Hesai Technology's Fourth Quarter Performance Outlook

Hesai Technology expects to ship more than 200,000 units in the fourth quarter, with a very healthy gross profit margin level. The full-year gross profit margin is guided to reach 30% to 35%. It is expected to break even in the fourth quarter. Hesai Technology adopts a tiered pricing strategy, and when signing fixed-point and production contracts with OEMs, the price is linked to time and order volume. If customers fail to meet the agreed order volume, they must renegotiate a higher price with the company. Hesai Technology expects the Robotaxi business to account for approximately half of the company's total revenue in 2024. In the Robotaxi business, the company sees rapid growth in non-US business, including some leading L4 autonomous driving companies such as Baidu and Pony AI.