​ 442,129 ​ ​ ​ ​ ​ 41.16 ​ ​
The weighted-average grant-date fair value of share units granted during the six months ended June 30, 2024 and 2025 was RMB28.52 (unaudited) and RMB112.50 (unaudited), respectively. The total intrinsic value of share units exercised during the six months ended June 30, 2024 and 2025 was RMB1,066 (unaudited) and RMB10,337 (unaudited), respectively.
 
F-17
 
13.   SHARE-BASED COMPENSATION (continued)
Total compensation expense recognized for the six months ended June 30, 2024 and 2025 was RMB3,216 (unaudited) and RMB3,387 (unaudited), respectively.
As of June 30, 2025, there was RMB15,753 (unaudited) of unrecognized compensation expenses, which is expected to be recognized over a weighted average period of 2.57 years.
Tandem award
In April 2024, share options were exercised and converted into equity. Total compensation expense recognized for the six months ended June 30, 2024 and 2025 was RMB332 (unaudited) and nil (unaudited), respectively.
Share-based compensation for all employee share options, restricted share units and tandem award
The Group recorded share-based compensation expense of RMB66,294 (unaudited) and RMB55,384 (unaudited) for the six months ended June 30, 2024 and 2025, respectively, which were classified in the condensed consolidated statement of operations as follows:
​ ​ ​
For the six months ended June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​
Cost of revenues
​ ​ ​ ​ 3,933 ​ ​ ​ ​ ​ 4,258 ​ ​
Sales and marketing expenses
​ ​ ​ ​ 6,547 ​ ​ ​ ​ ​ 8,784 ​ ​
General and administrative expenses
​ ​ ​ ​ 20,419 ​ ​ ​ ​ ​ 8,756 ​ ​
Research and development expenses
​ ​ ​ ​ 35,395 ​ ​ ​ ​ ​ 33,586 ​ ​
Total ​ ​ ​ ​ 66,294 ​ ​ ​ ​ ​ 55,384 ​ ​
14.   RELATED PARTY TRANSACTIONS
Major related parties that transacted with the Group and their respective relationship to the Group listed as below:
Name/Identify of the related parties
​ ​
Relationship
​
Mr. Kai Sun ​ ​
Founding Shareholder
​
Mr. Yifan Li ​ ​
Founding Shareholder
​
Mr. Shaoqing Xiang ​ ​
Founding Shareholder
​
Shanghai Leyi Technology L.P. ​ ​
An affiliate of the shareholder of the Group
​
Investee ​ ​
An associate of Founding Shareholders of the Group
​
​
(a)
Other than disclosed in Note 8, for the six months ended June 30, 2024 and 2025, significant related party transactions and balances were as follows:
​
​ ​ ​
For the six months ended June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​
Payment for equity acquisition consideration ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Founding Shareholders and certain shareholders
​ ​ ​ ​ — ​ ​ ​ ​ ​ 292,721 ​ ​
Total ​ ​ ​ ​  — ​ ​ ​ ​ ​ 292,721 ​ ​
 
F-18
 
14.   RELATED PARTY TRANSACTIONS (continued)
​ ​ ​
For the six months ended June  30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​
Subscription consideration received from shareholders ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Founding Shareholders and certain shareholders
​ ​ ​ ​ — ​ ​ ​ ​ ​ 292,721 ​ ​
Total ​ ​ ​ ​  — ​ ​ ​ ​ ​ 292,721 ​ ​
(b)   Transaction with the Investee
In May 2025, the Group entered into an intellectual property licensing and transfer agreement (the “IP Licensing and Transfer Agreement”) with a subsidiary of the Investee newly acquired as disclosed in Note 8, pursuant to which (i) the subsidiary of the Investee agreed to acquire certain of the Group’s internally-generated know-how at a consideration of approximately RMB36,967, equivalent to US$5.1 million, which was determined based on the appraised value of such internally-generated know-how assessed by an independent third-party professional valuation firm, and (ii) the Group agreed to transfer such internally-generated know-how to the subsidiary of the Investee and grant to it licenses for the use for a period up to the completion of such acquisition. The transfer has been completed in August 2025.
(c)   Amounts due from related parties
The amounts represent the proceeds receivable from an affiliate of the shareholder of the Group for exercises of employee share options which are non-trade in nature. The amounts have been settled in as of June 30, 2025.
(d)   Amounts due to related parties:
​ ​ ​
As of December 31,
2024
​ ​
As of June 30,
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​
Amounts due to related parties, net of allowance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Founding Shareholders and certain shareholders
​ ​ ​ ​ 326,256 ​ ​ ​ ​ ​ — ​ ​
An affiliate of the shareholder of the Group
​ ​ ​ ​ 8,997 ​ ​ ​ ​ ​ — ​ ​
Total ​ ​ ​ ​ 335,253 ​ ​ ​ ​ ​  — ​ ​
In May 2021, as an integrated step of the 2021 Reorganization, in order to comply with certain PRC foreign currency control rules and regulations, the Founding Shareholders and certain investors are in the process of applying for permissions to pay the subscription consideration to the Company. Once they obtained the approval to pay the subscription receivables at Cayman Company level, the Group will then settle the consideration payable for the acquisition of their equity interests in Shanghai Hesai to facilitate their payment of the subscription receivable for the ordinary shares of the Company as part of the reorganization. An amount of nil and RMB292,721 has been settled for the six months ended June 30, 2024 and 2025, respectively. The above amounts are non-trade, interest free, repayable on demand and have been settled as of June 30, 2025.
 
F-19
 
15.   (LOSSES) EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted (losses) earnings per share for the periods indicated:
​ ​ ​
For the six months ended June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
RMB
(unaudited)
​ ​
RMB
(unaudited)
​
Numerator ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net (loss) income attributable to ordinary shareholders of the Company – basic and diluted
​ ​ ​ ​ (178,984) ​ ​ ​ ​ ​ 26,537 ​ ​
Denominator ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Weighted average number of ordinary shares outstanding-basic
​ ​ ​ ​ 128,208,174 ​ ​ ​ ​ ​ 131,937,885 ​ ​
Incremental weighted-average ordinary shares from assumed exercise
of share options and nonvested restricted stocks
​ ​ ​ ​ — ​ ​ ​ ​ ​ 7,014,379 ​ ​
Weighted average number of ordinary shares outstanding-diluted
​ ​ ​ ​ 128,208,174 ​ ​ ​ ​ ​ 138,952,264 ​ ​
(Losses) Earnings per share – basic
​ ​ ​ ​ (1.40) ​ ​ ​ ​ ​ 0.20 ​ ​
(Losses) Earnings per share – diluted
​ ​ ​ ​ (1.40) ​ ​ ​ ​ ​ 0.19 ​ ​
For the six months ended June 30, 2024 and 2025, the following share options, restricted share units and tandem award were excluded from the calculation of diluted net (loss) income per ordinary share, as their inclusion would have been anti-dilutive for the period prescribed.
​ ​ ​
For the six months ended June 30,
​
​ ​ ​
2024
​ ​
2025
​
​ ​ ​
Number
(unaudited)
​ ​
Number
(unaudited)
​
Shares issuable upon exercise of share options
​ ​ ​ ​ 9,641,534 ​ ​ ​ ​ ​ 141,024 ​ ​
Shares issuable upon vest of restricted share units
​ ​ ​ ​ 307,492 ​ ​ ​ ​ ​ — ​ ​
Shares issuable upon exercise of tandem award
​ ​ ​ ​ 60,000 ​ ​ ​ ​ ​ — ​ ​
Total ​ ​ ​ ​ 10,009,026 ​ ​ ​ ​ ​ 141,024 ​ ​
16.   COMMITMENTS AND CONTINGENCIES
Capital expenditure commitments related to the manufacturing facilities.
Future minimum capital payment under non-cancellable agreements are as follows:
​ ​ ​
As of
June 30, 2025
​
​ ​ ​
RMB
(unaudited)
​
2025
​ ​ ​ ​ 88,376 ​ ​
Royalty fee commitments
The Group is obligated to make royalty payments to a third party from 2020 through 2030. The actual royalty fees for the six months ended June 30, 2024 and 2025 were RMB12,268 (unaudited) and RMB14,228 (unaudited), respectively.
 
F-20
 
16.   COMMITMENTS AND CONTINGENCIES (continued)
Contingencies
The Group does not believe that any currently pending legal or administrative proceeding to which the Group is a party will have a material adverse effect on the financial statements. As of June 30, 2025, the accrued contingent liability was nil.
17.   SUBSEQUENT EVENTS
The Group has the following material subsequent events from July 1, 2025 and up to the date of this report:
In August 2025, the Company, through a partnership, indirectly disposed its entire equity interest in the Investee as disclosed in Note 8 to two independent third-party investors for a cash consideration of US$38.4 million, equivalent to RMB275,286. The gain on the indirect disposal of the Investee after deduction of the related taxes and expenses would be approximately US$20.7 million, equivalent to RMB148,358.
In August 2025, the Group granted a total of 1,573, 45,101, 284,084 and 13,400 share options at the exercise price of US$0.10, US$2.60, US$4.66 and US$5.15, respectively, and 1,900 RSUs to certain employees under the 2021 Plan, with the vesting period of 4 years. Based on the Company’s preliminary assessment, the aggregate fair value of the share options and RSUs granted amounted to approximately RMB51,670.
 
F-21