Hesai (HSAI) 12 Mar 242023 Q4 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by for Hesai Group's Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] Please note that today's conference call is being recorded. I will now turn the call over to our first speaker today, Yuanting Shi, the company's Investor Relations Director. Please go ahead.

Thank you, operator. everyone. Hello, joining call. quarter for XXXX full Group's conference earnings Hesai you and fourth year Thank

release now services. earnings Li, overview as hear Our of is our who well at IR from updates. call as investor.hesaitech.com, will website our start via with Dr. recent newswire CEO, Today, the will available you David on an our

Next, open the we financial results our Global before CFO, Mr. for Louis questions. Hsieh, will address our call

to which the our are Dr. the please applies our turn most you call refer to safe more to GAAP earnings I we press David in make today, to also release, go discuss SEC this continue, in ahead. statements. reconciled earnings we under Before measures explained thoroughly comparable release will to Li. harbor measures pleased filings. With David, the over as company call, our Please statement and the non-GAAP CEO, reported and which forward-looking note will I'm that, that

you, peers, for with our to year extended not Thank full you, for outperform landmark everyone, We leading market joining our XXXX also Yuanting, LiDAR and call our our surpassed was path gross cost to profitability. we on only substantially the total all of Hesai. economies margin, of which continue stellar year a and but control thank share and results revenues, a virtuous across multiple achieved our milestones significant shipments Furthermore, expectations. of today. previous blended created cycle scale and

responsible mission accident, unwavering and commitment global a for For accomplishments our These unparalleled sustain transportation industry. full lives of and within remarkable our year XXXX reached instance, cash feat saving growth positive of territory, flow everyone. operating making the our for reflect safer reducing to to the

update. delve Let's our fourth business quarter into

in by On our based with the largest collaboration of expanding quarter in a fourth EV side, the manufacturers milestone China. world's domestic one significant the achieved we

starting to encompasses models Our that vehicle set extended another cooperation XXXX. are fresh debut of lineup

equipment Auto, Li LiDAR LX provider versions, Hesai's recently MPV growing LX to addition, book. Auto their selected MEGA Li In as their of by platform. immediately of for standard LiDAR and the were thousands units we on ADAS popular exclusive hundreds may added order Pro also

further. The full partnership functions. one OEMs to prominent projected our are auto of anticipate with and through penetration to We over also Great LiDARs even Leapmotor, swing, that is revolution a with XX%. at will In Motor, of eager who forged XX% brands, NOA strategic China's by themselves in formed vehicle the a venture SOP to largest XXXX, new has scheduled partnerships variety Wall and Stellantis endeavors increase deepen joint models these China with particularly in XXXX. with in include of intelligent rate integration is soon the EV recently China. recently We into their joint research distinguish commence It NOA domestic OEMs stood to in XXXX. estimated to

B as NOA with Auto's feature with mentioned, navigates as from point minimal A point function, instance, now and models urban configuration which Pro intervention. LX For standard a just LiDAR, LX an I to driver our urban Li

represent Leapmotors Additionally, as XXXX recent affordable XXX,XXX illustrated range to of with standards. Moreover, in way consecutive with emerging model. The passenger a safety with LiDAR inflection the line, a a the unveiling XXXX than across like commenced towards of point LiDAR in the in by technology XXXX to launch This growing in range and range XXXX, as and OEM latest XXx begin mass began LX LiDAR LX+ evolution years, adoption has for Chinese a safety rest EV China extended at XXXX. which In LiDAR their other China and EV price commending the is only. ADAS XX% world. China years phenomenon of into worldwide. priced configurations, previously words, an advances XXX,XXX prerequisite maintained systems, widening price OEMs recognized airbags. cars to larger mass key driving of global for the the models XXx curve. served in and a RMB signal to EV making opportunity mass essential in industry the global a range is majority EV near market sales trend just LiDAR The market of to seeking ahead has transformative X for approximately now leadership time safety-cautious XXXX, is XXX,XXX industry, RMB Meanwhile, become share and has a priced in exceeding as equipped its contrast categories catalyst categories. EV production our production consumers accessibility RMB the in production ADAS vehicles the XXXX, anticipated highest is and for X around is feature transformative industry global premium increasingly autonomous Consequently, sector systems

unsuccessful the strength, and right in proficiency shipments those evidence We at a stage. just a but time to by accumulative understanding system. only of vendor [ this amass established a expertise also Hesai economies XXX,XXX units the who XXXX, conservative well significant with not has to compelling This with due with serves financial capture profound scale, compete of peers. U.S. may quality we management on are technological be realized opportunity global ] more are successfully of our in to global of mass through for end the and and positioned Armed right LiDAR attempts European past place selection our particularly as production OEMs, surpassing a advantages

walk of through some the me specifics. you Let

can significant are in R&D NextGen a by January is detection ATXXX, but In industry's ultra-long-range for benchmarks, LiDAR degree, we not defining the ADAS challenges highest pioneering new mass development available long-standing detecting objects resolution. LiDAR wavelength at make initiatives meters. Standing with competing XXXX-nanometer only XXXX, also It trajectory. to range vehicle's about XXX metric, industry's given performance as unveiled establishing in out notion reaction by capability our ATXXX scheduled outperforms the Hesai's the XXXX. the detect as with technology driving the product cutting-edge First, safer enhances system LiDAR every its This designed least industry-leading across LiDARs twice flagship greatly boasting perception more far over XX% intelligent including away and time industry the decisions. competitors category, only key production beyond bottlenecks, technical misconceptions that

of provides the long-term global substantial of meet, the dynamic firmly not when CEO but well the society, as in good of safety, only the comes a products, and enough. We it to declared, As best our believe company isn't which second that leading development benefits exceed the investing LiDAR to LiDAR best as market demand stakeholders. of OEM

now technological various conversions our are XXXX have at seeing LiDAR innovation reflect emphasized based terms the laser. Vegas for scanning mirror MEMS We new growing traditionally Las unveiling XXX-nanometer offers products of and of This competitors, the a reliability. cost, rotating in who benefits or of technologies recognition event system towards on debuts use of the the performance in lasers technologies CES are direction. Several XXXX-nanometer underscores a our

won in-cabin groundbreaking [ Award event, CES. long-range Innovation ingenuity where ] our ultra-thin leadership Our recognized at prestigious at the XXXX ETXX, were LiDAR CES and

scale manage and at Second, is we effectively mass enduring cost production cultivate with ensure sustained believe trust that customers. operation, way the firmly to our only

] facility now, Shanghai, an our and in over R&D to units, market over a product of an figure focusing we end we to and Hertz global LiDAR X XXX,XXX of million of on run million our a testing in production new annualized Meanwhile, X.X By operate in of accumulate, to the mass project XXXX. automation industry. achieved XX% X XXXX. rate rate end XXXX, As we we center end ship [ Hangzhou, production, by X Center of over unparalleled unprecedented by to of units rise factories, to dedicated million Maxwell major to the LiDAR expect boasting the we

[ stable optics as of capability, are OEMs reliability indicators [ systems. quality of mechanics, in and conditions. Drawing outstanding installation than manufacturers in confident has scale. quality perspective, concern. to ], indicator electronics, LiDAR the considering From Third, such, intense products' our road systems, of require no know-how, ability crucial our primarily upon ] performance are these assets ADAS and materially their when beyond our sophisticated OEM's superior Amid domestic a leadership competition better product reliability for expand and we become have global integration and long-term real-life adoption EV LiDAR widespread paramount. there's as emerged LiDAR of quality mass systems precisions manufacturing to

ADAS We production that been are surreal beyond series production we won of announce X programs X and major from OEMs worldwide. EV more. We've for there XX Tier their over models OEMs automotive EV global new top selected XX now, are by suppliers have series and as to

X These with accomplishments lineup RFI/RFQ updates. Europe, roster to total adding tuned include and the from global leading America OEMs our the ex-China journey. to major a XX has and North to we're the of expanded global of quarter global for start ]. Stay ADAS promising Asia a [ marks Our

we ahead, to is As impact. filled the look our with road broaden opportunity ahead

ahead. creating just are to lives we Louis, global on system. I'll performance poised call outlook. to LiDAR the strategic market-leading turn go financial Louis safer on and With to evolution beginning. and now more far are reducing thus and saving achievement driving, a of transportation accidents, worldwide, the share over Our our technology details capitalize partnerships please intelligent the

you, Thank David, and everyone. hello,

leadership year be million, for the of further fourth industry. total fourth reached year-over-year and QX, to sequentially. and operating of fourth length milestones and year-over-year mindful earnings XX.X% that XX.X% year and achieved details. In today, the increase revenues remarkable units, XX.X% of our quarter through and To the of the XX.X% underscores call sequentially. full listeners release go I our figures quarter net in Let's earnings a our our XXX LiDAR XXXX. quarter RMB exceeded financial XXXX, refer of shipments we LiDAR to encourage the XX,XXX host for of full Quarterly global increase an an In

XXXX. Even XXXX of gross a year-over-year billion high above end margin the Our our combined X.XXX year XXXX, alone shipments total of XX.X% fourth surpassed by increased top year for to more of range our full for XX% exciting, full XX.X%, full a revenues our RMB of to year new with guidance net quarter blended XX%.

mark. LiDAR clear to attributable X robotaxi granted AM and Our to LiDAR revenues line operating factors: significant remain efficiency enhancing products by RMB in these margin suspension note will units the positive set quarter It have the XXX this by our and XXXX, XX,XXX end meet shipments customer first year, setback, compared XXX to the business profitability. Heartened in large XXXX range XXXX. flow XXX,XXX the on last anticipate million that delivered We automotive first, total strong. given revenue worldwide deliveries focused XXX,XXX, to for a quarter. our main shipments robotaxi of the to of We first the cash exceed first Despite targets our the this cumulative the to that up the is we our ambitious to our discount price to of results, to units ability the certain underscoring muted year-over-year. RMB This in customer, for million reasonable rest and shipments crucial first scalability slowdown year. of is our year of for exceeded gross stellar not to demand Hesai path a hinder LiDAR full making LiDAR reach remains cost and Meanwhile, target. total topped company XXX% guidance

and New for Year's traditionally the preceding of quarter and forward Second, Due production deliveries the strategically the the holiday, first suppliers quarter season industry. to the marks year. fourth slow the China's of OEMs to year both automotive pull

As increase revenues robotics including in industrial ADAS XXXX and are ADAS autonomous revenue led, our led to to XXXX. our XX% to approximately revenues mix from XXXX. transition mobility from ADAS accelerates, below shipments of XX% robotaxi LiDAR projected will in in

and of quarter ADAS a transitional contribution. quarter in in drop robotics steady robotaxi first with will growth XXXX accompanied The by a growth in be strong

the will of second optimism shipments shipments for about units and for revenues ADAS Thereafter, or to the XXXX. By vehicle ADAS bolstered in significant Xx end lead from our the XX XXXX anticipate LiDAR models QX in SOP SOP addition expected We models increase of vehicle of of is XXXX. the total in XX optimistic quarter outlook believe by XX uptick OEMs an is XXXX, alone. quarter OEMs. this quarter-over-quarter This approximate second XXX,XXX we quarter SOP X in with a highly in and second

We surge greater in half the shipment of in figures are poised for even XXXX. an second

be on shipments LiDAR and second this expect representing the current of XXX,XXX per half based expect as subject models forecast to We customer to in These XX the we approximately OEMs over year. XX SOP are quarter vehicle end may XXXX, projections by of change.

management to growing wrap of XX% Our year a accidents, revenue operational strategies XXX testament us million, the our increase management year USD our commitment within XXXX, in to we cost to quarter of commitment in expect expect by our blended XX% safer to stands prudent XXXX XXXX. To transportation global of the up, year-over-year. the USD firm and full for unwavering Meanwhile, to we reducing margin Hesai range achieve everyone. an XX% systems million of expense guidance the to to for and economies a scale. excellence Furthermore, fourth range defined traffic profitability to gross XXX is XX% of robust and full making for saving lives help maintain

ready are customers, We partners This to to are concludes take our and questions. promise now firmly we our shareholders. committed delivering remarks our prepared today. Operator, to for on

comes question with from Huang Your first [Operator Cindy Morgan Stanley. Instructions]

splendid Congratulations on results.

regarding dispute of DoD. will any impact is with U.S. be on question there the first with U.S. And Is in terms my the development? update there So OEMs? any working

is we on you, were had and put know first, XXst, our after list, said DoD I'll Thank take in the Cindy. when as January statement, David why. XXXX, in. This don't for we can then, we the Louis. Yes, that chime

trying to that. ascertain we're So

and we've we Chinese data, the not not the to do surveillance, do our very We said with store and for use military. -- use past whole civilian do do not we only investors -- world, commercial clearly As and in our to are cannot LiDARs work only. the

clear. very very, that made we So

the on as So for we information, we're the DoD why list. have to now asked

with proceedings. want forward the we given where But that's sensitivity comment of it don't moved point, litigation, this the further have We legal but at to stands.

as far impacted certainly U.S. it on has effect, us a has negative effects As it OEMs, a way. reputational in and

we do believe continue it's [ want but to we ] our customers, it's we to that So to add that in certainly list. we We're from and it. everything justified. want anything get with happen, will not David, monitor don't removed can something OEM still to discussions else. do We you

Yes. Yes. you, Thank Louis.

we we made Louis company, do And not are has think accusations I our false. those are clear. and military very position not a --

will So repeat that. I not

this concerns it's U.S. that OEMs of increased a think true is becoming the are is the equation, -- and a and what try company-specific it's I'll of it's China. a, X -- that an geopolitics especially that issue, from is part add it global not things: I U.S. concern, becoming and to OEM And is directly issue hurting course, parts any becoming have using us. will increasing

and cars us top very a vendor of to So to that they like also they because brand those wanted for that's the China the then, reasons. to with become become XX%. and us for a have American use diligently going preferred or brands, that an in issue, size clear obvious that, market remember, because anyways, China hopefully, those the premium of is sometimes is why but And significant them, in actually, issue. On OEMs, we is we becoming they Chinese resolve a definitely to I'd comment up and are geopolitics and also working what like European to it

any is problems is that, So not it's that and the on and volume. it great business, in border, is concern. also cars is we a have for not the flip impacting sure. becoming our significant don't But for and issue China, an it build they And U.S. a side, that geopolitics across

the to think is part also So I that of is equation us. important that

Did that question, your answered Cindy?

forecast? how David. Does and rapid new a model in And and OEMs any Hesai XXX question to shipment related respond sales you and apply ] demand are to super The model launches second to And Thank would adjustment order order volatile. the you, forecast. change? our pipeline is my [ demand

for positive change order or mean You the the negative?

Both ways.

Okay.

discount me known you've think guys years, I a I into always for -- me the many many, you have forecast. known build

orders actual much numbers give. our we the So than are higher

already is that So in. built

demand meet to efficiency our level as facility because access have Hertz and almost we also to of raw our our and the materials. any and manufacturing automation far As upside capability manufacturing with our in because of surprises,

always upside good. So is

XX% to you the be to XX% Hesai do the only just Auto, used LX their LX of that's next and will -- of now will be the hundreds couple think LiDARs, -- the LiDARs years. plus Their auto was models equipment very do Li over fact, about the to have the so and on from equipment from their were or hey, where rate launched, version. That probably to Max XX% to the with partnership MEGA MPV. range the it of orders standard alone new LX thousands take -- XX%, in and very, In we standard happy or MEGA Pro then

-- give then So have handle we surprises, any kind we can is to the we And LiDAR you so we number surprises. deliveries. the our discount downside for obviously there upside because of

a So about again, me talk let from technical this topic standpoint.

we confident LiDAR. So that one product. built of call difference RMB [ right? it's that which to of some happy the minimal was ], many The is and expecting volume, will that customers to only the the It models the is And It There the in to some growing that level, actually effect, a XXX,XXX which ups always more will road. But we mounting months thing on blended a entire of across with premium part predict any And not the used now is worth price down many see not and it be software especially that the ship that the X units because noting we're standard XX it some bracket. penetrating is category. you're that more be the a steadily very now right. specific same aggregate category, more car downs are like this is communication the cheaper What and ATXXX. are market, of and change. down absolutely car is the very given means look we're and how to robust be if impossible a to a have difficult yes, to needed understand it's actually volume year. you to across it's XX, models -- much at we bigger We

can And question very That's up more next-generation with one clear. product. I on follow

the ATXXX do the ], transition we gap, bridge [ from how I So to ATXXX? mean

Yes. Thank is question. you. Yes. This great a

the of are So parts I think there X strategy.

thesis has called if overarching simple remember First, our Law. been you always Moore's term a

Law are XX actually it you is price of ways way range. If every your your performance almost what that try the Law. X Moore's that you there or so. months like look Moore's does One at is to using It's doubles CPU, But right? then keep

one taking range at the sense already -- doing. tell, the roughly will in is this always the ATXXX as a range. XX% path, the and of is more price resolution of can that's Xx So Essentially, similar the way that ATXXX at we're it the more stay price. ATXXX on is the And on you but the range

is lot right? time, a just Your Law have did price exactly the becomes over Moore's electronics, its what of It to consumer So right? didn't CPU right. this X,

Law. of Of not that hundreds to the that, market cheaper a thousands of course, too deployed LiDARs and via them, [ LiDAR, tens millions more said of mass just vehicles, recognize to also be that for ] possible Moore's that's happen. Having didn't of needs them, but we widely

It performance still the it if it will version if more reasonably be Of affordable ATXXX, have of cheaper the build need be don't but ATXXX. of to especially wouldn't of could definitely time will there not as full have good, better a you ATXXX. direction course, And full that the over and try it, information, performance we than market to trend, but that. definitely Chinese know release at. technology especially available, we're the we That they looking for become be people support another We're will is the want, quite this platform we yet. we

Sachs. Your next question comes Goldman from Tina with Hou

the margin I a on Congrats the question. strong gross result have number. and

now so you LIDARs, -- you will that X.X XXXX million by mentioned So means and ship there be million in X David, together. you about XXXX, guys just which cumulatively XXXX will --

a giving? like base of that a is Or a wondering, this I'm like more that you're So just is bear-case number, conservative scenario? case also scenario

I'll Thank take question. numbers given Tina. since you, it's that a

I side. think leaning the X million the realistic bear cumulative probably towards figure and is

David So EV the car explode. mentioned the adoption as his moves going as is remarks, vehicles it I in midrange to of for think, affordable range, just down and new demand to the LiDAR lower LiDAR in

by XXXX by a reaching actually -- XXXX. all I the So Hesai in believe so to be only there do company think as next X world, grail the makers by the units holy year. was in LiDAR mentioned will I million

those we've now, XXX,XXX yes, a lower David year, for end that's over Those the will or for And XXXX. X affordable. we add because and market, XXX,XXX what to have XXX,XXX, you'll you high-end of ATXXX, XXXX. are hear units wait we if ship details, units generate that for have of together So this cars well partly in X to to the million we over mass together, X and done million versions more the where X expect but market have discussed, expected

they David. I is also is believe on car and XX it they more for out Everybody and do, be try and this especially -- at -- China, car to is the the Tina, fast. believe into what market, of in [indiscernible] their side then model something moves each looking market very months. conservative consumer will roll the this incorporate in also another could kind other next that I

we already or especially have. But for media if So bottom-up everybody today's the is very for LiDAR. watch past of month projection is projection X, numbers the you based mentioning closely definitely on the a

specific. the you always at releases, look mentioned all things, they right? and very only is LiDAR now car of if few One them So very

and was charging, couldn't XXX-volt even people the remember. the talk other I what thing is about? other The

of a that symbol it of has And losing. level every kind we're now car competition, of [ that X driving, I intelligent across claiming standard things the the we're lot release. OEMs that's top not is ] the a of become course, one of think a of just make mentioned because to and it I is the are this sure, going

effect, this think quickly. up I So moving, really know ramping it is and starts will snowball start, we it to

could So that's the today be why I the side. numbers from on conservative think the bottom-up current best estimate

Tina, these that LiDAR actually become or top the world. platform will some we into X you our year, Yes. -- X for in move this know as we're LiDAR of OEMs

to -- to actually out They're the be EV which be be going volume-wise. of at actual to and going new all they're end, So high fleet or platform, just different low whether rolls the whole but cars, it's LiDAR, may end the the from Hesai.

So why then standard on David to much the bottom many be numbers happen in can top auto especially those manufacturers. it said that's actually larger, which of believe but -- all if models, next the the equipment several EV was years the up, I becomes will their

Yes.

third Yes. Yes, coefficient. one, competing remember. is I aerodynamics the factor like The

helpful question OpEx. I really a then top recently. that it's That's gets can definitely And mentioned in agree OEMs if Yes, the do yes. the the comprehensive. by have top, and one of follow-up functions I is, of And not the terms that

is and for of non-GAAP R&D So profit our also, we like XXXX? do breakeven? time CapEx estimated budget an wondering as net have what SG&A And well as

Yes.

had question. I large Center. expansion because programs had built the rolled also we we on we We out year, Innovation a think -- new a right? built lot R&D into of Maxwell higher So in went it's good And Hertz Center. was very we side. XXXX ADAS a OpEx

set finished That little layoffs grow. had than increase to revenue much, increase. -- a XXX XXXX, will people we I increase XXX will G&A much So [ But and the marketing people will be and was lower in a set with 'XX OpEx our slow. R&D over together, in hiring had after not bit -- the X,XXX think amount from and of think of people. hiring sales I ] went total

GAAP we maintain XXX from to basis, As a is we'll that for in GAAP in gross profitable quarters, hit be we or QX quarter if from quarter. to to volumes And our USD long because, million, slowest few of as hit as of million should we expect the be quarter XXX,XXX QX -- XXX second this for XXXX course, XX% basis. And ] XXXX breakeven get year, close of margins, a probably in half a over USD [ very to we hope XX% we non-GAAP seasonally. a profitable

down. be slow But to GAAP in will expect we profitable that So overall, XXXX.

next Jessie with of Lo Your question Bank America. from comes

My will shipment first orders. question our to be related

you light the on apart other And shed Li Auto, would So X some who the the volume be will top in from like could how looks like -- clients? also XXXX?

Yes.

don't XX,XXX the mention to them directly those will with probably them. units I think going of total true and associate be our names top you out [ have than figure XX,XXX think some And I least they the half But been are be we to of units. to the we already as X rest names. to able able disclosed, but but won't numbers each their at be ] Auto volume, to the have roughly is of Li more right customers, will take

from of start the in disclosing is Yes. with year. LiDAR why So numbers names, a Auto the Jessie, this our half roughly from will automakers That's this the shipping up. half without the top rest Li go players. X essentially, and top China

Okay.

drop be to question revenue or delivery this it guidance second my USD like the pairing related ASP as with of the adjustment negotiation wouldn't If USD shipment LiDAR we ASP Also, to with take or much XX%. would our ADAS guidance, OEMs. be XXX as XXX sounds the million million,

Auto, then some as we a -- maybe we the with Li ASP? And on have FT we on also share apart and especially, with how have clients concentration could So you're series high then that, our more you from well. dealing details shipment on

Yes.

of is the product mean, I the -- AT for the in think ADAS. I most series

relatively it's by key XXXX But year. goes whole decline for our usually XX%. actually a cost even It's is and faster. the that closer The contract the negotiated price higher ASP it's to XX%. So similar than is thing down for

can remember, maintain still on basis. we robotaxi business and Because margin the So the a blended have we margins robotics. still high of gross very

than margin of any anyone else market. able reductions but XX%, So gross to is better at intact absorb kind negotiated XX%, we're our the still in price

down will have we higher the obviously -- bit if price, decrease don't XX%. to than it. price take like So little But we even don't to do a the ability be

And finally, just follow-up...

sorry, real I to add want on quickly quick. comments -- my also And this.

growth So out. those due that factors true is of also, much it effect remember, more this scale, the total ASP the probably right? is to importantly, to And But faster And you declining combine figure that faster, so have to is economies strong also right? than volume we of and -- expected. a is

see I manufacturing you the mean, the Jessie, that of gross scale in on margin. economies you start can we once just kicks high look can QX, at volume, really and in

on I up top also, quarter to So want fourth previously, transition. that of the were doing so we still margin, gross follow

transition we having cost So XXXX? or like And how or in on series? then was any upgrade further product AT improvement that the are

Sorry, can you...

right? The AT issues, smooth, transition is right? from No

AT to ET.

from ATXXX. Remember the AT? old

Yes, and right, completion, close a very to it that -- and solid that is upgrade. is

through validation And so -- than the has more gone and also, ones. it it previous

So transition. is it a very smooth

still for numbers. was number this There's was there's -- very I last year, with X it cars, year it's the old a that AT validated small shipped of or low X think one because but

certainly is to of the... I So new going AT -- be AT think XX% XX%, the

very agreed that transition [indiscernible]. been the And it finish it has will

So this is a transition. very yes, smooth I think

huge getting year SOP Yes. is yet, FT course, aren't And then, getting comes ET form. is traction. numbers The also rolling is of in it there out next And out. but ATXXX. And -- some

with Wang comes Bank. question from Deutsche Bin next Your

I questions. one costs have about Number X [indiscernible]. is

your year [indiscernible] for this impact number one forecast for -- That's volume? year what's the next So about costs. volume

your gross means LiDAR the what's you actually in mix quarter, about in ADAS which is #X #X actually much got kind reason however, the the because question increase, seem quarters the the for to margin margin high really quarter? be similar product second in product percentage change the more coming that? this in XX of than the The despite first deteriorate, What's quarter more mix the

Thank Bin. you, Wang

we individual don't discuss think I customers.

Yes.

or the you're whether would see I specific think but first, robotaxi able that hard their won't course, unit that economics better it But new So the especially reason, do right? So is market, Wang permission. expectation. without we it is a penetration reason the is see us of individual flip the Bin, the in on is for the decline is customers some car side models the right to and speculate rate and true, a significant of and also ADAS -- we momentum the it's be think comment slowdown the to coming exceeding of side be shipment our on actually I of again, slowdown and orders, technical and we and

So growth. each our to very are maintain they year to again, canceled the robotaxi as we for LiDAR help strong said, of I a not other company. kind But us out

company. LiDAR ADAS an not are We

very growing LiDAR a it capability are when and market. very majority semiconductor robotaxi the strong manufacturing true was was that the capability. And fast, company We capture with of we

to much Now focus continue doesn't market, it's and actually of to hurt ADAS. which is it the growing the us on slowing down, faster part

that... So

left still you over $XXX up million Wang conservative -- to $XXX So XXX,XXX. that intact the revenue in impact our the the be when million, slowdown Bin, now made at about just LiDAR our $XXX to I revenue, count year million, when XXX,XXX. recall to given this I million from we And forecast in of was for robotaxi. made That $XXX ADAS time, is at

didn't take we up. So the number

Yes.

And itself QX, still you the said your have our But had at busiest we that's a shows on gross pricing margin you quarter, higher to out. when remember, as David kind it XXXX. the that and time question evens from of that that's for because

the of year. And top also, on so the starting robotaxi it, is really this of slowdown

QX quarter. So last was good a still

ship able be not year gross this robotaxi margin, expect high do LiDARs. volume we a large So to

to in strong has still for I that ]. both But [ everyone. factored think QX last the was of disclosed and I very think been LiDARs already

Yes.

[ still year. is will course, ADAS, XXX% of so XX%, XX% And ] year. market -- still robotics over as grow this that growing, will think grow I this well

so of strong year-over-year. And to growth up. on XX% down. then we go and still shipment together, keep -- very, very And obviously, blended XX% the expect a numbers basis, revenue don't They going that

climbing. still your that Did So both Wang Bin. XXX,XXX from answer questions, it's gone and to XXX,XXX

[ Your next from Yu question HDFC with ]. comes Jan

Can you voice? hear my

Yes. Go ahead.

robots the any and have year. the is humanoid for slow robots. really launch we fast robots down We give humanoid this and first the question that this do robots a the demand the guidance shipment a in my Could us for Also, the are future? year? robotaxi robotaxi for intent So of you LiDAR perhaps about noticed robotaxi developing specific to the

think And -- it is surprise amount So point, will a because second exciting large industry. completely a of I I different question about so of kind industry use a very at the talking a LiDARs. you're this is some and that

humanoid LiDARs I have far that could year? robot of do I itself plans think is, question question. and robot but going benefit as to build I think using different today, our know, your are to this concrete your As answers this hopefully, we don't that's types from we the topic. And technology one

the on total units actual for was and approximately XX,XXX. of the last for units QT robotaxi number question, and first number PandarXT your then year And robotics, of

expect We still to that number increase.

overall, not. revenue is mix -- or not shift be also lower grow. be Pandar price may will it's -- yet, not it's there But will So toward Robotics basically. not will Robotaxi year-over-year. priced It reduction, a high because the and there shrinking. actually shrink grow will XT

the still But up. going units actual Okay. is

OEMs have Okay. the ] from [ the see global ask the And want ramp-up cooperation global the another I May in sales to to we order? should where I with your expect question. OEM.

one, which it's much later volume. [ on a ] Depending but

have numbers of the And it the to is than And so, we EV don't slower China yet. market. specific rest announce the

[ the in our XXXX. referenced release ] were in X SOP are [indiscernible] that earnings

XXXX. not it's So

from Michelle question comes International. next Haitong with Your Jing

I have -- a I questions. few think I just

in ADAS you the XXXX? one first based industry whole shipment for do guys the would have estimation upon an for about ADAS shipments, So the be idea your

ADAS industry About the whole for shipments?

market. entire the Oh,

market. The [ ] entire Yes.

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projection probably the reports That's have full my very work I the of refer we some for the we think guess. is to don't estimate third-party probably with. rough because that don't to OEMs you little double volume. our of My directly than have more a

if have I without think global if close it down you years. the very of not, we several XX% global the of ] think XX% into next XX% market getting slightly XX% geography, [ to I mean, to even be be break [indiscernible]. -- to And over the market, I China roughly will

have as not ] to if the global we given of than be the market market. higher China, close, So leader in XX% our [ position,

there. not other obviously -- LiDAR. for ADAS like There's -- for For everything, ADAS automotive ADAS for categories

And second question for would my products. be

do for you the yet? receive guys orders? -- you ATXXX, any have orders So Did any

That will be the future Level X products for the global OEMs.

have but very We have interest was very stage. significant only Basically, for and of a RFI that disclosed are RFQ I them strong think we available. -- we've in samples quite there of late there's XXX, number and a some openly

actually actually So those evaluated in orders the the won't is in orders. come and until before firm orders negotiated. year come samples are right usually year But ships -- the contracts will or

]. next comes Jao from Ron question Your TF with [

So some demand I side. have questions regarding

by and volume account is also, the [ will [ Linkpower]. LiDAR it taking into observed under LiDAR equipping how from million it by priced this anticipate have vehicles X exceed ], include besides vehicles driven is systems? penetrate other from XXX,XXX you sales this to price point? much below apart this OEMs XXXX, So sales demand product like LiDAR And do that with Linkpower for for for And take longer that any market with further would of units you the vehicles will -- RMB it category projection

answer one, quite I'll So question, get first last but the I didn't the first.

this RMB start models a it So considering And the a in we have to be is to for as and of using lot competition. in the why that? Does standard once right? that that somebody again, already inferior will and the few It's have that is then the yes, see that car and or we range. market the see models, ask LIDAR -- effect, terms is right? And range, the in will driving more China always we they has range always and in doing customers refer car pipeline that do configuration can XXX,XXX a request intelligence snowball more OEM rolling, below mean the that

XXXX So quickly, we XXXX. to start -- the which, have but course, we and already do of will that, the for that next seeing is becoming we amplified year, next in the see be and very definitely in shipping in negotiations that

get... The I quite question, second just didn't

X in million Remember yes, EVs question, over so second -- still that's last China were the the year, or on trend and remember globally, growing.

XX over million next So the say, next it's year and let's year. this XX million, --

the I said as market at think is X+ the below and earlier, X RMB penetration intelligent even increase into to systems cars mass going driving for Level we XXX,XXX.

think discussions people already a equipment on will LiDAR. standard is David make had will for is, asking we've OEMs, systems where Second EVs. their as driving intelligent trend with with I mentioned, and all That push, they

will those discussions easily XXXX X current factors with units So snowball that based and in effect cause us on X over million will take OEMs.

Yes.

costs. even use factor because is just more best opposed take ago, is everyone makes So that all you would to right, people we I make the stands, competition, [ heated back for my is all? The saying if was year the go talk ADAS, to know to a is demand exactly with What difficult [indiscernible] [ the bearable answer right? ] they Why ] much consider, when this think is should less, only reason will in we differentiating need a think buck. no car about we price ADAS And a that as China. the competition topic Everyone more that LiDARs cutting people right? at

now is buck and the it to differently a is but on demand LiDAR. based charging the really So a the defined used the the be big it's screen, buck, market, entertainment

everyone becomes for it, So is the asking buck. this then about demand

this So becoming least that that's behind. your why out investment, not realize with falling it's popular think can I more or little of vehicle people stand at

the So rationale. that's

take to stress the all -- more on all the it's drive airbags. making experience and pleasurable, off your much attention car your driving road more you -- And be time. helps having full safety actually about the similar to the all where It's

So it's LiDAR enjoyment, and development. safety convenience and pushing driving the that's

for to company further questions turn like remarks. to the back over the there are closing I'd now, no As call

again once today. us for you Thank joining

Thank If today's concludes you our look IR again speaking and team. have forward we goodbye. further contact questions, This to please next call, you, to and you feel quarter. free to

concludes This call. today's conference

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