Hesai Group

gentlemen. Thank you for standing by. Welcome to HerSciGroup's first quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. Please note that today's conference call is being recorded. I will now turn the call over to our first speaker today, Yuan-Ting Shi, the company's head of capital markets. Please go ahead.

Thank you, operator. Hello, everyone. Thank you for joining He Sai Group's first quarter 2025 earnings conference call. Our earnings release is now available on our IR website at investor.hesai.com, as well as via newswire services. Today, you will hear from our CEO, Dr. David Lee, who will provide an overview of our recent updates. Next, our CFO, Mr. Andrew Fan, will address our financial results before we open the call for questions. Before we continue, I refer you to the safe harbor statement in our earnings press release, which applies to this call, as we will make forward-looking statements. Please also note that the company will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported on the GAAP in our earnings release and SEC filings. With that, I'm pleased to turn over the call to our CEO, Dr. David Lee. David, please go ahead.

Thank you, Yuan-Ting, and thank you, everyone, for joining our call today. Let's start with an overview of this quarter's progress. We began with a strong start in 2025, fueled by outstanding momentum in our ADAS and robotics segment, and backed by solid financial results. Our shipments more than tripled year over year to nearly 200,000 LiDAR units in the first quarter, despite the impact of typical seasonal patterns. This explosive growth suited an almost 50% year-over-year jump in our net revenue. Thanks to sharp execution, operational discipline, and cost control, we're also able to reduce our net loss by an impressive 84% year-over-year. Meanwhile, Hussite's leadership is being recognized across the industry. For the fourth consecutive year, UO Intelligence, a highly respected independent research firm in Europe, ranked HSI the number one global leader in automotive LiDAR market share. According to Youth 2024 analysis, we ranked number one in three major categories, by revenue with a 33% share of the global automotive lighter market, a 26% share of the global passenger car lighter market, and a dominant 61% share of the global robo-taxi market. These achievements speak volumes at the pace at which we innovate, scale, deliver, and reinforce our position at the forefront of the industry. Next, let's dive into our latest business highlights, starting with an accelerating momentum in the ADAS market. The 2025 Shanghai Auto Show, one of the world's largest and the most influential auto event, featured over 100 vehicle models with cutting-edge LiDAR technology. Hasai stood out with 12 OEMs at the show using our LiDAR technology, and among the 2025 production models making their debut, Hasai had the highest number of model integrations. The event shows that automakers are rapidly implementing intelligent driving across their lineups. and that LIDAR is fast becoming a must-have for elevating safety in everyday passenger cars. Our ATX LIDAR is the embodiment of our core belief. Safety is not optional. Never second best. And without limits. Designed to be affordable, ultra-compact, and offer best-in-class performance in its pricing category, ATX has been a true champion driving the democratization of intelligent driving. The sensor has already secured design wins with 12 major OEMs in May. Lialto announced its entire L-series EV lineup will be integrated with our ATL LiDAR, a specialized variant of ATX, as standard configuration, delivering even sharper 3D perception. In addition, we recently secured a major design win with Zkir to integrate ATX across several of its top-selling models, including a standard integration in the newly launched luxury shooting brake sedan, the Zkir 007 GT. At the same time, ATX is expanding its reach with extended partnerships lending new design wings with Great Wall Motors EV brand Aura, Cherries iCar new energy lineup, and an upcoming model from Geely aiming at mass market. With a rapidly growing roster of leading OEMs and flagship vehicles, ATX entered mass production in Q1 and made an immediate impact with close to 40,000 units shipped in its very first quarter on the market. Powering models such as LEAP Motors B10, the industry's first vehicle offering advanced ADAS at the RMB 120,000 price point with LIDAR hardware. According to public data, LEAP Motors B10 saw over 15,000 orders within just the first hour of its launch in March, with more than 70% opting for the LiDAR-equipped version, reflecting its strong appeal in the mass market. As part of our expanded strategic relationship with LEED Motors, we've secured a landmark order for 200,000 units of Hussite ATX LiDAR, which is set to power a wide range of LEED Motors production models starting in 2025. Internationally, we're also achieving breakthroughs. In addition to our exclusive design win with a top European OEM, a multi-year program across both ICE and EV platforms that extend into the next decade, we're excited to share that our business in Japan is rapidly gaining momentum. We recently secured a new proof-of-concept POC development project with a top five global tier one supplier headquartered in Japan. This achievement marks the first time they've joined our client portfolio and is a significant milestone in our global expansion, serving as a powerful endorsement to our LiDAR technology in Japan. Asai has been actively driving five TOC programs with four top global OEMs and Tier 1 suppliers across Europe and Japan. Three of these programs were successfully completed in the first quarter of 2025. Evaluation results from these programs will be shared with HSI, fostering a deeper collaboration between both parties and further refine and enhance the market appeal of a product. While these POCs do not yet constitute full design wings, they mark significant progress and were encouraged by the positive momentum as we look ahead to the next phase of development. As domestic and international OEM demand continues to evolve across level 2, level 3, and level 4 platforms, we took a major step forward this April with launch of our game-changing Infinity-i or Chenli-i LiDAR solution alongside three next-generation automotive-grade LiDAR sensors. This new platform, in conjunction with these sensors, is available in three configurations. Infinity IA is built for high level, level four autonomous systems. We achieve this by combining four AT1440 ultra high definition main lidars with four solid state FTX lidars acting as a blind spot detector offering true 360 degree coverage without blind spots. Infinity IB is designed for level three conditional autonomy. It features one new ETX main LIDAR, the world's longest range automotive LIDAR, which can detect up to 400 meters at 10% reflectivity. That paired with two FTX LIDARs for enhanced blind spot perception. And for level two ADAS applications, Infinity IC brings the perfect balance of performance and cost efficiency using one compact yet powerful ATX main LIDAR. A core feature of this new platform is a shared architecture across our AT, ET, and the FT series that features more than 85% component commonality. This means faster development, lower cost, and seamless scalability. These industry-leading solutions are a direct testament to our product's technical strengths and our holistic approach to satisfying customer needs. Beyond delivering superior performance, we create comprehensive solutions that integrate our cutting-edge technological capabilities with cost effectiveness. As a result of these strengths, we have won design wins over 120 vehicle models across 23 OEMs worldwide. Meanwhile, the broader robotics market represents tremendous opportunities, and our LiDAR solutions sit at the core of this growth. According to Goldman Sachs estimates, China's autonomous mobility market is set for explosive growth and is expected to expand over the next decade from just US dollars 54 million in 2025 to US dollars 47 billion by 2035. China is clearly on track to become the world's largest autonomous mobility market. In recent months, we've been at the forefront of a new wave of robo-taxi breakthroughs across China and beyond. As the main LiDAR supplier, we're powering mass-produced next-generation fleets for Baidu Apollo Go, Didi, Pony AI, WeRide, some of which have already expanded onto the global stage. Today, we're proud to be the world's largest LiDAR supplier for robot taxis. We're also thrilled to be accelerating L4 autonomy across both long-haul and last-mile logistics. Recently, we signed a new agreement to bring our ultra-high-definition 18-14-40 sensor to Cargobot's Level 4 Robotruck fleet. At the same time, we partnered with Zelos to scale its last-mile delivery operations and Neolix to deploy its LMA Level 4 vehicles. As Level 4 autonomy moves into commercial deployment, we're proud to be the LiDAR partner, helping customers scale smarter, safer, and faster. Beyond transportation, LiDAR is unlocking a world of new possibilities, each bringing fresh opportunities to reimagine the everyday and drive incremental revenue and profit. We believe that every robot needs LiDAR as a core 3D sensor for precise positioning, mapping, navigation, and perception. Take our JT LiDAR, for example. It's been chosen for the next generation robotic lawnmowers, delivering superior accuracy, stability, and efficiency over traditional RTK and camera-based systems, especially in signal-challenged or visually complex environments. We also recently expanded our partnership with a leading smart home robotics company in China. Over the next 12 months, we expect to provide 300,000 JT units to this customer, generating meaningful revenue while helping transform everyday consumer products in intelligent, LiDAR-driven capabilities. In summary, Q1 has laid a powerful foundation for what promises to be another transformative year for HSI. We stand at a pivotal moment where breakthrough technology meets a real market readiness. With our unmatched technology leadership and scalable production, we're leading in the industry to shape the future of mobility. And we're doing it alongside customers who share our mission to make advanced perception and safety accessible for all. Before I hand over to Andrew, I want to share some exciting news. In early May, the U.S. District Court for the District of Delaware has officially dismissed Alster's patent infringement case against us with no conditions, no financial settlement, and no injunctive relief. This brings an end to all existing IP actions against us and reaffirms the integrity of our technology. It's a powerful validation of the strength of our IP portfolio and the years of R&D that power it. We are proud that our innovations have not only withstood legal scrutiny, but have also prevailed. Our deep passion for technology and our wavering commitment to R&D continue to give us a real edge, and no legal tactic can change that. With that, I will now turn the call over to Andrew to share more details on our financial performance and outlook. Andrew, please go ahead.