Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2023 |
Entity File Number | 001-41611 |
Entity Registrant Name | Hesai Group |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 9th Floor, Building L2-B |
Entity Address, Address Line Two | 1588 Zhuguang Road, Qingpu District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 201702 |
Entity Address, Country | CN |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001861737 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | Deloitte Touche Tohmatsu Certified Public Accountants LLP |
Auditor Location | Shanghai, the People’s Republic of China |
Auditor Firm ID | 1113 |
American depositary shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares, each representing one Class B ordinary share |
Trading Symbol | HSAI |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 2,631,222 |
Class B ordinary share | |
Document Information [Line Items] | |
Title of 12(b) Security | Class B ordinary share, par value US$0.0001 per share |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 96,995,110 |
Class A ordinary share | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 30,033,379 |
Business Contact | |
Document Information [Line Items] | |
Contact Personnel Name | Louis T. Hsieh, Global Chief Financial Officer |
Entity Address, Address Line One | 9th Floor, Building L2-B |
Entity Address, Address Line Two | 1588 Zhuguang Road |
Entity Address, Address Line Three | Qingpu District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 201702 |
Entity Address, Country | CN |
Contact Personnel Email Address | ir@hesaitech.com |
Country Region | +86 |
City Area Code | 21 |
Local Phone Number | 3158-8240 |
Combined and Consolidated Balan
Combined and Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Current Assets: | |||
Cash and cash equivalents | ¥ 1,554,583 | $ 218,958 | ¥ 913,277 |
Restricted cash | 3,541 | 499 | 0 |
Short-term investments | 1,586,005 | 223,384 | 945,865 |
Accounts receivable, net (net of allowance of RMB6,249 and RMB49,132 as of December 31, 2022 and 2023, respectively) | 524,818 | 73,919 | 485,044 |
Contract assets, net (net of allowance of RMB459 and RMB122 as of December 31, 2022 and 2023, respectively) | 19,688 | 2,773 | 12,600 |
Amounts due from related parties | ¥ 5,015 | $ 706 | ¥ 5,021 |
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Inventories | ¥ 495,877 | $ 69,843 | ¥ 646,852 |
Prepayments and other current assets | 208,082 | 29,308 | 126,452 |
Total current assets | 4,397,609 | 619,390 | 3,135,111 |
Property and equipment, net | 871,611 | 122,764 | 504,953 |
Intangible assets, net | 78,730 | 11,089 | 20,600 |
Land-use rights, net | 40,743 | 5,739 | 41,606 |
Goodwill | 0 | 0 | 3,823 |
Long-term investments | 31,811 | 4,480 | 31,856 |
Operating lease right-of-use assets | 151,871 | 21,391 | 44,349 |
Other non-current assets | 90,168 | 12,700 | 57,098 |
Total non-current assets | 1,264,934 | 178,163 | 704,285 |
TOTAL ASSETS | 5,662,543 | 797,553 | 3,839,396 |
Current Liabilities: | |||
Short-term borrowings | 111,682 | 15,730 | 0 |
Notes payable | 7,255 | 1,022 | 0 |
Accounts payable | 269,439 | 37,950 | 206,681 |
Contract liabilities | 79,925 | 11,257 | 40,378 |
Amounts due to related parties | ¥ 340,051 | $ 47,895 | ¥ 334,283 |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Accrued warranty liability | ¥ 28,425 | $ 4,004 | ¥ 17,694 |
Accrued expenses and other current liabilities | 498,324 | 70,188 | 356,502 |
Total current liabilities | 1,335,101 | 188,046 | 955,538 |
Deferred tax liabilities | 0 | 0 | 439 |
Operating lease liabilities | 119,413 | 16,819 | 10,139 |
Long-term borrowings | 285,898 | 40,268 | 18,472 |
Other non-current liabilities | 59,813 | 8,424 | 13,075 |
Total non-current liabilities | 465,124 | 65,511 | 42,125 |
TOTAL LIABILITIES | 1,800,225 | 253,557 | 997,663 |
Commitments and contingencies (Note 25) | |||
Mezzanine Equity: | |||
Redeemable shares (US$0.0001 par value, 54,551,513 and nil shares issued and outstanding as of December 31, 2022 and December 31, 2023, respectively) | 0 | 0 | 5,986,910 |
Shareholders' (Deficit) Equity: | |||
Additional paid-in capital | 7,423,862 | 1,045,629 | 0 |
Subscription receivables | (292,721) | (41,229) | (310,227) |
Accumulated other comprehensive (loss) income | 38,440 | 5,414 | (3,608) |
Accumulated deficit | (3,307,349) | (465,830) | (2,831,381) |
Total Shareholders' (deficit) equity | 3,862,318 | 543,996 | (3,145,177) |
Total Liabilities, Mezzanine Equity and Shareholders' (Deficit) Equity | 5,662,543 | 797,553 | 3,839,396 |
Class A | |||
Shareholders' (Deficit) Equity: | |||
Ordinary shares | 19 | 3 | 19 |
Class B | |||
Shareholders' (Deficit) Equity: | |||
Ordinary shares | ¥ 67 | $ 9 | ¥ 20 |
Combined and Consolidated Bal_2
Combined and Consolidated Balance Sheets (Parenthetical) ¥ in Thousands | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares |
Allowance for accounts receivables | ¥ | ¥ 49,132 | ¥ 6,249 |
Allowance for contract assets | ¥ | ¥ 122 | ¥ 459 |
Redeemable shares, issued | 54,551,513 | 54,551,513 |
Redeemable shares, outstanding | 0 | 0 |
Class A | ||
Ordinary shares, authorized | 50,000,000 | 35,000,000 |
Ordinary shares, issued | 30,033,379 | 30,033,379 |
Ordinary shares, outstanding | 30,033,379 | 30,033,379 |
Class B | ||
Ordinary shares, authorized | 900,000,000 | 150,000,000 |
Ordinary shares, issued | 99,626,332 | 30,949,701 |
Ordinary shares, outstanding | 96,995,110 | 30,949,701 |
Combined and Consolidated State
Combined and Consolidated Statements of Operations and Comprehensive Loss ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Statement of Comprehensive Income [Abstract] | ||||
Net revenues (including revenues from related parties of RMB15,655, nil and nil for the years ended December 31, 2021, 2022, and 2023, respectively) | ¥ 1,876,989 | $ 264,368 | ¥ 1,202,670 | ¥ 720,768 |
Cost of revenues | (1,215,611) | (171,215) | (730,683) | (338,972) |
Gross Profit | 661,378 | 93,153 | 471,987 | 381,796 |
Operating Expenses: | ||||
Sales and marketing expenses | (148,798) | (20,958) | (104,835) | (69,266) |
General and administrative expenses | (320,144) | (45,091) | (201,007) | (236,713) |
Research and development expenses | (790,547) | (111,346) | (555,179) | (368,435) |
Other operating income, net | 26,520 | 3,735 | 10,817 | 27,333 |
Total operating expenses | (1,232,969) | (173,660) | (850,204) | (647,081) |
Loss from operations | (571,591) | (80,507) | (378,217) | (265,285) |
Interest income | 99,813 | 14,058 | 58,734 | 32,584 |
Interest expenses | (3,069) | (432) | ||
Foreign exchange (loss) gain, net | (452) | (64) | 20,858 | (13,275) |
Other (loss) income, net | 34 | 5 | (2,161) | 118 |
Net loss before income tax and share of loss in equity method investments | (475,265) | (66,940) | (300,786) | (245,858) |
Income tax benefit (expense) | (658) | (93) | 66 | 1,115 |
Share of loss in equity method investment | (45) | (6) | (45) | (84) |
Net loss | (475,968) | (67,039) | (300,765) | (244,827) |
Deemed dividend | ¥ | (446,419) | (2,211,330) | ||
Net loss attributable to ordinary shareholders of the Company | ¥ (475,968) | $ (67,039) | ¥ (747,184) | ¥ (2,456,157) |
Net loss per share: | ||||
Basic (amounts per share) | (per share) | ¥ (3.81) | $ (0.54) | ¥ (6.47) | ¥ (23.39) |
Diluted (amounts per share) | (per share) | ¥ (3.81) | $ (0.54) | ¥ (6.47) | ¥ (23.39) |
Weighted average shares used in calculating net loss per share: | ||||
Basic (in shares) | 124,783,013 | 124,783,013 | 115,534,593 | 104,987,478 |
Diluted (in shares) | 124,783,013 | 124,783,013 | 115,534,593 | 104,987,478 |
Net loss | ¥ (475,968) | $ (67,039) | ¥ (300,765) | ¥ (244,827) |
Other comprehensive (loss) income, net of tax of nil: | ||||
Foreign currency translation adjustments | 42,048 | 5,922 | (12,073) | 9,083 |
Comprehensive loss | ¥ (433,920) | $ (61,117) | ¥ (312,838) | ¥ (235,744) |
Combined and Consolidated Sta_2
Combined and Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Revenue from Related Parties | ¥ 0 | ¥ 0 | ¥ 15,655 |
Other comprehensive (loss) income, net of tax | ¥ 0 | ¥ 0 | ¥ 0 |
Combined and Consolidated Sta_3
Combined and Consolidated Statements of Changes in Shareholders' (Deficit) Equity ¥ in Thousands, $ in Thousands | Class A Ordinary shares CNY (¥) shares | Class B Ordinary shares CNY (¥) shares | Additional paid-in capital CNY (¥) | Subscription receivables CNY (¥) | Accumulated deficit CNY (¥) | Accumulated other comprehensive (loss) income CNY (¥) | CNY (¥) | USD ($) |
Beginning balance at Dec. 31, 2020 | ¥ 1,193,857 | ¥ (56,046) | ¥ (618) | ¥ 1,137,193 | ||||
Net loss | (244,827) | (244,827) | ||||||
Foreign currency translation | 9,083 | 9,083 | ||||||
Issuance of ordinary shares in connection with the 2021 Reorganization | ¥ 19 | ¥ 40 | (59) | ¥ (310,227) | (310,227) | |||
Issuance of ordinary shares in connection with the 2021 Reorganization (in shares) | shares | 30,033,379 | 62,834,548 | ||||||
Reclassification of ordinary shares to redeemable shares | ¥ (20) | (1,193,798) | (1,862,599) | (3,056,417) | ||||
Reclassification of ordinary shares to redeemable shares (in shares) | shares | (31,884,847) | |||||||
Share-based compensation | 54,283 | 54,283 | ||||||
Accretion in redemption value of redeemable shares | (54,283) | (25,475) | (79,758) | |||||
Balance as of ending at Dec. 31, 2021 | ¥ 19 | ¥ 20 | (310,227) | (2,188,947) | 8,465 | (2,490,670) | ||
Balance as of ending (in shares) at Dec. 31, 2021 | shares | 30,033,379 | 30,949,701 | ||||||
Net loss | (300,765) | (300,765) | ||||||
Foreign currency translation | (12,073) | (12,073) | ||||||
Share-based compensation | 104,750 | 104,750 | ||||||
Accretion in redemption value of redeemable shares | (104,750) | (341,669) | (446,419) | |||||
Balance as of ending at Dec. 31, 2022 | ¥ 19 | ¥ 20 | (310,227) | (2,831,381) | (3,608) | (3,145,177) | ||
Balance as of ending (in shares) at Dec. 31, 2022 | shares | 30,033,379 | 30,949,701 | ||||||
Net loss | (475,968) | (475,968) | $ (67,039) | |||||
Foreign currency translation | 42,048 | 42,048 | 5,922 | |||||
Share-based compensation | 233,958 | 233,958 | ||||||
Issuance of ordinary shares for initial public offering ("IPO"), net of issuance cost of RMB 117,774 | ¥ 7 | 1,193,290 | 1,193,297 | |||||
Issuance of ordinary shares for initial public offering ("IPO"), net of issuance cost of RMB 117,774 (in shares) | shares | 10,125,118 | |||||||
Reclassification of redeemable shares to ordinary shares upon IPO | ¥ 39 | 5,986,871 | 5,986,910 | |||||
Reclassification of redeemable shares to ordinary shares upon IPO (in shares) | shares | 54,551,513 | |||||||
Issuance of ordinary shares upon the exercise of share options and vesting of restricted share units | ¥ 1 | 9,743 | 9,744 | |||||
Issuance of ordinary shares upon the exercise of share options and vesting of restricted share units (in shares) | shares | 1,368,778 | |||||||
Settlement of subscription receivables in connection the 2021 reorganization | 17,506 | 17,506 | ||||||
Balance as of ending at Dec. 31, 2023 | ¥ 19 | ¥ 67 | ¥ 7,423,862 | ¥ (292,721) | ¥ (3,307,349) | ¥ 38,440 | ¥ 3,862,318 | $ 543,996 |
Balance as of ending (in shares) at Dec. 31, 2023 | shares | 30,033,379 | 96,995,110 |
Combined and Consolidated Sta_4
Combined and Consolidated Statements of Changes in Shareholders' (Deficit) Equity (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance of ordinary shares for initial public offering ("IPO"), net of issuance cost | ¥ 117,774 |
Combined and Consolidated Sta_5
Combined and Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (475,968) | $ (67,039) | ¥ (300,765) | ¥ (244,827) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 86,268 | 12,151 | 53,634 | 28,231 |
Share-based compensation | 234,624 | 33,046 | 105,219 | 54,283 |
Provision for (reversal of) allowance for credit loss | 43,004 | 6,057 | (1,810) | 2,561 |
Loss from disposal of property and equipment | 369 | 169 | ||
Fair value change of short-term investments | (15,095) | (2,126) | 4,878 | (7,717) |
Share of loss in equity method investee | 45 | 6 | 45 | 84 |
Foreign exchange loss (gain), net | (9) | (1) | (5,868) | 10,945 |
Non-cash lease expenses | 34,355 | 4,839 | 30,260 | |
Inventory write-down | 9,290 | 1,308 | 39,431 | 16,600 |
Gain from disposal of subsidiary | (6,129) | (863) | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (90,750) | (12,782) | (390,859) | (31,696) |
Contract assets | (7,088) | (998) | 134,244 | (108,737) |
Inventories | 145,977 | 20,560 | (305,553) | (237,755) |
Prepayments and other current assets | (82,646) | (11,640) | (33,556) | (48,618) |
Amounts due from related parties | 24,788 | |||
Other non-current assets | (3,178) | (448) | 2,883 | (5,573) |
Contract liabilities | 39,545 | 5,570 | (91,737) | 113,265 |
Deferred tax liabilities | (35) | (5) | (27) | (113) |
Accounts payable | 61,529 | 8,666 | 128,863 | 21,834 |
Income tax payable | (9) | |||
Accrued expenses and other current liabilities | 80,297 | 11,310 | (41,074) | 170,125 |
Operating leases liabilities | (34,595) | (4,873) | (30,103) | |
Other non-current liabilities | 37,820 | 5,327 | 5,511 | 13,774 |
Net cash (used in) provided by operating activities | 57,261 | 8,065 | (696,015) | (228,386) |
Cash flows from investing activities: | ||||
Purchases of short-term investments | (5,100,868) | (718,442) | (5,586,764) | (4,812,942) |
Maturity of short-term investments | 4,479,302 | 630,896 | 6,978,764 | 3,114,287 |
Proceeds from disposals of property and equipment | 22 | |||
Purchases of property and equipment | (406,748) | (57,289) | (231,210) | (220,096) |
Purchases of land-use right | (43,188) | |||
Purchases of intangible assets | (7,925) | (1,116) | (9,180) | (18,320) |
Proceeds from government subsidies after capital expenditure | 15,893 | 2,238 | ||
Purchases of equity securities | (30,000) | |||
Advances to a related party | (1,964) | |||
Cash inflow from disposal of subsidiary | 14,407 | 2,029 | ||
Cash outflow from acquisition of subsidiary, net of cash acquired of RMB 571 | (54,454) | (7,670) | ||
Net cash (used in) provided by investing activities | (1,060,393) | (149,354) | 1,119,646 | (1,980,237) |
Cash flows from financing activities: | ||||
Cash distribution to shareholders of Shanghai Hesai in connection with the 2021 Reorganization | (17,506) | (2,466) | (507,620) | |
Cash contribution from shareholders in connection with the 2021 Reorganization | 17,506 | 2,466 | 507,620 | |
Proceeds from issuance of convertible loans | 1,950,338 | |||
Proceeds from issuance of ordinary shares of Hesai Group | 1,225,470 | 172,604 | 453,978 | |
Return of advances to employees in connection with share option grants | (590) | |||
Proceeds from long-term borrowings | 264,910 | 37,312 | 18,472 | |
Proceeds from short-term borrowings | 111,682 | 15,730 | ||
Payment of offering costs | (22,828) | (3,215) | (3,296) | |
Proceeds from issuance of ordinary shares upon the exercise of share options | 2,872 | 405 | ||
Government subsidies received in advance of capital expenditure | 8,250 | 1,162 | ||
Net cash provided by financing activities | 1,590,356 | 223,998 | 15,176 | 2,403,726 |
Net increase in cash and cash equivalents | 587,224 | 82,709 | 438,807 | 195,103 |
Cash, cash equivalents and restricted cash, beginning of the year | 913,277 | 128,632 | 449,352 | 256,688 |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | 57,623 | 8,116 | 25,118 | (2,439) |
Cash, cash equivalents and restricted cash, end of the year | 1,558,124 | 219,457 | 913,277 | 449,352 |
Cash paid during the year for: | ||||
Income taxes | (1,230) | 213 | ||
Interest (net of capitalized amount of nil, RMB 11 and RMB 4,433 for the years ended December 31,2021,2022 and 2023, respectively) | 3,069 | 432 | ||
Supplemental disclosure of non-cash investing and financing activities: | ||||
Conversion of convertible loans to ordinary shares | 1,950,338 | |||
Accrued purchases of property and equipment | ¥ 179,839 | $ 25,330 | 102,181 | ¥ 114,446 |
Accrued offering cost | ¥ 480 |
Combined and Consolidated Sta_6
Combined and Consolidated Statements of Cash Flows (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Statement of Cash Flows [Abstract] | |||
Cash outflow from acquisition of subsidiary, net of cash acquired | ¥ 571 | ¥ 571 | ¥ 571 |
Net of capitalized amount | 4,433 | 11 | 0 |
Cash and cash equivalents | 1,554,583 | 913,277 | 449,352 |
Restricted cash | 3,541 | 0 | |
Cash, cash equivalents and restricted cash | ¥ 1,558,124 | ¥ 913,277 | ¥ 449,352 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | 1. Description of Business and Corporate History 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. History of the Group The Group’s history began in October 2014 with the establishment of Shanghai Hesai Photonics Co., Ltd. (“Hesai Photonics”), a limited liability company established in the People’s Republic of China (the “PRC”) by Mr. Kai Sun, Mr. Yifan Li and Mr. Shaoqing Xiang (collectively known as the “Founding Shareholders”). In August 2020, Hesai Photonics was converted by its then shareholders into a joint stock company under the PRC law and changed its name to Hesai Technology Co., Ltd (“Shanghai Hesai”). 2021 Reorganization In 2021, the Founding Shareholders and all of the investors of Shanghai Hesai undertook an equity restructuring in order to re-domicile its business from the PRC to the Cayman Islands (the “2021 Reorganization”), which was executed in the following steps: 1) In April 2021, the Company was incorporated in the Cayman Islands to be the holding company of the Group. On May 6, 2021, the Company established Hesai Hong Kong Limited (“Hesai HK”) in Hong Kong, a wholly owned subsidiary to be the intermediate holding company. 2) In June 2021, the Company through Hesai HK acquired 100% of the equity interest of Shanghai Hesai from the Founding Shareholders and its investors, thus Shanghai Hesai became the wholly owned subsidiary of the Company. 3) In May and June 2021, the Founding Shareholders subscribed to 30,033,379 Class A ordinary shares and the existing investors subscribed to 62,834,548 Class B ordinary shares of the Company, on an as-converted basis, at the same proportion of the equity interest they held in Shanghai Hesai. The main purpose of the 2021 Reorganization was to establish a Cayman Islands holding company for the existing business in preparation for an overseas initial public offering. The Group has accounted for the 2021 Reorganization as transaction between entities with common ownership, which is akin to a reorganization of entities under common control. Upon completion of the 2021 Reorganization, per share information of the Company has been retrospectively presented from the earliest period in the combined and consolidated financial statements presented. Pursuant to a framework agreement entered into by the Founding Shareholders and all of the investors of Shanghai Hesai, the consideration paid by the Company to acquire the equity interest of Shanghai Hesai is to be reinvested in the Company as capital contribution for subscription of ordinary shares at Hesai Group. For the recapitalization in connection with the 2021 Reorganization, only RMB 817,847 was required to be settled through cash redemption by Shanghai Hesai and cash investment at the Company level in accordance with foreign currency control regulations within the PRC. RMB 507,620 has been settled during 2021 and RMB 17,506 has been settled during 2023 with the remaining of RMB 292,721 recorded as subscription receivables as December 31, 2023 pending relevant government approval (See Note 20). The shareholder further agreed that for certain shareholders, mainly the Founding Shareholders and a few early investors, given that they are liable to make capital gain tax payments to the PRC tax bureau for the sales of their equity interest in Shanghai Hesai, their capital contribution amount at the Cayman Islands level can be done net of the tax liabilities incurred. These tax payments amounted to RMB 82,347, are recorded as general and administrative expenses as they represented tax costs absorbed by the Group as part of the reorganization only for a few investors and not considered to be pro-rata distribution to all shareholders. 1. Initial Public Offering (“IPO”) In February and March 2023, the Group, in connection with its IPO in the United States, issued 10,125,118 Class B ordinary shares with net proceeds of US$179,786 (equivalent to RMB1,225,470). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The combined and consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Basis of Consolidation The financial statements presented herein represent (1) prior to the 2021 Reorganization, the combined financial statements of Shanghai Hesai and its subsidiaries; (2) subsequent to the 2021 Reorganization, the 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 combined and 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 consolidated financial statements mainly include the estimated project progress towards certain services revenue, warranty reserves, inventory write-down, allowance for doubtful accounts, valuation of ordinary shares and 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Fair value measurements – 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, 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. Short-term investments also consist of structured financial products with commercial banks in the PRC. The structured financial products 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 combined and consolidated statements of operations and comprehensive loss. The fair values of these structed financial products as of December 31, 2022 and 2023 were determined to be RMB945,865 and RMB857,924 using Level 2 significant other observable input by applying the interest rate implied by the current quotation of underlying indices. For the years ended December 31, 2021, 2022 and 2023, the Group recorded fair value changes of short - term investments of RMB26,351, RMB52,252 and RMB30,158 as interest income in the combined and consolidated statements of operations and comprehensive loss, respectively. Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiary located outside of PRC is the United States dollar (“US$”), and the functional currency of subsidiaries located in PRC is RMB. Assets and liabilities are translated from each entity’s functional currency to the reporting currency at the exchange rate on the balance sheet date. Equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of accumulated other comprehensive (loss) income in the combined and consolidated statements of changes in shareholders’ (deficit) equity. Monetary assets and liabilities denominated in currencies other than the entity’s applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized as foreign exchange (loss) gain, net in the combined and consolidated statements of operations and comprehensive loss. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Cash and cash equivalents The Group classifies cash on hand and cash in bank with original maturities of three months or less, and are unrestricted as to withdrawal or use, as cash and cash equivalents. Restricted cash Restricted cash mainly represents the Group’s security deposits with respect to the Group’s credit card account, withdrawal or use is contractually restricted of these cash balance. Accounts receivable, net Accounts receivable mainly consists of amount due from the Group’s customers, which are recorded net of allowance for credit losses. The Group divides its portfolio into four pools — domestic PRC automotive original equipment manufacturer (“OEM”) customers, domestic PRC other customers, overseas automotive OEM customers and overseas other customers for the purposes of performing ongoing credit evaluation by reviewing their credit rating and industry geographic distribution and assessing allowance for credit loss based on expected credit loss model for each pool of the portfolio. The Group develops a current expected credit loss (“CECL”) model based on 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. Account receivable balances are written off after all collection efforts have been exhausted. Inventories Inventories consists of raw materials, work-in-process, and finished goods and are stated at lower of cost or net realizable value. Costs are computed under the weighted average method. Net realizable value is determined as estimated selling prices in the ordinary course of business, less reasonably predictable costs to sell. Valuation of inventories is based on currently available information about expected recoverable value. The estimate is dependent upon factors such as market trends, inventory ageing, and historical and forecasted customer demands. Inventory write-down is recorded as cost of revenues. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment. Property and equipment except land are depreciated at rates sufficient to write off its costs less impairment, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follows: Electronic equipment 3 – 5 years Machinery and equipment 10 years Furniture and fixture 5 years Transportation vehicles 4 years Leasehold improvements Over the shorter of the expected lease term or useful lives Land held by the Group in perpetuity is not depreciated and is stated at cost less impairment. Interest expenses on outstanding debt are capitalized during the period of significant capital asset construction. Capitalized interest on construction in progress is included within Property, plant and equipment, net and is amortized over the life of the related assets. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Intangible assets, net Intangible assets are recognized and measured at cost upon acquisition. Following the initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The identifiable intangible assets acquired are amortized on a straight-line basis over the respective useful lives as follows: Software 3 – 10 years Technology 3 – 8 years Land-use rights, net Land-use rights are recognized and measured at cost upon acquisition. Following the initial recognition, land-use rights are carried at cost less any accumulated amortization and any accumulated impairment losses. According to the land-use rights policy in the PRC, the useful life of land-use rights is 50 years. Goodwill Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Group’s annual testing date is December 31. The Group recognized goodwill of US$1,982,033, which was assigned to Oxigraf, Inc. as a reporting unit. On November 15, 2023, the Group disposed Oxigraf, Inc., the corresponding goodwill was derecognized as part of the disposal. Long-term investments Investment in equity method investee The Group uses equity method to account for common stock investments in entities over which it has significant influence but does not have controlling interests. Under the equity method of accounting, the Group’s share of the earnings or losses of the investee companies, impairments, and other adjustments required by the equity method are reflected in the combined and consolidated statements of operations and comprehensive loss. When the Group’s share of losses in an investee equals or exceeds its carrying amount of the investment in the investee, the Group does not recognize further losses, unless the Group has guaranteed the obligations of the investee or is otherwise committed to provide further financial support for the investee. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group estimated the fair value of investments in equity investees under discounted cash flow analysis which requires significant judgments, including the estimation of future cash flows, which is dependent on internal forecasts, the estimation of long-term growth rate of a company’s business, the estimation of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The Group did not record any impairment on its equity method investment during the years ended December 31, 2021, 2022 and 2023. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Equity securities without readily determinable fair value The Group has elected to measure the investment in equity securities without readily determinable fair values at cost minus impairment, if any, adjusted up or down for observable price changes. Any adjustment to the carrying amount is recorded in other income (loss), net. At each reporting period end, the Group makes a qualitative assessment considering impairment indicators to evaluate whether any of these investments is impaired. If the assessment indicates that the fair value of an investment is less than the carrying value, the investment in equity securities will be written down to its fair value, with the difference between the fair value of the investment and its carrying amount as an impairment loss. No fair value adjustment was recognized for the year ended December 31, 2022 and 2023. Revenue recognition The Group recognizes revenue from sales of LiDAR products and gas detection 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 standalone selling prices are based on the prices charged to customers for the single performance obligation which is transfer of control of products upon delivery to the customers or upon 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. 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 autonomous mobility sector, such warranties last one year. For those used in advanced driver assistance system sector, 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 two 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue recognition (continued) Changes in the Group’s accrued warranty liability was as follows: For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Balance as of the beginning of the year 10,042 13,932 17,694 Warranty provision 10,766 8,467 26,247 Consumption (6,876) (4,705) (15,516) Balance as of the end of the year 13,932 17,694 28,425 A contract asset is recorded when the Group has transferred products or services to the customer before payment is received or is due, and the Group’s right to consideration is conditional on future performance in the contract. The Group records a contract asset for unbilled receivables for certain customers where the control of the goods or services has been transferred. A contract liability exists when the Group has received consideration but has not transferred the related goods or services to the customer. The Group’s contract liabilities mainly consist of payments received from customers before they received the products. Cost of revenues Cost of revenues for our products includes the manufacturing cost of LiDAR sensors and gas detection products, which primarily consists of direct material costs, personnel-related costs, purchasing costs, depreciation, amortization and overhead associated with manufacturing operations, accrued warranty costs, shipping costs, licensing fees, and write-downs of excess inventories and obsolete inventories. Cost of revenues for our services includes cost of LiDAR solution and direct labor costs and related material costs relating to the fulfillment of services. Research and development expenses Research and development expenses consist primarily of personnel-related costs directly associated with research and development organization, with the remainder being prototype expenses, third-party engineering and contractor costs, an allocated portion of facility and IT costs and depreciation. The Group’s research and development costs are related to enhancing and developing additional functionality for its existing products and on new product development, including new releases and upgrades to LiDAR sensors. The Group expenses research and development costs as incurred. Government grants Government grants consist of cash subsidies received by the Group from PRC local governments. Grants received as incentives for conducting business in certain local districts with no performance obligation or other restriction as to the use are recognized when cash is received. Grants received with government specified performance obligations are recognized when all the obligations have been fulfilled. Government grants received related to the purchases of long-term assets are used to net the cost of the respective assets. The grants related to unfulfilled obligations of nil, nil and RMB53,668 were included in the other non-current liabilities as of December 31, 2021, 2022 and 2023, respectively. The Group recorded government grants RMB27,446, RMB10,825 and RMB14,280 in other operating income, net for the years ended December 31, 2021, 2022 and 2023, respectively. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Loss per share Basic loss per share is computed by dividing net loss attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The Group had share options, which could potentially dilute basic earnings per ordinary share in the future. To calculate the number of shares for diluted earnings per ordinary share, the effect of the share options is computed using the treasury stock method. Share-based compensation The Group grants share-based awards of the Company to eligible employees and accounts for these share-based awards in accordance with ASC 718, Compensation - Stock Compensation. Share-based awards that are subject to both the service period and the occurrence of a Qualified IPO as performance condition are measured at the grant date fair value and share-based compensation expenses are recognized for the cumulatively vested amount upon the completion of the Qualified IPO first and then over the remaining requisite service period, net of actual forfeitures, if any. Share-based awards that are subject to only the service period are measured at the grant date fair value and share-based compensation expenses are recognized on a straight-line basis over the requisite service period of the individual grants. The Group recognizes share-based compensation expenses based on the target number of Class B ordinary shares that may be earned pursuant to the award. Forfeitures are recognized as reductions to share-based compensation when they occur. Prior to IPO, the fair value of the share options granted to employees is determined with the assistance of an independent valuation specialist using widely accepted valuation techniques, including discounted cash flow analysis on the expected future free cash flows and binomial option pricing model. The Group accounts for the effects of a modification as described in ASC 718. The Group calculates incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified. For vested options, the Group would recognize incremental compensation cost on the date of modification and for unvested options, the Group would recognize, prospectively and over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award. Share-based compensation with cash settlement features is classified as liabilities. The percentage of the fair value that is recorded as compensation cost at the end of each period is based on the percentage of the requisite service that has been rendered at that date. Changes in fair value of the liability classified award that occurs during the requisite service period are recognized as compensation costs rateably over time during the services to be rendered. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Income Taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such a determination, the management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. Deferred tax assets are then reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more likely than not that a portion of or all of the deferred tax assets will not be realized. The Group accounts for uncertainty in income taxes recognized in the financial statements by applying a two-step process to determine the amount of the benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained (defined as a likelihood of more than fifty percent of being sustained upon an audit, based on the technical merits of the tax position), the tax position is then assessed to determine the amount of benefits to recognize in the combined and consolidated financial statements. The amount of the benefits that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Group did not recognize any income tax due to uncertain tax position or incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2021, 2022 and 2023. Leases The Group leases office space, manufacturing plants and warehouses in Shanghai, PRC and California, USA under non-cancellable operating lease agreements that expire at various dates through October 31, 2025. Before January 1, 2022, the Group used the Accounting Standards Codification, Leases (“ASC 840”), in which each lease is classified at the inception date as either a capital lease or an operating lease. All the Group’s leases are classified as operating lease under ASC 840. The Group’s reporting for periods prior to January 1, 2022 continued to be reported in accordance with Leases (ASC 840). Effective from January 1, 2022, the Group adopted ASU No. 2016-02 “Leases” (“ASC 842”) using the modified retrospective approach. The Group elected the transition package of practical expedients permitted within the standard, which allowed it not to reassess initial direct costs, lease classification, or whether the contracts contain or are leases for any leases that existed prior to January 1, 2022. The Group also elected the short-term lease exemption for all contracts with an original lease term of 12 months or less. Upon the adoption, the Group recognized operating lease right-of-use (“ROU”) assets of RMB36,030 with corresponding lease liabilities of RMB36,599 on the combined and consolidated balance sheets. The operating lease ROU assets include adjustments for prepayments. The adoption did not impact the Group’s beginning retained earnings as of January 1, 2022, or the Group’s prior years’ financial statements. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Leases - continued The impact on the combined and consolidated balance sheets upon adoption of ASC842 was as follows: December 31, 2021 January 1, 2022 Effect of the After adoption As reported adoption of ASC 842 of ASC 842 RMB RMB RMB ASSETS Right-of-use assets — 36,030 36,030 TOTAL ASSETS — 36,030 36,030 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued expenses and other current liabilities 569 12,566 13,135 Lease liabilities, non-current — 23,464 23,464 TOTAL LIABILITIES 569 36,030 36,599 TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 569 36,030 36,599 Under ASC 842, the Group determines whether an arrangement constitutes a lease and records lease liabilities and ROU assets on its combined and consolidated balance sheets at the lease commencement date. The Group measures the operating lease liabilities at the commencement date based on the present value of remaining lease payments over the lease term, which is computed using the Group’s incremental borrowing rate, an estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the lease term. The Group measures the operating lease ROU assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing operating lease expense based on lease payments on a straight-line basis over the lease term after the lessor makes the underlying asset available to the Group. Some of the Group’s lease contracts include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group does not include renewal option periods in the lease term for which it is not reasonably certain to exercise. Comprehensive income (loss) Comprehensive income (loss) is defined as the change in equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income(loss) is reported in the consolidated statement of operations and comprehensive income(loss). Accumulated other comprehensive (loss) income, as presented on the accompanying combined and consolidated balance sheets consists of accumulated foreign currency translation adjustments. Segment The Chief Executive Officer, Chief Scientist and Chief Technology Officer (collectively referred to the “founders”) are identified as the chief operating decision maker (CODM). The Group organized its operations into two segments: LiDAR segment and gas detection segment. The financial information of the respective segments is disclosed in Note 22. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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. The Group establishes an allowance for doubtful accounts 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 years ended December 31, 2021, 2022 and 2023: For the Year ended December 31, 2021 2022 2023 Customer A * 24.3 % 25.6 % Customer B 17.5 % 13.7 % 28.4 % Customer C 12.7 % * * The following customers accounted for 10% or more of the Group’s accounts receivable, contract assets and amount due from related parties as of December 31, 2022 and 2023: As of December 31, 2022 2023 Customer A 61.0 % 41.3 % Customer B 15.3 % 10.2 % Customer D * 11.2 % 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Concentration of suppliers The Group has one supplier accounted for 10% or more of purchases for the years ended December 31, 2021 and 2022: For the Year ended December 31, 2021 2022 2023 Supplier A 13.7 % 12.3 % * Foreign currency risk A significant portion of Group’s cash and cash equivalents and short-term investments are denominated in US$, fluctuations in exchange rates between US$ and RMB may result in foreign exchange gains or losses. The value of US$ is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group has cash and cash equivalents that are denominated in US$, totaling US$51,351 and US$131,832 as of December 31, 2022 and 2023, respectively. Recent ac |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable, Net | 3. ACCOUNTS RECEIVABLE, NET Accounts receivable and expected credit losses as of December 31, 2022 and 2023 are as follows: As of December 31, 2022 2023 RMB RMB Accounts receivable 491,293 573,950 Less: allowance for expected credit losses (6,249) (49,132) Total accounts receivable, net 485,044 524,818 The roll-forward of the allowance for credit losses related to accounts receivable for the years ended December 31, 2022 and 2023 consists of the following activity: For the Year ended December 31, 2022 2023 RMB RMB Balance at beginning of year 7,294 6,249 (Reversal) provision for expected credit losses (1,045) 42,883 Balance at end of year 6,249 49,132 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. INVENTORIES As of December 31, 2022 2023 RMB RMB Raw materials 290,121 126,347 Work-in-process 180,367 199,153 Finished goods 176,364 170,377 Inventories 646,852 495,877 Inventory write-off were RMB16,600, RMB39,431 and RMB9,290, respectively, for the years ended December 31, 2021, 2022 and 2023. |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepayments and Other Current Assets | 5. Prepayments and other current assets, as of December 31, 2022 and 2023 were as follows: As of December 31, 2022 2023 RMB RMB Advances to suppliers 82,419 120,556 Deposits 11,998 22,042 Prepaid expenses 10,108 16,372 Value-added tax recoverable 6,748 21,888 Others 15,179 27,224 Total 126,452 208,082 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 6. Property and equipment, as of December 31, 2022 and 2023 are as follows: As of December 31, 2022 2023 RMB RMB Cost Land — 39,312 Electronic equipment 79,663 114,237 Leasehold improvements 63,995 67,677 Machinery and equipment 121,614 186,890 Furniture and fixture 54,851 78,169 Transportation vehicles 4,411 5,400 Total cost 324,534 491,685 Less: Accumulated depreciation (84,329) (154,473) Property and equipment, net 240,205 337,212 Construction in Progress 264,748 534,399 Total 504,953 871,611 Depreciation expenses were RMB21,187, RMB44,856 and RMB77,701 for the years ended December 31, 2021, 2022 and 2023, respectively. Construction in progress as of December 31, 2022 and 2023 mainly represents the Company’s new research and development and intelligent manufacturing center in Shanghai, PRC, which was ready for use since January 2024. In September 2023, the Group acquired an industrial raw land at a total cost of Thai baht189.4 million, equivalent to RMB39,312, covering a total area of 25,686 square meters in Chachoengsao Province, Thailand, for the construction of a new factory. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 7. INTANGIBLE ASSETS, NET Intangible assets, as of December 31, 2022 and 2023 are as follows: As of December 31, 2022 2023 RMB RMB Software 30,095 38,143 Technology 8,390 65,235 Total cost 38,485 103,378 Less: Accumulated amortization (17,885) (24,648) Intangible assets, net 20,600 78,730 Amortization expenses related to intangible assets were RMB6,326, RMB7,914 and RMB7,704 for the years ended December 31, 2021, 2022 and 2023, respectively. On December 15, 2023, the Group acquired a Swiss company, which designed image sensors for spatial awareness for industrial and automotive applications. In connection with this acquisition, the Group acquired patent rights to certain technologies valued of RMB59,351 with an amortization period of 8 years. 7 . INTANGIBLE ASSETS, NET (continued) The estimated amortization expenses for each of the five succeeding fiscal years and thereafter are as follows: Years ended December 31, RMB 2024 11,678 2025 10,416 2026 9,866 2027 9,866 2028 and years after 36,904 Total 78,730 |
Land-Use Rights, Net
Land-Use Rights, Net | 12 Months Ended |
Dec. 31, 2023 | |
Land-Use Rights [Abstract] | |
Land-Use Rights, Net | 8. LAND-USE RIGHTS, NET In March 2021, the Group acquired a land-use right at a total cost of RMB43,188 for approximately 26,615 square meters of land in Shanghai, the PRC for the construction of a factory. According to the land-use rights policy in the PRC, the Group has a 50-year |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Long-Term Investments | 9. LONG-TERM INVESTMENTS As of December 31, 2022 2023 RMB RMB Investments in equity securities 30,000 30,000 Investments in equity method investee 1,856 1,811 Total 31,856 31,811 In July 2022, the Group made investment in Vertilite Co., Ltd. (“Vertilite”) with total consideration RMB30,000 without control, joint control or significant influence. |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets, Noncurrent [Abstract] | |
Other Non-Current Assets | 10. OTHER NON-CURRENT ASSETS Other non-current assets as of December 31, 2022 and 2023 are as follows: As of December 31, 2022 2023 RMB RMB Prepayments for purchase of property and equipment 46,083 77,596 Demonstration fleet 4,936 3,819 Long-term deposits 3,836 8,612 Others 2,243 141 Other non-current assets 57,098 90,168 Long-term deposits mainly consist of rental deposit for offices and production capacity which will not be collectible within one year. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2023 | |
Notes Payable, Noncurrent [Abstract] | |
Notes Payable | 11. NOTES PAYABLE The Group issued short-term note payables to settle part of the payments for the construction of new research and development and intelligent manufacturing center in Shanghai, PRC. As of December 31, 2022 and 2023, the remaining balance was nil and RMB7,255, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | 12. BORROWINGS The short-term and long-term borrowings as of December 31, 2022 and 2023 were as follows: As of December 31, 2022 2023 RMB RMB Short-term borrowings: Short-term bank borrowings — 109,900 Long-term bank borrowings, current portion — 1,782 Total — 111,682 Long-term borrowings: Long-term bank borrowings 18,472 285,898 Short-term bank borrowings In November 2022 and December 2023, the Group entered into two short-term bank credit facility agreements for up to RMB300,000 and RMB500,000 with an annual interest rate of China’s one-year loan prime rate (“LPR”) minus 80 bps, respectively. The facility of RMB300,000 was expired on November 23, 2023, and the facility of RMB500,000 will expire on December 12, 2024. During the year ended December 31, 2023, the Group drew down RMB109,900 under the credit facility of RMB 300,000 with an annual interest rate of 2.85% and a maturity date of January 16, 2024. The Group has RMB500,000 unused short-term bank facility as of December 31, 2023. Long-term bank borrowings In November 2022, Shanghai Hesai entered into a two In October 2023, Zhejiang Hertz entered into a one 60 In December 2023, the Group acquired a Swiss company and assumed the long-term borrowings of CHF299 (equivalent to RMB2,516) the company borrowed in 2020, which will mature in 2030. 12. BORROWINGS (continued) Long-term bank borrowings - continued The Group has RMB524,836 unused bank facilities in connection to borrowings for the purpose of purchasing property and equipment as of December 31, 2023. The principal maturities of the long-term borrowings as of December 31, 2022 and 2023 are as follows: As of As of December 31, December 31, 2022 2023 RMB RMB 2025 5,542 85,728 2026 5,542 85,728 2027 7,388 111,926 2028 and after — 2,516 Total 18,472 285,898 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 13. Accrued expenses and other current liabilities as of December 31, 2022 and 2023 are as follows: As of December 31, 2022 2023 RMB RMB Salaries and welfare payables 166,923 195,014 Payables for purchase of property and equipment 102,181 179,839 Accrued expenses 41,558 65,159 Current portion of operating lease liabilities 34,975 34,993 VAT and other tax payables 5,903 19,847 Advances from employees 4,962 3,472 Total 356,502 498,324 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 14. LEASES The Group has operating leases for offices and factories. The Group recognized ROU assets of RMB44,349 and RMB151,871 and corresponding current liabilities of RMB34,975 and RMB34,993 in accrued expenses and other current liabilities, and long-term operating lease liabilities of RMB10,139 and RMB119,413, as of December 31, 2022 and 2023, respectively. The weighted average remaining lease term was approximately 5.48 years as of December 31, 2023, and the weighted average discount rate were 4.25% and 2.85% for the years ended December 31, 2022 and 2023, respectively. For the years ended December 31, 2021, 2022 and 2023, Operating lease expenses were RMB21,792, RMB34,596 and RMB37,878 (including RMB2,136 for short-term leases not capitalized as ROU assets), respectively. 14. LEASES (continued) The maturities of lease liabilities in accordance with Leases (ASC 842) as of December 31, 2022 and December 31, 2023 were as follows: As of As of December 31, 2022 December 31, 2023 RMB RMB 2023 36,025 — 2024 7,145 38,305 2025 3,282 25,951 2026 — 24,672 2027 — 24,877 2028 — 27,139 2029 — 24,877 Total lease payment 46,452 165,821 Less: imputed interest (1,338) (11,415) Present value of minimum operating lease payments 45,114 154,406 Less: Current operating lease liabilities (34,975) (34,993) Long-term operating lease liabilities 10,139 119,413 Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2022 and 2023 were RMB28,136 and RMB35,982, respectively. Right-of-use assets obtained in exchange for the operating lease liabilities in non-cash transactions for the years ended December 31, 2022 and 2023 were RMB37,414 and RMB133,661, respectively. |
Redeemable Shares
Redeemable Shares | 12 Months Ended |
Dec. 31, 2023 | |
Redeemable Shares [Abstract] | |
Redeemable Shares | 15. REDEEMABLE SHARES Since its establishment, Hesai Photonics has received several rounds of equity financing in the form of Series A+/B/B+/C-1/C-2/C-3 redeemable equity from external investors from March 2017 to July 2019. On August 1, 2020, in conjunction with the conversion of Hesai Photonics into a joint stock company Shanghai Hesai, all the outstanding redeemable equity was converted into ordinary shares of Shanghai Hesai at no consideration, all in the same proportion as the percentage of equity interest they held in Hesai Photonics. In the second quarter of 2021, the Group signed agreements (the “Side Letters”) with its external shareholders holding 54,551,513 Class B ordinary shares, whereby the Group has agreed to provide an option for these shareholders to re-designate their ordinary shares to preferred shares in the event that the Company fails to complete an overseas IPO within twelve months 15. REDEEMABLE SHARES (continued) The Company has accounted for these agreements as material amendments such that extinguishment accounting is applied to these shares at the agreement dates. Given these shares are redeemable upon an event not solely within the control of the Company, the Company has reclassified the 54,551,513 Class B ordinary shares from permanent equity to mezzanine equity at their current fair values and the difference is recorded as deemed dividend in the amount of RMB2,131,572, by charging against retained earnings, or in the absence of retained earnings, by charges against additional paid-in capital. Once additional paid-in-capital has been exhausted, additional charges are recorded by increasing the accumulated deficit. Except for Series D shares, all of the other series shares have carrying value higher than their respective redemption value, as such, no accretion to redemption value is recorded. For Series D shares, the change in redemption value is RMB79,758 and RMB446,419, which are recorded as deemed dividends for the years ended December 31, 2021 and 2022, respectively. Upon the completion of the Company’s IPO in United States on February 9, 2023, 54,551,513 redeemable shares were reclassified into 54,551,513 Class B ordinary shares on a one-on-one basis in accordance with the terms stipulated by the Side Letters. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Ordinary Shares | 16. ORDINARY SHARES Holders of Class A ordinary shares and Class B ordinary shares of the Company have the same rights, except for voting rights. Holders of Class A ordinary shares are entitled to ten votes per share in all shareholders’ meetings, while holders of Class B ordinary shares are entitled to one vote per share. In February and March 2023, 54,551,513 redeemable shares were reclassified into Class B ordinary shares upon IPO and the Company issued 10,125,118 Class B ordinary shares in connection with its IPO in the United States. In August 2023, 4,000,000 Class B ordinary shares were issued to the Company’s depositary bank, Deutsche Bank, reserved for future issuances of shares upon the exercises of share options or vesting of restricted shares under the 2021 Share Incentive Plan. These shares are considered to be issued and not outstanding until such a time when the issuance occur for the exercise of share options or vesting of restricted shares. As of December 31, 2023, 2,631,222 shares are remained to be issued and not outstanding. |
Net Revenues
Net Revenues | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Net Revenues | 17. NET REVENUES The following table presents the Group’s net revenues for the years ended December 31, 2021, 2022 and 2023. For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Product revenues Revenue from LiDAR products 685,333 1,122,237 1,735,254 Revenue from gas detection products 19,533 23,967 26,863 Other revenues 1,200 5,663 2,773 Service revenues Engineering design, development and validation service and solution revenue 14,026 43,101 100,493 Other service revenues 676 7,702 11,606 Total 720,768 1,202,670 1,876,989 The following table summarizes the Group’s revenues recognized at a point in time or over time. For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Revenue recognized at a point of time 706,066 1,175,758 1,783,803 Revenue recognized over time 14,702 26,912 93,186 Total 720,768 1,202,670 1,876,989 The following table summarizes the Group’s revenues disaggregated by the different geographic location. For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Revenue by geographic location Mainland China 269,634 697,294 991,912 North America 352,981 358,549 748,147 Europe 67,912 86,153 70,500 Other regions 30,241 60,674 66,430 Total 720,768 1,202,670 1,876,989 17. The movements of the Group’s accounts receivable and contract balances are as follows: Accounts Contract Contract Receivable assets liabilities RMB RMB RMB Opening Balance as of January 1, 2021 56,319 38,337 9,357 Increase, net 29,502 108,200 113,246 Ending Balance as of December 31, 2021 85,821 146,537 122,603 Increase(decrease), net 399,223 (133,937) (82,225) Ending Balance as of December 31, 2022 485,044 12,600 40,378 Increase(decrease), net 39,774 7,088 39,547 Ending Balance as of December 31, 2023 524,818 19,688 79,925 Revenues with amount of RMB8,048, RMB109,120, and RMB37,111 were recognized in the years ended December 31, 2021, 2022 and 2023, respectively, that were included in the balance of contract liabilities at the beginning of each year. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 18. INCOME TAXES United States The applicable income tax rate of United States where the Company’s subsidiaries having significant operations for the years ended December 31, 2021, 2022 and 2023 is 27.98%, which is a blended state and federal rate. PRC The PRC Enterprise Income Tax Law (“EIT Law”), which became effective on January 1, 2008, applies a uniform enterprise income tax (“EIT”) rate of 25% to both foreign-invested enterprises (“FIEs”) and domestic enterprises. Certified High and New Technology Enterprises (“HNTE”) are entitled to a favorable statutory tax rate of 15%, but need to re-apply every three years. During this three-year period, an HNTE must conduct a qualification self-review each year to ensure it meets the HNTE criteria and is eligible for the 15% preferential tax rate for that year. If an HNTE fails to meet the criteria for qualification as an HNTE in any year, the enterprise cannot enjoy the 15% preferential tax rate in that year, and must instead use the regular 25% EIT rate. Shanghai Hesai applied for the HNTE qualification and received approval in December 2019, and such qualification was renewed in November 2022 for year 2022 to 2024. Shanghai Hesai was entitled to continue to enjoy the beneficial tax rate of 15% as an HNTE for the years ended December 2021, 2022 and 2023. 18. INCOME TAXES (continued) PRC - continued According to relevant laws and regulations promulgated by the State Administration of Tax of the PRC, enterprises engaging in R&D activities are entitled to claim 200% of their qualified research and development expenses so incurred as tax deductible expenses when determining their assessable profits for 2021 and afterwards (“Super Deduction”) when enterprise engage in manufacturing business. The additional deduction of qualified research and development expenses can only be claimed directly in the annual EIT filing and subject to the approval from the relevant tax authorities. Withholding tax on undistributed dividends Under the EIT Law enacted by the National People’s Congress of the PRC, dividends generated after January 1, 2008 and payable by a foreign investment enterprise in the PRC to its foreign investors who are non-resident enterprises are subject to a 10% withholding tax, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with the PRC that provides for a different withholding arrangement. In accordance with accounting guidance, all undistributed earnings are presumed to be transferred to the parent company and are subject to the withholding taxes. All FIEs are subject to the withholding tax from January 1, 2008. The presumption may be overcome if the Group has sufficient evidence to demonstrate that the undistributed dividends will be re-invested and the remittance of the dividends will be postponed indefinitely. The Group did not record any dividend withholding tax, as it has no retained earnings for any of the years presented. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its operations outside of the PRC will be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the EIT Law, there is uncertainty as to the application of the EIT Law. Should the Company be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC income tax on worldwide income at a uniform tax rate of 25%. The Company is not subject to any other uncertain tax position. The current and deferred portion of income tax expenses included in the combined and consolidated statements of operations and comprehensive loss are as follows: For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Current tax expenses — 2 13 Over-provision in prior year (1,057) — — Deferred tax (benefits) expense (58) (68) 645 Income tax (benefits) expenses (1,115) (66) 658 18. INCOME TAXES (continued) Withholding tax on undistributed dividends - continued Net Loss before income tax by tax jurisdiction: For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Net loss before income tax from PRC operations (92,498) (251,302) (480,479) Net (loss) gain before income tax from non-PRC operations (153,444) (49,529) 5,168 Total net loss before income tax (245,942) (300,831) (475,311) A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: For the Year ended December 31, 2021 2022 2023 Statutory income tax rate 25.00 % 25.00 % 25.00 % Effect of different tax rate of different jurisdictions (4.39) % (3.14) % (0.79) % Non-deductible expenses (17.98) % (6.12) % (12.42) % Effect of super deduction on R&D expenses 34.83 % 41.00 % 37.21 % Tax-free income — — 0.32 % Effect of change of valuation allowance (37.44) % (56.76) % (49.46) % Over provision for prior years 0.43 % — — Income tax expenses 0.45 % (0.02) % (0.14) % Deferred tax assets and deferred tax liabilities As of December 31, 2022 2023 RMB RMB Deferred tax assets – Net operating loss carry forwards 373,215 705,249 – Deductible temporary differences 31,348 72,625 – Deferred revenue 6,294 19,620 Less: valuation allowance (410,857) (797,494) Net deferred tax assets — — Deferred tax liabilities – Identifiable intangible assets from business combination. 439 — Total deferred tax liabilities 439 — 18. INCOME TAXES (continued) Movement of valuation allowance Movement of valuation allowance is as follow: For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of the year 136,269 241,485 410,857 Addition 105,216 169,372 386,637 Total 241,485 410,857 797,494 For the years ended December 31, 2021, 2022 and 2023, the Group had net operating loss carry forwards of approximately RMB881,256, RMB1,492,808 and RMB2,850,909, respectively, which mainly arose from the subsidiaries established in the PRC and United States. The loss carry forwards will expire during the period from 2024 to 2033, while the federal loss carry forwards for US entities do not expire and can be carried forward indefinitely. The Group had provided a full valuation allowance for the deferred tax assets as of December 31, 2022, and 2023, as management determined that deferred tax assets were not more likely than not to be realizable in future tax years based on all available evidence. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 19. SHARE-BASED COMPENSATION Employee share options In March 2023, the Company’s board of directors approved a modification on the vesting schedule of 1,136,631 share options that previously issued under the 2021 Plan. As the result of the modification, there was no incremental value conveyed to the holder of the award, no incremental compensation cost was recognized, the Group recognized RMB6,690 share-based compensation expenses at the date of modification. On March 10, March 21, May 30, June 30, August 18, November 17 and December 20, 2023 under the 2021 Plan, the Company granted 2,422,714 share options to certain employees, the vesting schedule of the awards include: 1) Twenty-five percent (25%) of the 2,069,592 options to be vested on each of the first, second, third and fourth anniversaries of the vesting commencement date. 2) Thirty-three percent (33%) of the 2,833 options to be vested on each of the first, second, and third anniversaries of the vesting commencement date. 3) One forty-eighth ( 1/48 4) Twenty-five percent (25%) of the 154,408 options to be vested on the each of the vesting commencement date, and another twenty-five percent (25%) to be vested on each of the first, second and third anniversaries of the vesting commencement date. 19. SHARE-BASED COMPENSATION (continued) Employee share options - continued 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 years ended December 31, 2021, 2022 and 2023: For the year ended December 31, 2021 2022 2023 Expected volatility 48.00% - 74.00 % 74.00% – 80.00 % 82.00% - 85.00 % Risk-free interest rate (per annum) 0.97% - 1.55 % 1.94% – 3.83 % 3.57% - 4.47 % Expected dividend yield 0.00 % 0.00 % 0.00 % Employee forfeiture rate (per annum) 3.80 % 3.80% – 3.92 % 2.40% - 7.50 % Exercise multiples 2.50 2.50 2.50 Expected term 7.00 7.00 7.00 Fair value of underlying ordinary share (per share) US $14.10 - 18.42 US$18.11 – 19.91 US$7.95 - 15.47 Fair value of awards on valuation date US$5.84 - 19.90 US$12.93 – 17.11 US$5.38 - 10.51 1) Expected volatility was estimated based on historical volatility of comparable companies for the period before the valuation date with length commensurate to contractual life of the share options. 2) Risk-free interest rate was estimated based on the US Government Bond around the valuation date. 3) The dividend yield was estimated as zero based on the plan to retain profit for corporate expansion and no dividend will be distributed in the near future. 4) Employee forfeiture rate was estimated by the management using employee resignation statistics. 5) Assumption on exercise multiple is made with reference to academic research. 6) The expected term was the life of options extracted from option agreements. 7) The fair value before the completion the initial public offering in the United States considered discounted cash flow method which converts future amounts to a single present value amount and requires significant judgements on the expected future free cash flows and other assumptions including appropriate discount rate and estimate of long-term growth rate of the Group’s business and was the Group’s stock price on grant date after the initial public offering in the United States. 19. SHARE-BASED COMPENSATION (continued) Employee share options - continued The following table summarizes the activities of the Group’s share options classified as equity for the years ended December 31, 2022 and 2023: Weighted Weighted Weighted average Number average average remaining Aggregate of exercise grant date contract intrinsic options price fair value life value RMB RMB Years RMB Outstanding at December 31, 2022 9,608,634 12.51 65.93 5.46 1,141,255 Granted 2,422,714 14.49 55.08 — — Forfeited 506,540 44.32 — — — Exercised 1,333,087 16.59 — — 74,380 Outstanding at December 31, 2023 10,191,721 16.07 62.08 4.97 517,605 Vested and expected to vest as of December 31, 2023 10,191,721 16.07 62.08 4.97 517,605 Exercisable as of December 31, 2023 5,335,293 15.74 50.36 4.34 287,997 The weighted-average grant-date fair value of options granted during the years 2021, 2022, and 2023 was RMB102.74, RMB121.62, and RMB55.08, respectively. The total intrinsic value of options exercised during the years ended December 31, 2021, 2022, and 2023, was nil, nil and RMB74,380 respectively. The Group did not record any compensation expenses related to options awarded with IPO condition prior to the completion of IPO during the years 2021 and 2022. The Share-based compensation expense of RMB79,804 related to the vested portion of these options has been recognized upon the effectiveness of the registration statements on February 8, 2023. Total compensation expense recognized for the years ended December 31, 2021, 2022 and 2023 was RMB54,283, RMB104,750 and RMB228,312, respectively. As of December 31, 2023, there was RMB291,247 of unrecognized compensation expenses, which is expected to be recognized over a weighted average period of 2.35 years. Restricted share units (“RSUs”) On March 10, March 21, May 30, August 18 and November 17, 2023 under the 2021 Plan, the Company granted 189,012 RSUs to eligible management team, the vesting schedule of the awards include: 1) Fifty percent (50%) of the 54,775 RSUs to be vested on each of the first second 2) Twenty-five percent (25%) of the 120,143 RSUs to be vested on each of the first, second, third and fourth anniversaries of the vesting commencement date. 3) One eighth ( 1/8 19. SHARE-BASED COMPENSATION (continued) Restricted share units (“RSUs”) - continued The Group did not grant RSUs during the years 2021 and 2022. The following table summarizes the activities of the Group’s RSUs classified as equity for the year ended December 31, 2023: Weighted Numbers of average grant RSUs date fair value RMB Outstanding at January 1, 2023 — — Granted 189,012 76.52 Forfeited — Exercised 35,691 Outstanding at December 31, 2023 153,321 76.06 Vested and expected to vest as of December 31, 2023 153,321 76.06 Exercisable as of December 31, 2023 — — The weighted-average grant-date fair value of share units granted during the year 2023 was RMB76.52. The total intrinsic value of share units exercised during the years ended December 31, 2023, was RMB2,252. Total compensation expense recognized for the year ended December 31, 2023 was RMB5,646. As of December 31, 2023, there was RMB8,816 of unrecognized compensation expenses, which is expected to be recognized over a weighted average period of 2.47 years. Tandem award In May 2022, the Company granted an employee with a share option award of 60,000 shares with a per share exercise price of US$18.65, which is based on the fair value of the ordinary share at the date of the grant. The options will vest rateably over a four-year period with 25% vested every year. The option agreement includes a provision whereby the grantee can choose to receive cash payment at US$8 per share for any options that are vested but not exercised if his employment upon termination of employment when such grantee continuously work for the Group for four years. Exercise of share options cancels the cash award, and the cash redemption cancels all the vested share options. The Company considered this award as a combination grant of a cash settlement component with compensation cost measured based on the combined value. This tandem award was classified as liabilities. Total compensation expense recognized for the years ended December 31, 2022 and 2023 was RMB469 and RMB666, respectively. 19. SHARE-BASED COMPENSATION (continued) Share-based compensation for all employee share options, restricted share units and tandem award The Group recorded share-based compensation expense of RMB54,283, RMB105,219 and RMB234,624 for the years ended December 31, 2021, 2022 and 2023, respectively, which were classified in the accompanying consolidated statements of operations as follows: For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Cost of revenues 1,813 8,037 16,245 Sales and marketing expenses 1,488 6,291 20,682 General and administrative expenses 38,892 48,998 63,326 Research and development expenses 12,090 41,893 134,371 Total 54,283 105,219 234,624 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 20. RELATED PARTY TRANSACTIONS Major related parties that transacted with the Group and their respective relationship to the Group listed as below: Name of the related parties Relationship Mr. Kai Sun Founding Shareholders Mr. Yifan Li Founding Shareholders Mr. Shaoqing Xiang Founding Shareholders Mr. Minglie Hu Shareholder Mr. Min Ai Shareholder Shanghai Leyi Technology L.P. An affiliate of the shareholder of the Group Baidu USA LLC (Note) An affiliate of the shareholder of the Group Beijing Baidu Netcom Technology Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Transportation Technology (Guangzhou) Co., Ltd. An affiliate of the shareholder of the Group Baidu Smart Travel Information Technology (Chongqing) Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Transportation Technology (Hefei) Co., Ltd. An affiliate of the shareholder of the Group Luobo Yunli (Beijing) Technology Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Transportation Technology (Dalian) Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Technology (Beijing) Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Connection (Beijing) Co., Ltd. An affiliate of the shareholder of the Group 20. RELATED PARTY TRANSACTIONS (continued) Note: Started from June 30, 2021, Baidu (China) Co., Ltd and its affiliates (collectively as “Baidu”) was no longer treated as the Group’s related parties as Baidu no longer has significant influence over the Group after the consummation of 2021 Reorganization. For the years ended December 31, 2021, 2022 and 2023, significant related party transactions were as follows: For year ended December 31, 2021 2022 2023 RMB RMB RMB Net revenues Affiliates of the shareholders of the Group 15,655 — — Total 15,655 — — For year ended December 31, 2021 2022 2023 RMB RMB RMB Payment for equity acquisition consideration Founding Shareholders and certain shareholders — — 17,506 Total — — 17,506 For year ended December 31, 2021 2022 2023 RMB RMB RMB Subscription consideration received from shareholders Founding Shareholders and certain shareholders — — 17,506 Total — — 17,506 The balances due to related parties of financing are as follows: As of December 31, 2021 2022 2023 RMB RMB RMB Amounts due to related parties, net of allowance Founding Shareholders and certain shareholders 307,498 334,283 326,028 An affiliate of the shareholder of the Group — — 14,023 Total 307,498 334,283 340,051 20. RELATED PARTY TRANSACTIONS (continued) 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. In December 2023, the Group settled the consideration payable of RMB17,506 to one shareholder, and subscription receivable of this shareholder of RMB17,506 was received at Cayman Company level. |
Loss per Share
Loss per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Loss per Share | 21. LOSS PER SHARE For the purpose of calculating net loss per share, the number of shares used in the calculation reflects the outstanding shares of the Company as if the 2021 Reorganization as described in Note 1 took place at the earliest period presented. For the year ended December 31, 2021 2022 2023 RMB RMB RMB Numerator Net loss (244,827) (300,765) (475,968) Deemed dividend (2,211,330) (446,419) — Net loss attributable to ordinary shareholders (2,456,157) (747,184) (475,968) Denominator Weighted average number of ordinary shares outstanding-basic and diluted 104,987,478 115,534,593 124,783,013 Basic and diluted net loss per share attributable to ordinary shareholders (23.39) (6.47) (3.81) For the years ended December 31, 2021, 2022 and 2023, the following share options were excluded from the calculation of diluted net loss per ordinary share, as their inclusion would have been anti-dilutive for the period prescribed. For the year ended December 31, 2021 2022 2023 Number Number Number Shares issuable upon exercise of share options 9,173,623 9,608,634 10,191,721 Shares issuable upon exercise of restricted share units — — 153,321 Shares issuable upon exercise of tandem award — 60,000 60,000 Total 9,173,623 9,668,634 10,405,042 |
Segment
Segment | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment | 22. SEGMENT The Group organized its operations into two segments: LiDAR segment and gas detection segment. The table below provides a summary of the Group’s operating segment results for the years ended December 31, 2021, 2022 and 2023: Year ended December 31, 2021 2022 2023 RMB RMB RMB LiDAR segment Revenue: Product revenues 686,533 1,127,900 1,738,027 Service revenues 14,702 50,803 112,099 Cost: Cost of products sold 326,160 707,617 1,176,472 Cost of service revenues 4,609 12,683 30,329 Segment profit 370,466 458,403 643,325 Gas detection segment Gas detection product revenues 19,533 23,967 26,863 Cost of products sold 8,203 10,383 8,810 Segment profit 11,330 13,584 18,053 Total segment profit 381,796 471,987 661,378 On November 15, 2023, the Group disposed 100% equity interest of its subsidiary, Oxigraf, Inc. which consisted of the gas detection segment, and related US intellectual property right at a total consideration of US$3.7 million. The gain on disposal was US$0.9 million (equivalent to RMB6.1 million) and has been recognized in other operating income The following is a reconciliation of the reportable segments’ measures of profit or loss to the Group’s consolidated loss before income taxes: Year ended December 31, 2021 2022 2023 RMB RMB RMB Total profit for reportable segments 381,796 471,987 661,378 Unallocated amounts* Sales and marketing expenses (69,266) (104,835) (148,798) General and administrative expenses (236,713) (201,007) (320,144) Research and development expenses (368,435) (555,179) (790,547) Other operating income, net 27,333 10,817 26,520 Interest income 32,584 58,734 99,813 Interest expenses — — (3,069) Foreign exchange (loss) gains (13,275) 20,858 (452) Other (loss) income, net 118 (2,161) 34 Loss before income tax (245,858) (300,786) (475,265) * 22. SEGMENT (continued) The following table summarizes the Group’s long-term assets, including property and equipment, net, land-use rights, net, long-term investments, right-of-use assets, and other non-current assets by geographical region: As of December 31, 2022 2023 RMB RMB Mainland China 665,511 1,144,643 Thailand — 39,312 North America 14,351 2,146 Switzerland — 103 Total long-term assets 679,862 1,186,204 |
Employee Benefit
Employee Benefit | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit | 23. EMPLOYEE BENEFIT Mainland China Contribution Plan Full time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require that the Group to accrue for these benefits based on a certain percentage of the employees’ salaries. The total contribution for such employee benefits were RMB50,648, RMB82,877 and RMB122,844 for the years ended December 31, 2021, 2022 and 2023, respectively. The Group has no ongoing obligation to its employees subsequent to its contributions to the PRC plan. |
Statutory Reserves and Restrict
Statutory Reserves and Restricted Net Assets | 12 Months Ended |
Dec. 31, 2023 | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | |
Statutory Reserves and Restricted Net Assets | 24. STATUTORY RESERVES AND RESTRICTED NET ASSETS The Group’s entities in the PRC are required under PRC laws to distribute its after-tax profits of the current year and set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of their registered capital. The statutory reserve funds are not distributable as cash dividends. The Group has no statutory reserve balance for the years ended December 31, 2022 and 2023. The PRC entities with the Group are restricted from transferring their net assets to the Company, which include paid-in capital and statutory reserves. As of December 31, 2023, the balance of restricted net assets was RMB3,121,808. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 25. COMMITMENTS AND CONTINGENCIES Capital expenditure commitments related to the new manufacturing facility in Shanghai Future minimum capital payment under non-cancellable agreements are as follow: As of December 31, 2023 RMB 2024 115,813 Total 115,813 25. COMMITMENTS AND CONTINGENCIES (continued) Royalty fee commitments The Group is obligated to make royalty payments to a third party from 2020 through 2030. The royalty payments for 2021 and 2022 should be US$3.0 million. For each year starting from 2023, the royalty payment is determined to be the greater amount of a base payment of US$3.0 million (except for the year of 2030, where the base payment shall be US$0.3 million) or amount calculated based on a tiered percentage of net revenues. In particular, the percentage should be 4%, 3% and 2% for the net revenues of rotational scanning product from US$0 to US$425,000, from US$425,000 to US$2,925,000, and from US$2,925,000 to above, respectively. Net sales do not include (a) taxes, tariffs, customs duties, excise, or other governmental charges (except income tax) levied and that are separately stated in an invoice, (b) reasonable charges for freight or insurance that are separately stated in an invoice and borne by the Group or its affiliates. The actual royalty fees for the years ended December 31, 2021, 2022 and 2023 were RMB18,542, RMB18,044 and RMB35,288, respectively. Contingencies The Group may from time to time be subject to various legal or administrative claims and proceedings arising in the ordinary course of business. On April 7, 2023, the Company and certain of its officers, directors, authorized U.S. representative, and IPO underwriters were named as defendants in a putative securities class action filed with federal court, alleging that the Company made false and misleading statements in its IPO registration statement. On April 11, 2023, Ouster Inc. (“Ouster”) filed a complaint against the Company with the United States District Court for the District of Delaware (“Delaware Action”) for alleged patent infringement relating to the production, use, sale and/or importation of certain LiDAR systems and/or components thereof. As these matters are in their preliminary stage, the Company cannot reasonably determine the outcome of these ligations and regulatory proceeding and potential loss, if any. |
Additional Information of the P
Additional Information of the Parent Company | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Additional Information of the Parent Company | ADDITIONAL INFORMATION OF THE PARENT COMPANY FINANCIAL STATEMENTS SCHEDULE I HESAI GROUP CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2022 and 2023 (Amounts in thousands, except share and per share data and otherwise noted) As of December 31, 2022 2023 RMB RMB US$ (Note 2) ASSETS Cash and cash equivalents 35,411 363,778 51,237 Short-term investments — 581,962 81,968 Prepayments and other current assets 1,041 8,005 1,127 Investments in subsidiaries 2,806,201 2,929,800 412,653 Property and equipment, net 7 5 1 TOTAL ASSETS 2,842,660 3,883,550 546,986 LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY Amounts due to subsidiaries — 14,024 1,975 Accrued expenses and other current liabilities 927 7,208 1,015 TOTAL LIABILITIES 927 21,232 2,990 MEZZANINE EQUITY Redeemable shares (US$0.0001 par value, 54,551,513 and nil shares issued outstanding 5,986,910 — — TOTAL MEZZANINE EQUITY 5,986,910 — — Shareholders’ (deficit) equity Class A Ordinary shares (US$0.0001 par value, 35,000,000 and 50,000,000 shares authorized, 30,033,379 shares issued and outstanding as of December 31, 2022 and 2023, respectively) 19 19 3 Class B Ordinary shares (US$0.0001 par value, 150,000,000 and 900,000,000 shares authorized, 30,949,701 and 99,626,332 shares issued, 30,949,701 and 96,995,110 shares outstanding as of December 31, 2022 and 2023, respectively) 20 67 9 Additional paid-in capital — 7,423,862 1,045,629 Subscription receivables (310,227) (292,721) (41,229) Accumulated other comprehensive (loss) income (3,608) 38,440 5,414 Accumulated deficit (2,831,381) (3,307,349) (465,830) Total shareholders’ (deficit) equity (3,145,177) 3,862,318 543,996 TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ (DEFICIT) EQUITY 2,842,660 3,883,550 546,986 ADDITIONAL INFORMATION OF THE PARENT COMPANY FINANCIAL STATEMENTS SCHEDULE I HESAI GROUP CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE YEARS ENDED DECEMBER 31, 2021, 2022 and 2023 (Amounts in thousands, except share and per share data and otherwise noted) For the years ended December 31, 2021 2022 2023 RMB RMB RMB US$ (Note 2) Net revenues — — — — General and administrative expenses (146,838) (37,105) (98,099) (13,817) Interest income — — 42,402 5,972 Foreign exchange (loss) gain (2,324) 2 (12) (2) Other income, net 34 — — — Equity in deficit of subsidiaries (95,699) (263,662) (420,259) (59,192) Net Loss (244,827) (300,765) (475,968) (67,039) Deemed dividend (2,211,330) (446,419) — — Net loss attributable to ordinary shareholders of the Company (2,456,157) (747,184) (475,968) (67,039) Net Loss (244,827) (300,765) (475,968) (67,039) Comprehensive loss, net of tax of nil : Foreign currency translation adjustments 9,083 (12,073) 42,048 5,922 Comprehensive loss (235,744) (312,838) (433,920) (61,117) ADDITIONAL INFORMATION OF THE PARENT COMPANY FINANCIAL STATEMENTS SCHEDULE I HESAI GROUP CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021, 2022 and 2023 (Amounts in thousands, except share and per share data and otherwise noted) Year ended December 31, 2021 2022 2023 RMB RMB RMB US$ (Note 2) Cash flows from operating activities: Net loss (244,827) (300,765) (475,968) (67,039) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization — 2 3 1 Loss from equity in earnings of subsidiaries 95,699 263,662 420,259 59,192 Share-based compensation 35,056 33,342 42,379 5,969 Fair value change of short-term investments — — (12,500) (1,761) Foreign exchange loss (gain), net 2,324 (2) 12 2 Changes in operating assets and liabilities: Prepayments and other current assets (496) (545) (1,544) (217) Amounts due from related parties (255) — — — Accrued expenses and other current liabilities 24,746 2,611 6,281 885 Net cash used in operating activities (87,753) (1,695) (21,078) (2,968) Cash flows from investing activities: Purchases of short-term investments — — (742,287) (104,552) Maturity of short-term investments — — 176,302 24,832 Purchases of property and equipment — (10) — — Investments in subsidiaries (2,787,570) — (379,237) (53,414) Net cash used in investing activities (2,787,570) (10) (945,222) (133,134) Cash flows from financing activities: Cash contribution from shareholders in connection with the 2021 Reorganization 507,620 — 17,506 2,466 Proceeds from issuance of convertible loans 1,950,338 — — — Proceeds from issuance of ordinary shares 453,978 — 1,225,470 172,604 Payment of offering costs — — (22,828) (3,215) Proceeds from issuance of ordinary shares upon the exercise of stock options — — 2,872 405 Collection of payments due to subsidiaries — — 14,024 1,975 Net cash provided by financing activities 2,911,936 — 1,237,044 174,235 Net increase (decrease) in cash and cash equivalents 36,613 (1,705) 270,744 38,133 Cash and cash equivalents, beginning of the year — 36,160 35,411 4,988 Effect of foreign exchange rate changes on cash and cash equivalents (453) 956 57,623 8,116 Cash and cash equivalents, end of the year 36,160 35,411 363,778 51,237 Supplemental disclosure of non-cash financing activities: Accrued purchases of property and equipment 1,950,338 — — — Accrued offering cost — 480 — — ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY FINANCIAL STATEMENTS SCHEDULE I HESAI GROUP FINANCIAL INFORMATION OF PARENT COMPANY NOTES TO SCHEDULE I 1. 2. 3. 4. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The combined and consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Basis of Consolidation | Basis of Consolidation The financial statements presented herein represent (1) prior to the 2021 Reorganization, the combined financial statements of Shanghai Hesai and its subsidiaries; (2) subsequent to the 2021 Reorganization, the 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 | Use of estimates The preparation of combined and 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 consolidated financial statements mainly include the estimated project progress towards certain services revenue, warranty reserves, inventory write-down, allowance for doubtful accounts, valuation of ordinary shares and share-based compensation. |
Fair value measurements | 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. 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, 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. Short-term investments also consist of structured financial products with commercial banks in the PRC. The structured financial products 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 combined and consolidated statements of operations and comprehensive loss. The fair values of these structed financial products as of December 31, 2022 and 2023 were determined to be RMB945,865 and RMB857,924 using Level 2 significant other observable input by applying the interest rate implied by the current quotation of underlying indices. For the years ended December 31, 2021, 2022 and 2023, the Group recorded fair value changes of short - term investments of RMB26,351, RMB52,252 and RMB30,158 as interest income in the combined and consolidated statements of operations and comprehensive loss, respectively. |
Functional currency and foreign currency translation | Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiary located outside of PRC is the United States dollar (“US$”), and the functional currency of subsidiaries located in PRC is RMB. Assets and liabilities are translated from each entity’s functional currency to the reporting currency at the exchange rate on the balance sheet date. Equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of accumulated other comprehensive (loss) income in the combined and consolidated statements of changes in shareholders’ (deficit) equity. Monetary assets and liabilities denominated in currencies other than the entity’s applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized as foreign exchange (loss) gain, net in the combined and consolidated statements of operations and comprehensive loss. |
Cash and cash equivalents | Cash and cash equivalents The Group classifies cash on hand and cash in bank with original maturities of three months or less, and are unrestricted as to withdrawal or use, as cash and cash equivalents. |
Restricted cash | Restricted cash Restricted cash mainly represents the Group’s security deposits with respect to the Group’s credit card account, withdrawal or use is contractually restricted of these cash balance. |
Accounts receivable, net | Accounts receivable, net Accounts receivable mainly consists of amount due from the Group’s customers, which are recorded net of allowance for credit losses. The Group divides its portfolio into four pools — domestic PRC automotive original equipment manufacturer (“OEM”) customers, domestic PRC other customers, overseas automotive OEM customers and overseas other customers for the purposes of performing ongoing credit evaluation by reviewing their credit rating and industry geographic distribution and assessing allowance for credit loss based on expected credit loss model for each pool of the portfolio. The Group develops a current expected credit loss (“CECL”) model based on 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. Account receivable balances are written off after all collection efforts have been exhausted. |
Inventories | Inventories Inventories consists of raw materials, work-in-process, and finished goods and are stated at lower of cost or net realizable value. Costs are computed under the weighted average method. Net realizable value is determined as estimated selling prices in the ordinary course of business, less reasonably predictable costs to sell. Valuation of inventories is based on currently available information about expected recoverable value. The estimate is dependent upon factors such as market trends, inventory ageing, and historical and forecasted customer demands. Inventory write-down is recorded as cost of revenues. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation and impairment. Property and equipment except land are depreciated at rates sufficient to write off its costs less impairment, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follows: Electronic equipment 3 – 5 years Machinery and equipment 10 years Furniture and fixture 5 years Transportation vehicles 4 years Leasehold improvements Over the shorter of the expected lease term or useful lives Land held by the Group in perpetuity is not depreciated and is stated at cost less impairment. Interest expenses on outstanding debt are capitalized during the period of significant capital asset construction. Capitalized interest on construction in progress is included within Property, plant and equipment, net and is amortized over the life of the related assets. |
Intangible assets, net | Intangible assets, net Intangible assets are recognized and measured at cost upon acquisition. Following the initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The identifiable intangible assets acquired are amortized on a straight-line basis over the respective useful lives as follows: Software 3 – 10 years Technology 3 – 8 years |
Land-use rights, net | Land-use rights, net Land-use rights are recognized and measured at cost upon acquisition. Following the initial recognition, land-use rights are carried at cost less any accumulated amortization and any accumulated impairment losses. According to the land-use rights policy in the PRC, the useful life of land-use rights is 50 years. |
Goodwill | Goodwill Goodwill is not amortized but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that it might be impaired. The Group’s annual testing date is December 31. The Group recognized goodwill of US$1,982,033, which was assigned to Oxigraf, Inc. as a reporting unit. On November 15, 2023, the Group disposed Oxigraf, Inc., the corresponding goodwill was derecognized as part of the disposal. |
Long-term investments | Long-term investments Investment in equity method investee The Group uses equity method to account for common stock investments in entities over which it has significant influence but does not have controlling interests. Under the equity method of accounting, the Group’s share of the earnings or losses of the investee companies, impairments, and other adjustments required by the equity method are reflected in the combined and consolidated statements of operations and comprehensive loss. When the Group’s share of losses in an investee equals or exceeds its carrying amount of the investment in the investee, the Group does not recognize further losses, unless the Group has guaranteed the obligations of the investee or is otherwise committed to provide further financial support for the investee. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group estimated the fair value of investments in equity investees under discounted cash flow analysis which requires significant judgments, including the estimation of future cash flows, which is dependent on internal forecasts, the estimation of long-term growth rate of a company’s business, the estimation of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The Group did not record any impairment on its equity method investment during the years ended December 31, 2021, 2022 and 2023. Equity securities without readily determinable fair value The Group has elected to measure the investment in equity securities without readily determinable fair values at cost minus impairment, if any, adjusted up or down for observable price changes. Any adjustment to the carrying amount is recorded in other income (loss), net. At each reporting period end, the Group makes a qualitative assessment considering impairment indicators to evaluate whether any of these investments is impaired. If the assessment indicates that the fair value of an investment is less than the carrying value, the investment in equity securities will be written down to its fair value, with the difference between the fair value of the investment and its carrying amount as an impairment loss. No fair value adjustment was recognized for the year ended December 31, 2022 and 2023. |
Revenue recognition | Revenue recognition The Group recognizes revenue from sales of LiDAR products and gas detection 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 standalone selling prices are based on the prices charged to customers for the single performance obligation which is transfer of control of products upon delivery to the customers or upon 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. 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 autonomous mobility sector, such warranties last one year. For those used in advanced driver assistance system sector, 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 two Changes in the Group’s accrued warranty liability was as follows: For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Balance as of the beginning of the year 10,042 13,932 17,694 Warranty provision 10,766 8,467 26,247 Consumption (6,876) (4,705) (15,516) Balance as of the end of the year 13,932 17,694 28,425 A contract asset is recorded when the Group has transferred products or services to the customer before payment is received or is due, and the Group’s right to consideration is conditional on future performance in the contract. The Group records a contract asset for unbilled receivables for certain customers where the control of the goods or services has been transferred. A contract liability exists when the Group has received consideration but has not transferred the related goods or services to the customer. The Group’s contract liabilities mainly consist of payments received from customers before they received the products. |
Cost of revenues | Cost of revenues Cost of revenues for our products includes the manufacturing cost of LiDAR sensors and gas detection products, which primarily consists of direct material costs, personnel-related costs, purchasing costs, depreciation, amortization and overhead associated with manufacturing operations, accrued warranty costs, shipping costs, licensing fees, and write-downs of excess inventories and obsolete inventories. Cost of revenues for our services includes cost of LiDAR solution and direct labor costs and related material costs relating to the fulfillment of services. |
Research and development expenses | Research and development expenses Research and development expenses consist primarily of personnel-related costs directly associated with research and development organization, with the remainder being prototype expenses, third-party engineering and contractor costs, an allocated portion of facility and IT costs and depreciation. The Group’s research and development costs are related to enhancing and developing additional functionality for its existing products and on new product development, including new releases and upgrades to LiDAR sensors. The Group expenses research and development costs as incurred. |
Government grants | Government grants Government grants consist of cash subsidies received by the Group from PRC local governments. Grants received as incentives for conducting business in certain local districts with no performance obligation or other restriction as to the use are recognized when cash is received. Grants received with government specified performance obligations are recognized when all the obligations have been fulfilled. Government grants received related to the purchases of long-term assets are used to net the cost of the respective assets. The grants related to unfulfilled obligations of nil, nil and RMB53,668 were included in the other non-current liabilities as of December 31, 2021, 2022 and 2023, respectively. The Group recorded government grants RMB27,446, RMB10,825 and RMB14,280 in other operating income, net for the years ended December 31, 2021, 2022 and 2023, respectively. |
Loss per share | Loss per share Basic loss per share is computed by dividing net loss attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The Group had share options, which could potentially dilute basic earnings per ordinary share in the future. To calculate the number of shares for diluted earnings per ordinary share, the effect of the share options is computed using the treasury stock method. |
Share-based compensation | Share-based compensation The Group grants share-based awards of the Company to eligible employees and accounts for these share-based awards in accordance with ASC 718, Compensation - Stock Compensation. Share-based awards that are subject to both the service period and the occurrence of a Qualified IPO as performance condition are measured at the grant date fair value and share-based compensation expenses are recognized for the cumulatively vested amount upon the completion of the Qualified IPO first and then over the remaining requisite service period, net of actual forfeitures, if any. Share-based awards that are subject to only the service period are measured at the grant date fair value and share-based compensation expenses are recognized on a straight-line basis over the requisite service period of the individual grants. The Group recognizes share-based compensation expenses based on the target number of Class B ordinary shares that may be earned pursuant to the award. Forfeitures are recognized as reductions to share-based compensation when they occur. Prior to IPO, the fair value of the share options granted to employees is determined with the assistance of an independent valuation specialist using widely accepted valuation techniques, including discounted cash flow analysis on the expected future free cash flows and binomial option pricing model. The Group accounts for the effects of a modification as described in ASC 718. The Group calculates incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified. For vested options, the Group would recognize incremental compensation cost on the date of modification and for unvested options, the Group would recognize, prospectively and over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award. Share-based compensation with cash settlement features is classified as liabilities. The percentage of the fair value that is recorded as compensation cost at the end of each period is based on the percentage of the requisite service that has been rendered at that date. Changes in fair value of the liability classified award that occurs during the requisite service period are recognized as compensation costs rateably over time during the services to be rendered. |
Income Taxes | Income Taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such a determination, the management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. Deferred tax assets are then reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more likely than not that a portion of or all of the deferred tax assets will not be realized. The Group accounts for uncertainty in income taxes recognized in the financial statements by applying a two-step process to determine the amount of the benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained (defined as a likelihood of more than fifty percent of being sustained upon an audit, based on the technical merits of the tax position), the tax position is then assessed to determine the amount of benefits to recognize in the combined and consolidated financial statements. The amount of the benefits that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Group did not recognize any income tax due to uncertain tax position or incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2021, 2022 and 2023. |
Leases | Leases The Group leases office space, manufacturing plants and warehouses in Shanghai, PRC and California, USA under non-cancellable operating lease agreements that expire at various dates through October 31, 2025. Before January 1, 2022, the Group used the Accounting Standards Codification, Leases (“ASC 840”), in which each lease is classified at the inception date as either a capital lease or an operating lease. All the Group’s leases are classified as operating lease under ASC 840. The Group’s reporting for periods prior to January 1, 2022 continued to be reported in accordance with Leases (ASC 840). Effective from January 1, 2022, the Group adopted ASU No. 2016-02 “Leases” (“ASC 842”) using the modified retrospective approach. The Group elected the transition package of practical expedients permitted within the standard, which allowed it not to reassess initial direct costs, lease classification, or whether the contracts contain or are leases for any leases that existed prior to January 1, 2022. The Group also elected the short-term lease exemption for all contracts with an original lease term of 12 months or less. Upon the adoption, the Group recognized operating lease right-of-use (“ROU”) assets of RMB36,030 with corresponding lease liabilities of RMB36,599 on the combined and consolidated balance sheets. The operating lease ROU assets include adjustments for prepayments. The adoption did not impact the Group’s beginning retained earnings as of January 1, 2022, or the Group’s prior years’ financial statements. The impact on the combined and consolidated balance sheets upon adoption of ASC842 was as follows: December 31, 2021 January 1, 2022 Effect of the After adoption As reported adoption of ASC 842 of ASC 842 RMB RMB RMB ASSETS Right-of-use assets — 36,030 36,030 TOTAL ASSETS — 36,030 36,030 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued expenses and other current liabilities 569 12,566 13,135 Lease liabilities, non-current — 23,464 23,464 TOTAL LIABILITIES 569 36,030 36,599 TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 569 36,030 36,599 Under ASC 842, the Group determines whether an arrangement constitutes a lease and records lease liabilities and ROU assets on its combined and consolidated balance sheets at the lease commencement date. The Group measures the operating lease liabilities at the commencement date based on the present value of remaining lease payments over the lease term, which is computed using the Group’s incremental borrowing rate, an estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the lease term. The Group measures the operating lease ROU assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing operating lease expense based on lease payments on a straight-line basis over the lease term after the lessor makes the underlying asset available to the Group. Some of the Group’s lease contracts include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group does not include renewal option periods in the lease term for which it is not reasonably certain to exercise. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) is defined as the change in equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income(loss) is reported in the consolidated statement of operations and comprehensive income(loss). Accumulated other comprehensive (loss) income, as presented on the accompanying combined and consolidated balance sheets consists of accumulated foreign currency translation adjustments. |
Segment | Segment The Chief Executive Officer, Chief Scientist and Chief Technology Officer (collectively referred to the “founders”) are identified as the chief operating decision maker (CODM). The Group organized its operations into two segments: LiDAR segment and gas detection segment. The financial information of the respective segments is disclosed in Note 22. |
Concentration of risks | 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. The Group establishes an allowance for doubtful accounts 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 years ended December 31, 2021, 2022 and 2023: For the Year ended December 31, 2021 2022 2023 Customer A * 24.3 % 25.6 % Customer B 17.5 % 13.7 % 28.4 % Customer C 12.7 % * * The following customers accounted for 10% or more of the Group’s accounts receivable, contract assets and amount due from related parties as of December 31, 2022 and 2023: As of December 31, 2022 2023 Customer A 61.0 % 41.3 % Customer B 15.3 % 10.2 % Customer D * 11.2 % Concentration of suppliers The Group has one supplier accounted for 10% or more of purchases for the years ended December 31, 2021 and 2022: For the Year ended December 31, 2021 2022 2023 Supplier A 13.7 % 12.3 % * |
Foreign currency risk | Foreign currency risk A significant portion of Group’s cash and cash equivalents and short-term investments are denominated in US$, fluctuations in exchange rates between US$ and RMB may result in foreign exchange gains or losses. The value of US$ is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group has cash and cash equivalents that are denominated in US$, totaling US$51,351 and US$131,832 as of December 31, 2022 and 2023, respectively. |
Recent accounting pronouncements | Recent accounting pronouncements Under the Jumpstart Our Business Startups Act of 2012, as amended (“the JOBS Act”), the Group meets the definition of an emerging growth company, or EGC as of December 31, 2023, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. Once the Group ceases to qualify as EGC, it will immediately adopt the new and revised accounting standards already effective for public companies. There are no recent accounting pronouncements which are expected to have a material effect on the Company’s consolidated financial statements in the current or any future periods. |
Convenience translation | Convenience translation The Group’s business is primarily conducted in China and most of its revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into US$ using the then current exchange rates, for the convenience of the readers. Translations of balances in the combined and consolidated balance sheet, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0999 representing the noon buying rate set forth in the H.10 statistical release of the United States as of December 29, 2023. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment over estimated useful life | Electronic equipment 3 – 5 years Machinery and equipment 10 years Furniture and fixture 5 years Transportation vehicles 4 years Leasehold improvements Over the shorter of the expected lease term or useful lives |
Schedule of intangible assets useful life | Software 3 – 10 years Technology 3 – 8 years |
Schedule of accrued warranty liability | For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Balance as of the beginning of the year 10,042 13,932 17,694 Warranty provision 10,766 8,467 26,247 Consumption (6,876) (4,705) (15,516) Balance as of the end of the year 13,932 17,694 28,425 |
Schedule of impact on the combined and consolidated balance sheets upon adoption of ASC842 | December 31, 2021 January 1, 2022 Effect of the After adoption As reported adoption of ASC 842 of ASC 842 RMB RMB RMB ASSETS Right-of-use assets — 36,030 36,030 TOTAL ASSETS — 36,030 36,030 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued expenses and other current liabilities 569 12,566 13,135 Lease liabilities, non-current — 23,464 23,464 TOTAL LIABILITIES 569 36,030 36,599 TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 569 36,030 36,599 |
Schedule of concentration of risks | Concentration of customers The following customers accounted for 10% or more of revenue for the years ended December 31, 2021, 2022 and 2023: For the Year ended December 31, 2021 2022 2023 Customer A * 24.3 % 25.6 % Customer B 17.5 % 13.7 % 28.4 % Customer C 12.7 % * * The following customers accounted for 10% or more of the Group’s accounts receivable, contract assets and amount due from related parties as of December 31, 2022 and 2023: As of December 31, 2022 2023 Customer A 61.0 % 41.3 % Customer B 15.3 % 10.2 % Customer D * 11.2 % Concentration of suppliers The Group has one supplier accounted for 10% or more of purchases for the years ended December 31, 2021 and 2022: For the Year ended December 31, 2021 2022 2023 Supplier A 13.7 % 12.3 % * |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of accounts receivable and expected credit losses | As of December 31, 2022 2023 RMB RMB Accounts receivable 491,293 573,950 Less: allowance for expected credit losses (6,249) (49,132) Total accounts receivable, net 485,044 524,818 |
Schedule of allowance for credit losses related to accounts receivable | For the Year ended December 31, 2022 2023 RMB RMB Balance at beginning of year 7,294 6,249 (Reversal) provision for expected credit losses (1,045) 42,883 Balance at end of year 6,249 49,132 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | As of December 31, 2022 2023 RMB RMB Raw materials 290,121 126,347 Work-in-process 180,367 199,153 Finished goods 176,364 170,377 Inventories 646,852 495,877 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets [Abstract] | |
Schedule of prepayments and other current assets | As of December 31, 2022 2023 RMB RMB Advances to suppliers 82,419 120,556 Deposits 11,998 22,042 Prepaid expenses 10,108 16,372 Value-added tax recoverable 6,748 21,888 Others 15,179 27,224 Total 126,452 208,082 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | As of December 31, 2022 2023 RMB RMB Cost Land — 39,312 Electronic equipment 79,663 114,237 Leasehold improvements 63,995 67,677 Machinery and equipment 121,614 186,890 Furniture and fixture 54,851 78,169 Transportation vehicles 4,411 5,400 Total cost 324,534 491,685 Less: Accumulated depreciation (84,329) (154,473) Property and equipment, net 240,205 337,212 Construction in Progress 264,748 534,399 Total 504,953 871,611 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets over the respective useful lives | As of December 31, 2022 2023 RMB RMB Software 30,095 38,143 Technology 8,390 65,235 Total cost 38,485 103,378 Less: Accumulated amortization (17,885) (24,648) Intangible assets, net 20,600 78,730 |
Schedule of estimated amortization expenses | Years ended December 31, RMB 2024 11,678 2025 10,416 2026 9,866 2027 9,866 2028 and years after 36,904 Total 78,730 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investment in equity method investee | As of December 31, 2022 2023 RMB RMB Investments in equity securities 30,000 30,000 Investments in equity method investee 1,856 1,811 Total 31,856 31,811 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other non-current assets | As of December 31, 2022 2023 RMB RMB Prepayments for purchase of property and equipment 46,083 77,596 Demonstration fleet 4,936 3,819 Long-term deposits 3,836 8,612 Others 2,243 141 Other non-current assets 57,098 90,168 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of short-term and long-term borrowings | As of December 31, 2022 2023 RMB RMB Short-term borrowings: Short-term bank borrowings — 109,900 Long-term bank borrowings, current portion — 1,782 Total — 111,682 Long-term borrowings: Long-term bank borrowings 18,472 285,898 |
Schedule of principal maturities of the long-term borrowings | As of As of December 31, December 31, 2022 2023 RMB RMB 2025 5,542 85,728 2026 5,542 85,728 2027 7,388 111,926 2028 and after — 2,516 Total 18,472 285,898 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | As of December 31, 2022 2023 RMB RMB Salaries and welfare payables 166,923 195,014 Payables for purchase of property and equipment 102,181 179,839 Accrued expenses 41,558 65,159 Current portion of operating lease liabilities 34,975 34,993 VAT and other tax payables 5,903 19,847 Advances from employees 4,962 3,472 Total 356,502 498,324 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of maturities of lease liabilities in accordance with leases | As of As of December 31, 2022 December 31, 2023 RMB RMB 2023 36,025 — 2024 7,145 38,305 2025 3,282 25,951 2026 — 24,672 2027 — 24,877 2028 — 27,139 2029 — 24,877 Total lease payment 46,452 165,821 Less: imputed interest (1,338) (11,415) Present value of minimum operating lease payments 45,114 154,406 Less: Current operating lease liabilities (34,975) (34,993) Long-term operating lease liabilities 10,139 119,413 |
Net Revenues (Tables)
Net Revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of net revenues | For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Product revenues Revenue from LiDAR products 685,333 1,122,237 1,735,254 Revenue from gas detection products 19,533 23,967 26,863 Other revenues 1,200 5,663 2,773 Service revenues Engineering design, development and validation service and solution revenue 14,026 43,101 100,493 Other service revenues 676 7,702 11,606 Total 720,768 1,202,670 1,876,989 For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Revenue recognized at a point of time 706,066 1,175,758 1,783,803 Revenue recognized over time 14,702 26,912 93,186 Total 720,768 1,202,670 1,876,989 For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Revenue by geographic location Mainland China 269,634 697,294 991,912 North America 352,981 358,549 748,147 Europe 67,912 86,153 70,500 Other regions 30,241 60,674 66,430 Total 720,768 1,202,670 1,876,989 |
Schedule of movements of the accounts receivable and contract balances | Accounts Contract Contract Receivable assets liabilities RMB RMB RMB Opening Balance as of January 1, 2021 56,319 38,337 9,357 Increase, net 29,502 108,200 113,246 Ending Balance as of December 31, 2021 85,821 146,537 122,603 Increase(decrease), net 399,223 (133,937) (82,225) Ending Balance as of December 31, 2022 485,044 12,600 40,378 Increase(decrease), net 39,774 7,088 39,547 Ending Balance as of December 31, 2023 524,818 19,688 79,925 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of current and deferred portion of income tax expenses | For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Current tax expenses — 2 13 Over-provision in prior year (1,057) — — Deferred tax (benefits) expense (58) (68) 645 Income tax (benefits) expenses (1,115) (66) 658 |
Schedule of net loss before income tax | For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Net loss before income tax from PRC operations (92,498) (251,302) (480,479) Net (loss) gain before income tax from non-PRC operations (153,444) (49,529) 5,168 Total net loss before income tax (245,942) (300,831) (475,311) |
Schedule of reconciliation between the effective income tax rate and statutory income tax rate | For the Year ended December 31, 2021 2022 2023 Statutory income tax rate 25.00 % 25.00 % 25.00 % Effect of different tax rate of different jurisdictions (4.39) % (3.14) % (0.79) % Non-deductible expenses (17.98) % (6.12) % (12.42) % Effect of super deduction on R&D expenses 34.83 % 41.00 % 37.21 % Tax-free income — — 0.32 % Effect of change of valuation allowance (37.44) % (56.76) % (49.46) % Over provision for prior years 0.43 % — — Income tax expenses 0.45 % (0.02) % (0.14) % |
Schedule of deferred tax assets and deferred tax liabilities | As of December 31, 2022 2023 RMB RMB Deferred tax assets – Net operating loss carry forwards 373,215 705,249 – Deductible temporary differences 31,348 72,625 – Deferred revenue 6,294 19,620 Less: valuation allowance (410,857) (797,494) Net deferred tax assets — — Deferred tax liabilities – Identifiable intangible assets from business combination. 439 — Total deferred tax liabilities 439 — |
Schedule of movement of valuation allowance | For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Balance at beginning of the year 136,269 241,485 410,857 Addition 105,216 169,372 386,637 Total 241,485 410,857 797,494 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of assumptions used to estimate the fair values of the share options granted | For the year ended December 31, 2021 2022 2023 Expected volatility 48.00% - 74.00 % 74.00% – 80.00 % 82.00% - 85.00 % Risk-free interest rate (per annum) 0.97% - 1.55 % 1.94% – 3.83 % 3.57% - 4.47 % Expected dividend yield 0.00 % 0.00 % 0.00 % Employee forfeiture rate (per annum) 3.80 % 3.80% – 3.92 % 2.40% - 7.50 % Exercise multiples 2.50 2.50 2.50 Expected term 7.00 7.00 7.00 Fair value of underlying ordinary share (per share) US $14.10 - 18.42 US$18.11 – 19.91 US$7.95 - 15.47 Fair value of awards on valuation date US$5.84 - 19.90 US$12.93 – 17.11 US$5.38 - 10.51 |
Schedule of stock option activity | Weighted Weighted Weighted average Number average average remaining Aggregate of exercise grant date contract intrinsic options price fair value life value RMB RMB Years RMB Outstanding at December 31, 2022 9,608,634 12.51 65.93 5.46 1,141,255 Granted 2,422,714 14.49 55.08 — — Forfeited 506,540 44.32 — — — Exercised 1,333,087 16.59 — — 74,380 Outstanding at December 31, 2023 10,191,721 16.07 62.08 4.97 517,605 Vested and expected to vest as of December 31, 2023 10,191,721 16.07 62.08 4.97 517,605 Exercisable as of December 31, 2023 5,335,293 15.74 50.36 4.34 287,997 |
Schedule of RSUs classified as equity | Weighted Numbers of average grant RSUs date fair value RMB Outstanding at January 1, 2023 — — Granted 189,012 76.52 Forfeited — Exercised 35,691 Outstanding at December 31, 2023 153,321 76.06 Vested and expected to vest as of December 31, 2023 153,321 76.06 Exercisable as of December 31, 2023 — — |
Schedule of share-based compensation for all employee share options, restricted share units and tandem award | For the Year ended December 31, 2021 2022 2023 RMB RMB RMB Cost of revenues 1,813 8,037 16,245 Sales and marketing expenses 1,488 6,291 20,682 General and administrative expenses 38,892 48,998 63,326 Research and development expenses 12,090 41,893 134,371 Total 54,283 105,219 234,624 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of companies that are related parties | Name of the related parties Relationship Mr. Kai Sun Founding Shareholders Mr. Yifan Li Founding Shareholders Mr. Shaoqing Xiang Founding Shareholders Mr. Minglie Hu Shareholder Mr. Min Ai Shareholder Shanghai Leyi Technology L.P. An affiliate of the shareholder of the Group Baidu USA LLC (Note) An affiliate of the shareholder of the Group Beijing Baidu Netcom Technology Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Transportation Technology (Guangzhou) Co., Ltd. An affiliate of the shareholder of the Group Baidu Smart Travel Information Technology (Chongqing) Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Transportation Technology (Hefei) Co., Ltd. An affiliate of the shareholder of the Group Luobo Yunli (Beijing) Technology Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Transportation Technology (Dalian) Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Technology (Beijing) Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Connection (Beijing) Co., Ltd. An affiliate of the shareholder of the Group |
Schedule of significant related party transactions | For year ended December 31, 2021 2022 2023 RMB RMB RMB Net revenues Affiliates of the shareholders of the Group 15,655 — — Total 15,655 — — For year ended December 31, 2021 2022 2023 RMB RMB RMB Payment for equity acquisition consideration Founding Shareholders and certain shareholders — — 17,506 Total — — 17,506 For year ended December 31, 2021 2022 2023 RMB RMB RMB Subscription consideration received from shareholders Founding Shareholders and certain shareholders — — 17,506 Total — — 17,506 |
Schedule of outstanding balances with related parties | As of December 31, 2021 2022 2023 RMB RMB RMB Amounts due to related parties, net of allowance Founding Shareholders and certain shareholders 307,498 334,283 326,028 An affiliate of the shareholder of the Group — — 14,023 Total 307,498 334,283 340,051 |
Loss per Share (Tables)
Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of net loss per share | For the year ended December 31, 2021 2022 2023 RMB RMB RMB Numerator Net loss (244,827) (300,765) (475,968) Deemed dividend (2,211,330) (446,419) — Net loss attributable to ordinary shareholders (2,456,157) (747,184) (475,968) Denominator Weighted average number of ordinary shares outstanding-basic and diluted 104,987,478 115,534,593 124,783,013 Basic and diluted net loss per share attributable to ordinary shareholders (23.39) (6.47) (3.81) |
Schedule of share options were excluded from the calculation of diluted net loss per ordinary share | For the year ended December 31, 2021 2022 2023 Number Number Number Shares issuable upon exercise of share options 9,173,623 9,608,634 10,191,721 Shares issuable upon exercise of restricted share units — — 153,321 Shares issuable upon exercise of tandem award — 60,000 60,000 Total 9,173,623 9,668,634 10,405,042 |
Segment (Tables)
Segment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of operating segment results | Year ended December 31, 2021 2022 2023 RMB RMB RMB LiDAR segment Revenue: Product revenues 686,533 1,127,900 1,738,027 Service revenues 14,702 50,803 112,099 Cost: Cost of products sold 326,160 707,617 1,176,472 Cost of service revenues 4,609 12,683 30,329 Segment profit 370,466 458,403 643,325 Gas detection segment Gas detection product revenues 19,533 23,967 26,863 Cost of products sold 8,203 10,383 8,810 Segment profit 11,330 13,584 18,053 Total segment profit 381,796 471,987 661,378 |
Schedule of reconciliation of the reportable segments' to consolidated loss before income tax | Year ended December 31, 2021 2022 2023 RMB RMB RMB Total profit for reportable segments 381,796 471,987 661,378 Unallocated amounts* Sales and marketing expenses (69,266) (104,835) (148,798) General and administrative expenses (236,713) (201,007) (320,144) Research and development expenses (368,435) (555,179) (790,547) Other operating income, net 27,333 10,817 26,520 Interest income 32,584 58,734 99,813 Interest expenses — — (3,069) Foreign exchange (loss) gains (13,275) 20,858 (452) Other (loss) income, net 118 (2,161) 34 Loss before income tax (245,858) (300,786) (475,265) * |
Schedule of long-term assets disaggregated by the different geographic locations | As of December 31, 2022 2023 RMB RMB Mainland China 665,511 1,144,643 Thailand — 39,312 North America 14,351 2,146 Switzerland — 103 Total long-term assets 679,862 1,186,204 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum capital payment under non-cancellable agreements | As of December 31, 2023 RMB 2024 115,813 Total 115,813 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2023 CNY (¥) shares | Mar. 31, 2023 USD ($) shares | Feb. 28, 2023 CNY (¥) shares | Feb. 28, 2023 USD ($) shares | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Jun. 30, 2021 shares | May 31, 2021 shares | |
Schedule Of Organization And Nature Of Operations [Line Items] | |||||||||||
Cash distribution to shareholders of Shanghai Hesai in connection with the 2021 Reorganization | ¥ 17,506 | $ 2,466 | ¥ 507,620 | ||||||||
Subscription receivables | 292,721 | $ 41,229 | ¥ 310,227 | ||||||||
Capital gain tax payments on behalf of certain shareholders | ¥ | 82,347 | ||||||||||
Class B | |||||||||||
Schedule Of Organization And Nature Of Operations [Line Items] | |||||||||||
Number of shares issued | shares | 10,125,118 | 10,125,118 | 10,125,118 | 10,125,118 | |||||||
IPO | Class B | |||||||||||
Schedule Of Organization And Nature Of Operations [Line Items] | |||||||||||
Number of shares issued | shares | 10,125,118 | 10,125,118 | 10,125,118 | 10,125,118 | |||||||
Net proceeds from IPO | ¥ 1,225,470 | $ 179,786 | ¥ 1,225,470 | $ 179,786 | |||||||
Shanghai Hesai | |||||||||||
Schedule Of Organization And Nature Of Operations [Line Items] | |||||||||||
Settlement through cash redemption | ¥ | 817,847 | ||||||||||
Cash distribution to shareholders of Shanghai Hesai in connection with the 2021 Reorganization | ¥ | ¥ 17,506 | 507,620 | |||||||||
Subscription receivables | ¥ | ¥ 292,721 | ||||||||||
Shanghai Hesai | Founding shareholders | |||||||||||
Schedule Of Organization And Nature Of Operations [Line Items] | |||||||||||
Percentage of equity interest acquired | 100% | ||||||||||
Shanghai Hesai | Founding shareholders | Class A | |||||||||||
Schedule Of Organization And Nature Of Operations [Line Items] | |||||||||||
Number of shares subscribed | shares | 30,033,379 | 30,033,379 | |||||||||
Shanghai Hesai | Existing investors | Class B | |||||||||||
Schedule Of Organization And Nature Of Operations [Line Items] | |||||||||||
Number of shares subscribed | shares | 62,834,548 | 62,834,548 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Fair value measurements (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of short term investments | ¥ 30,158 | ¥ 52,252 | ¥ 26,351 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | ¥ 857,924 | ¥ 945,865 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and equipment, net (Details) | Dec. 31, 2023 |
Electronic equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 3 years |
Electronic equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 5 years |
Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 10 years |
Furniture and fixture | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 5 years |
Transportation vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 4 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Intangible assets (Details) | Dec. 31, 2023 |
Software | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of intangible assets | 3 years |
Software | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of intangible assets | 10 years |
Technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of intangible assets | 3 years |
Technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of intangible assets | 8 years |
Land-use rights | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of intangible assets | 50 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Goodwill [Line Items] | ||||
Equity method investment, impairment | ¥ 0 | ¥ 0 | ¥ 0 | |
Extended warranty service expense | 10,413 | 7,702 | 676 | |
Accrued warranty liability | ||||
Balance as of the beginning of the year | 17,694 | 13,932 | 10,042 | |
Warranty provision | 26,247 | 8,467 | 10,766 | |
Consumption | (15,516) | (4,705) | (6,876) | |
Balance as of the end of the year | ¥ 28,425 | $ 4,004,000 | ¥ 17,694 | ¥ 13,932 |
Minimum | ||||
Goodwill [Line Items] | ||||
Period for extended warranty | 1 year | 1 year | ||
Maximum | ||||
Goodwill [Line Items] | ||||
Period for extended warranty | 2 years | 2 years | ||
Oxigraf Inc. | ||||
Goodwill [Line Items] | ||||
Impairment on goodwill | $ | $ 1,982,033 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Impact of Adoption of ASC842 (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease liabilities | ¥ 154,406 | ¥ 45,114 | ||
Assets | ||||
Operating lease right-of-use assets | 151,871 | $ 21,391 | 44,349 | |
Liabilities, Mezzanine Equity and Shareholders' (Deficit) Equity | ||||
Accrued liabilities and other liabilities, as reported | ¥ 569 | |||
Liabilities, total, as reported | 569 | |||
Liabilities and equity, total, as reported | ¥ 569 | |||
Accrued expenses and other current liabilities | ¥ 34,993 | ¥ 34,975 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
Operating lease liabilities | ¥ 119,413 | $ 16,819 | ¥ 10,139 | |
ASC 842 | Effect | ||||
Assets | ||||
Operating lease right-of-use assets | ¥ 36,030 | |||
TOTAL ASSETS | 36,030 | |||
Liabilities, Mezzanine Equity and Shareholders' (Deficit) Equity | ||||
Accrued expenses and other current liabilities | 12,566 | |||
Operating lease liabilities | 23,464 | |||
TOTAL LIABILITIES | 36,030 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | 36,030 | |||
ASC 842 | After adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease liabilities | 36,599 | |||
Assets | ||||
Operating lease right-of-use assets | 36,030 | |||
TOTAL ASSETS | 36,030 | |||
Liabilities, Mezzanine Equity and Shareholders' (Deficit) Equity | ||||
Accrued expenses and other current liabilities | 13,135 | |||
Operating lease liabilities | 23,464 | |||
TOTAL LIABILITIES | 36,599 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | ¥ 36,599 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Additional information (Details) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) segment | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Jul. 31, 2022 CNY (¥) | |
Concentration Risk [Line Items] | ||||
Government grants related to unfulfilled obligations | ¥ 53,668 | ¥ 0 | ¥ 0 | |
Government grants income | 14,280 | 10,825 | 27,446 | |
Income tax, unrecognized | ¥ 0 | 0 | ¥ 0 | |
Number of operating segments | segment | 2 | |||
Fair value investments recognized | ¥ 0 | ¥ 0 | ¥ 30,000 | |
Revenue | Customer concentration | Customer A | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 25.60% | 24.30% | ||
Revenue | Customer concentration | Customer B | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 28.40% | 13.70% | 17.50% | |
Revenue | Customer concentration | Customer C | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 12.70% | |||
Accounts receivables | Customer concentration | Customer A | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 41.30% | 61% | ||
Accounts receivables | Customer concentration | Customer B | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 10.20% | 15.30% | ||
Accounts receivables | Customer concentration | Customer D | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 11.20% | |||
Accounts payable | Supplier concentration | Supplier A | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 12.30% | 13.70% |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Foreign currency risk (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Accounting Policies [Abstract] | ||
Cash and cash equivalents and time deposits | $ 131,832 | $ 51,351 |
Exchange rate used for translations of balances | 7.0999 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |||||
Accounts receivable | ¥ 573,950 | ¥ 491,293 | |||
Less: allowance for expected credit losses | (49,132) | (6,249) | |||
Total accounts receivable, net | ¥ 524,818 | $ 73,919 | ¥ 485,044 | ¥ 85,821 | ¥ 56,319 |
Accounts Receivable, Net - Allo
Accounts Receivable, Net - Allowance for credit losses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Balance at beginning of year | ¥ 6,249 | ¥ 7,294 |
(Reversal) provision for expected credit losses | 42,883 | (1,045) |
Balance at end of year | ¥ 49,132 | ¥ 6,249 |
Inventories (Details)
Inventories (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Inventory Disclosure [Abstract] | |||||
Raw materials | ¥ 126,347 | ¥ 290,121 | |||
Work-in-process | 199,153 | 180,367 | |||
Finished goods | 170,377 | 176,364 | |||
Inventories | 495,877 | 646,852 | $ 69,843 | ||
Inventory write-down | ¥ 9,290 | $ 1,308 | ¥ 39,431 | ¥ 16,600 |
Prepayments and Other Current_3
Prepayments and Other Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Prepaid Expense and Other Assets [Abstract] | |||
Advances to suppliers | ¥ 120,556 | ¥ 82,419 | |
Deposits | 22,042 | 11,998 | |
Prepaid expenses | 16,372 | 10,108 | |
Value-added tax recoverable | 21,888 | 6,748 | |
Others | 27,224 | 15,179 | |
Total | ¥ 208,082 | $ 29,308 | ¥ 126,452 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) ¥ in Thousands, $ in Thousands, ฿ in Millions | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2023 CNY (¥) m² | Sep. 30, 2023 THB (฿) m² | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Property, Plant and Equipment [Line Items] | |||||||
Cost | ¥ 491,685 | ¥ 324,534 | |||||
Less: Accumulated depreciation | (154,473) | (84,329) | |||||
Total | 871,611 | 504,953 | $ 122,764 | ||||
Depreciation expenses | 77,701 | 44,856 | ¥ 21,187 | ||||
Purchases of property and equipment | 406,748 | $ 57,289 | 231,210 | ¥ 220,096 | |||
Land | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cost | 39,312 | ||||||
Purchases of property and equipment | ¥ 39,312 | ฿ 189.4 | |||||
Area of land | m² | 25,686 | 25,686 | |||||
Electronic equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cost | 114,237 | 79,663 | |||||
Leasehold improvements | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cost | 67,677 | 63,995 | |||||
Machinery and equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cost | 186,890 | 121,614 | |||||
Furniture and fixture | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cost | 78,169 | 54,851 | |||||
Transportation vehicles | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cost | 5,400 | 4,411 | |||||
Property and equipment, net | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Total | 337,212 | 240,205 | |||||
Construction in progress | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Total | ¥ 534,399 | ¥ 264,748 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 15, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Total cost | ¥ 103,378 | ¥ 38,485 | ||
Less: Accumulated amortization | (24,648) | (17,885) | ||
Total | 78,730 | 20,600 | ||
Amortization expenses | 7,704 | 7,914 | ¥ 6,326 | |
Software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total cost | 38,143 | 30,095 | ||
Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total cost | ¥ 65,235 | ¥ 8,390 | ||
Patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Group acquired patent rights | ¥ 59,351 | |||
Amortization period | 8 years |
Intangible Assets, Net - Expect
Intangible Assets, Net - Expected amortization expenses (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | ¥ 11,678 | |
2025 | 10,416 | |
2026 | 9,866 | |
2027 | 9,866 | |
2028 and years after | 36,904 | |
Total | ¥ 78,730 | ¥ 20,600 |
Land-Use Rights, Net (Details)
Land-Use Rights, Net (Details) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 CNY (¥) m² | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Purchases of land-use right | ¥ 43,188 | |||
Amortization expenses | ¥ 7,704 | ¥ 7,914 | 6,326 | |
Weighted average remaining lease term | 47 years 2 months 8 days | |||
Land-use rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life of intangible assets | 50 years | |||
Land-use rights | Land in Shanghai | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Purchases of land-use right | ¥ 43,188 | |||
Number of square meters acquired | m² | 26,615 | |||
Useful life of intangible assets | 50 years | |||
Amortization expenses | ¥ 863 | ¥ 864 | ¥ 718 |
Long-Term Investments (Details)
Long-Term Investments (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jul. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | |||
Long-term investments | ¥ 31,811 | ¥ 31,856 | |
Investment in equity securities without readily determinable fair value | 0 | 0 | ¥ 30,000 |
Investments in equity securities | |||
Schedule of Equity Method Investments [Line Items] | |||
Long-term investments | 30,000 | 30,000 | |
Investments in equity method investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Long-term investments | ¥ 1,811 | ¥ 1,856 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Other Assets, Noncurrent [Abstract] | |||
Prepayments for purchase of property and equipment | ¥ 77,596 | ¥ 46,083 | |
Demonstration fleet | 3,819 | 4,936 | |
Long-term deposits | 8,612 | 3,836 | |
Others | 141 | 2,243 | |
Other non-current assets | ¥ 90,168 | $ 12,700 | ¥ 57,098 |
Notes Payable (Details)
Notes Payable (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Notes Payable, Noncurrent [Abstract] | ||
Notes payable | ¥ 7,255 | ¥ 0 |
Borrowings - Short-term and lon
Borrowings - Short-term and long-term borrowings (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Short-Term Debt [Abstract] | |||
Short-term bank borrowings | ¥ 109,900 | ||
Long-term bank borrowings, current portion | 1,782 | ||
Total | 111,682 | $ 15,730 | ¥ 0 |
Long-Term Debt, Unclassified [Abstract] | |||
Long-term bank borrowings | ¥ 285,898 | $ 40,268 | ¥ 18,472 |
Borrowings - Principal maturiti
Borrowings - Principal maturities of the long-term borrowings (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2025 | ¥ 85,728 | ¥ 5,542 |
2026 | 85,728 | 5,542 |
2027 | 111,926 | 7,388 |
2028 and after | 2,516 | |
Total | ¥ 285,898 | ¥ 18,472 |
Borrowings - Short-term bank bo
Borrowings - Short-term bank borrowings (Details) - Short-Term Debt | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2023 CNY (¥) | Nov. 30, 2022 CNY (¥) agreement | Dec. 31, 2023 CNY (¥) agreement | |
Short-Term Debt [Line Items] | |||
Number of credit facilities | agreement | 2 | 2 | |
Amount of credit facilities | ¥ 500,000,000 | ¥ 300,000,000 | ¥ 500,000,000 |
Expiration date | Dec. 12, 2024 | Nov. 23, 2023 | |
Amount drew drawn | ¥ 109,900 | ||
Interest rate | 2.85% | ||
Unused bank facility | ¥ 500,000,000 | ¥ 500,000,000 | |
Prime Rate | |||
Short-Term Debt [Line Items] | |||
Period of LPR considered | 1 year | 1 year | |
Annual interest rate | 0.80% | 0.80% |
Borrowings - Long-term bank bor
Borrowings - Long-term bank borrowings (Details) ¥ in Thousands, SFr in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2023 CNY (¥) | Nov. 30, 2022 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 CHF (SFr) | |
Debt Instrument [Line Items] | |||||
Long-term bank borrowings, current portion | ¥ 1,782 | ||||
Swiss Company | |||||
Debt Instrument [Line Items] | |||||
long-term borrowings | 2,516 | SFr 299 | |||
Long-Term Debt | |||||
Debt Instrument [Line Items] | |||||
Unused bank facility | 524,836 | ||||
Shanghai Hesai Long Term Facility | |||||
Debt Instrument [Line Items] | |||||
Term of borrowings (in years) | 2 years | ||||
Line of credit facility, maximum borrowing capacity | ¥ 700,000 | ||||
Credit facility agreement | 561,201 | ||||
Interest rate | 2.45% | ||||
Amount drew drawn | ¥ 261,345 | ¥ 18,472 | |||
Shanghai Hesai Long Term Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.45% | ||||
Shanghai Hesai Long Term Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.65% | ||||
Shanghai Hesai Long Term Facility | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Annual interest rate | 100% | ||||
Zhejiang Hertz Long Term Facility | |||||
Debt Instrument [Line Items] | |||||
Term of borrowings (in years) | 1 year | ||||
Line of credit facility, maximum borrowing capacity | ¥ 110,000 | ||||
Interest rate | 2.85% | ||||
Amount drew drawn | ¥ 5,347 | ||||
Long-term bank borrowings, current portion | ¥ 1,782 | ||||
Zhejiang Hertz Long Term Facility | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Annual interest rate | 0.60% |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||||
Salaries and welfare payables | ¥ 195,014 | ¥ 166,923 | ||
Payables for purchase of property and equipment | 179,839 | 102,181 | ||
Accrued expenses | 65,159 | 41,558 | ||
Current portion of operating lease liabilities | ¥ 34,993 | ¥ 34,975 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total | Total | Total | Total |
VAT and other tax payables | ¥ 19,847 | ¥ 5,903 | ||
Advances from employees | 3,472 | 4,962 | ||
Total | ¥ 498,324 | $ 70,188 | ¥ 356,502 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Leases [Abstract] | |||
2023 | ¥ 36,025 | ||
2024 | ¥ 38,305 | 7,145 | |
2025 | 25,951 | 3,282 | |
2026 | 24,672 | ||
2027 | 24,877 | ||
2028 | 27,139 | ||
2029 | 24,877 | ||
Total lease payment | 165,821 | 46,452 | |
Less: imputed interest | (11,415) | (1,338) | |
Present value of minimum operating lease payments | 154,406 | 45,114 | |
Less: Current operating lease liabilities | (34,993) | (34,975) | |
Long-term operating lease liabilities | ¥ 119,413 | $ 16,819 | ¥ 10,139 |
Leases - Additional Information
Leases - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Leases [Abstract] | ||||
Operating lease right-of-use assets | ¥ 151,871 | ¥ 44,349 | $ 21,391 | |
Current portion of operating lease liabilities | 34,993 | 34,975 | ||
Long-term operating lease liabilities | ¥ 119,413 | ¥ 10,139 | $ 16,819 | |
Weighted average remaining lease term | 5 years 5 months 23 days | 5 years 5 months 23 days | ||
Weighted average discount rate | 2.85% | 4.25% | 2.85% | |
Lease expenses | ¥ 37,878 | ¥ 34,596 | ¥ 21,792 | |
Short-term leases not capitalized | 2,136 | 2,136 | ¥ 2,136 | |
Cash payments for operating lease liabilities | 35,982 | 28,136 | ||
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 133,661 | ¥ 37,414 |
Redeemable Shares (Details)
Redeemable Shares (Details) ¥ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 09, 2023 shares | Mar. 31, 2023 shares | Feb. 28, 2023 shares | Jun. 30, 2021 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 shares | |
Temporary Equity [Line Items] | |||||||
Threshold period from dates of the agreements to complete overseas IPO | 12 months | ||||||
Compounded interest rate | 8% | ||||||
Number of shares | 0 | 0 | |||||
Fair value of the reclassified shares | ¥ | ¥ 2,131,572 | ||||||
Deemed dividend | ¥ | ¥ 446,419 | ¥ 2,211,330 | |||||
Accretion in redemption value of redeemable shares | ¥ | 446,419 | 79,758 | |||||
Class B | |||||||
Temporary Equity [Line Items] | |||||||
Option to re-designate to preferred shares on failure to complete overseas IPO with in the threshold period, shares | 54,551,513 | ||||||
Number of shares reclassified from permanent to mezzanine equity | 54,551,513 | 54,551,513 | 54,551,513 | 54,551,513 | |||
Share conversion ratio | 1 | ||||||
Number of shares | 54,551,513 | ||||||
Number of shares issued | 10,125,118 | 10,125,118 | |||||
Series D | |||||||
Temporary Equity [Line Items] | |||||||
Deemed dividend | ¥ | ¥ 446,419 | ¥ 79,758 |
Ordinary Shares (Details)
Ordinary Shares (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 09, 2023 shares | Aug. 31, 2023 shares | Mar. 31, 2023 shares | Feb. 28, 2023 shares | Jun. 30, 2021 shares | Dec. 31, 2023 Vote shares | |
Class of Stock | ||||||
Number of shares issued but not outstanding | 2,631,222 | |||||
Class A | ||||||
Class of Stock | ||||||
Number of votes per share | Vote | 10 | |||||
Class B | ||||||
Class of Stock | ||||||
Number of votes per share | Vote | 1 | |||||
Number of shares reclassified from permanent to mezzanine equity | 54,551,513 | 54,551,513 | 54,551,513 | 54,551,513 | ||
Number of shares issued | 10,125,118 | 10,125,118 | ||||
Number of shares issued on exercise of options | 4,000,000 |
Net Revenues (Details)
Net Revenues (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Disaggregation of Revenue | ||||
Net revenues | ¥ 1,876,989 | $ 264,368 | ¥ 1,202,670 | ¥ 720,768 |
Revenue from LiDAR products | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,735,254 | 1,122,237 | 685,333 | |
Revenue from gas detection products | ||||
Disaggregation of Revenue | ||||
Net revenues | 26,863 | 23,967 | 19,533 | |
Other revenues | ||||
Disaggregation of Revenue | ||||
Net revenues | 2,773 | 5,663 | 1,200 | |
Engineering design, development and validation service and solution revenue | ||||
Disaggregation of Revenue | ||||
Net revenues | 100,493 | 43,101 | 14,026 | |
Other service revenues | ||||
Disaggregation of Revenue | ||||
Net revenues | ¥ 11,606 | ¥ 7,702 | ¥ 676 |
Net Revenues - Revenues disaggr
Net Revenues - Revenues disaggregated by geographic location (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Disaggregation of Revenue | ||||
Net revenues | ¥ 1,876,989 | $ 264,368 | ¥ 1,202,670 | ¥ 720,768 |
Revenue recognized at a point of time | ||||
Disaggregation of Revenue | ||||
Net revenues | 1,783,803 | 1,175,758 | 706,066 | |
Revenue recognized over time | ||||
Disaggregation of Revenue | ||||
Net revenues | 93,186 | 26,912 | 14,702 | |
Mainland China | ||||
Disaggregation of Revenue | ||||
Net revenues | 991,912 | 697,294 | 269,634 | |
North America | ||||
Disaggregation of Revenue | ||||
Net revenues | 748,147 | 358,549 | 352,981 | |
Europe | ||||
Disaggregation of Revenue | ||||
Net revenues | 70,500 | 86,153 | 67,912 | |
Other regions | ||||
Disaggregation of Revenue | ||||
Net revenues | ¥ 66,430 | ¥ 60,674 | ¥ 30,241 |
Net Revenues - Accounts receiva
Net Revenues - Accounts receivable and contract balances (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Accounts receivable | ||||
Opening Balance | ¥ 485,044 | ¥ 85,821 | ¥ 56,319 | |
Increase(decrease), net | 39,774 | 399,223 | 29,502 | |
Ending Balance | 524,818 | $ 73,919 | 485,044 | 85,821 |
Contract assets | ||||
Opening Balance | 12,600 | 146,537 | 38,337 | |
Increase(decrease), net | 7,088 | (133,937) | 108,200 | |
Ending Balance | 19,688 | 2,773 | 12,600 | 146,537 |
Contract liabilities | ||||
Opening Balance | 40,378 | 122,603 | 9,357 | |
Increase(decrease), net | 39,547 | (82,225) | 113,246 | |
Ending Balance | 79,925 | $ 11,257 | 40,378 | 122,603 |
Contract liabilities, revenue recognized | ¥ 37,111 | ¥ 109,120 | ¥ 8,048 |
Income Taxes (Details)
Income Taxes (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax [Line Items] | |||
Enterprise income tax | (0.14%) | (0.02%) | 0.45% |
Retained earnings | ¥ 0 | ¥ 0 | ¥ 0 |
United States | |||
Income Tax [Line Items] | |||
Applicable income tax rate | 27.98% | 27.98% | 27.98% |
PRC | |||
Income Tax [Line Items] | |||
Enterprise income tax | 25% | ||
Preferential tax rate | 15% | 15% | 15% |
HNTE status review period | 3 years | ||
Percentage of tax deductible expenses engaged in R&D activities | 200% | ||
Percentage of withholding tax on foreign investors, non-resident enterprises | 10% |
Income Taxes - Current and defe
Income Taxes - Current and deferred portion (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current tax expenses | ¥ 13 | ¥ 2 | ||
Over-provision in prior year | ¥ (1,057) | |||
Deferred tax (benefits) expense | 645 | (68) | (58) | |
Income tax (benefits) expenses | ¥ 658 | $ 93 | ¥ (66) | ¥ (1,115) |
Income Taxes - Net Loss before
Income Taxes - Net Loss before income tax (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Net loss before income tax from PRC operations | ¥ (480,479) | ¥ (251,302) | ¥ (92,498) |
Net (loss) gain before income tax from non-PRC operations | 5,168 | (49,529) | (153,444) |
Total net loss before income tax | ¥ (475,311) | ¥ (300,831) | ¥ (245,942) |
Income Taxes - Reconciliation b
Income Taxes - Reconciliation between the Effective and Statutory Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax [Line Item] | |||
Statutory income tax rate | 25% | 25% | 25% |
Effect of different tax rate of different jurisdictions | (0.79%) | (3.14%) | (4.39%) |
Non-deductible expenses | (12.42%) | (6.12%) | (17.98%) |
Effect of super deduction on R&D expenses | 37.21% | 41% | 34.83% |
Tax-free income | 0.32% | ||
Effect of change of valuation allowance | (49.46%) | (56.76%) | (37.44%) |
Over provision for prior years | 0.43% | ||
Income tax expenses | (0.14%) | (0.02%) | 0.45% |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets and deferred tax liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||||
Net operating loss carry forwards | ¥ 705,249 | ¥ 373,215 | ||
Deductible temporary differences | 72,625 | 31,348 | ||
Deferred revenue | 19,620 | 6,294 | ||
Less: valuation allowance | ¥ (797,494) | (410,857) | ¥ (241,485) | ¥ (136,269) |
Deferred tax liabilities | ||||
Identifiable intangible assets from business combination. | 439 | |||
Total deferred tax liabilities | ¥ 439 |
Income Taxes - Movement of valu
Income Taxes - Movement of valuation allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the year | ¥ 410,857 | ¥ 241,485 | ¥ 136,269 |
Addition | 386,637 | 169,372 | 105,216 |
Total | 797,494 | 410,857 | 241,485 |
Net operating loss carry forwards | ¥ 2,850,909 | ¥ 1,492,808 | ¥ 881,256 |
Share-Based Compensation - 2021
Share-Based Compensation - 2021 Plan (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Share-based compensation expenses | ¥ 234,624 | ¥ 105,219 | ¥ 54,283 | |
2021 Option Incentive Plan | Employee share options | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Number of stock options approved under modification | 1,136,631 | |||
Share-based payment arrangement, plan modification incremental | ¥ 0 | |||
Recognized incremental compensation cost | 0 | |||
Share-based compensation expenses | ¥ 6,690 |
Share-Based Compensation - Opti
Share-Based Compensation - Option awards to new incentive recipients (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award | |
Number of options granted | 2,422,714 |
Employee share options | Employees | |
Share-Based Compensation Arrangement by Share-Based Payment Award | |
Number of options granted | 2,422,714 |
Employee share options | Employees | On 2069592 Share Options | |
Share-Based Compensation Arrangement by Share-Based Payment Award | |
Number of options granted | 2,069,592 |
Vesting percentage | 25% |
Employee share options | Employees | On 2833 Share Options | Options vesting on first, second and third anniversaries of vesting | |
Share-Based Compensation Arrangement by Share-Based Payment Award | |
Number of options granted | 2,833 |
Vesting percentage | 33% |
Employee share options | Employees | On 195881 Share Options | Vesting on each calendar month through 48th month | |
Share-Based Compensation Arrangement by Share-Based Payment Award | |
Number of options granted | 195,881 |
Vesting percentage | 0.0208% |
Employee share options | Employees | On 154408 Share Options | Options vesting on vesting commencement date and first, second and third anniversaries of the vesting commencement date | |
Share-Based Compensation Arrangement by Share-Based Payment Award | |
Number of options granted | 154,408 |
Employee share options | Employees | On 154408 Share Options | Options vesting on vesting commencement date | |
Share-Based Compensation Arrangement by Share-Based Payment Award | |
Vesting percentage | 25% |
Employee share options | Employees | On 154408 Share Options | Options vesting on first, second and third anniversaries of the vesting commencement date | |
Share-Based Compensation Arrangement by Share-Based Payment Award | |
Vesting percentage | 25% |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions used to estimate the fair values of the share options granted (Details) - 2022 Option Incentive Plan | 12 Months Ended | ||
Dec. 31, 2023 $ / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award | |||
Expected volatility, minimum | 82% | 74% | 48% |
Expected volatility, maximum | 85% | 80% | 74% |
Risk-free interest rate, minimum (per annum) | 3.57% | 1.94% | 0.97% |
Risk-free interest rate, maximum (per annum) | 4.47% | 3.83% | 1.55% |
Expected dividend yield | 0% | 0% | 0% |
Employee forfeiture rate (per annum) | 3.80% | ||
Exercise multiples | 2.50 | 2.50 | 2.50 |
Expected term | 7 years | 7 years | 7 years |
Minimum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award | |||
Employee forfeiture rate (per annum) | 2.40% | 3.80% | |
Fair value of underlying ordinary share (per share) | $ 7.95 | $ 18.11 | $ 14.10 |
Fair value of awards on valuation date | $ 5.38 | $ 12.93 | 5.84 |
Maximum | |||
Share-Based Compensation Arrangement by Share-Based Payment Award | |||
Employee forfeiture rate (per annum) | 7.50% | 3.92% | |
Fair value of underlying ordinary share (per share) | $ 15.47 | $ 19.91 | 18.42 |
Fair value of awards on valuation date | $ 10.51 | $ 17.11 | $ 19.90 |
Share-Based Compensation - Op_2
Share-Based Compensation - Option activity (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||||
Feb. 08, 2023 CNY (¥) | Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 CNY (¥) ¥ / shares $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares | |
Number of options | |||||
Options outstanding, Beginning | shares | 9,608,634 | ||||
Number of options granted | shares | 2,422,714 | ||||
Forfeited | shares | 506,540 | ||||
Exercised | shares | 1,333,087 | ||||
Options outstanding, Ending | shares | 10,191,721 | 9,608,634 | |||
Vested and expected to vest at ending | shares | 10,191,721 | 10,191,721 | |||
Exercisable at ending | shares | 5,335,293 | 5,335,293 | |||
Weighted average exercise price | |||||
At the beginning (in dollars per share) | ¥ 12.51 | ||||
Granted (in dollars per share) | 14.49 | ||||
Forfeited (in dollars per share) | 44.32 | ||||
Exercised (in dollars per share) | 16.59 | ||||
Outstanding at ending (in dollars per share) | 16.07 | ¥ 12.51 | |||
Vested and expect to vest | 16.07 | ¥ 16.07 | |||
Weighted average exercise price | 15.74 | ¥ 15.74 | |||
Weighted average grant date fair value | |||||
At the beginning | 65.93 | ||||
Weighted average grant-date fair value | (per share) | 55.08 | ¥ 55.08 | 121.62 | ¥ 102.74 | |
Outstanding at ending | 62.08 | ¥ 65.93 | |||
Vested and expected to vest at ending | 62.08 | ||||
Exercisable at ending | ¥ 50.36 | ||||
Weighted average remaining contract life and Aggregate intrinsic value | |||||
Outstanding | 4 years 11 months 19 days | 5 years 5 months 15 days | |||
Vested and expect to vest (in years) | 4 years 11 months 19 days | ||||
Exercisable at ending | 4 years 4 months 2 days | ||||
Outstanding | ¥ | ¥ 517,605 | ¥ 517,605 | ¥ 1,141,255 | ||
Vested and expected to vest at ending | ¥ | 517,605 | 517,605 | |||
Exercisable at ending | ¥ | 287,997 | 287,997 | |||
Unrecognized share-based compensation expense | ¥ | 291,247 | ¥ 291,247 | |||
Share-based compensation expenses | ¥ | ¥ 234,624 | ¥ 105,219 | ¥ 54,283 | ||
Unrecognized stock compensation expense, expected to be recognized over a weighted-average period | 2 years 4 months 6 days | ||||
Weighted average grant-date fair value | (per share) | ¥ 55.08 | ¥ 55.08 | ¥ 121.62 | ¥ 102.74 | |
Options exercised | ¥ | ¥ 74,380 | ¥ 0 | ¥ 0 | ||
Share-based compensation expenses related to share options without IPO condition | ¥ | ¥ 228,312 | ¥ 104,750 | ¥ 54,283 | ||
Share-based compensation expense | ¥ | ¥ 79,804 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted share units ("RSUs") (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numbers of RSUs | |||
Vested and expected to vest at ending | 10,191,721 | ||
Weighted-Average Grant Date Fair Value Per Share | |||
Vested and expect to vest | ¥ 16.07 | ||
Compensation expenses to options granted | ¥ 234,624 | ¥ 105,219 | ¥ 54,283 |
Share-based compensation expenses related to share options without IPO condition | 228,312 | ¥ 104,750 | ¥ 54,283 |
Unrecognized share-based compensation expense | ¥ 291,247 | ||
Unrecognized stock compensation expense, expected to be recognized over a weighted-average period | 2 years 4 months 6 days | ||
Restricted share units ("RSUs") | |||
Share-Based Compensation Arrangement by Share-Based Payment Award | |||
Number of awards granted | 189,012 | ||
Numbers of RSUs | |||
Number of awards granted | 189,012 | ||
Exercised | 35,691 | ||
Outstanding at the end | 153,321 | ||
Vested and expected to vest at ending | 153,321 | ||
Weighted-Average Grant Date Fair Value Per Share | |||
Granted (in dollars per share) | ¥ 76.52 | ||
Outstanding at the end (in dollars per share) | 76.06 | ||
Vested and expect to vest | ¥ 76.06 | ||
Total intrinsic value of share units exercised | ¥ 2,252 | ||
Compensation expenses to options granted | 5,646 | ||
Unrecognized share-based compensation expense | ¥ 8,816 | ||
Unrecognized stock compensation expense, expected to be recognized over a weighted-average period | 2 years 5 months 19 days | ||
Restricted share units ("RSUs") | On 55,775 restricted share awards | |||
Share-Based Compensation Arrangement by Share-Based Payment Award | |||
Number of awards granted | 54,775 | ||
Vesting percentage | 50% | ||
Numbers of RSUs | |||
Number of awards granted | 54,775 | ||
Restricted share units ("RSUs") | On 55,775 restricted share awards | Vested at the latter of the first anniversary | |||
Share-Based Compensation Arrangement by Share-Based Payment Award | |||
Vesting percentage | 50% | ||
Restricted share units ("RSUs") | On 55,775 restricted share awards | Remaining vested at each of the 12 months from the First Vesting Date | |||
Share-Based Compensation Arrangement by Share-Based Payment Award | |||
Vesting percentage | 50% | ||
Restricted share units ("RSUs") | On 120,143 restricted share awards | |||
Share-Based Compensation Arrangement by Share-Based Payment Award | |||
Number of awards granted | 120,143 | ||
Vesting percentage | 25% | ||
Numbers of RSUs | |||
Number of awards granted | 120,143 | ||
Restricted share units ("RSUs") | On 14,094 restricted share awards | |||
Share-Based Compensation Arrangement by Share-Based Payment Award | |||
Number of awards granted | 14,094 | ||
Vesting percentage | 0.125% | ||
Numbers of RSUs | |||
Number of awards granted | 14,094 |
Share-Based Compensation - Tand
Share-Based Compensation - Tandem award (Details) ¥ / shares in Units, ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2022 $ / shares shares | Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Number of options granted | shares | 2,422,714 | |||
Exercise price | ¥ / shares | ¥ 14.49 | |||
Compensation expenses to options granted | ¥ | ¥ 234,624 | ¥ 105,219 | ¥ 54,283 | |
Tandem award | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award | ||||
Number of options granted | shares | 60,000 | |||
Exercise price | $ / shares | $ 18.65 | |||
Vesting term | 4 years | |||
Vesting percentage | 25% | |||
Cash payment per share for any options vested but not exercised | $ / shares | $ 8 | |||
Expiration period | 4 years | |||
Compensation expenses to options granted | ¥ | ¥ 666 | ¥ 469 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-based compensation (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based compensation | |||
Compensation expenses to options granted | ¥ 234,624 | ¥ 105,219 | ¥ 54,283 |
Tandem award | |||
Share-based compensation | |||
Compensation expenses to options granted | 666 | 469 | |
Cost of revenues | |||
Share-based compensation | |||
Compensation expenses to options granted | 16,245 | 8,037 | 1,813 |
Sales and marketing expenses | |||
Share-based compensation | |||
Compensation expenses to options granted | 20,682 | 6,291 | 1,488 |
General and administrative expenses | |||
Share-based compensation | |||
Compensation expenses to options granted | 63,326 | 48,998 | 38,892 |
Research and development expenses | |||
Share-based compensation | |||
Compensation expenses to options granted | ¥ 134,371 | ¥ 41,893 | ¥ 12,090 |
Related Party Transactions (Det
Related Party Transactions (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2023 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Related Party Transaction | ||||||
Net revenues | ¥ 0 | ¥ 0 | ¥ 15,655 | |||
Payment for equity acquisition consideration | 17,506 | |||||
Subscription consideration received from shareholders | 17,506 | $ 2,466 | 507,620 | |||
Amounts due to related parties, net of allowance | 340,051 | 334,283 | 307,498 | $ 47,895 | ||
Affiliates of the shareholder of the Group | ||||||
Related Party Transaction | ||||||
Net revenues | 15,655 | |||||
Amounts due to related parties, net of allowance | 14,023 | |||||
Founding Shareholders and certain shareholders | ||||||
Related Party Transaction | ||||||
Payment for equity acquisition consideration | ¥ 17,506 | 17,506 | ||||
Subscription consideration received from shareholders | ¥ 17,506 | 17,506 | ||||
Amounts due to related parties, net of allowance | ¥ 326,028 | ¥ 334,283 | ¥ 307,498 |
Related Party Transactions - Ba
Related Party Transactions - Balances (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2023 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2021 CNY (¥) | |
Related Party Transaction | ||||
Payment for equity acquisition consideration | ¥ 17,506 | |||
Subscription consideration received from shareholders | 17,506 | $ 2,466 | ¥ 507,620 | |
Founding Shareholders and certain shareholders | ||||
Related Party Transaction | ||||
Payment for equity acquisition consideration | ¥ 17,506 | 17,506 | ||
Subscription consideration received from shareholders | ¥ 17,506 | ¥ 17,506 |
Loss per Share (Details)
Loss per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Numerator | ||||
Net loss | ¥ (475,968) | $ (67,039) | ¥ (300,765) | ¥ (244,827) |
Deemed dividend | ¥ | (446,419) | (2,211,330) | ||
Net loss attributable to ordinary shareholders of the company | ¥ (475,968) | $ (67,039) | ¥ (747,184) | ¥ (2,456,157) |
Denominator | ||||
Weighted average number of ordinary shares outstanding, basic (in shares) | 124,783,013 | 124,783,013 | 115,534,593 | 104,987,478 |
Weighted average number of ordinary shares outstanding, diluted (in shares) | 124,783,013 | 124,783,013 | 115,534,593 | 104,987,478 |
Net loss per share, basic (amounts per share) | (per share) | ¥ (3.81) | $ (0.54) | ¥ (6.47) | ¥ (23.39) |
Diluted (amounts per share) | (per share) | ¥ (3.81) | $ (0.54) | ¥ (6.47) | ¥ (23.39) |
Loss per Share - Anti-dilutive
Loss per Share - Anti-dilutive securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares issuable upon exercise of share options | 10,405,042 | 9,668,634 | 9,173,623 |
Share options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares issuable upon exercise of share options | 10,191,721 | 9,608,634 | 9,173,623 |
Restricted share unit | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares issuable upon exercise of share options | 153,321 | ||
Tandem award | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares issuable upon exercise of share options | 60,000 | 60,000 |
Segment (Details)
Segment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Nov. 15, 2023 CNY (¥) | Nov. 15, 2023 USD ($) | Dec. 31, 2023 CNY (¥) segment | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | segment | 2 | 2 | ||||
Net revenues | ¥ 1,876,989 | $ 264,368 | ¥ 1,202,670 | ¥ 720,768 | ||
Segment profit | 661,378 | $ 93,153 | 471,987 | 381,796 | ||
Percentage of equity interest sold in subsidiary | 100% | 100% | ||||
Intellectual property right at a total consideration | $ | $ 3,700 | |||||
Gain on disposal in other operating income | ¥ 6,100 | $ 900 | ||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Operating Income (Expense), Net | Other Operating Income (Expense), Net | ||||
LiDAR segment | Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment profit | 643,325 | 458,403 | 370,466 | |||
LiDAR segment | Operating segments | Product | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 1,738,027 | 1,127,900 | 686,533 | |||
Cost of revenues | 1,176,472 | 707,617 | 326,160 | |||
LiDAR segment | Operating segments | Service | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 112,099 | 50,803 | 14,702 | |||
Cost of revenues | 30,329 | 12,683 | 4,609 | |||
Gas detection segment | Operating segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 26,863 | 23,967 | 19,533 | |||
Cost of revenues | 8,810 | 10,383 | 8,203 | |||
Segment profit | ¥ 18,053 | ¥ 13,584 | ¥ 11,330 |
Segment - Reportable segments (
Segment - Reportable segments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Segment Reporting Information [Line Items] | ||||
Total profit | ¥ 661,378 | $ 93,153 | ¥ 471,987 | ¥ 381,796 |
Sales and marketing expenses | (148,798) | (20,958) | (104,835) | (69,266) |
General and administrative expenses | (320,144) | (45,091) | (201,007) | (236,713) |
Research and development expenses | (790,547) | (111,346) | (555,179) | (368,435) |
Other operating income, net | 26,520 | 3,735 | 10,817 | 27,333 |
Interest income | 99,813 | 14,058 | 58,734 | 32,584 |
Interest expenses | (3,069) | (432) | ||
Foreign exchange (loss) gain | (452) | (64) | 20,858 | (13,275) |
Other (loss) income, net | 34 | 5 | (2,161) | 118 |
Net loss before income tax and share of loss in equity method investments | (475,265) | $ (66,940) | (300,786) | (245,858) |
Reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Total profit | 661,378 | 471,987 | 381,796 | |
Sales and marketing expenses | (148,798) | (104,835) | (69,266) | |
General and administrative expenses | (320,144) | (201,007) | (236,713) | |
Research and development expenses | (790,547) | (555,179) | (368,435) | |
Other operating income, net | 26,520 | 10,817 | 27,333 | |
Interest income | 99,813 | 58,734 | 32,584 | |
Interest expenses | (3,069) | |||
Foreign exchange (loss) gain | (452) | 20,858 | (13,275) | |
Other (loss) income, net | 34 | (2,161) | 118 | |
Net loss before income tax and share of loss in equity method investments | ¥ (475,265) | ¥ (300,786) | ¥ (245,858) |
Segment - Long-term assets (Det
Segment - Long-term assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-term assets | ¥ 1,186,204 | ¥ 679,862 |
Mainland China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-term assets | 1,144,643 | 665,511 |
Thailand | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-term assets | 39,312 | |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-term assets | 2,146 | ¥ 14,351 |
Switzerland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-term assets | ¥ 103 |
Employee Benefit (Details)
Employee Benefit (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Contribution for employee benefits | ¥ 122,844 | ¥ 82,877 | ¥ 50,648 |
Statutory Reserves and Restri_2
Statutory Reserves and Restricted Net Assets - (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Restrictions for Consolidated and Unconsolidated Subsidiaries [Abstract] | ||
Required minimum percentage of annual appropriations | 10% | |
Statutory threshold percentage of the reserve fund to the registered capital of the respective company, above which the appropriation is not required | 50% | |
Statutory reserves | ¥ 0 | ¥ 0 |
Restricted net assets | ¥ 3,121,808,000 |
Commitments and Contingencies -
Commitments and Contingencies - Capital expenditure commitments (Details) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Future minimum capital payment under non-cancellable agreements | |
2024 | ¥ 115,813 |
Total | ¥ 115,813 |
Commitments and Contingencies_2
Commitments and Contingencies - Royalty commitments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | |
Other Commitments [Line Items] | ||||||
Base payment for royalty | $ 3,000 | |||||
Royalty expense | ¥ | ¥ 35,288 | ¥ 18,044 | ¥ 18,542 | |||
2030 | ||||||
Other Commitments [Line Items] | ||||||
Payment for royalty expense | $ 3,000 | $ 3,000 | ||||
Base payment for royalty | $ 300 | |||||
Net revenues of rotational scanning product from US$0 to US$425,000 | ||||||
Other Commitments [Line Items] | ||||||
Percentage of royalty on net revenue | 4% | 4% | ||||
Net revenues of rotational scanning product from US$0 to US$425,000 | Minimum | ||||||
Other Commitments [Line Items] | ||||||
Net revenues of rotational scanning product | $ 0 | |||||
Net revenues of rotational scanning product from US$0 to US$425,000 | Maximum | ||||||
Other Commitments [Line Items] | ||||||
Net revenues of rotational scanning product | $ 425,000 | |||||
Net revenues of rotational scanning product from US$425,000 to US$2,925,000 | ||||||
Other Commitments [Line Items] | ||||||
Percentage of royalty on net revenue | 3% | 3% | ||||
Net revenues of rotational scanning product from US$425,000 to US$2,925,000 | Minimum | ||||||
Other Commitments [Line Items] | ||||||
Net revenues of rotational scanning product | $ 425,000 | |||||
Net revenues of rotational scanning product from US$425,000 to US$2,925,000 | Maximum | ||||||
Other Commitments [Line Items] | ||||||
Net revenues of rotational scanning product | $ 2,925,000 | |||||
Net revenues of rotational scanning product from US$2,925,000 to above | ||||||
Other Commitments [Line Items] | ||||||
Percentage of royalty on net revenue | 2% | 2% | ||||
Net revenues of rotational scanning product | $ 2,925,000 |
Additional Information of the_2
Additional Information of the Parent Company - Condensed Balance Sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Assets | |||||
Cash and cash equivalents | ¥ 1,554,583 | $ 218,958 | ¥ 913,277 | ¥ 449,352 | |
Short-term investments | 1,586,005 | 223,384 | 945,865 | ||
Prepayments and other current assets | 208,082 | 29,308 | 126,452 | ||
Property and equipment, net | 871,611 | 122,764 | 504,953 | ||
TOTAL ASSETS | 5,662,543 | 797,553 | 3,839,396 | ||
Liabilities, Mezzanine Equity and Shareholders' (Deficit) Equity | |||||
Accrued expenses and other current liabilities | 498,324 | 70,188 | 356,502 | ||
TOTAL LIABILITIES | 1,800,225 | 253,557 | 997,663 | ||
Mezzanine Equity: | |||||
Redeemable shares (US$0.0001 par value, 54,551,513 and nil shares issued and outstanding as of December 31, 2022 and December 31, 2023, respectively) | 0 | 0 | 5,986,910 | ||
Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Additional paid-in capital | 7,423,862 | 1,045,629 | 0 | ||
Subscription receivables | (292,721) | (41,229) | (310,227) | ||
Accumulated other comprehensive (loss) income | 38,440 | 5,414 | (3,608) | ||
Accumulated deficit | (3,307,349) | (465,830) | (2,831,381) | ||
Total shareholders' (deficit) equity | 3,862,318 | 543,996 | (3,145,177) | ¥ (2,490,670) | ¥ 1,137,193 |
Total Liabilities, Mezzanine Equity and Shareholders' (Deficit) Equity | 5,662,543 | 797,553 | 3,839,396 | ||
Class A | |||||
Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Ordinary shares | 19 | 3 | 19 | ||
Class B | |||||
Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Ordinary shares | 67 | 9 | 20 | ||
Parent company | Reportable legal entities | |||||
Assets | |||||
Cash and cash equivalents | 363,778 | 51,237 | 35,411 | ||
Short-term investments | 581,962 | 81,968 | |||
Prepayments and other current assets | 8,005 | 1,127 | 1,041 | ||
Investments in subsidiaries | 2,929,800 | 412,653 | 2,806,201 | ||
Property and equipment, net | 5 | 1 | 7 | ||
TOTAL ASSETS | 3,883,550 | 546,986 | 2,842,660 | ||
Liabilities, Mezzanine Equity and Shareholders' (Deficit) Equity | |||||
Amounts due to subsidiaries | ¥ 14,024 | $ 1,975 | |||
Other Liability, Related Party, Type [Extensible Enumeration] | srt:SubsidiariesMember | srt:SubsidiariesMember | |||
Accrued expenses and other current liabilities | ¥ 7,208 | $ 1,015 | 927 | ||
TOTAL LIABILITIES | 21,232 | 2,990 | 927 | ||
Mezzanine Equity: | |||||
Redeemable shares (US$0.0001 par value, 54,551,513 and nil shares issued and outstanding as of December 31, 2022 and December 31, 2023, respectively) | 5,986,910 | ||||
Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Additional paid-in capital | 7,423,862 | 1,045,629 | |||
Subscription receivables | (292,721) | (41,229) | (310,227) | ||
Accumulated other comprehensive (loss) income | 38,440 | 5,414 | (3,608) | ||
Accumulated deficit | (3,307,349) | (465,830) | (2,831,381) | ||
Total shareholders' (deficit) equity | 3,862,318 | 543,996 | (3,145,177) | ||
Total Liabilities, Mezzanine Equity and Shareholders' (Deficit) Equity | 3,883,550 | 546,986 | 2,842,660 | ||
Parent company | Reportable legal entities | Class A | |||||
Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Ordinary shares | 19 | 3 | 19 | ||
Parent company | Reportable legal entities | Class B | |||||
Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] | |||||
Ordinary shares | ¥ 67 | $ 9 | ¥ 20 |
Additional Information of the_3
Additional Information of the Parent Company - Condensed Balance Sheets - Additional (Details) - $ / shares | Dec. 31, 2023 | Feb. 09, 2023 | Dec. 31, 2022 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Redeemable shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Redeemable shares, issued | 54,551,513 | 54,551,513 | |
Redeemable shares, outstanding | 0 | 0 | |
Class A | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Ordinary shares, authorized | 50,000,000 | 35,000,000 | |
Ordinary shares, issued | 30,033,379 | 30,033,379 | |
Ordinary shares, outstanding | 30,033,379 | 30,033,379 | |
Class B | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Redeemable shares, outstanding | 54,551,513 | ||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Ordinary shares, authorized | 900,000,000 | 150,000,000 | |
Ordinary shares, issued | 99,626,332 | 30,949,701 | |
Ordinary shares, outstanding | 96,995,110 | 30,949,701 | |
Parent company | Reportable legal entities | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Redeemable shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Redeemable shares, issued | 0 | 54,551,513 | |
Redeemable shares, outstanding | 0 | 54,551,513 | |
Parent company | Reportable legal entities | Class A | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Ordinary shares, authorized | 50,000,000 | 35,000,000 | |
Ordinary shares, issued | 30,033,379 | 30,033,379 | |
Ordinary shares, outstanding | 30,033,379 | 30,033,379 | |
Parent company | Reportable legal entities | Class B | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Ordinary shares, authorized | 900,000,000 | 150,000,000 | |
Ordinary shares, issued | 99,626,332 | 30,949,701 | |
Ordinary shares, outstanding | 96,995,110 | 30,949,701 |
Additional Information of the_4
Additional Information of the Parent Company - Condensed Statements of Operations and Comprehensive Loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Statement of Income Captions [Line Items] | ||||
Net revenues | ¥ 1,876,989 | $ 264,368 | ¥ 1,202,670 | ¥ 720,768 |
General and administrative expenses | (320,144) | (45,091) | (201,007) | (236,713) |
Interest income | 99,813 | 14,058 | 58,734 | 32,584 |
Foreign exchange (loss) gain | (452) | (64) | 20,858 | (13,275) |
Other income, net | 34 | 5 | (2,161) | 118 |
Equity in deficit of subsidiaries | (45) | (6) | (45) | (84) |
Net Loss | (475,968) | (67,039) | (300,765) | (244,827) |
Net loss attributable to ordinary shareholders of the company | (475,968) | (67,039) | (747,184) | (2,456,157) |
Comprehensive income (loss), net of tax of nil: | ||||
Foreign currency translation adjustments | 42,048 | 5,922 | (12,073) | 9,083 |
Comprehensive loss | (433,920) | (61,117) | (312,838) | (235,744) |
Parent company | Reportable legal entities | ||||
Condensed Statement of Income Captions [Line Items] | ||||
General and administrative expenses | (98,099) | (13,817) | (37,105) | (146,838) |
Interest income | 42,402 | 5,972 | ||
Foreign exchange (loss) gain | (12) | (2) | 2 | (2,324) |
Other income, net | 34 | |||
Equity in deficit of subsidiaries | (420,259) | (59,192) | (263,662) | (95,699) |
Net Loss | (475,968) | (67,039) | (300,765) | (244,827) |
Deemed dividend | (446,419) | (2,211,330) | ||
Net loss attributable to ordinary shareholders of the company | (475,968) | (67,039) | (747,184) | (2,456,157) |
Comprehensive income (loss), net of tax of nil: | ||||
Foreign currency translation adjustments | 42,048 | 5,922 | (12,073) | 9,083 |
Comprehensive loss | ¥ (433,920) | $ (61,117) | ¥ (312,838) | ¥ (235,744) |
Additional Information of the_5
Additional Information of the Parent Company - Condensed Statements of Operations and Comprehensive Loss - Additional (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Statement of Income Captions [Line Items] | |||
Other comprehensive income (loss), tax | ¥ 0 | ¥ 0 | ¥ 0 |
Parent company | |||
Condensed Statement of Income Captions [Line Items] | |||
Other comprehensive income (loss), tax | ¥ 0 |
Additional Information of the_6
Additional Information of the Parent Company - Condensed Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (475,968) | $ (67,039) | ¥ (300,765) | ¥ (244,827) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 86,268 | 12,151 | 53,634 | 28,231 |
Loss from equity in earnings of subsidiaries | 45 | 6 | 45 | 84 |
Share-based compensation | 234,624 | 33,046 | 105,219 | 54,283 |
Fair value change of short-term investments | (15,095) | (2,126) | 4,878 | (7,717) |
Foreign exchange loss (gain), net | (9) | (1) | (5,868) | 10,945 |
Changes in operating assets and liabilities: | ||||
Prepayments and other current assets | (82,646) | (11,640) | (33,556) | (48,618) |
Amounts due from related parties | 24,788 | |||
Accrued expenses and other current liabilities | 80,297 | 11,310 | (41,074) | 170,125 |
Net cash used in operating activities | 57,261 | 8,065 | (696,015) | (228,386) |
Cash flows from investing activities: | ||||
Purchases of short-term investments | (5,100,868) | (718,442) | (5,586,764) | (4,812,942) |
Maturity of short-term investments | 4,479,302 | 630,896 | 6,978,764 | 3,114,287 |
Purchases of property and equipment | (406,748) | (57,289) | (231,210) | (220,096) |
Investments in subsidiaries | (17,506) | |||
Net cash used in investing activities | (1,060,393) | (149,354) | 1,119,646 | (1,980,237) |
Cash flows from financing activities: | ||||
Cash contribution from shareholders in connection with the 2021 Reorganization | 17,506 | 2,466 | 507,620 | |
Proceeds from issuance of convertible loans | 1,950,338 | |||
Proceeds from issuance of ordinary shares | 1,225,470 | 172,604 | 453,978 | |
Payment of offering costs | (22,828) | (3,215) | (3,296) | |
Proceeds from issuance of ordinary shares upon the exercise of share options | 2,872 | 405 | ||
Net cash provided by financing activities | 1,590,356 | 223,998 | 15,176 | 2,403,726 |
Net increase (decrease) in cash and cash equivalents | 587,224 | 82,709 | 438,807 | 195,103 |
Cash, cash equivalents and restricted cash, beginning of the year | 913,277 | 128,632 | 449,352 | 256,688 |
Effect of foreign exchange rate changes on cash and cash equivalents | 57,623 | 8,116 | 25,118 | (2,439) |
Cash, cash equivalents and restricted cash, end of the year | 1,558,124 | 219,457 | 913,277 | 449,352 |
Supplemental disclosure of non-cash financing activities: | ||||
Accrued purchases of property and equipment | 179,839 | 25,330 | 102,181 | 114,446 |
Accrued offering cost | 480 | |||
Parent company | Reportable legal entities | ||||
Cash flows from operating activities: | ||||
Net loss | (475,968) | (67,039) | (300,765) | (244,827) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 3 | 1 | 2 | |
Loss from equity in earnings of subsidiaries | 420,259 | 59,192 | 263,662 | 95,699 |
Share-based compensation | 42,379 | 5,969 | 33,342 | 35,056 |
Fair value change of short-term investments | (12,500) | (1,761) | ||
Foreign exchange loss (gain), net | 12 | 2 | (2) | 2,324 |
Changes in operating assets and liabilities: | ||||
Prepayments and other current assets | (1,544) | (217) | (545) | (496) |
Amounts due from related parties | (255) | |||
Accrued expenses and other current liabilities | 6,281 | 885 | 2,611 | 24,746 |
Net cash used in operating activities | (21,078) | (2,968) | (1,695) | (87,753) |
Cash flows from investing activities: | ||||
Purchases of short-term investments | (742,287) | (104,552) | ||
Maturity of short-term investments | 176,302 | 24,832 | ||
Purchases of property and equipment | (10) | |||
Investments in subsidiaries | (379,237) | (53,414) | (2,787,570) | |
Net cash used in investing activities | (945,222) | (133,134) | (10) | (2,787,570) |
Cash flows from financing activities: | ||||
Cash contribution from shareholders in connection with the 2021 Reorganization | 17,506 | 2,466 | 507,620 | |
Proceeds from issuance of convertible loans | 1,950,338 | |||
Proceeds from issuance of ordinary shares | 1,225,470 | 172,604 | 453,978 | |
Payment of offering costs | (22,828) | (3,215) | ||
Proceeds from issuance of ordinary shares upon the exercise of share options | 2,872 | 405 | ||
Collection of payments due to subsidiaries | 14,024 | 1,975 | ||
Net cash provided by financing activities | 1,237,044 | 174,235 | 2,911,936 | |
Net increase (decrease) in cash and cash equivalents | 270,744 | 38,133 | (1,705) | 36,613 |
Cash, cash equivalents and restricted cash, beginning of the year | 35,411 | 4,988 | 36,160 | |
Effect of foreign exchange rate changes on cash and cash equivalents | 57,623 | 8,116 | 956 | (453) |
Cash, cash equivalents and restricted cash, end of the year | ¥ 363,778 | $ 51,237 | 35,411 | 36,160 |
Supplemental disclosure of non-cash financing activities: | ||||
Accrued purchases of property and equipment | ¥ 1,950,338 | |||
Accrued offering cost | ¥ 480 |
Additional Information of the_7
Additional Information of the Parent Company - Notes to Schedule I (Details) | Dec. 31, 2023 |
Condensed Balance Sheet Statements, Captions [Line Items] | |
Exchange rate used for translations of balances | 7.0999 |
Parent company | Reportable legal entities | |
Condensed Balance Sheet Statements, Captions [Line Items] | |
Exchange rate used for translations of balances | 7.0999 |