Hesai (02525, HSAI.US) Achieves Accelerated Breakthroughs in Physical AI, with Q3 Strategic Growth Business Revenue Doubling

On November 10, Hesai Group Sponsored ADR (HSAI.US, 02525) announced its unaudited financial data for the third quarter of 2026. In the third quarter, Hesai's revenue was RMB1.07 billion, and GAAP net profit reached RMB80.79 million, marking the sixth consecutive quarter of GAAP profitability. Among this, Hesai's strategic growth business revenue was RMB90.51 million, up 101.4% quarter-over-quarter. Hesai's strategic growth business continues to unleash growth momentum. In the third quarter, deliveries of Hesai Siasun Robot&Automation power modules reached 23,405 units, up 96.8% quarter-over-quarter, monthly capacity increased to 10,000 units, and full-body joint modules have also entered mass production. As of the end of September 2026, cumulative shipments of Hesai Siasun Robot&Automation power modules reached 35,295 units, and full-year shipments in 2027 are expected to reach six figures. Hesai's 3D world data engine Kosmo has been officially released, alongside the launch of the world's first 8K ultra-high-definition AI spatial camera Kosmo One and the AI-driven cloud platform Kosmo World. In the quarter, Hesai's LiDAR deliveries were 729,673 units, up 65.3% year-over-year. Siasun Robot&Automation power module deliveries were 23,405 units, up 96.8% quarter-over-quarter, monthly capacity increased to 10,000 units, and full-body joint modules have also entered mass production. 3D World Data Engine Kosmo Officially Released, Commercialization Accelerating In October, the 3D world data engine Kosmo was officially launched globally, alongside the world's first 8K ultra-high-definition AI spatial camera Kosmo One and the AI-driven cloud platform Kosmo World. The one-stop 3D content creation and management platform Kosmo World is responsible for transforming collected data into intelligent spaces that AI can understand, interact with, and train on. Its underlying layer is Hesai's AI-native 3D spatial reconstruction and understanding system Kosmo Spatial Core (KSC). Data generated by Kosmo can also be visually adapted to the camera characteristics of target Siasun Robot&Automation, allowing Siasun Robot&Automation to train in the world "as seen through their own eyes," further narrowing the gap between simulation and reality. From pre-training and post-training to evaluation and deployment, this capability covers the entire embodied intelligence training workflow. In terms of commercialization, since the first batch of sample units shipped in July 2026, Kosmo has begun contributing revenue and continues to expand into diverse application scenarios. In the film and entertainment sector, Hesai Kosmo has entered into a partnership with RenderMan, the industrial-grade renderer under Hollywood-renowned animation studio Pixar. In the embodied intelligence sector, Kosmo has entered into strategic partnerships with Galaxy General Siasun Robot&Automation and Yuanli Lingji to empower frontier breakthroughs in embodied intelligence. In the spatial commerce sector, Kosmo has entered into a strategic partnership with Amap under Alibaba Group Holding Limited Sponsored ADR, with the first batch of 1,000 pilot locations covering shopping malls, retail stores, restaurants, hotels, and brand stores. Siasun Robot&Automation Power Modules Accelerate Volume Ramp, Cumulative Deliveries Exceed 35,000 Units As the core execution component for Siasun Robot&Automation motion and manipulation, the performance and cost of power modules directly affect overall machine performance and commercialization progress. Taking humanoid Siasun Robot&Automation as an example, the number of drive joints is close to one hundred, and the cost of related components accounts for more than 50% of the overall bill of materials (BOM). Compared with similar products, Hesai power modules are 37% smaller in volume, have power density increased to 3x, and feature good motion transparency and back-drivability, providing key execution support for Siasun Robot&Automation's high-speed motion and precise manipulation. Hesai power modules have empowered AI Siasun Robot&Automation company Sharpa. Sharpa's first flagship tactile dexterous hand Wave (W01) is built on Hesai power modules, featuring 22 active degrees of freedom and achieving 1:1 isomorphism with the human hand. As the industry's first mass-produced high-DOF back-drivable dexterous hand, W01 has been adopted into NVIDIA Corporation's Isaac GR00T humanoid Siasun Robot&Automation reference solution and has been adopted by leading universities and research institutions worldwide, including Berkeley, Stanford, and Nanyang Technological University. As of the end of September 2026, Hesai has cumulatively shipped more than 35,000 Siasun Robot&Automation power modules, and full-year shipments in 2027 are expected to reach the six-figure level. Solidifying the Physical AI Perception Foundation, LiDAR Market Leadership by a Wide Margin According to data from Gasgoo Automotive Research Institute, in September, Hesai's ADAS main LiDAR market share was 43%, continuing to rank first in the industry. A Yole Group report shows that Hesai's 2025 Robotaxi LiDAR market share reached 62%, firmly ranking first globally and continuing to consolidate its leading position in the global market. In September, physical AI infrastructure company Hesai Group Sponsored ADR entered into a new strategic partnership with JD.com, Inc. Sponsored ADR Class A, leveraging high-precision 3D spatial perception capabilities such as 6D full-color LiDAR to support the continued deployment of JD.com, Inc. Sponsored ADR Class A's unmanned logistics vehicles, Siasun Robot&Automation, and other businesses, jointly expanding the boundaries of physical AI applications in the real world. At the same time, Hesai continues to deepen cooperation with global automakers and secured new design wins from multiple leading automakers this quarter: The ultra-thousand-line LiDAR ETX newly secured design wins from 5 globally leading automakers, including a top-tier European automaker, Cadillac, Geely, Great Wall Motor, and a leading new energy vehicle maker, with orders on hand exceeding 1 million units. Multi-LiDAR solutions are accelerating penetration into more vehicle models, with the FTX blind-spot LiDAR newly securing design wins from LEAPMOTOR and a top-tier European automaker. The upgraded ATX LiDAR newly secured a design win from Wuling and will be applied to high-volume mass-market models. Dual-Engine Layout, Hesai Building Key Infrastructure for Physical AI Digital AI has already taken off, while the infrastructure for physical AI still urgently needs to be built which means new industry opportunities are opening up. For AI to move from the digital world into the real world, two types of infrastructure are indispensable: first, 3D data that can understand the real world; second, motion capabilities that can drive Siasun Robot&Automation to act. The 3D world data engine and the Siasun Robot&Automation motion engine represent the best industry opportunities today and are highly aligned with Hesai's underlying capability DNA and expertise in building professional products they will become Hesai's second growth engine. Over the past decade, what Hesai has done is enable machines to see the world; in the next decade, what we will do is enable Siasun Robot&Automation to understand and change the world. Li Yifan, Co-Founder and CEO of Hesai Group Sponsored ADR, said: "In the third quarter of 2026, Hesai accelerated its layout in Siasun Robot&Automation and physical AI infrastructure. The LiDAR business continues to generate stable cash flow. Its growth momentum mainly comes from three aspects: first, the ultra-thousand-line LiDAR ETX newly secured design wins from 5 leading automakers, including a top-tier European automaker and Cadillac; second, the penetration rate of multi-LiDAR solutions in China and overseas markets continues to increase; third, newly secured projects with Wuling and Chery, driving LiDAR further into high-volume mass-market models and export markets. Meanwhile, in the Siasun Robot&Automation sector, a Yole Group report shows that Hesai ranked first globally in the 2025 Robotaxi LiDAR market with a 62% share. We have also partnered with JD.com, Inc. Sponsored ADR Class A, China's largest retailer by revenue, leveraging spatial perception capabilities such as 6D full-color LiDAR to help it build the world's largest embodied Siasun Robot&Automation workforce. SGI is rapidly growing into Hesai's next growth engine, expanding new opportunities in Siasun Robot&Automation and physical AI around data and hardware infrastructure. In October, we globally launched the 3D world data engine Kosmo, which can transform real environments into high-fidelity, editable 3D assets that are directly usable by AI. Just months after the first batch of sample units shipped, Kosmo has begun contributing revenue and has partnered with world-leading companies and institutions including Pixar's RenderMan, with applications spanning Siasun Robot&Automation training, film and entertainment, cultural tourism and museums, and spatial navigation. On the other hand, the power module business, as the Siasun Robot&Automation motion engine, is also experiencing rapid shipment growth; following the dexterous hand modules, full-body joint modules have also entered mass production, with third-quarter shipments reaching 23,405 units, up 97% quarter-over-quarter. Our journey in physical AI has only just begun." Fan Peng, CFO of Hesai Group Sponsored ADR, said: "In the third quarter, our growth strategy progressed steadily: the core LiDAR business remained profitable and continued to scale, and SGI's commercialization process further accelerated. This quarter, Hesai achieved revenue of RMB1.068 billion, up approximately 34% year-over-year, LiDAR shipments reached 729,673 units, and Siasun Robot&Automation power module shipments reached 23,405 units. SGI's development speed exceeded expectations, with revenue in the first three quarters already surpassing the original full-year target of RMB100 million. Siasun Robot&Automation power modules typically account for more than 50% of humanoid Siasun Robot&Automation material costs and are currently ramping rapidly, with cumulative shipments reaching 35,295 units by the end of the third quarter. Based on the above progress and the new revenue source brought by Kosmo, we reiterate our 2026 SGI revenue guidance of RMB200-300 million. As customer validation deepens, we are increasing investment in SGI while maintaining financial discipline. Net profit this quarter reached RMB80.79 million, marking the sixth consecutive quarter of GAAP profitability. Among this, the core LiDAR business operating profit reached RMB145 million, up 88% year-over-year. Our goal is clear: to become the leading infrastructure platform in the era of Siasun Robot&Automation and physical AI."