Q3 2025 Hesai Group Earnings Call
Speaker #1: Please note that today's conference call is being recorded. I will now turn the call over to our first speaker today, Yuanting Shi, the company's Head of Capital Markets.
Speaker #1: Please go ahead.
Speaker #2: Thank you, operator. Hello, everyone. Thank you for joining Hesai Group's third quarter 2025 earnings conference call. Our earnings release is now available on our IR website at investor.hesaitech.com, as well as via newswire services.
Speaker #2: Today, you will hear from our CEO, Dr. David Li, who will provide an overview of our recent updates. Next, our CFO, Mr. Andrew Fan, will address our financial results before we open the call for questions.
Speaker #2: Before we continue, I refer you to the Safe Harbor Statement in our earnings press release, which applies to this call as we will make forward-looking statements. Please also note that the company will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under GAAP in our earnings release and filings with the US Securities and Exchange Commission and the Hong Kong Stock Exchange.
Speaker #2: With that, I'm pleased to turn over the call to our CEO, Dr. David Li. David, please go ahead.
Speaker #3: Thank you, Yuanting, and thank you, everyone, for joining our call today. Let's start with an overview of this quarter's progress. Q3 was a quarter of powerful momentum and exceptional execution.
Speaker #3: With net revenue surging nearly 50% year over year and a landmark milestone achieved, we produced over 1 million LiDAR units in 2025 alone and are the first to do so globally.
Speaker #3: We've also led the long-range automotive LiDAR market for seven consecutive months, capturing an impressive 46% share in August—1.5 times the second player and 2.4 times the third, according to GASCO.
Speaker #3: Our profitability performance is even more remarkable. After turning solidly profitable ahead of schedule in Q2, we kept the momentum going in Q3, delivering a record quarterly GAAP net income of RMB 256 million and a nine-month GAAP net income of RMB 283 million, achieving our full-year target of RMB 200 to 350 million, well ahead of schedule.
Speaker #3: This milestone further reinforces our undisputed financial leadership in the LiDAR industry. With robust growth and solid profitability working hand in hand, we're building powerful, long-term momentum and creating sustainable value for our shareholders.
Speaker #3: Now, let's dive into our Q3 business highlights. Starting with our progress in the ADAS market. Firstly, for ADAS, LiDAR is no longer optional; it’s rapidly becoming a standard feature.
Speaker #3: As a result of our product leadership and strong client relationships, we are proud to announce our new design wins from both of our top two ADAS customers across all their 2026 models, achieving 100% LiDAR adoption.
Speaker #3: On top of that, selected facelifted versions of Zeekr's flagship models are now rolling out with Hesai LiDAR as a standard feature. Looking ahead, a growing number of best-selling models across our diverse client base are slated for SOP with Hesai in the second half of 2025 and throughout 2026, further cementing our position as a LiDAR partner of choice.
Speaker #3: Beyond this, we are excited to see China taking decisive steps towards higher-level autonomous driving. In September, the MIIT introduced conditional approval for L3 vehicle production for the first time.
Speaker #3: This was quickly followed by a public consultation on a new mandatory safety standard for L2 systems. Together, these regulatory developments are clearing the runway for a new era of smarter, safer autonomous driving in China.
Speaker #3: As regulations take shape, one thing is clear: a higher level of autonomous driving system cannot tolerate a single point of failure, making safety redundancy not just important, but essential.
Speaker #3: At the same time, LiDAR sensors must be factory integrated rather than retrofitted, pushing automakers to future-proof their platforms for tomorrow's L2 and L3 capabilities.
Speaker #3: The trend is accelerating. Even as software capabilities continue to evolve, pioneering OEMs are already launching multi-LiDAR vehicles in 2025. These models, featuring 2 to 5 LiDARs, are winning consumer recognition and achieving strong sales results.
Speaker #3: To gear up for the new era of L3 autonomous driving, we launched our Infinity IB LiDAR solution in April. It pairs our forward-facing, long-range ETX LiDAR—a new benchmark with the world's longest detection range—with FTX blind spot LiDARs, offering the industry's widest field of view.
Speaker #3: Most excitingly, I'm thrilled to share that this quarter, ETX landed yet another design win, this time with a top three domestic new energy vehicle automaker—one of our valued existing customers—paired with multiple FTX units for full 360-degree blind spot coverage.
Speaker #3: Mass production is slated for late 2026 or early 2027. These developments reaffirm a principle we've always stood by: the cost of LiDAR is nothing compared with the priceless value of human life.
Speaker #3: As the auto industry moves toward higher-level autonomy, LiDAR content in new vehicles is ramping up fast. We now expect three to six LiDARs per L3 vehicle, representing a system value of roughly $500 to $1,000 per car in the long run.
Speaker #3: This trend is massively expanding our addressable market and supercharging the long-term growth potential of our ADAS business. Beyond our progress in ADAS, our robotics business is becoming an increasingly powerful growth driver.
Speaker #3: Fueled by expanding autonomous driving fleets, as core technologies advance rapidly, autonomous driving companies worldwide are approaching a tipping point towards scaled operations. We're proud to be a key enabler of this transformation.
Speaker #3: In China, the latest generation of autonomous driving fleets are adopting ADAS LiDAR solutions alongside optimized chips and vehicle design to lower total BOM costs and accelerate commercialization.
Speaker #3: Spearheading this shift, we've recently signed new deals with Pony.AI, Holoink, and JD Logistics. I'm excited to share that for some of their models, all LiDAR units—up to 8 main and blind spot LiDARs—will be supplied entirely by Hesai.
Speaker #3: Internationally, we've also made strong progress. Many overseas robotaxi companies continue to favor mechanical spinning LiDARs for their performance and stability, making them less price-sensitive and creating meaningful opportunities for us.
Speaker #3: We are proud to share that we have signed new LiDAR supply agreements with leading global autonomous driving companies, including Motional and others, across North America, Asia, and Europe.
Speaker #3: These large-scale programs represent deals worth tens of millions of dollars. With strong follow-on potential as deployments expand, as our partners move toward large-scale operations in the coming years, this marks a defining milestone for the autonomous driving industry.
Speaker #3: Building on these operational milestones, September marked a historic moment for Hesai as a public company. We successfully listed on the main board of the Hong Kong Stock Exchange, becoming the world's first LiDAR company with dual primary listings in both the U.S. and Hong Kong.
Speaker #3: This was the largest IPO in the global LiDAR sector, raising $614 million after the green shoe auction, with strong support from global institutional investors and industry leaders.
Speaker #3: The offering underscores confidence in the long-term potential of the LiDAR industry and in Hesai's ability to deliver at scale. More importantly, it strengthens our financial foundation, enabling us to invest in innovation and capture new market opportunities.
Speaker #3: To wrap up, our strong Q3 results are a powerful testament to Hesai's momentum and execution. The successful completion of our Hong Kong IPO marks a bold new chapter for Hesai.
Speaker #3: We are witnessing the dawn of an AI-driven, forced industrial revolution—an era that promises unprecedented gains in productivity and human well-being. As we look toward the decade ahead, Hesai is rising to this moment, evolving into a full-spectrum technology infrastructure builder that redefines how cars and robots perceive and interact with the world.
Speaker #3: With that, I will now turn the call over to Andrew to share more details on our financial performance and outlook. Andrew, please go.
Speaker #3: ahead. Thank you.
Speaker #2: And hello, everyone. Before we get into our financial performance this quarter, I'd like to start with a key milestone for Hesai as a public company.
Speaker #2: In September, we completed our dual primary listing on the main board of the Hong Kong Stock Exchange, under the ticker 2525. Through this global offering, Hesai has become the world's first LiDAR company to be listed in both the U.S. and Hong Kong capital markets.
Speaker #2: The market response to our Hong Kong debut was exceptional. The public tranche was nearly 169 times oversubscribed, while the international tranche attracted demand of more than 14 times the available shares.
As a result of our adoption of AI and other cost control measures.
Total operating expenses declined year-over-year in Q3, keeping us on track to achieve R&B savings of $100 million by 2025 compared with last year.
Building on our strong momentum. We delivered a record. Net income of R&B, 256 million, or US Dollars 36 million in Q3 bringing our 9 months. Total to R&B 283 million or US Dollars 40 million.
We've already hit our full year profit target of $200 million to $315 million, one quarter ahead of schedule.
This achievement reflects the scale and efficiency our business has reached, where growth is now translating directly into earnings.
Higher volumes drive better unit economics, which in turn fuels more growth.
Creating a self-reinforcing cycle of profitability and innovation.
It's worth noting that Q3 net income included gains from equity investments of R&B $148 million, or $21 million.
Excluding these games, quarterly net income would have remained strong at RMB 108 million, or $15 million.
Taking this into account.
We are raising our full year GAAP net income guidance for 2025 to a range of RMB 350 million or US$49 million.
To R&B 450 million or US dollars 63 million. We expect full year net income, excluding these games from equity investments, to stay within our earlier guidance range of R&B 200 to 350 million.
For the remainder of the year, we expect to carry forward the strong momentum we have built.
For Q4, we're projecting net revenues of between RMB 1,000 million or $140 million.
And R&B: $10.2 million or US dollars $169 million.
Representing a year-over-year increase of 39% to 67% to wrap up our successful listing on the Hong Kong Stock Exchange marks an exciting new beginning for Hesai.
We're growing faster, scaling smarter, and executing stronger than ever.
With accelerating revenues, solid margins, and proven profitability.
We're building competitive advantages that will keep compounding over time. We're more energized than ever to seize the opportunities ahead.
This concludes our prepared remarks today.
Operator: We are now ready to take questions.
Thank you. If you wish to ask a question, please press *1 on your telephone and wait for your name to be announced.
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If you're on speakerphone, please pick up the handset to ask your question.
For the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English for the sake of clarity and order. Please ask one question at a time; management will respond.
Your first question comes from Tina Howe from Goldman Sachs. Please, go ahead.
So um, my question, the first 1 would be related to uh, the pricing side of things as we go into the last quarter of the year and enter into price discussion with customers next year. So just wondering if you could give us any color in terms of what kind of uh pricing we're looking at for next year. Uh, considering everything the annual price cut uh, competitor Dynamics, uh, that's number 1. Number 2, is in terms of the volumes. So, um, just wondering if, uh, management is seeing, uh, next year, the OEM customers are going to accelerate the adoption of lidar. And in your view, uh, when will be sort of the, uh, the the starting point, or the takeoff point for, uh, Mass Market models to start having lighter as a standard option. And I guess related to that, if there isn't any color, you can give us in terms of your 4q, as well as, uh,
2026, uh, guidance or any kind of color on volume. Uh, it would be really helpful. Thank you so much.
Uh, thank you Tina. So I understand your question. Uh, I will try to cover, uh, the uh, our like guidance or uh forecast, uh, or color for the uh uh, up for the current year and also year 2026.
Uh, for let's talk about the 2025 year, full year guidance first. On the revenue side, our Q4 revenues are expected to reach about $1.0 to $1.2 billion. This brings full year 2025 revenues to approximately $3.0 to $3.2 billion, representing a year-over-year increase of nearly 50%.
Uh, this strong growth is driven by the rapid adoption of lidar in passenger vehicles and the expanding uses of robotic lidar across new applications.
Uh, volume and ASP during the first three quarters of 2025. We shipped approximately close to 1 million units in total. We expect the shipments to continue accelerating throughout the year, with Q4 shipments reaching approximately 600,000 units as a seasonal high.
The ATX lidar is expected to account for roughly 80% of total deliveries in Q4, in terms of volumes.
It has a market price of around $200.
With discounts offered to major customers on our pricing strategies.
Uh, the stronger-than-expected demand for ATX has accelerated its replacement of the 80-128LA with our OEM customers in the second half of 2025.
Meanwhile, several automakers have adjusted their second-half production schedules for vehicle models equipped with 80-128, leading to softer demand for the product.
As $80,128 is priced at several times the price of the ATX, this shift in product mix has resulted in a relatively lower blended ASP for the year 2025.
Uh, margin-wise, the blended gross profit margin is expected to remain healthy at around 40% in Q4.
We are raising our full year 2025 GAAP net income guidance to remain between $350 million and $450 million.
Excluding gains relevant to equity, investments recorded in Q4 normalized for the full year. GAAP net income remains within our previous guidance range of $200 million to $300 million.
On the non-GAAP metrics, you should add an additional remaining $120 million for stock-based compensation.
Uh, looking ahead for year 2026.
We see it as a true inflection point.
On one hand, we anticipate strong demand for Ada's light-up in passenger vehicles, with our lighter shipments expected to reach at least 2 to 3 million units or potentially even higher if L3 adoption becomes an industry-wide trend.
Our Ada sliders, which have a relatively lower unit price, will see higher deliveries and revenue. We share modest volume-based pricing for our large order strategic customers and the standard annual decline for downstream customers.
There is reason to be optimistic.
We expect a strong positive catalyst to emerge in the years 2026 and 2027.
First, L3 vehicles and deployment in China will drive multi-lighter setups.
Pushing lighter contents per vehicle to $500 to $1,000.
We've already landed a flagship L3 program with a renowned customer, and more exciting deals are in the works.
Second, our overseas Ada's business is expected to start contributing, marking the beginning of global Ada's Lara mass production.
Third, our robotics business continues to gain momentum across diverse applications and customers. It typically carries a higher ASP and a margin compared to ADAS.
Fourth, we are also exploring new growth engines, and we'll share more updates as things progress.
On the profitability front, we expect gross margins to remain relatively stable in 2026 compared with 2025.
Supported by continued cost optimization across product and ASIC design, supply chain, and manufacturing.
At the same time, the growing adoption of multiple Lidar systems is expected to help offset pressure on branded ASPs.
In short, we expect to enter 2026 with a clear path towards double-digit year-over-year revenue growth, accelerated shipments, a stable margin profile, and potential new growth engines.
The guidance will follow in the coming quarters.
Altogether, this sets the stage for sustained growth in the years ahead.
Uh, Tina. Hopefully, this covers your questions about our guidance in the next 8. And I just want to say that was actually Andrew. He is not a robot, and I am not a robot.
Even better. Thank you so much.
Thank you. Your next question comes from Tim Jose from Logan Stanley. Please go ahead.
Hi. Uh, David, this is Ken. Thanks for taking my question and congratulations on the robust results and study project Wings. I've got two questions. The first one is about the competition because we noticed that the competitors in China launched new products to undercut whole-sized ATX products.
So, how should we think about the peers, the military and product like the emx versus, um, the key volume driver, uh, of this IE ATX. Uh, the second question is about the, the technology because we noticed lots of discussions over the past few months, uh, about this bad SOC our system and Chip, uh, lately. So, how should we think about the advantage of, uh, spat based, the digital lidar? Um, so also want to get some, um, updates from the management at those are 2 questions on my side. Thank you.
Thank you Tim. Uh let me try to give you a little more insight uh on both uh competition and uh and our view on the sum of the upcoming Technologies.
Um, the first point is, uh, competitive products. Uh, it's a very competitive market. And, uh, we're always facing, uh, very strong competition from quite a few players, and you named one of them. Um,
It's a, it's a, it's a great product and they always, always have great technology. Uh, but I do want to bring your attention to maybe zoom out a little bit and uh, what I'm trying to help you understand is that, um, our strategy is that we have a, a very structured uh timeline to release each generation of product, right? And uh and in the mechanical light are era was like a pen or 128. It was really the king of the world. We don't have to go there then the at1 128. I think it's fair to say looking back. It is the
It was also relatively expensive, and there's no higher ASP than that of the competitors.
And then, most importantly, people believe that's the highest quality, highest performing product, super successful, right?
That's Gen 2, right? And Gen 3 is ATX.
And the ATX.
I think.
By now, it's fair to say it's another complete Victory on the market that we received a more uh, contracts than any of the competitors and uh were shipping a much larger volume. And uh, I think everyone believes that this is a much higher performing and uh and as reliable as any hosai product to the highest quality standard. So again that's just 3. That's ATS that's clear. Right? So and uh of course we also have our own timeline to release the Next Generation.
and, but
As a company that has enjoyed the mark, highest market share, and the most premium brand and product.
We don't want to have to rush things just because a competitor released a product.
After us.
But that shouldn't be the strongest strategy. You have a certain rhythm or pace, and you put everything in.
all the good things.
Into the product based on the timing you have.
So, and that that's
The biggest reason that when somebody releases a product like half a year or a year after us before our next generation, they always have interesting features. But in the end, if you zoom out and look at the overall results, we at least, so far...
We have always had the greatest achievement in performance volume, uh, definitely margin. In the end, it's really always the most well-rounded and best-performing product on the market. So hopefully, we'll be able to continue the trend. We'll never know what we don't know in the future, but so far, leveraging our semiconductor technology, our manufacturing capability, and our strong brand power, and...
the super trusted relationship with
Almost all of the top OEMs in China are in China. We believe we will be able to continue that. Even though every generation, we will have a price decline because that's, uh, the nature of such a market, we also continue to innovate to keep the growth margin, as you continue to see, right? And so that's what we see.
Uh, hopefully that gets the first question out of the way. Uh now Tim you also mentioned a very interesting question which is the second 1 is uh uh spat spat 6 stands for a single photo. Avalanche dialogue, dials, right? Uh, yeah, I'll give you a little more insight. Uh, that's beyond pure competitive, uh, um, advertisement, uh, a uh, we're actually the first 1 to use spat Technologies or any Automotive lighter for all the competitors. We know we shifted the first fully, solid state, Automotive lighter, uh for new Range. Blind detector st120, I think since 2 3 years ago, and not in large volume, but it's a fully Automotive great product that's on cars globally, right? And then, we also acquired, spat technology companies and out of the Switzerland, uh, because we believe they have interesting, uh,
Technologies, and when we look at them, we feel like it would be a good addition for us. We actually get that.
However, having said that, we wanted to be.
objective and rational about what spep can and cannot do today. Uh, 1 of the things is that if you use the of the shelf that technology and you simply integrate that 1 of the challenges you face,
Is actually noise.
And, uh, when you look at any lighter with noise, the challenge you face is that it will have a higher chance of false trigger because that is great, but it's too sensitive. You need to be able to mitigate that.
Components.
That is the latest, and just put it in. Our goal is to incorporate whatever is mature enough as a safety.
Component.
And then put in later than the greatest that has to be in. That order, your reliability safety has to be first. You don't, you don't want to be sacrificing your, your reliability. You don't want to increase the chance of false triggering for for such a thing as a lighter.
We always try to explain to the market. It's almost like you're an invisible airbag, just to make it simple for people to understand.
You probably don't want to sacrifice the chance of a new airbag. When you know, there is challenge on false triggering and you definitely want to be able to stop that from and we do believe that would be solved. We do believe spat has a lot of great new features and also more room on cost that will be eventually adopted. And we're also diligently working on that but I just want people to be more informed on the pros and cons of such a interesting technology that everyone is carefully. Evaluating
Thank you so much for sharing. With the greeting, I can address you with respect. Thank you.
Thank you. Your next question comes from Jeff Chunk from City. Please go ahead.
Uh, hi David. Um, this is such a great resource and the, um, congratulation, uh, with the excellent, um, earnings. So, I have a, um, question on L3, uh, for David, uh, so aside for the Improvement of the product, mix and lighter per car and energy on the level 3 legislation uh in both the China and the Europe. And um I also got a question for Andrew
Um, so it looks like the four new guidance points are really optimistic in the sense that, in the best-case scenario, revenue should be up 50% here on Q3, and the core earnings show up 100% quarter on quarter. Could you share with me your view? Why are you so confident on this? Thank you very much.
Uh, Jeff. Okay. Let me uh, so first cover, this 2 questions, uh, for the legislation uh, in relation to L3. Uh, we are 3 old by China's uh, decisive push towards higher level autonomous driving. Uh, as a regulations evolved uh safety, redundancy becomes non-negotiable, and the lighter must be Factory integrated rather than retrofit it.
Driving automakers to future-proof platforms for Level 3 capabilities.
The market is moving really fast. Leading OEMs are already rolling out market vehicles in 2025, including Huawei's Ito M9 with 4 LiDARs.
Aeta 12 with 4, Zika, 9X, with 5, and a Nio ES8 with 3.
All received strong customer demand, proving that the demand for smarter, safer vehicles is real.
So we see tremendous upside in lighter content growth as L3 adoption accelerates. The number of lighter units per vehicle is expected to increase to 3, 6, or even more, along with the trend toward upgrading main lighters to high-end models, like our ETX.
This could lift the total lighter content per vehicle to around $500 to $1,000.
Beyond the numbers, every additional lighter unit directly enhances safety in scouring, the replaceable value of our technology, and the critical role we play in shaping the autonomous driving future.
We are seeing customers included discussion for L3 applications. And, of course, more like us.
We have a sine of flagship program featuring ETX, and a multiple FTX already, with more contracts on the way.
Stay tuned for future developments. We will share more details when available.
I thank you, Andrew, and this is David. I want to also give you a little more.
uh,
That and is rapidly changing from Level 2 to level 3, right? Uh in the level 2 era. Uh we're we're looking at a an error back, right? Or a seat belt.
Um, and then, of course, it's important in saving lives. But if you look at airbags, it's also saving lives. It has a certain price expectation. People are not going to be willing to pay tens of dollars.
For airbag even though it's life-saving. So for such a function in the end we feel like below $200 is the right range and we're at there. That's why I feel a few. This is the biggest reason the penetration rate is exponentially growing everyone wants that and they feel like it's a good value.
Value value value by.
Having said that, Level 3 is a completely different game. And especially when people think about Level 3, I think people are already remotely thinking about Level 4. Maybe I'll talk about Level 4, just to give people some ideas on how I think we should think about the problem. Again, we think about value creation. What is value creation for cars? Other than safety, the value creation is the time; the machine gives back to us.
Right. And uh, if you buy a level 2 car and most it gives you an hour or 2 a day, back to you, right? But for level 2, it doesn't even quite give it back to you. It asks you to have your hands on the steering wheel. So that's why it's great as a lifesaving device. But it's, it's of limited value.
If you look at Level 4, also known as Robo Taxi,
you are literally looking at maybe 20 hours per day of the utilization of such a product. Uh, by the way, I quote, I quote, this from, uh, 1 of the, great leaders of the industry, who isn't a big fan of that? It's from Elon Musk. He said that which I agree that, you know, the change for such a level will allow the utilization of a machine to be maybe 10x.
and uh,
If you think about it, if you're creating something that has the potential to have a 10x return on traditional value.
You naturally are able to afford much better sensors, much better driving systems, and computation—everything—so that you can be the best in creating such a product.
So, that's the way I look at Level 3 and especially at Level 4.
The total dollar amount on a car—maybe not 10x—but people's tolerance is much higher because it's creating roughly 10 times the value.
If not more compared to the Level 2 system we used to be on, and that's why people should be more excited about the total content and the value created as a complete Center Suite.
Thank you. Your next question comes from Jesse Low from Bank of America Securities. Please go ahead. Um, sorry, operator. Uh, okay.
Hold on for for 1 second. Let me uh, finish. Uh, Jeff's second question, uh regarding uh some uh additional color on our uh 2025 full year guidance, uh Jeff. Um uh as we said in the uh, scripts. Uh, we we are very confident that our full year, numbers will fall in the range, but I'm not assuring that, uh, assuring you, that we will reach the high end of the, of the range. So, let's take the low end of the range. For example, we are basically guiding that guiding that our Q4 Revenue, uh, will be, uh, above 1 billion, living be
Comparing to roughly 800 million in Q3.
If that achieves, uh, the additional net profits, comparing to Q3 will be roughly $80 million pre-tax.
If you look at our first 9 months results of this year, our total or accumulated net income is about $256.
Sorry, it's $283 million, uh, US dollars.
Uh, as we mentioned in the, uh, uh, earnings release, we actually have a one-off investment gain from an equity investment.
Uh, which is roughly 150 million.
So, if we exclude that, our normalized first three quarters' earnings is roughly $130.
Uh, it already adds up to more than $350 million net income in the year 2025.
So that's why we are relatively confident that our full-year revenue and profits will fall in the range that we just mentioned.
Okay, operator. Let's move on to the questions from both of you.
You, you're now live?
Uh, thank you for taking my call. Um, could you please elaborate on the 2026 later order given that? It is quite a debatable topic, more specifically on the timing of the lighter adoption on this mass market model and also the lighter size wallet share. And, uh, second, how do we think about the pricing strategy for such customers given its much higher vehicle sales?
We are pleased to see the leading domestic automakers actively accelerating their efforts to make intelligent driving mainstream.
There is a commitment exemplified by BYD's move to equip its models priced above $100,000 with LiDAR and deploy its God's Eye ADA systems.
This creates a massive market, demand, and accelerates consumer adoption, which benefits the entire ecosystem and raises awareness across the industry and among consumers.
Uh, with this trend, we are proud to be a key partner of BYD. We have gone into mass production with BYD since Q1 2025, and we are supplying lidars for BYD's models launching in the year 2025.
This year, we are taking a strong share of BYD's Lida supply with our AT128P and ATX.
With ATX leading in volume.
Our partnership extends across double-digit vehicle models, with an exciting wave of new Sops rolling out through the years 2025 and 2026.
We will share more details on this customer, their new models, and autonomous driving plans once they're ready to make an official announcement.
Compared to automakers, Lydda has been investing in R&D for 10 years, starting with more complex L4 applications.
This has enabled us to accumulate extensive experience and achieve superior product performance.
Meanwhile, by leveraging our years of investments in asset technology, we have achieved excellent cost control while maximizing economies of scale through a broad customer base.
We believe proactive collaboration between automakers and the lidar companies helps create a win-win situation.
In summary, Hai serves as an index to the overall autonomous driving industry, and we are excited to see BYD leading the way in making intelligent driving more accessible while strengthening our partnership with them.
Thank you. Your next question comes from Aaron Wong from Jefferies. Please go ahead.
Hey, hey, thanks management for taking my question. My question is about the robotics side. Given the increasing demand in the robotic area in the coming years, could Benjamin share more color on our robotic shipments in 2026 and also in the next few years? Additionally, could you provide the proportion of different end markets and our product mix in this segment? Thanks.
Business.
uh, is contributing strongly to the company's overall financials, uh, with gross momentum accelerating.
Uh, for the robotics, uh, for the robot taxi parts, Hesai is the largest robot taxi lidar supplier in the world, holding roughly 60% to 70% market share.
Right by those Apollo Go, DD Pony, and Hello have all adopted our technology.
Traditionally, robot taxi operators relied on mechanical spinning lasers for small fleet testing and operations.
But recent trends in China show an urgent need for scalability.
By using our flagship Ada sliders, customers can achieve a better balance of sensor, prices, and performance, enabling faster fleet growth and helping them move closer to profitability.
Spearheading this shift.
We have recently signed new deals with WeRide, Pony.ai, and Halloween Inc. Excitingly, we will be supplying some of their models with up to 8-lidar units per vehicle to address blind spots. Lidar units will come entirely from their side.
At the same time, we have signed new, lighter supply agreements with leading global autonomous driving companies, including Motional, across North America, Asia, and Europe.
This program represents tens of millions of dollars in deals with strong follow-on potential as their partners scale up.
The difference is that global players tend to favor high ASP mechanical spinning lighters for their performance and stability, making them less price sensitive.
Regardless of lighter type.
The gross profit from our Robo Taxi business is calculated as fleet size times the number of LiDAR per vehicle times the ASP times the gross margin ratio.
with cost reductions and large-scale commercial deployments.
We expect the fleet sizes of leading players to grow exponentially in the coming year, driving significant profit growth for her side.
Whether they use mechanical or Ada, sliders.
Uh, the other robotics applications, beyond the robot taxi, we have seen huge opportunities in non-auto applications.
With intelligent robots rapidly gaining traction, our proven strength in high performance,
Scalable light-up positions as to take the lead.
Since starting production of our JT Robotics light-up, we shipped around 40,000 to 50,000 units every quarter in the year 2025.
This new product serves as a wide range of robotics applications.
Home factory and agricultural robots are clear front runners, freeing people from routine work and creating real value from day one.
In the long run, we believe the robotics market could be several times larger than the U.S. market. You can only drive one car, but in the future, ten robots could be working alongside you.
We anticipate that robotics, light, and us volume could double in 2026 compared to 2025.
And we plan to share updates on developments along the way.
Operator, we can move to the next one.
Please.
Thank you. Your next question comes from Jeang, you from Hoai Security. Please go ahead.
Oh, hi management. Thanks for taking my questions. Uh, my question is about the major customers for next year. Could you please share which OEMs will be the key customers for the ADAS products and what kind of demand scale or volume you are expecting for next year? Thank you.
Uh, in the 8 of spades, we are also seeing very strong momentum from a number of key OEMs. Based on our current visibility, we expect the following OEMs to be among our top 8 customers in the year 2025 and a very likely year 2026 as well. They are Leo.
Xiaomi.
Uh, byd.
Uh, Leaf motor.
Xikar.
And a Great Wall Motor. Of course, these names are not ranked in particular order.
Uh, meanwhile, uh, more major customers are also kicking off SOPs with us, extending into the year 2026, including G and Cherry.
As a standard feature preparing for L3 capabilities, with market LiDAR configurations,
Uh, these companies are not only leading players within China's rapidly evolving smart EV sector, but they also represent a diverse range of vehicle platforms from high-end to mass market vehicles.
Uh, providing a rich Foundation.
For our technology, adoption, and expansion.
We can move on to the next question.
Thank you. Your next question comes from SIA Huang from SPDB International. Please go ahead.
Uh, hi measurement. This is Sia. Thanks for taking my question. Uh, I've got just one question regarding our overseas update, and for the project with the top European OEM customer, is everything on track? And could you please also share more color about the overseas update in terms of other potential customers and designs? How do we expect the contributions of overseas revenue for the next 2 to 3 years?
Uh, beyond our success in establishing a solid base in China, we are also stepping up our game internationally, both in AS (Autonomous Systems) and Robotics.
Uh, on the robotics side recently, we have further strengthened our leadership with new LiDAR supply deals across North America, Asia, and Europe, covering everything from robot taxis, robot trucks, to robot vans, and factory automation.
For example, we are proud to be the exclusive supplier for Motionless, next generation, all-electric robot taxis.
And as we shared earlier, we also signed a multi-year deal worth over $40 million with the leading U.S. robot taxi company.
With deliveries running through 2026 and room for more as their fleets grow.
In Adidas, momentum is just as strong.
Uh, as you all know, we have already secured an exclusive design win with the top European OEM, and several more are now in the sourcing and negotiation stage for their global programs, with European players clearly setting the pace.
As competition heats up.
Global OEMs are doubling down on autonomous driving, and safety is something they are never willing to compromise on.
There is now a clear consensus across the industry that light eyes are becoming the airbag for autonomous driving, especially for Level 3 and above.
And once these global OEMs make up their minds, they move decisively.
So, give them a tight little time to gear up. Their ad versions, both IC and Evie, and we believe more lighter deals will follow soon.
Now, for the global OEMs in China, JBS things are also moving faster.
They are right at the front line of the Adidas race. We have already won design Wing programs with five major JVs.
Volkswagen.
GM, Audi, Toyota, Ford, and several others are already in SOP.
A recent highlight came in September when the Audi E5 Sportback.
Featuring her side lighter? I extended configuration, picked the market, and then racked up over $10 in just 30 minutes.
That's a huge commercial validation and sets the stage for global expansion ahead.
Another exciting part of our strategy is backing Chinese OEMs in their global push.
We will be the lighter supplier for models heading overseas, with mass production kicking off in the year 2026.
We can't share more for now, but stay tuned. Updates are on the way.
All in all, these wings reflect the growing trust and recognition we have earned from customers worldwide.
Looking ahead, we will keep building on our strengths and serve an even broader range of partners across regions and across industries.
Our operator who can move on to next.
Thank you. Your next question comes from Lugia from Boci. Please, go ahead.
Could you share with us more about the potential new areas beyond the lighter that Jose is considering for expansion in the future? Thank you.
Thank you for this. Very exciting question. This is David; I'll probably take it. I think there are a few things that are...
Super. Super, uh,
Interesting and worth exploring, and has a lot of potential in the extremely large towns that we feel we are best positioned for. I'll go through some of the things that are on my list. I think the first thing is still sensing itself.
Because if not, not only for robots, and also for cars. Uh, especially for cars, we're looking at safety, and for safety.
Uh, you are never satisfied just by 99% or even 99.9%. You always try to find the failed cases and you try to build a better product to make things safer. And we feel like, uh, on the sensing side alone, there are still many many things we could do to bring the safety to the next level, including a lower range, higher density and being able to recognize different materials, being able to measure speed, or using all different working, working working principles.
To help our robots and vehicles, be able to sense the surroundings better. And that alone is uh, a a a much bigger bucket that just the the light our time we see today and considering, um, the the importance of such a task
And the number 2 is the best sensing capabilities plus AI.
And today we actually have the capability to do a perception software stack, and we actually work with OEMs for that. But today, we're not directly charging them for it. It's because the value we provide is only really part of someone else's software stack. A lot of the robotics applications, a lot of the sensor applications, we actually see the possibility of having AI capabilities on them already. The best sensing hardware we built essentially focuses on two main aspects: number one, making the sensor see better; and number two, making the sensor think better.
That's actually happening, and a lot of our software capabilities are being.
Uh, being used on that.
And, uh, number three is along the lines of number two. When you have...
The software capability, AI capability. Uh, on top of, uh, the best sensing capability, you are no longer being limited, by course, you're looking at a lot of opportunities in the
Uh, the general definition of space sensing. And I won't be able to give you more details on this little part, but we definitely see a lot of customer demand directly from customers in being able to fully sense and capture the 3D world around us. Think about how cool it would be if you were able to record the 3D world, uh, with the product we provide, right? So those are the things, and of course, last but not least, is...
Uh, we've been talking about sensing so far, but the truth is that we really did something because sensing was the most critical part of the physical AI 1.0 for cars for 2.0, we're not only building, uh, the lidar sensors for the robots. They're just so many infrastructure. Uh, technologies that we feel like we are uniquely positioned, to be able to do because we're super approval and good at
Hi, in the sensing semiconductor capability, manufacturing capability, um, the product iteration quality capability as a whole, and we feel like there is a very good chance we will be able to leverage that into more infrastructure business that's beyond authentic. And, uh, I like to conclude with one of the new quotes I learned from the great Mr. Jensen Huang. I think he said something like, uh,
In the future, anything that moves will be autonomous. I like to add to the second part that anything that...
is autonomously movie is likely to need the best sensing capabilities from us. Thank you.
Thank you. This concludes our question and answer session. I'll now hand back to management for any closing remarks.
Contact our IR team. This concludes today's call, and we look forward to speaking to you again. Next caller, thank you. Goodbye.