Stock market launch of LiDAR manufacturer Hesai produces significant increase in share price
Hesai Group, a leading LiDAR manufacturer based in Shanghai, made a strong debut on the Hong Kong stock market today, marking a significant milestone in the company's growth. The company, which was founded in 2014, raised HK$4.16 billion ($535 million) through the listing, making it the largest listing in the global LiDAR industry to date.
In 2024, Hesai delivered 501,900 LiDAR units, representing a 126 percent year-on-year increase. This surge in production is a testament to the company's robust capabilities and its commitment to advancing LiDAR technology.
Hesai operates two production facilities: the Hertz factory in Hangzhou and the Maxwell Global R&D and Smart Manufacturing Center in Shanghai. The Hertz plant, Hesai's primary mass-production facility, began operations in September 2023. The Maxwell facility started trial operations in December 2023, focusing on new product design, testing, and calibration.
The company's shares in Hong Kong had climbed 11 percent to HK$236.2 per share. This growth is indicative of investor confidence in Hesai's potential for continued success on the stock market.
In 2024, Hesai recorded non-GAAP net income of about RMB 13.7 million ($1.9 million) and operating cash flow of RMB 63 million. These financial results demonstrate the company's operational efficiency and financial health on the stock market.
Hesai has secured a $40 million order from an unnamed US robotaxi firm, further solidifying its position in the global market. Over the past decade, the company has reduced the cost of LiDAR from $100,000 to $200, as stated by Sun Kai, Hesai's co-founder and chief scientist.
China's largest LiDAR maker, Hesai Group, holds the largest market capitalization in the global LiDAR sector. The company is especially strong in the Level-4 autonomous driving segment, with a 61% market share and significant contracts worth over 40 million USD. This positions Hesai as the leading publicly traded LiDAR company worldwide on the stock market.
Hesai's LiDAR products have been deployed in millions of vehicles, making advanced safety and intelligent technologies accessible to the public. The company's strong performance and continued growth are set to shape the future of the LiDAR industry on the stock market.
This is the biggest capital raised by a US-listed Chinese company returning to Hong Kong in nearly four years. The successful debut of Hesai Group on the Hong Kong stock market today is a testament to the company's potential and the growing importance of the LiDAR industry.
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