Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2022 |
Entity File Number | 001-41611 |
Entity Registrant Name | Hesai Group |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 9th Floor, Building L2-B |
Entity Address, Adress Line Two | 1588 Zhuguang Road, Qingpu District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 201702 |
Entity Address, Country | CN |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001861737 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | Deloitte Touche Tohmatsu Certified Public Accountants LLP |
Auditor Location | Shanghai, the People’s Republic of China |
Auditor Firm ID | 1113 |
American depositary shares | |
Document Information | |
Title of 12(b) Security | American depositary shares, each representing one Class B ordinary share |
Trading Symbol | HSAI |
Security Exchange Name | NASDAQ |
Class B ordinary share | |
Document Information | |
Title of 12(b) Security | Class B ordinary share, par value US$0.0001 per share |
No Trading Symbol Flag | true |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 85,501,214 |
Class A ordinary share | |
Document Information | |
Entity Common Stock, Shares Outstanding | 30,033,379 |
Business Contact | |
Document Information | |
Contact Personnel Name | Louis T. Hsieh, Global Chief Financial Officer |
Entity Address, Address Line One | 9th Floor, Building L2-B |
Entity Address, Adress Line Two | 1588 Zhuguang Road, Qingpu District |
Entity Address, City or Town | Shanghai |
Entity Address, Postal Zip Code | 201702 |
Entity Address, Country | CN |
Contact Personnel Email Address | ir@hesaitech.com |
Country Region | +86 |
City Area Code | 21 |
Local Phone Number | 3158-8240 |
COMBINED AND CONSOLIDATED BALAN
COMBINED AND CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 913,277 | $ 132,413 | ¥ 449,352 |
Short-term investments | 945,865 | 137,138 | 2,342,743 |
Accounts receivable, net (net of allowance of RMB7,294 and RMB6,249 as of December 31, 2021 and 2022, respectively) | 485,044 | 70,325 | 85,821 |
Contract assets, net (net of allowance of RMB1,223 and RMB459 as of December 31, 2021 and 2022, respectively) | 12,600 | 1,827 | 146,537 |
Amounts due from related parties (net of allowance of nil and nil as of December 31, 2021 and 2022, respectively) | 5,021 | 728 | 3,543 |
Inventories | 646,852 | 93,785 | 376,244 |
Prepayments and other current assets | 126,452 | 18,333 | 89,119 |
Total current assets | 3,135,111 | 454,549 | 3,493,359 |
Property and equipment, net | 504,953 | 73,211 | 321,627 |
Long-term investments | 31,856 | 4,619 | 1,902 |
Intangible assets, net | 20,600 | 2,987 | 19,553 |
Land-use rights, net | 41,606 | 6,032 | 42,470 |
Goodwill | 3,823 | 554 | 3,499 |
Right-of-use assets | 44,349 | 6,430 | |
Other non-current assets | 57,098 | 8,278 | 69,959 |
Total non-current assets | 704,285 | 102,111 | 459,010 |
TOTAL ASSETS | 3,839,396 | 556,660 | 3,952,369 |
Current liabilities: | |||
Accounts payable | 206,681 | 29,966 | 77,271 |
Contract liabilities | 40,378 | 5,854 | 122,603 |
Amounts due to related parties | 334,283 | 48,466 | 307,498 |
Accrued warranty liability | 17,694 | 2,565 | 13,932 |
Accrued expenses and other current liabilities | 356,502 | 51,689 | 370,854 |
Total current liabilities | 955,538 | 138,540 | 892,158 |
Deferred tax liabilities | 439 | 64 | 466 |
Lease liabilities | 10,139 | 1,470 | |
Long-term borrowings | 18,472 | 2,678 | |
Other non-current liabilities | 13,075 | 1,896 | 9,924 |
Total non-current liabilities | 42,125 | 6,108 | 10,390 |
TOTAL LIABILITIES | 997,663 | 144,648 | 902,548 |
Commitments and contingencies (Note 25) | |||
Mezzanine equity: | |||
MEZZANINE EQUITY | 5,986,910 | 868,020 | 5,540,491 |
Shareholders' deficit | |||
Subscription receivables | (310,227) | (44,979) | (310,227) |
Accumulated other comprehensive income (loss) | (3,608) | (523) | 8,465 |
Accumulated deficit | (2,831,381) | (410,512) | (2,188,947) |
Total Shareholders' deficit | (3,145,177) | (456,008) | (2,490,670) |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT | 3,839,396 | 556,660 | 3,952,369 |
Class A | |||
Shareholders' deficit | |||
Ordinary shares | 19 | 3 | 19 |
Class B | |||
Shareholders' deficit | |||
Ordinary shares | ¥ 20 | $ 3 | ¥ 20 |
COMBINED AND CONSOLIDATED BAL_2
COMBINED AND CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares |
Allowance for accounts receivables | ¥ | ¥ 6,249 | ¥ 7,294 |
Allowance for contract assets | ¥ | 459 | 1,223 |
Allowance for amounts due from related parties | ¥ | ¥ 0 | ¥ 0 |
Redeemable shares, issued | 54,551,513 | 54,551,513 |
Redeemable shares, outstanding | 54,551,513 | 54,551,513 |
Class A | ||
Ordinary shares, authorized | 35,000,000 | 35,000,000 |
Ordinary shares, issued | 30,033,379 | 30,033,379 |
Ordinary shares, outstanding | 30,033,379 | 30,033,379 |
Class B | ||
Ordinary shares, authorized | 150,000,000 | 150,000,000 |
Ordinary shares, issued | 30,949,701 | 30,949,701 |
Ordinary shares, outstanding | 30,949,701 | 30,949,701 |
COMBINED AND CONSOLIDATED STATE
COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||
Net revenues (including revenues from related parties of RMB41,765, RMB15,655 and nil for the years ended December 31, 2020, 2021, and 2022 respectively) | ¥ 1,202,670 | $ 174,371 | ¥ 720,768 | ¥ 415,514 |
Cost of revenues | (730,683) | (105,939) | (338,972) | (176,600) |
Gross Profit | 471,987 | 68,432 | 381,796 | 238,914 |
Operating expenses: | ||||
Sales and marketing expenses | (104,835) | (15,200) | (69,266) | (49,904) |
General and administrative expenses | (201,007) | (29,143) | (236,713) | (76,553) |
Research and development expenses | (555,179) | (80,493) | (368,435) | (229,653) |
Other operating income, net | 10,817 | 1,568 | 27,333 | 15,384 |
Total operating expenses | (850,204) | (123,268) | (647,081) | (340,726) |
Loss from operations | (378,217) | (54,836) | (265,285) | (101,812) |
Interest income | 58,734 | 8,516 | 32,584 | 20,925 |
Foreign exchange (loss) gain, net | 20,858 | 3,024 | (13,275) | (25,696) |
Other (loss) income, net | (2,161) | (313) | 118 | (828) |
Net loss before income tax and share of loss in equity method investments | (300,786) | (43,609) | (245,858) | (107,411) |
Income tax benefit | 66 | 10 | 1,115 | 199 |
Share of loss in equity method investment | (45) | (7) | (84) | (4) |
Net loss | (300,765) | (43,606) | (244,827) | (107,216) |
Deemed dividend | (446,419) | (64,725) | (2,211,330) | |
Net loss attributable to ordinary shareholders of the Company | ¥ (747,184) | $ (108,331) | ¥ (2,456,157) | ¥ (107,216) |
Net loss per share: | ||||
Basic | (per share) | ¥ (6.47) | $ (0.94) | ¥ (23.39) | ¥ (1.19) |
Diluted | (per share) | ¥ (6.47) | $ (0.94) | ¥ (23.39) | ¥ (1.19) |
Weighted average shares used in calculating net loss per share: | ||||
Basic | 115,534,593 | 115,534,593 | 104,987,478 | 89,895,471 |
Diluted | 115,534,593 | 115,534,593 | 104,987,478 | 89,895,471 |
Net loss | ¥ (300,765) | $ (43,606) | ¥ (244,827) | ¥ (107,216) |
Other comprehensive (loss) income, net of tax of nil: | ||||
Foreign currency translation adjustments | (12,073) | (1,750) | 9,083 | (1,950) |
Comprehensive loss | ¥ (312,838) | $ (45,356) | ¥ (235,744) | ¥ (109,166) |
COMBINED AND CONSOLIDATED STA_2
COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 USD ($) | |
COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||
Revenues from related parties | ¥ | ¥ 0 | ¥ 15,655 | ¥ 41,765 | |||
Other comprehensive income (loss), tax | $ | $ 0 | $ 0 | $ 0 |
COMBINED AND CONSOLIDATED STA_3
COMBINED AND CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Class A Ordinary shares CNY (¥) shares | Class B Ordinary shares CNY (¥) shares | Additional paid-in capital CNY (¥) | Subscription receivables CNY (¥) | Accumulated deficit CNY (¥) | Accumulated other comprehensive income (loss) CNY (¥) | CNY (¥) | USD ($) |
Beginning balance at Dec. 31, 2019 | ¥ (170,759) | ¥ 1,332 | ¥ (169,427) | |||||
Net loss | (107,216) | (107,216) | ||||||
Foreign currency translation | (1,950) | (1,950) | ||||||
Conversion to joint stock company as part of 2020 Reorganization | ¥ (221,929) | 221,929 | ||||||
Conversion of redeemable equity to ordinary shares as part of the 2020 Reorganization | 1,098,639 | 1,098,639 | ||||||
Issuance of shares of Shanghai Hesai to new investors | 317,147 | 317,147 | ||||||
Balance as of ending at Dec. 31, 2020 | 1,193,857 | (56,046) | (618) | 1,137,193 | ||||
Net loss | (244,827) | (244,827) | ||||||
Foreign currency translation | 9,083 | 9,083 | ||||||
Issuance of ordinary shares in connection with the 2021 Reorganization | ¥ 19 | ¥ 40 | (59) | ¥ (310,227) | (310,227) | |||
Issuance of ordinary shares in connection with the 2021 Reorganization (in shares) | shares | 30,033,379 | 62,834,548 | ||||||
Reclassification of ordinary shares to redeemable shares | ¥ (20) | (1,193,798) | (1,862,599) | (3,056,417) | ||||
Reclassification of ordinary shares to redeemable shares (in shares) | shares | (31,884,847) | |||||||
Share-based compensation | 54,283 | 54,283 | ||||||
Accretion in redemption value of redeemable shares | (54,283) | (25,475) | (79,758) | |||||
Balance as of ending at Dec. 31, 2021 | ¥ 19 | ¥ 20 | (310,227) | (2,188,947) | 8,465 | (2,490,670) | ||
Balance as of ending (in shares) at Dec. 31, 2021 | shares | 30,033,379 | 30,949,701 | ||||||
Net loss | (300,765) | (300,765) | $ (43,606) | |||||
Foreign currency translation | (12,073) | (12,073) | (1,750) | |||||
Share-based compensation | 104,750 | 104,750 | ||||||
Accretion in redemption value of redeemable shares | ¥ (104,750) | (341,669) | (446,419) | |||||
Balance as of ending at Dec. 31, 2022 | ¥ 19 | ¥ 20 | ¥ (310,227) | ¥ (2,831,381) | ¥ (3,608) | ¥ (3,145,177) | $ (456,008) | |
Balance as of ending (in shares) at Dec. 31, 2022 | shares | 30,033,379 | 30,949,701 |
COMBINED AND CONSOLIDATED STA_4
COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (300,765) | $ (43,606) | ¥ (244,827) | ¥ (107,216) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 53,634 | 7,776 | 28,231 | 19,215 |
Share-based compensation | 105,219 | 15,255 | 54,283 | |
Provision for (reversal of) allowance for credit loss | (1,810) | (262) | 2,561 | 4,174 |
Loss from disposal of property and equipment | 369 | 53 | 169 | 28 |
Fair value change of short-term investments | 4,878 | 707 | (7,717) | |
Loss from equity in earnings of subsidiaries | 45 | 7 | 84 | 4 |
Foreign exchange loss (gain), net | (5,868) | (851) | 10,945 | 21,503 |
non-cash lease expenses | 30,260 | 4,387 | ||
Inventory write-down | 39,431 | 5,717 | 16,600 | 7,060 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (390,859) | (56,670) | (31,696) | (22,578) |
Contract assets | 134,244 | 19,464 | (108,737) | (39,024) |
Inventories | (305,553) | (44,301) | (237,755) | (83,607) |
Prepayments and other current assets | (33,556) | (4,865) | (48,618) | (8,790) |
Amounts due from related parties | 24,788 | (20,842) | ||
Non-current assets | 2,883 | 418 | (5,573) | (4,100) |
Amounts due to related parties | (2,906) | |||
Contract liabilities | (91,737) | (13,301) | 113,265 | (2,569) |
Deferred tax liabilities | (27) | (4) | (113) | (156) |
Accounts payable | 128,863 | 18,683 | 21,834 | 36,258 |
Income tax payable | (9) | (1,268) | ||
Accrued expenses and other current liabilities | (41,074) | (5,955) | 170,125 | (143,526) |
Operating leases liabilities | (30,103) | (4,365) | ||
Other non-current liabilities | 5,511 | 799 | 13,774 | (3,675) |
Net cash used in operating activities | (696,015) | (100,914) | (228,386) | (352,015) |
Cash flows from investing activities: | ||||
Purchases of short-term investments | (5,586,764) | (810,005) | (4,812,942) | (2,001,137) |
Maturity of short-term investments | 6,978,764 | 1,011,826 | 3,114,287 | 2,256,724 |
Proceeds from disposals of property and equipment | 22 | 19 | ||
Purchases of property and equipment | (231,210) | (33,523) | (220,096) | (66,000) |
Purchases of land-use right | (43,188) | |||
Purchases of intangible assets | (9,180) | (1,331) | (18,320) | (10,579) |
Purchases of equity securities | (30,000) | (4,350) | ||
Advances to a related party | (1,964) | (285) | ||
Net cash provided (used in) by investing activities | 1,119,646 | 162,332 | (1,980,237) | 179,027 |
Cash flows from financing activities: | ||||
Cash distribution to shareholders of Shanghai Hesai in connection with the 2021 Reorganization | (507,620) | |||
Cash contribution from shareholders in connection with the 2021 Reorganization | 507,620 | |||
Proceeds from issuance of equity shares of Shanghai Hesai | 317,147 | |||
Proceeds from issuance of convertible loans | 1,950,338 | |||
Proceeds from issuance of ordinary shares of Hesai Group | 453,978 | |||
Return of advances to employees in connection with share option grants | (590) | 6,290 | ||
Proceeds from long-term borrowings | 18,472 | 2,678 | ||
Payment of offering cost | (3,296) | (478) | ||
Net cash provided by financing activities | 15,176 | 2,200 | 2,403,726 | 323,437 |
Net increase in cash and cash equivalents | 438,807 | 63,618 | 195,103 | 150,449 |
Cash and cash equivalents, beginning of the year | 449,352 | 65,150 | 256,688 | 112,737 |
Effect of foreign exchange rate changes on cash and cash equivalents | 25,118 | 3,645 | (2,439) | (6,498) |
Cash and cash equivalents, end of the year | 913,277 | 132,413 | 449,352 | 256,688 |
Supplemental disclosure of cash flow information: | ||||
Income taxes (return) paid | (1,230) | (178) | 213 | (8,662) |
Capitalized interest paid | 11 | 2 | ||
Supplemental disclosure of non-cash investing and financing activities: | ||||
Conversion of convertible loans to redeemable shares | 1,950,338 | |||
Accrued purchases of property and equipment | 102,181 | 14,815 | 114,446 | 3,823 |
Accrued offering cost | 480 | 70 | ||
Deferred government subsidy applied to purchases of property and equipment | 3,850 | ¥ 30,000 | ||
Deemed dividend | ¥ 446,419 | $ 64,725 | ¥ 2,211,330 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
ORGANIZATION AND NATURE OF OPERATIONS | 1. Description of Business and Corporate History Hesai Group (the “Company”) was incorporated under the laws of the Cayman Islands on April 21, 2021. The Company, together with its subsidiaries (collectively, the “Group”) is primarily engaged in the development, manufacture and sales of 3-dimensional light detection and ranging solutions, or LiDAR. History of the Group The Group’s history began in October 2014 with the establishment of Shanghai Hesai Photonics Co., Ltd. (“Hesai Photonics”), a limited liability company established in the People’s Republic of China (the “PRC”) by Mr. Kai Sun, Mr. Yifan Li and Mr. Shaoqing Xiang (collectively known as the “Founding Shareholders”). In August 2020, Hesai Photonics was converted by its then shareholders into a joint stock company under the PRC law and changed its name to Hesai Technology Co., Ltd (“Shanghai Hesai”). 2021 Reorganization In 2021, the Founding Shareholders and all of the investors of Shanghai Hesai undertook an equity restructuring in order to re-domicile its business from the PRC to the Cayman Islands (the “2021 Reorganization”), which was executed in the following steps: 1) In April 2021, the Company was incorporated in the Cayman Islands to be the holding company of the Group. On May 6, 2021, the Company established Hesai Hong Kong Limited (“Hesai HK”) in Hong Kong, a wholly owned subsidiary to be the intermediate holding company. 2) In June 2021, the Company through Hesai HK acquired 100% of the equity interest of Shanghai Hesai from the Founding Shareholders and its investors, thus Shanghai Hesai became the wholly owned subsidiary of the Company. 3) In May and June 2021, the Founding Shareholders subscribed to 30,033,379 Class A ordinary shares and the existing investors subscribed to 62,834,548 Class B ordinary shares of the Company, on an as-converted basis, at the same proportion of the equity interest they held in Shanghai Hesai. The main purpose of the 2021 Reorganization was to establish a Cayman holding company for the existing business in preparation for an overseas initial public offering. The Group has accounted for the 2021 Reorganization as transaction between entities with common ownership, which is akin to a reorganization of entities under common control. Upon completion of the 2021 Reorganization, per share information of the Company has been retrospectively presented from the earliest period in the combined and consolidated financial statements presented. Pursuant to a framework agreement entered into by the Founding Shareholders and all of the investors of Shanghai Hesai, the consideration paid by the Company to acquire the equity interest of Shanghai Hesai is to be reinvested in the Company as capital contribution for subscription of ordinary shares at Hesai Group. For the recapitalization in connection with the 2021 Reorganization, only RMB 817,847 was required to be settled through cash redemption by Shanghai Hesai and cash investment at the Company level in accordance with foreign currency control regulations within the PRC. RMB 507,620 has been settled during 2021 with the remaining of RMB 310,227 recorded as subscription receivable as December 31, 2021 pending relevant government approval (See Note 21). The shareholder further agreed that for certain shareholders, mainly the Founding Shareholders and a few early investors, given that they are liable to make capital gain tax payments to the PRC tax bureau for the sales of their equity interest in Shanghai Hesai, their capital contribution amount at the Cayman level can be done net of the tax liabilities incurred. These tax payments amounted to RMB 82,347, which are recorded as general and administrative expenses as they represented tax costs absorbed by the Group as part of the reorganization only for a few investors and not considered to be pro-rata distribution to all shareholders. 1. Initial Public Offering In February and March 2023, the Company, in connection with its initial public offering (“IPO”) in the United States, issued 10,125,118 Class B Ordinary shares with net proceeds from the IPO of approximately US$179,800. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The combined and consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Basis of Consolidation The financial statements presented herein represent (1) prior to the 2021 Reorganization, the financial statements of Shanghai Hesai and its subsidiaries; (2) subsequent to the 2021 Reorganization, the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Use of estimates The preparation of combined and consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Group’s management reviews these estimates based on information that is currently available. Changes in facts and circumstances may cause the Group to revise its estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements mainly include the estimated project progress towards certain services revenue, warranty reserves, right-of-use assets, lease liabilities, inventory write-down, allowance for doubtful accounts, the useful lives of property and equipment, intangible assets and land-use rights, valuation of ordinary shares and share-based compensation. Fair value measurements The established fair value hierarchy as defined by U.S. GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include: Level 1 Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2 Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Fair value measurements – continued Level 3 Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group’s financial instruments include cash and cash equivalents, accounts receivable, short-term investments, amounts due from/to related parties, other receivables included in other current assets, accounts payable, other current liabilities, and long-term borrowings. With the exception of short-term investments, the carrying amounts of the short-term financial instruments approximate their fair values due to their short-term nature. The fair value of long-term borrowings is approximate to their carry amounts because the annual interest rates of such borrowings are the similar to the prevailing market annual interest rate. Short-term investments consisted of structured deposits with commercial banks in the PRC. These structured deposits are financial instruments with variable interest rates indexed mainly to exchange rates and/or price of commodities. In accordance with ASC 820, Fair Value Measurement Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiary located outside of PRC is the United States dollar (“US$”), and the functional currency of subsidiaries located in PRC is RMB. Assets and liabilities are translated from each entity’s functional currency to the reporting currency at the exchange rate on the balance sheet date. Equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of accumulated other comprehensive income (loss) in the combined and consolidated statements of changes in shareholders’ deficit. Monetary assets and liabilities denominated in currencies other than the entity’s applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized as foreign exchange (loss) gain, net in the combined and consolidated statements of operations and comprehensive loss. Cash and cash equivalents The Group classifies cash on hand and cash in bank with original maturities of three months or less, and are unrestricted as to withdrawal or use, as cash and cash equivalents. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Accounts receivable, net Accounts receivable mainly consists of amount due from the Group’s customers, which are recorded net of allowance for credit losses. The Group divides its portfolio into two pools — domestic PRC customers and overseas customers for the purposes of performing ongoing credit evaluation by reviewing their credit rating and industry geographic distribution and assessing allowance for credit loss based on expected credit loss model for each pool of the portfolio. The Group develops a current expected credit loss (“CECL”) model based on historical collection experience, the age of the accounts receivable balances, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. Account receivable balances are written off after all collection efforts have been exhausted. Inventories Inventories consists of raw materials, work-in-process, and finished goods and are stated at lower of cost or net realizable value. Costs are computed under the weighted average method. Net realizable value is determined as estimated selling prices in the ordinary course of business, less reasonably predictable costs to sell. Valuation of inventories is based on currently available information about expected recoverable value. The estimate is dependent upon factors such as market trends, inventory ageing, and historical and forecasted customer demands. Inventory write-down is recorded as cost of revenues. Property and equipment, net Property and equipment is stated at cost less accumulated depreciation and impairment. Property and equipment are depreciated at rates sufficient to write off its costs less impairment, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follows: Electronic equipment 3 – 5 years Machinery and equipment 10 years Furniture and fixture 5 years Transportation vehicles 4 years Leasehold improvements Over the shorter of the expected lease term or useful lives Intangible assets, net Intangible assets are recognized and measured at cost upon acquisition. Following the initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The identifiable intangible assets acquired are amortized on a straight-line basis over the respective useful lives as follows: Software 3 – 10 years Technology 3 – 5 years Land-use rights, net Land-use rights are recognized and measured at cost upon acquisition. Following the initial recognition, land-use rights are carried at cost less any accumulated amortization and any accumulated impairment losses. According to the land-use rights policy in the PRC, the useful life of land-use rights is 50 years. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Goodwill Goodwill represents the excess of the purchase price over the fair value of assets and liabilities acquired in a business combination in connection with acquisition of 100% equity interests of Oxigraf Inc. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. In evaluation of goodwill impairment, the Group has the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. If the Group chooses to apply a qualitative assessment first, it starts the goodwill impairment test by assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Group determines that it is more likely than not the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of comparison of the fair value of a reporting unit to its carrying amount. Application of a goodwill impairment test requires significant management judgments, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. No goodwill impairment was recorded for the years ended December 31, 2020, 2021 and 2022. Long-term investments Investment in equity method investee The Group uses equity method to account for common stock investments in entities over which it has significant influence but does not have controlling interests. Under the equity method of accounting, the Group’s share of the earnings or losses of the investee companies, impairments, and other adjustments required by the equity method are reflected in the combined and consolidated statements of operations and comprehensive loss. When the Group’s share of losses in an investee equals or exceeds its carrying amount of the investment in the investee, the Group does not recognize further losses, unless the Group has guaranteed the obligations of the investee or is otherwise committed to provide further financial support for the investee. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group estimated the fair value of investments in equity investees under discounted cash flow analysis which requires significant judgments, including the estimation of future cash flows, which is dependent on internal forecasts, the estimation of long term growth rate of a company’s business, the estimation of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The Group did not record any impairment on its equity method investment during the years ended December 31, 2020, 2021 and 2022. Equity securities without readily determinable fair value The Group has elected to measure the investment in equity securities without readily determinable fair values at cost minus impairment, if any, adjusted up or down for observable price changes. Any adjustment to the carrying amount is recorded in other income (loss), net. At each reporting period end, the Group makes a qualitative assessment considering impairment indicators to evaluate whether any of these investments is impaired. If the assessment indicates that the fair value of an investment is less than the carrying value, the investment in equity securities will be written down to its fair value, with the difference between the fair value of the investment and its carrying amount as an impairment loss. No fair value adjustment was recognized for the investment for the year ended December 31, 2022. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue recognition The majority of the Group’s revenue comes from sales of LiDAR products and gas detection products. The Group recognizes revenue at a point in time when control of the products is transferred to the customers, generally occurs upon delivery according to the terms of the underlying contracts. Product sales to certain customers may require customer acceptance due to performance acceptance criteria that is considered more than a formality. For these product sales, revenue is recognized upon the expiration of the customer acceptance period. The Group’s standalone selling prices are based on the prices charged to customers for the single performance obligation which is transfer of control of products upon delivery to the customers or upon expiration of the customer acceptance period. The Group’s general terms and conditions for its contracts do not contain a right of return that allows the customer to return products and receive a credit, and therefore the Group does not estimate returns. Amounts billed to customers for shipping and handling are included in revenue. Taxes collected from customers and remitted to governmental authorities are excluded from revenue on the net basis of accounting. Accounts receivable are due under normal trade terms, typically within 30 to 90 days. For engineering design, development and validation service projects, control of the goods and services may be transferred over time or at a point in time depending on the terms of the contract. Control of the goods and services is transferred over time since the Group’s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. The Group recognizes revenue over time using an input method based on contract cost incurred to date compared to total estimated contract cost (cost-to-cost) as the services are provided. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services. The Group typically provides standard product warranties on LiDARs. For LiDARs used in autonomous mobility sector, such warranties last one year. For those used in advanced driver assistance system sector, such warranties cover five years or 100 thousand kilometres, whichever comes first. Standard warranties are considered to be assurance type warranties and are not accounted for as separate performance obligations. The Group accrues estimated future warranty costs and charges to cost of revenues in the period that the related revenue is recognized. These estimates are based on historical warranty experience and any known or expected changes in warranty exposure, such as trends of product reliability and costs of repairing and replacing defective products. The Group also started to provide extended warranties as a service for an additional term ranging one two Changes in the Group’s accrued warranty liability was as follows: For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Balance as of the beginning of the year 7,457 10,042 13,932 Warranty provision 8,752 10,766 8,467 Consumption (6,167) (6,876) (4,705) Balance as of the end of the year 10,042 13,932 17,694 A contract asset is recorded when the Group has transferred products or services to the customer before payment is received or is due, and the Group’s right to consideration is conditional on future performance in the contract. The Group records a contract asset for unbilled receivables for certain customers where the control of the goods or services has been transferred. A contract liability exists when the Group has received consideration but has not transferred the related goods or services to the customer. The Group’s contract liabilities mainly consist of payments received from customers before they received the products. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Cost of revenues Cost of revenues includes the manufacturing cost of LiDAR sensors and gas detection products, which primarily consists of direct material costs, personnel-related costs, purchasing costs, depreciation, amortization and overhead associated with manufacturing operations, accrued warranty costs, shipping costs, licensing fees, and write-downs of excess inventories and obsolete inventories. Research and development expenses Research and development expenses consist primarily of personnel-related costs directly associated with research and development organization, with the remainder being prototype expenses, third-party engineering and contractor costs, an allocated portion of facility and IT costs and depreciation. The Group’s research and development costs are related to enhancing and developing additional functionality for its existing products and on new product development, including new releases and upgrades to LiDAR sensors. The Group expenses research and development costs as incurred. Government grants Government grants consist of cash subsidies received by the Group from PRC local governments. Grants received as incentives for conducting business in certain local districts with no performance obligation or other restriction as to the use are recognized when cash is received. Grants received with government specified performance obligations are recognized when all the obligations have been fulfilled. Government grants received related to the purchases of long-term assets are used to net the cost of the respective assets. The grants related to unfulfilled obligations of RMB7,614, nil and nil were included in the other non-current liabilities as of December 31, 2020, 2021 and 2022, respectively. The Group recorded government grants RMB15,384, RMB27,446 and RMB10,825 in other operating income(loss), net for the years ended December 31, 2020, 2021 and 2022, respectively. Loss per share Basic loss per share is computed by dividing net loss attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The Group had share options, which could potentially dilute basic earnings per ordinary share in the future. To calculate the number of shares for diluted earnings per ordinary share, the effect of the share options is computed using the treasury stock method. Share-based compensation The Group grants share-based awards of the Company to eligible employees and accounts for these share-based awards in accordance with ASC 718, Compensation - Stock Compensation. Share-based awards that are subject to both the service period and the occurrence of a Qualified IPO as performance condition are measured at the grant date fair value and share-based compensation expenses are recognized for the cumulatively vested amount upon the completion of the Qualified IPO first and then over the remaining requisite service period, net of actual forfeitures, if any. Share-based awards that are subject to only the service period are measured at the grant date fair value and share-based compensation expenses are recognized on a straight-line basis over the requisite service period of the individual grants. The Group recognizes share-based compensation expenses based on the target number of Class B ordinary shares that may be earned pursuant to the award. Forfeitures are recognized as reductions to share-based compensation when they occur. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Share-based compensation - continued The fair value of the share options granted to employees is determined with the assistance of an independent valuation specialist using widely accepted valuation techniques, including discounted cash flow analysis on the expected future free cash flows and binomial option pricing model. The Group accounts for the effects of a modification as described in ASC 718. The Group calculates incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified. For vested options, the Group would recognize incremental compensation cost on the date of modification and for unvested options, the Group would recognize, prospectively and over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award. Share-based compensation with cash settlement features are classified as liabilities. The percentage of the fair value that is recorded as compensation cost at the end of each period is based on the percentage of the requisite service that has been rendered at that date. Changes in fair value of the liability classified award that occurs during the requisite service period are recognized as compensation costs rateably over time during the services to be rendered. Income Taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such a determination, the management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. Deferred tax assets are then reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more likely than not that a portion of or all of the deferred tax assets will not be realized. The Group accounts for uncertainty in income taxes recognized in the financial statements by applying a two-step process to determine the amount of the benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained (defined as a likelihood of more than fifty percent of being sustained upon an audit, based on the technical merits of the tax position), the tax position is then assessed to determine the amount of benefits to recognize in the combined and consolidated financial statements. The amount of the benefits that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Group did not recognize any income tax due to uncertain tax position or incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2021 and 2022. Leases The Group leases office space, manufacturing plants and warehouses in Shanghai, PRC and California, USA under non-cancellable operating lease agreements that expire at various dates through October 31, 2025. Before January 1, 2022, the Group used the Accounting Standards Codification, Leases (“ASC 840”), in which each lease is classified at the inception date as either a capital lease or an operating lease. All the Group’s leases are classified as operating lease under ASC 840. The Group’s reporting for periods prior to January 1, 2022 continued to be reported in accordance with Leases (ASC 840). 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Leases - continued Effective from January 1, 2022, the Group adopted ASU No. 2016-02 “Leases” (“ASC 842”) using the modified retrospective approach. The Group elected the transition package of practical expedients permitted within the standard, which allowed it not to reassess initial direct costs, lease classification, or whether the contracts contain or are leases for any leases that existed prior to January 1, 2022. The Group also elected the short-term lease exemption for all contracts with an original lease term of 12 months or less. Upon the adoption, the Group recognized operating lease right-of-use (“ROU”) assets of RMB36,030 with corresponding lease liabilities of RMB36,599 on the combined and consolidated balance sheets. The operating lease ROU assets include adjustments for prepayments. The adoption did not impact the Group’s beginning retained earnings as of January 1, 2022, or the Group’s prior years’ financial statements. The impact on the combined and consolidated balance sheets upon adoption of ASC842 was as follows: December 31, 2021 January 1, 2022 Effect of the After adoption As reported adoption of ASC 842 of ASC 842 RMB RMB RMB ASSETS Right-of-use assets — 36,030 36,030 TOTAL ASSETS — 36,030 36,030 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued expenses and other current liabilities 569 12,566 13,135 Lease liabilities, non-current — 23,464 23,464 TOTAL LIABILITIES 569 36,030 36,599 TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 569 36,030 36,599 Under ASC 842, the Group determines whether an arrangement constitutes a lease and records lease liabilities and ROU assets on its combined and consolidated balance sheets at the lease commencement date. The Group measures the operating lease liabilities at the commencement date based on the present value of remaining lease payments over the lease term, which is computed using the Group’s incremental borrowing rate, an estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the lease term. The Group measures the operating lease ROU assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing operating lease expense based on lease payments on a straight-line basis over the lease term after the lessor makes the underlying asset available to the Group. Some of the Group’s lease contracts include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group does not include renewal option periods in the lease term for which it is not reasonably certain to exercise. Comprehensive loss Comprehensive loss is defined as the change in equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive loss is reported in the consolidated statement of operations and comprehensive income. Accumulated other comprehensive loss, as presented on the accompanying combined and consolidated balance sheets consists of accumulated foreign currency translation adjustments. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Segment The Chief Executive Officer, Chief Scientist and Chief Technology Officer (collectively referred to the “founders”) are identified as the chief operating decision maker (CODM). The Group organized its operations into two segments: LiDAR segment and gas detection segment. The financial information of the respective segments are disclosed in Note 22. Concentration of risks Concentration of credit risk Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, accounts receivable, contract assets, amount due from related parties, and prepayments and other current assets. The Group places its cash and cash equivalents and short-term investments in various financial institutions in the PRC, Hong Kong Special Administrative Region, and the United States. The Group believes that no significant credit risk exists as all of the Group’s cash and cash equivalents are held with financial institutions that Group’s management believes to be high credit quality. Accounts receivable, contract assets and amount due from related parties are typically unsecured and are derived from revenue earned from the customers. The Group conducts credit evaluations of customers to whom credit terms are extended. The Group establishes an allowance for doubtful accounts based on CECL model developed by the Group, which considers historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. Prepayments and other current assets mainly consists of deposits of rent, and prepaid expenses, which can be applied for deduction of future payments for expenses. The Group has no significant concentrations of credit risk with respect to its prepayments and other current assets. Concentration of customers The following customers accounted for 10% or more of revenue for the years ended December 31, 2020, 2021 and 2022: For the Year ended December 31, 2020 2021 2022 Customer A — * — * 24.3 % Customer B 10.4 % 17.5 % 13.7 % Customer C — * 12.7 % — * Customer D 11.6 % — * — * 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Concentration of customers - continued The following customers accounted for 10% or more of the Group’s accounts receivable, contract assets and amount due from related parties as of December 31, 2021 and 2022: As of December 31, 2021 2022 Customer A — * 61.0 % Customer B 64.4 % 15.3 % Concentration of suppliers The Group has one supplier accounted for 10% or more of purchases for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 Supplier A 11.5 % 13.7 % 12.3 % Foreign currency risk A significant portion of Group’s cash and cash equivalents and short-term investments are denominated in US$, fluctuations in exchange rates between US$ and RMB may result in foreign exchange gains or losses. The value of US$ is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Tr |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | 3. ACCOUNTS RECEIVABLE, NET Accounts receivable and expected credit losses as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 2022 RMB RMB Accounts receivable 93,115 491,293 Less: allowance for expected credit losses (7,294) (6,249) Total accounts receivable, net 85,821 485,044 The roll-forward of the allowance for credit losses related to accounts receivable for the years ended December 31, 2021 and 2022 consists of the following activity: For the Year ended December 31, 2021 2022 RMB RMB Balance at beginning of year 5,270 7,294 Provision (reversal) for expected credit losses 2,024 (1,045) Balance at end of year 7,294 6,249 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES | |
INVENTORIES | 4. INVENTORIES As of December 31, 2021 2022 RMB RMB Raw materials 123,940 290,121 Work-in-process 91,898 180,367 Finished goods 160,406 176,364 Inventories 376,244 646,852 Inventory write-off were RMB16,600 and RMB39,431, respectively, for the years ended December 31, 2021 and 2022. |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
PREPAYMENTS AND OTHER CURRENT ASSETS | 5. Prepayments and other current assets, as of December 31, 2021 and 2022 were as follows: As of December 31, 2021 2022 RMB RMB Advances to suppliers 53,666 82,419 Deposits 8,941 11,998 Prepaid expenses 9,123 10,108 Value-added tax recoverable 9,360 6,748 Others 8,029 15,179 Total 89,119 126,452 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 6. Property and equipment, as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 2022 RMB RMB Cost Electronic equipment 46,856 79,663 Leasehold improvements 48,901 63,995 Machinery and equipment 12,622 121,614 Furniture and fixture 32,599 54,851 Transportation vehicles 2,003 4,411 Total cost 142,981 324,534 Less: Accumulated depreciation (39,810) (84,329) Property and equipment, net 103,171 240,205 Construction in Progress 218,456 264,748 Total 321,627 504,953 Depreciation expenses were RMB21,187 and RMB44,856 for the years ended December 31, 2021 and 2022, respectively. The construction in progress as of December 31, 2021 and 2022 mainly represents the Company’s new manufacturing facility in Shanghai, PRC, and is expected to commence manufacturing in 2023. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM INVESTMENTS | |
LONG-TERM INVESTMENTS | 7. LONG-TERM INVESTMENTS As of December 31, 2021 2022 RMB RMB Investments in equity securities — 30,000 Investments in equity method investee 1,902 1,856 Total 1,902 31,856 In July 2022, the Group purchased 1.2% equity interest of Vertilite Co., Ltd. (“Vertilite”) with total consideration RMB30,000 and recorded the investment in equity securities without readily determinable fair value. Vertilite is a company specializing in the development of high power and high speed vertical-cavity surface-emitting laser and module solutions. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 8. INTANGIBLE ASSETS, NET Intangible assets, as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 2022 RMB RMB Software 21,346 30,095 Technology 8,178 8,390 Total cost 29,524 38,485 Less: Accumulated amortization (9,971) (17,885) Intangible assets, net 19,553 20,600 Amortization expenses related to intangible assets were RMB6,326 and RMB 7,914 for the years ended December 31, 2021 and 2022. The Group expects to record amortization expenses of RMB7,053, RMB4,237, RMB2,975, RMB2,425, and RMB3,910 for the years ending December 31, 2023, 2024, 2025, 2026, and 2027 and years after, respectively. |
LAND-USE RIGHTS, NET
LAND-USE RIGHTS, NET | 12 Months Ended |
Dec. 31, 2022 | |
LAND-USE RIGHTS, NET | |
LAND-USE RIGHTS, NET | 9. LAND-USE RIGHTS, NET In March 2021, the Group acquired a land-use right at a total cost of RMB43,188 for approximately 26,615 square meters of land in Shanghai, the PRC for the construction of a new factory. According to the land-use rights policy in the PRC, the Group has a 50-year |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 10. OTHER NON-CURRENT ASSETS Other non-current assets as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 2022 RMB RMB Prepayments for purchase of property and equipment 55,207 46,083 Demonstration fleet 5,790 4,936 Long-term deposits 6,909 3,836 Others 2,053 2,243 Other non-current assets 69,959 57,098 Long-term deposits mainly consist of rental deposit for offices and production capacity which will not be collectible within one year. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 11. Accrued expenses and other current liabilities as of December 31, 2021 and 2022 are as follows: As of December 31, 2021 2022 RMB RMB Salaries and welfare payables 122,489 166,923 Payables for purchase of property and equipment 114,446 102,181 Accrued expenses 12,798 41,558 Current portion of operating lease liabilities — 34,975 VAT and other tax payables 115,540 5,903 Advances from employee 5,581 4,962 Total 370,854 356,502 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
LEASES | 12. LEASES The Group has operating leases for offices and factories. The Group recognized ROU assets of RMB44,349 and corresponding current liabilities of RMB34,975 in accrued expenses and other current liabilities, and long-term operating lease liabilities of RMB10,139, as of December 31, 2022. The weighted average remaining lease term was approximately 1.86 years as of December 31, 2022, and the weighted average discount rate was 4.25% for the year ended December 31, 2022. For the years ended December 31, 2020, 2021 and 2022, Operating lease expenses were RMB15,465, RMB21,792 and RMB34,596 (including RMB2,127 for short-term leases not capitalized as ROU assets), respectively. The maturities of lease liabilities in accordance with Leases (ASC 842) as of December 31, 2021 and December 31, 2022 were as follows: As of December 31, 2021 RMB 2022 30,429 2023 26,071 2024 4,536 2025 3,096 Total lease payment 64,132 As of December 31, 2022 RMB 2023 36,025 2024 7,145 2025 3,282 Total lease payment 46,452 Less: imputed interest (1,338) Present value of minimum operating lease payments 45,114 Less: Current operating lease liabilities (34,975) Long-term operating lease liabilities 10,139 Cash paid for amounts included in the measurement of operating lease liabilities for the year ended December 31, 2022 were RMB28,163. Right-of-use assets obtained in exchange for the operating lease liabilities in non-cash transactions for the year ended December 31, 2022 were RMB37,414. |
LONG-TERM BORROWINGS
LONG-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM BORROWINGS | |
LONG-TERM BORROWINGS | 13. LONG-TERM BORROWINGS In November 2022, the Group entered into a two-year facility of RMB700,000, with an annual interest rate of China’s one-year loan prime rate (“LPR”) minus 100 bps. The usage of credit facility is restricted to the purchasing of property and equipment for the production facility under construction in Jiading, Shanghai. The Group’s land-use rights, ongoing and completed constructions of the new manufacturing facility are pledged as collaterals for this credit facility. The facility will expire on December 4, 2024. In December 2022, the Group withdrew RMB18,472 and the annual interest rate for the year ended December 31, 2022 was 2.65%. The interest is payable at the end of each quarter and recorded as accrued expenses and other current liabilities in the combined and consolidated balance sheets. The principal maturities of the long-term borrowings as of December 31, 2022 are as follows: For the year ended December 31, RMB 2025 5,542 2026 5,542 2027 7,388 Total 18,472 The Group has RMB681,528 unused bank facility in connection to borrowings for the purpose of purchasing property and equipment as of December 31, 2022. |
REDEEMABLE EQUITY
REDEEMABLE EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
REDEEMABLE EQUITY | |
REDEEMABLE EQUITY | 14. REDEEMABLE EQUITY Since its establishment, Hesai Photonics has received several rounds of equity financing in the form of Series A+/B/B+/C-1/C-2/C-3 redeemable equity from external investors from March 2017 to July 2019. As of December 31, 2019, 40.8% of total equity interest of Hesai Photonics were redeemable equity. The Group classifies the redeemable equity as mezzanine equity as the equity is redeemable upon the occurrence of an event not solely within the control of the Group. The Group recognizes changes in the redemption value immediately as they occur and adjusts the carrying amount of the redeemable equity to equal the redemption value at the end of each reporting period as if it was the redemption date for the redeemable equity. The change in redemption value is recorded against retained earnings, or in the absence of retained earnings, by charging against additional paid-in capital. Once additional paid-in capital has been exhausted, additional charges are recorded by increasing the accumulated deficit. On August 1, 2020, in conjunction with the conversion of Hesai Photonics into a joint stock company under the PRC law, Hesai Photonics changed its name to Shanghai Hesai, and issued 51,485,191 ordinary shares to its then existing equity interest holders at no consideration, all in the same proportions, on an as converted basis, as the percentage of equity interest they held in Hesai Photonics (the “2020 Reorganization”). In accordance with the relevant PRC rules and regulation, upon conversion into a joint stock company, Shanghai Hesai is required to transfer all of its accumulated profit/deficits to additional paid-in capital. Accordingly, Shanghai Hesai transferred its accumulated deficits of RMB221,929 to additional paid in capital. In connection with the 2020 Reorganization, all the outstanding redeemable equity was converted into ordinary shares of Shanghai Hesai at no consideration, all in the same proportion as the percentage of equity interest they held in Hesai Photonics. 14. REDEEMABLE EQUITY (continued) The details of redeemable equity financing are set out as below: As Proceeds Upon percent of from December 31, August 1, Completion December 31, equity at Issuance, net 2019 2020 of the 2020 2020 Issuance issuance of issuance Carrying Carrying Reorganization Carrying Series Date date cost Amount Amount Amount Amount RMB RMB RMB RMB RMB Series A+ March 2017 10.9 % 75,750 93,773 93,773 (93,773) — Series B November 2017 10.9 % 104,611 124,645 124,645 (124,645) — Series B+ June 2018 6.0 % 96,316 109,525 109,525 (109,525) — Series C-1 May 2019 7.8 % 261,635 273,503 273,503 (273,503) — Series C-2 June 2019 7.0 % 254,052 265,060 265,060 (265,060) — Series C-3 July 2019 5.8 % 224,054 232,133 232,133 (232,133) — Total 1,016,418 1,098,639 1,098,639 (1,098,639) — As all of redeemable equity interests were converted into ordinary shares of Shanghai Hesai in August 2020, no change in redemption value was recorded for the year ended December 31, 2020 as the management of the Group evaluated that redemption was not probable and therefore did not accrete the equity interest to the redemption value. Key terms of the redeemable equity are as follows, which were expired upon the conversion to ordinary shares of Shanghai Hesai: Voting Before the 2020 Reorganization, directors exercised controls over Shanghai Hesai through resolution of board of directors. Redeemable equity holders were eligible to exercise influence over the management and operating policy through nomination, appointment and removal of directors. Redemption The holders of redeemable equity shall have the right to redeem if a Qualified-IPO has not been consummated by December 31, 2022. The redemption price of the redeemable equity shall be the issue price plus a compound interest rate of 8% per annum for each year such redeemable equity was outstanding, calculated from the date of payment of consideration for subscription through the date of redemption thereof (and calculated on a pro rata basis in case of a partial year) plus all declared but unpaid dividends thereon up to the date of actual payment of such redemption price, proportionally adjusted for share subdivisions, share dividends, reorganizations, reclassifications, consolidations or mergers. The redemption right is exercised in the sequence of Series C-1/C-2/C-3, Series B+, Series B, and Series A+ redeemable equity. Dividend rights The holders receive dividends on an as-if converted basis when dividends are declared. 14. REDEEMABLE EQUITY (continued) Liquidation In the event of any liquidation, including deemed liquidation event (as described below), dissolution or winding up of Shanghai Hesai, either voluntary or involuntary, distributions shall be made in the following manner (after satisfaction of all creditors’ claims and claims that may be preferred by law): (i) The holders of Series A+/B/B+/C-1/C-2/C-3 redeemable equity shall be entitled to receive the amount equal to their respective issue prices, plus all declared but unpaid dividends on such equity. The liquidation preference is exercised in the sequence of Series C-1/C-2/C-3 redeemable equity, Series B+ redeemable equity, Series B redeemable equity, and Series A+ redeemable equity. If there are any assets or funds remaining after distribution in full to the holders of the equity, the remaining assets and funds of Shanghai Hesai that is legally available for distribution to the shareholders of Shanghai Hesai shall be distributed to the holders of the equity and ordinary shares ratably amongst them in proportion to the number of ordinary shares of Shanghai Hesai held by them on an as-converted basis. (ii) If after satisfaction of all creditors’ claims and claims that may be preferred by law, the distributable fund is larger than 140% of the issuance price plus any and all declared but unpaid dividends for all Series A+/B/B+/C-1/C-2/C-3 redeemable equity shareholder, the liquidation preference is no longer applicable. A deemed liquidation event shall include i) a merger, amalgamation or consolidation of Shanghai Hesai; ii) a sale, exchange, transfer or other disposition of all or substantially all of the assets of Shanghai Hesai. All these preferential rights are subject to termination without any additional consideration upon the legal form change of Shanghai Hesai to meet the relevant regulation requirements for a Qualified IPO. |
REDEEMABLE SHARES
REDEEMABLE SHARES | 12 Months Ended |
Dec. 31, 2022 | |
REDEEMABLE SHARES | |
REDEEMABLE SHARES | 15. REDEEMABLE SHARES In the second quarter of 2021, the Group signed agreements (the “Side Letters”) with its external shareholders holding 54,551,513 Class B ordinary shares, whereby the Group has agreed to provide an option for these shareholders to re-designate their ordinary shares to preferred shares in the event that the Company fails to complete an overseas IPO within twelve months following the dates of the agreements. Among all the preferred rights associated with the shares, the agreements provide the investors with the right to redeem if a Qualified-IPO has not been consummated by December 31, 2022. The redemption price of the redeemable shares shall be the issue price plus a compound interest rate of 8% per annum for each year such redeemable shares was outstanding, calculated from the date of payment of consideration for subscription through the date of redemption thereof (and calculated on a pro rata basis in case of a partial year) plus all declared but unpaid dividends thereon up to the date of actual payment of such redemption price, proportionally adjusted for share subdivisions, share dividends, reorganizations, reclassifications, consolidations or mergers. The redemption right is exercised in the sequence of Series D, Series C+, Series C-1/C-2/C-3, Series B+, Series B, and Series A+ redeemable shares. Upon the completion of the Qualified-IPO, all the preferred rights (including the redemption rights) associated with the shares shall terminate. The Company has accounted for these agreements as material amendments such that extinguishment accounting is applied to these shares at the agreement dates. Given these shares are redeemable upon an event not solely within the control of the Company, the Company has reclassified the 54,551,513 Class B ordinary shares from permanent equity to mezzanine equity at their current fair values and the difference is recorded as deemed dividend. The fair value of these shares at the agreement dates were determined to be RMB3,056,417 by the Company with the assistance of a third party valuer. The excess of fair value of redeemable shares over the carrying amounts of ordinary shares is recognized as deemed dividend in the amount of RMB2,131,572, by charging against retained earnings, or in the absence of retained earnings, by charges against additional paid-in capital. Once additional paid-in-capital has been exhausted, additional charges are recorded by increasing the accumulated deficit. 15. The details of redeemable shares are set out as below: Carrying value at Change in Carrying value at Number the date of re- carrying December 31, Series of shares classification value 2021 RMB RMB RMB Series A+ 3,029,522 284,480 — 284,480 Series B 7,881,155 742,091 — 742,091 Series B+ 3,957,617 375,599 — 375,599 Series C-1 4,289,102 416,021 — 416,021 Series C-2 6,176,311 598,974 — 598,974 Series C-3 5,594,483 542,489 — 542,489 Series C+ 956,657 96,763 — 96,763 Series D 22,666,666 2,404,316 79,758 2,484,074 Total 54,551,513 5,460,733 79,758 5,540,491 Change in Number of Carrying value at carrying Carrying value at Series shares December 31, 2021 value December 31, 2022 RMB RMB RMB Series A+ 3,029,522 284,480 — 284,480 Series B 7,881,155 742,091 — 742,091 Series B+ 3,957,617 375,599 — 375,599 Series C-1 4,289,102 416,021 — 416,021 Series C-2 6,176,311 598,974 — 598,974 Series C-3 5,594,483 542,489 — 542,489 Series C+ 956,657 96,763 — 96,763 Series D 22,666,666 2,484,074 446,419 2,930,493 Total 54,551,513 5,540,491 446,419 5,986,910 Except for Series D shares, all of the other series shares have carrying value higher than their respective redemption value, as such, no accretion to redemption value is recorded. For Series D shares, the change in redemption value is RMB79,758 and RMB446,419, which are recorded as deemed dividends for the years ended December 31, 2021 and 2022 respectively. The redemption value of the redeemable shares as of December 31, 2022, which is the earliest redemption date of those redeemable shares, are listed as below: Redemption value as of Series December 31, 2022 RMB Series A+ 53,514 Series B 157,050 Series B+ 110,451 Series C-1 226,775 Series C-2 324,984 Series C-3 292,483 Series C+ 83,599 Series D 2,930,544 Total 4,179,400 As of December 31, 2022, no shareholder has elected re-designate ordinary shares to preferred shares . Upon completion of the IPO in 2023, the preferred rights associated with the shares were terminated. |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2022 | |
ORDINARY SHARES | |
ORDINARY SHARES | 16. ORDINARY SHARES Holders of Class A ordinary shares and Class B ordinary shares of the Company have the same rights, except for voting rights. Holders of Class A ordinary shares are entitled to ten votes per share in all shareholders’ meetings, while holders of Class B ordinary shares are entitled to one vote per share. In June and September 2021, the Company issued 18,424,242 Class B ordinary shares to Series D investors upon their conversion of the convertible loans. In September 2021, the Company issued |
NET REVENUES
NET REVENUES | 12 Months Ended |
Dec. 31, 2022 | |
NET REVENUES | |
NET REVENUES | 17. NET REVENUES The following table presents the Group’s net revenues for the years ended December 31, 2020, 2021 and 2022. For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Product revenues Revenue from LiDAR products 346,068 685,333 1,122,237 Revenue from gas detection products 68,599 19,533 23,967 Other revenues 847 1,200 5,663 Service revenues Engineering design, development and validation service — 14,026 43,101 Extended warranties — 676 7,702 Total 415,514 720,768 1,202,670 The following table summarizes the Group’s revenues disaggregated by the different geographic location. For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Revenue by geographic location Mainland China 185,516 269,634 697,294 North America 201,194 352,981 358,549 Europe 16,589 67,912 86,153 Other regions 12,215 30,241 60,674 Net revenues 415,514 720,768 1,202,670 17. The movements of the Group’s accounts receivable and contract balances are as follows: Accounts Contract Contract Receivable assets liabilities RMB RMB RMB Opening Balance as of January 1, 2020 36,511 — 11,843 Increase(decrease), net 19,808 38,337 (2,486) Opening Balance as of January 1, 2021 56,319 38,337 9,357 Increase, net 29,502 108,200 113,246 Ending Balance as of December 31, 2021 85,821 146,537 122,603 Increase(decrease), net 399,223 (133,937) (82,225) Ending Balance as of December 31, 2022 485,044 12,600 40,378 Revenues with amount of RMB11,843, RMB8,048, and RMB109,120 were recognized in the years ended December 31, 2020, 2021 and 2022, respectively, that were included in the balance of contract liabilities at the beginning of the each year. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | 18. INCOME TAXES United States The applicable income tax rate of United States where the Company’s subsidiaries having significant operations for the years ended December 31, 2021 and 2022 is 27.98%, which is a blended state and federal rate. PRC The PRC Enterprise Income Tax Law (“EIT Law”), which became effective on January 1, 2008, applies a uniform enterprise income tax (“EIT”) rate of 25% to both foreign-invested enterprises (“FIEs”) and domestic enterprises. Certified High and New Technology Enterprises (“HNTE”) are entitled to a favorable statutory tax rate of 15%, but need to re-apply every three years. During this three-year period, an HNTE must conduct a qualification self-review each year to ensure it meets the HNTE criteria and is eligible for the 15% preferential tax rate for that year. If an HNTE fails to meet the criteria for qualification as an HNTE in any year, the enterprise cannot enjoy the 15% preferential tax rate in that year, and must instead use the regular 25% EIT rate. Shanghai Hesai applied for the HNTE qualification and received approval in December 2019, and such qualification was renewed in November 2022 for 2022 to 2024. Shanghai Hesai was entitled to continue to enjoy the beneficial tax rate of 15% as an HNTE for the years ended December 2020, 2021 and 2022. According to relevant laws and regulations promulgated by the State Administration of Tax of the PRC, enterprises engaging in R&D activities are entitled to claim 175% of their qualified research and development expenses so incurred as tax deductible expenses when determining their assessable profits for 2020 and 200% for 2021 and afterwards (“Super Deduction”) when enterprise engage in manufacturing business. The additional deduction of qualified research and development expenses can only be claimed directly in the annual EIT filing and subject to the approval from the relevant tax authorities. Withholding tax on undistributed dividends Under the EIT Law enacted by the National People’s Congress of the PRC, dividends generated after January 1, 2008 and payable by a foreign investment enterprise in the PRC to its foreign investors who are non-resident enterprises are subject to a 10% withholding tax, unless any such foreign investor’s jurisdiction of incorporation has a tax treaty with the PRC that provides for a different withholding arrangement. 18. INCOME TAXES (continued) Withholding tax on undistributed dividends - continued In accordance with accounting guidance, all undistributed earnings are presumed to be transferred to the parent company and are subject to the withholding taxes. All FIEs are subject to the withholding tax from January 1, 2008. The presumption may be overcome if the Group has sufficient evidence to demonstrate that the undistributed dividends will be re-invested and the remittance of the dividends will be postponed indefinitely. The Group did not record any dividend withholding tax, as it has no retained earnings for any of the years presented. The EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, properties, etc., of a non-PRC company is located.” Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its operations outside of the PRC will be considered a resident enterprise for PRC tax purposes. However, due to limited guidance and implementation history of the EIT Law, there is uncertainty as to the application of the EIT Law. Should the Company be treated as a resident enterprise for PRC tax purposes, the Company will be subject to PRC income tax on worldwide income at a uniform tax rate of 25%. The Company is not subject to any other uncertain tax position. The current and deferred portion of income tax expenses included in the combined and consolidated statements of operations and comprehensive loss are as follows: For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Current tax expenses — — 2 Over-provision in prior year (125) (1,057) — Deferred tax benefits (74) (58) (68) Income tax (benefits) expenses (199) (1,115) (66) Net Loss before income tax by tax jurisdiction: For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Net loss before income tax from PRC operations (104,524) (92,498) (251,302) Net loss before income tax from non-PRC operations (2,891) (153,444) (49,529) Total net loss before income tax (107,415) (245,942) (300,831) A reconciliation between the effective income tax rate and the PRC statutory income tax rate is as follows: For the Year ended December 31, 2020 2021 2022 Statutory income tax rate 25.00 % 25.00 % 25.00 % Effect of different tax rate of different jurisdictions 0.10 % (4.39) % (3.09) % Non-deductible expenses (0.30) % (17.98) % (6.12) % Effect of super deduction on R&D expenses 38.83 % 34.83 % 41.00 % Effect of change of valuation allowance (63.56) % (37.44) % (56.77) % Over provision for prior years 0.12 % 0.43 % — Income tax expenses 0.19 % 0.45 % 0.02 % 18. INCOME TAXES (continued) Deferred tax assets and deferred tax liabilities As of December 31, 2021 2022 RMB RMB Deferred tax assets – Net operating loss carry forwards 220,480 373,215 – Deductible temporary differences 11,562 31,348 – Deferred revenue 9,443 6,294 Less: valuation allowance (241,485) (410,857) Net deferred tax assets — — Deferred tax liabilities – Identifiable intangible assets from business combination. 466 439 Total deferred tax liabilities 466 439 Movement of valuation allowance Movement of valuation allowance is as follow: For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Balance at beginning of the year 67,985 136,269 241,485 Addition 68,284 105,216 169,372 Total 136,269 241,485 410,857 For the years ended December 31, 2020, 2021 and 2022, the Group had net operating loss carry forwards of approximately RMB476,996, RMB881,256,and RMB1,492,808 respectively, which arose from the subsidiaries established in the PRC and United States. The loss carry forwards will expire during the period from 2024 to 2032, while the federal loss carry forwards for US entities do not expire and can be carried forward indefinitely. The Group had provided a full valuation allowance for the deferred tax assets as of December 31, 2021, and 2022, as management determined that deferred tax assets were not more likely than not to be realizable in future tax years based on all available evidence. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION 2020 Option Incentive Plan (“the 2020 Plan”) The Group implemented a share option incentive plan in October 2020 to grant share options to eligible middle management and other key employees (the “incentive recipients”). The total number of option that could be grant under the 2020 Plan is 5,054,138 and upon conversion, new issuance of Class B ordinary shares would be issued to the holders. The contractual term is 5 years. As of December 31, 2020, 5,054,138 share options of Shanghai Hesai were granted to employees with exercise price of RMB3.25 per share. One two 19 . SHARE-BASED COMPENSATION (continued) 2021 Share Incentive Plan (the “2021 Plan”) In June 2021, the Board of Directors of the Company approved the 2021 Share Incentive Plan, which authorized the issuance of all awards to purchase up to 16,365,047 ordinary shares to the Group’s employees, directors, and consultants, as determined by the Board of Directors of the Company. The 2021 Plan replaced all share incentive plans or similar arrangements previously adopted by the Group. Replacement of the 2017 Option Incentive Plan (the “2017 Plan”) and the 2020 Plan Under the 2017 Plan, among 14,710,802 restricted shares of Shanghai Hesai outstanding at January 1, 2021, 136,269 shares were repurchased by Shanghai Hesai due to termination of employment of award recipients during 2021 under the 2017 plan. As part of the 2021 Reorganization, the Company replaced 14,574,533 outstanding restricted shares of Shanghai Hesai with options to purchase 4,048,536 ordinary shares of the Company under the 2021 plan at a ratio of 3.6 to 1 (the “2017 Replacement”), which is at the same percentage of equity interest held by the award recipients on a fully diluted basis. These options are vested immediately; and consistent with the 2017 Plan, the options granted have the following vesting terms as implicit service condition: ● The Company has the right to repurchase all ordinary shares obtained from exercise of the vested options by these award recipients if they terminate their employments within 5 years of employment, at the exercise price paid by the award recipients. ● The Company has the right to repurchase all ordinary shares obtained from exercise of the vested options by these award recipients if they terminate their employment after 5 years of service and prior to a qualified IPO, at a price of exercise price plus a return based on a fixed annual rate of 8% . At the modification date, the Company used the binomial option pricing model and income approach in determining the fair value of the awards granted. The 2017 Replacement did not change the classification and vesting condition of the share-based awards. Immediately before and after the modification, the fair value is the same with no incremental fair value recognized. Therefore, the replacement awards did not has accounting consequence and are accounted for in the same way as its original awards. Under the 2020 Plan, among 5,054,138 options to purchase ordinary shares of Shanghai Hesai outstanding at January 1, 2021, 118,079 options were forfeited due to the termination of employment of the award recipients during 2021 under the 2020 plan. As part of the 2021 Reorganization, the Company replaced 4,936,059 options of Shanghai Hesai with 1,371,141 options of the Company under the 2021 plan at a ratio of 3.6 to 1 (the “2020 Replacement”), which is at the same percentage of equity interest held by the award recipients on a fully diluted basis. These options granted under the 2021 plan have the same terms and conditions under the 2020 Plan. In December 2021, 312,051 unvested share options were cancelled without a concurrent grant of a replacement award. Since the unvested share options were not probable of vesting on the cancellation date as these options contain an IPO performance condition, the Group did not recognize any compensation cost upon cancellation. Option awards to new incentive recipients during the years ended December 31, 2021 and 2022 (the “New Grant”) On July 19, September 13, and November 22, 2021, under the 2021 Plan, the Company granted a total of 4,286,828 share options to a senior executive and employees, the vesting schedule of the awards include: 19 . SHARE-BASED COMPENSATION (continued) Option awards to new incentive recipients during the years ended December 31, 2021 and 2022 (the “New Grant”) - continued 1) 2,000,000 share options, subject to a four -year vesting schedule and vest quarterly from the vesting commencement date at the rate of 125,000 shares per quarter. The grantee may early exercise and accelerate up to 500,000 shares by notifying the Company and paying the exercise price. Should the grantee voluntarily terminate his employment prior to the end of the vesting schedule, then the grantee will return the excess of any accelerated shares that would not have vested at the time of termination under the original vesting schedule. 2) Thirty-three percent ( 33% ), thirty-three percent ( 33% ) and thirty-four percent ( 34% ) of 26,743 share options to be vested on the first, second and third anniversary of the vesting commencement date. 3) Twenty-five percent ( 25% ) of 2,248,185 share options to be vested on each of the first, second , third and fourth anniversaries of the vesting commencement date. 4) Thirty-three percent ( 33% ), thirty-three percent ( 33% ) and thirty-four percent ( 34% ) of 11,900 share options shall vest on the first, second and third anniversary of the initial public offering of the Company, respectively, subject to performance-based conditions. On February 24, May 9, September 8, and December 24, 2022 under the 2021 Plan, the Company granted a total of 1) Thirty-three percent (33%), thirty-three percent (33%) and thirty-four percent (34%) of 115,806 share options to be vested on the first, second and third anniversary of the vesting commencement date. 2) Twenty-five percent (25%) of 1,007,458 share options to be vested on each of the first, second third fourth 3) Thirty-three percent (33%), thirty-three percent (33%) and thirty-four percent (34%) of 12,300 share options shall vest on the first, second and third anniversary of the initial public offering of the Company, respectively, subject to performance-based conditions. 4) A hundred percent (100%) of the 1,189 options to be vested upon the Group’s completion of IPO. 5) Twenty-five percent (25%) of 21,448 share options to be vested on each of the first, second third fourth Additionally, in May 2022, the Company granted an employee with a share option award of 60,000 shares with a per share exercise price of US$18.65, which is based on the fair value of the ordinary share at the date of the grant. The options will vest rateably over a four year period with 25% vested every year. The option agreement includes a provision whereby the grantee can choose to receive cash payment at US$8 per share for any options that are vested but not exercised if his employment upon termination of employment when such grantee continuously work for the Group for four years. Exercise of share options cancels the cash award, and the cash redemption cancels all the vested share options. The Company considered this award as a combination grant of a cash settlement component with compensation cost measured based on the combined value. 19 . SHARE-BASED COMPENSATION (continued) Option awards to new incentive recipients during the years ended December 31, 2021 and 2022 (the “New Grant”) - continued The binomial option pricing model was applied in determining the estimated fair value of the options granted. The model requires the input of subjective assumptions. The following table presents the assumptions used to estimate the fair values of the share options granted for the years ended December 31, 2021 and 2022: For the year ended December 31, 2021 December 31, 2022 Expected volatility 48.00% – 74.00 % 74.00% – 80.00 % Risk-free interest rate (per annum) 0.97% – 1.55 % 1.94% – 3.83 % Expected dividend yield 0.00 % 0.00 % Employee forfeiture rate (per annum) 3.80 % 3.80% – 3.92 % Exercise multiples 2.50 2.50 Expected term 7.00 7.00 Fair value of underlying ordinary share (per share) US$14.10 – 18.42 US$18.11 – 19.91 Fair value of awards on valuation date US$5.84 – 16.90 US$12.93 – 17.11 1) Volatility is estimated based on annualized standard deviation of daily stock price return of comparable companies for the period before valuation date and with similar span as Time to Expiration. 2) Risk-free interest rate was estimated based on yield curve of US Government Bond for similar span as the expected term. 3) The dividend yield was estimated as zero based on the plan to retain profit for corporate expansion and no dividend will be distributed in the near future. 4) Employee forfeiture rate was estimated by the management using employee resignation statistics. 5) Assumption on exercise multiple is made with reference to academic research. 6) The expected term was the life of options extracted from option agreements. 7) The fair value of underlying ordinary share was based on estimated equity value and allocation of it to each element of its capital structure. The equity value considers the valuations of recent Series D financing, or is based on discounted cash flow method which converts future amounts to a single present value amount and requires significant judgments on the expected future free cash flows and other assumptions including appropriate discount rate and estimation of long term growth rate of the Group’s business. 19 . SHARE-BASED COMPENSATION (continued) Option awards to new incentive recipients during the years ended December 31, 2021 and 2022 (the “New Grant”) - continued The following table summarizes the activities of the Groups share options classified as equity for the years ended December 31, 2021 and 2022: Weighted Weighted Weighted average Number average average remaining Aggregate of exercise grant date contract intrinsic options price fair value life value RMB RMB Years RMB Outstanding at January 1, 2021 — — — — — Granted (the 2017 Replacement and the 2020 Replacement) 5,419,677 3.87 22.83 Granted (the New Grant) 4,286,828 15.25 102.74 Forfeited 220,831 5.96 Cancelled 312,051 0.90 Exercised — — Outstanding at January 1, 2022 9,173,623 9.23 56.58 6.32 1,005,546 Granted (the New Grant) 1,158,201 33.92 121.62 Forfeited 723,190 13.85 Exercised — — Outstanding at December 31, 2022 9,608,634 12.51 65.93 5.46 1,141,255 Vested and expected to vest as of December 31, 2022 5,088,920 19.66 101.08 5.88 568,013 Exercisable as of December 31, 2022 1,794,795 12.51 65.93 5.46 213,122 The weighted-average grant-date fair value of options granted during the years 2020, 2021, and 2022 was RMB62.21, RMB102.74, and RMB121.62, respectively. No option was exercised during the years ended December 31, 2020, 2021, and 2022. The Group didn’t record any compensation expenses relating to options awarded with IPO condition for the years ended December 31, 2020, 2021 and 2022. Given the vesting of these options is contingent on a Qualified IPO, the share-based compensation expense related to the vested portion of these options would be recognized when Qualified IPO is probable. As of December 31, 2022, the total unrecognized share based compensation expenses relating to these options was RMB103,318, which is expected to be recognize over 2.1 years. For the years ended December 31, 2021 and 2022, the total share-based compensation expenses related to share options without IPO condition was RMB54,283 and RMB104,750, respectively. As of December 31, 2022, the total unrecognized share-based compensation related to such option was RMB324,359, and is expected to be recognized over the estimated lives of 2.63 years. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 20. RELATED PARTY TRANSACTIONS Major related parties that transacted with the Group and their respective relationship to the Group listed as below: Name of the related parties Relationship Mr. Kai Sun Founding Shareholders Mr. Yifan Li Founding Shareholders Mr. Shaoqing Xiang Founding Shareholders Mr. Minglie Hu Shareholder Mr. Min Ai Shareholder Shanghai Kunjie Phototonics Technology Co., Ltd. An equity method investee of the Group Shanghai Leyi Technology L.P. An affiliate of the shareholder of the Group Robert Bosch Kft. An affiliate of the shareholder of the Group Robert Bosch Ltd. An affiliate of the shareholder of the Group Robert Bosch France An affiliate of the shareholder of the Group Bosch Automotive Products (Suzhou) Co., Ltd. An affiliate of the shareholder of the Group Baidu USA LLC (Note) An affiliate of the shareholder of the Group Beijing Baidu Netcom Technology Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Transportation Technology (Guangzhou) Co., Ltd. An affiliate of the shareholder of the Group Baidu Smart Travel Information Technology (Chongqing) Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Transportation Technology (Hefei) Co., Ltd. An affiliate of the shareholder of the Group Luobo Yunli (Beijing) Technology Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Transportation Technology (Dalian) Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Technology (Beijing) Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Connection (Beijing) Co., Ltd. An affiliate of the shareholder of the Group Note: Started from June 30, 2021, Baidu (China) Co., Ltd and its affiliates (collectively as “Baidu”) was no longer treated as the Group’s related parties as Baidu no longer has significant influence over the Group after the consummation of 2021 Reorganization. For the years ended December 31, 2020, 2021 and 2022, significant related party transactions were as follows: For year ended December 31, 2020 2021 2022 RMB RMB RMB Net revenues Affiliates of the shareholders of the Group 41,765 15,655 — Total 41,765 15,655 — For year ended December 31, 2020 2021 2022 RMB RMB RMB Research and development expenses An equity method investee of the Group 900 — — Total 900 — — 20. RELATED PARTY TRANSACTIONS (continued) For year ended December 31, 2020 2021 2022 RMB RMB RMB Purchases An equity method investee of the Group 83 — — Total 83 — — The balances due from related parties of operations are as follows: As of December 31, 2020 2021 2022 RMB RMB RMB Amounts due from related parties, net of allowance Affiliates of the shareholder of the Group 28,088 — — An equity method investee of the Group — — — Total 28,088 — — The balances due to related parties of financing are as follows: As of December 31, 2021 2022 RMB RMB Amounts due to related parties Founding Shareholders and certain shareholders (Note) 307,498 334,283 Total 307,498 334,283 Note: In May 2021, as an integrated step of the 2021 Reorganization, in order to comply with certain PRC foreign currency control rules and regulations, the Founding Shareholders and certain investors are in the process of applying for permissions to pay the subscription consideration to the Company. Once they obtained the approval to pay the subscription receivables at Cayman Company level, the Group will then settle the consideration payable for the acquisition of their equity interests in Shanghai Hesai to facilitate their payment of the subscription receivable for the ordinary shares of the Company as part of the reorganization. |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
LOSS PER SHARE | |
LOSS PER SHARE | 21. LOSS PER SHARE For the purpose of calculating net loss per share, the number of shares used in the calculation reflects the outstanding shares of the Company as if the 2021 Reorganization as described in Note 1 took place at the earliest period presented. For the year ended December 31, 2020 2021 2022 RMB RMB RMB Numerator Net loss (107,216) (244,827) (300,765) Deemed dividend — (2,211,330) (446,419) Net loss attributable to ordinary shareholders (107,216) (2,456,157) (747,184) Denominator Weighted average number of ordinary shares outstanding-basic and diluted 89,895,471 104,987,478 115,534,593 Basic and diluted net loss per share attributable to ordinary shareholders (1.19) (23.39) (6.47) 21. LOSS PER SHARE (continued) For the years ended December 31, 2020, 2021 and 2022, the following share options were excluded from the calculation of diluted net loss per ordinary share, as their inclusion would have been anti-dilutive for the period prescribed. For the year ended December 31, 2020 2021 2022 Number Number Number Shares issuable upon exercise of share options 5,490,261 9,173,623 9,608,634 |
SEGMENT
SEGMENT | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT | |
SEGMENT | 22. SEGMENT The Group organized its operations into two segments: LiDAR segment and gas detection segment. The table below provides a summary of the Group’s operating segment results for the years ended December 31, 2020, 2021 and 2022. Year ended December 31, 2020 2021 2022 RMB RMB RMB LiDAR segment LiDAR product revenues 346,915 701,235 1,178,703 Cost of revenues 155,986 330,769 720,300 Segment profit 190,929 370,466 458,403 Gas detection segment Gas detection product revenues 68,599 19,533 23,967 Cost of products sold 20,614 8,203 10,383 Segment profit 47,985 11,330 13,584 Total segment profit 238,914 381,796 471,987 The following is a reconciliation of the reportable segments’ measures of profit or loss to the Group’s consolidated loss before income taxes: Year ended December 31, 2020 2021 2022 RMB RMB RMB Total profit for reportable segments 238,914 381,796 471,987 Unallocated amounts* Sales and marketing expenses (49,904) (69,266) (104,835) General and administrative expenses (76,553) (236,713) (201,007) Research and development expenses (229,653) (368,435) (555,179) Other operating income, net 15,384 27,333 10,817 Interest income 20,925 32,584 58,734 Foreign exchange (loss) gains (25,696) (13,275) 20,858 Other (loss) income, net (828) 118 (2,161) Loss before income tax (107,411) (245,858) (300,786) * 22. SEGMENT (continued) The following table summarizes the Group’s long-term assets, including property and equipment, net, land-use rights, net, long-term investments, right-of-use assets, net and other non-current asset by geographical region: Year ended December 31, 2021 2022 RMB RMB Mainland China 432,528 665,511 North America 3,430 14,351 Total Long-term assets 435,958 679,862 |
EMPLOYEE BENEFIT
EMPLOYEE BENEFIT | 12 Months Ended |
Dec. 31, 2022 | |
EMPLOYEE BENEFIT | |
EMPLOYEE BENEFIT | 23. EMPLOYEE BENEFIT Mainland China Contribution Plan Full time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. PRC labor regulations require that the Group to accrue for these benefits based on a certain percentage of the employees’ salaries. The total contribution for such employee benefits were RMB15,732, RMB50,648 and RMB82,877 for the years ended December 31, 2020, 2021 and 2022, respectively. The Group has no ongoing obligation to its employees subsequent to its contributions to the PRC plan. |
STATUTORY RESERVES AND RESTRICT
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 24. STATUTORY RESERVES AND RESTRICTED NET ASSETS The Group’s entities in the PRC are required under PRC laws to distribute its after-tax profits of the current year and set aside at least 10% of its after-tax profits each year, if any to fund certain statutory reserve funds until such reserve funds reach 50% of their registered capital. The statutory reserve funds are not distributable as cash dividends. The Group has no statutory reserve balance for the years ended December 31, 2021 and 2022. The PRC entities with the Group are restricted from transferring their net assets to the Company, which include paid-in capital and statutory reserves. As of December 31, 2022, the balance of restricted net assets was RMB3,334,624. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 25. COMMITMENTS AND CONTINGENCIES Capital expenditure commitments related to the new manufacturing facility in Shanghai Future minimum capital payment under non-cancellable agreements are as follow: As of December 31, 2022 RMB 2023 314,793 2024 11,675 Total 326,468 Royalty fee commitments The Group is obligated to make royalty payments to a third party from 2020 through 2030. The royalty payments for 2021 and 2022 should be US$3.0 million. For each year starting from 2023, the royalty payment is determined to be the greater amount of a base payment of US$3.0 million (except for the year of 2030, where the base payment shall be US$0.3 million) or amount calculated based on a tiered percentage of net revenues. In particular, the percentage should be 4%, 3% and 2% for the net revenues of rotational scanning product from US$0 to US$425,000, from US$425,000 to US$2,925,000, and from US$2,925,000 to above, respectively. Net sales does not include (a) taxes, tariffs, customs duties, excise, or other governmental charges (except income tax) levied and that are separately stated in an invoice, (b) reasonable charges for freight or insurance that are separately stated in an invoice and borne by the Group or its affiliates. Contingencies The Group may from time to time be subject to various legal or administrative claims and proceedings arising in the ordinary course of business. As of December 31, 2021 and 2022, there were no legal or administrative proceedings for which a loss was probable and expected to be material to the financial statements. Additionally, there were no legal or administrative proceedings for which a reasonably possible loss would be material to the financial statements. Standby credit facility In November 2022, the Company entered into a one |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENT | 26. SUBSEQUENT EVENT On April 7, 2023, the Company and certain of its officers, directors, authorized U.S. representative, and IPO underwriters were named as defendants in a putative securities class action filed with federal court, alleging that the Company made false andmisleading statements in its initial public offering registration statement. On April 11, 2023, Ouster Inc. filed a complaint against the Company with the United States District Court for the District of Delaware and the U.S. International Trade Commission for alleged patent infringement relating to the production, use, sale and/or importation of certain LiDAR systems and/or components thereof. As these matters are in their preliminary stage, the Company cannot reasonably determine the outcome of these ligations and regulatory proceeding and potential loss, if any. |
ADDITIONAL INFORMATION OF THE P
ADDITIONAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Dec. 31, 2022 | |
ADDITIONAL INFORMATION OF THE PARENT COMPANY | |
ADDITIONAL INFORMATION OF THE PARENT COMPANY | ADDITIONAL INFORMATION OF THE PARENT COMPANY FINANCIAL STATEMENTS SCHEDULE I HESAI GROUP CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2021 and 2022 (Amounts in thousands, except share and per share data and otherwise noted) As of December 31, 2021 2022 RMB RMB US$ (Note 2) ASSETS Cash and cash equivalents 36,160 35,411 5,134 Prepayments and other current assets 496 1,041 151 Investments in subsidiaries 3,037,606 2,806,201 406,860 Property and equipment, net — 7 1 TOTAL ASSETS 3,074,262 2,842,660 412,146 LIABILITIES AND SHAREHOLDERS’ DEFICIT Amounts due to subsidiaries 272 — — Accrued expenses and other current liabilities 24,169 927 134 TOTAL LIABILITIES 24,441 927 134 MEZZANINE EQUITY Redeemable shares (US$0.0001 par value, 54,551,513 shares issued and outstanding as of December 31, 2021 and 2022) 5,540,491 5,986,910 868,020 TOTAL MEZZANINE EQUITY 5,540,491 5,986,910 868,020 Shareholders’ Deficit Class A Ordinary shares (US$0.0001 par value 35,000,000 shares authorized, 30,033,379 shares issued and outstanding as of December 31, 2021 and 2022) 19 19 3 Class B Ordinary shares (US$0.0001 par value 150,000,000 shares authorized, 30,949,701 shares issued and outstanding as of December 31, 2021 and 2022) 20 20 3 Subscription receivables (310,227) (310,227) (44,979) Accumulated other comprehensive income (loss) 8,465 (3,608) (523) Accumulated deficit (2,188,947) (2,831,381) (410,512) Total shareholders’ deficit (2,490,670) (3,145,177) (456,008) TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT 3,074,262 2,842,660 412,146 ADDITIONAL INFORMATION OF THE PARENT COMPANY FINANCIAL STATEMENTS SCHEDULE I HESAI GROUP CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE YEARS ENDED DECEMBER 31, 2020, 2021 and 2022 (Amounts in thousands, except share and per share data and otherwise noted) For the years ended December 31, 2020 2021 2022 RMB RMB RMB US$ (Note 2) Net revenues — — — — General and administrative expenses — (146,838) (37,105) (5,379) Foreign exchange (loss) gain — (2,324) 2 — Other income, net — 34 — — Equity in deficit of subsidiaries (107,216) (95,699) (263,662) (38,227) Net Loss (107,216) (244,827) (300,765) (43,606) Deemed dividend — (2,211,330) (446,419) (64,725) Net loss attributable to ordinary shareholders of the Company (107,216) (2,456,157) (747,184) (108,331) Net Loss (107,216) (244,827) (300,765) (43,606) Comprehensive income (loss), net of tax of nil : Foreign currency translation adjustments (1,950) 9,083 (12,073) (1,750) Comprehensive loss (109,166) (235,744) (312,838) (45,356) ADDITIONAL INFORMATION OF THE PARENT COMPANY FINANCIAL STATEMENTS SCHEDULE I HESAI GROUP CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020, 2021 and 2022 (Amounts in thousands, except share and per share data and otherwise noted) Year ended December 31, 2020 2021 2022 RMB RMB RMB US$ (Note 2) Cash flows from operating activities: Net loss (107,216) (244,827) (300,765) (43,606) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization — — 2 — Loss from equity in earnings of subsidiaries 107,216 95,699 263,662 38,227 Share-based compensation — 35,056 33,342 4,834 Foreign exchange loss (gain), net — 2,324 (2) — Changes in operating assets and liabilities: Prepayments and other current assets — (496) (545) (79) Amounts due from related parties — (255) — — Accrued expenses and other current liabilities — 24,746 2,611 379 Net cash used in operating activities — (87,753) (1,695) (245) Cash flows from investing activities: Purchases of property and equipment — — (10) (2) Investments in subsidiaries — (2,787,570) — — Net cash used in investing activities — (2,787,570) (10) (2) Cash flows from financing activities: Cash contribution from shareholders in connection with the 2021 Reorganization — 507,620 — — Proceeds from issuance of convertible loans — 1,950,338 — — Proceeds from issuance of ordinary shares — 453,978 — — Net cash provided by financing activities — 2,911,936 — — Net increase (decrease) in cash and cash equivalents — 36,613 (1,705) (247) Cash and cash equivalents, beginning of the year — — 36,160 5,243 Effect of foreign exchange rate changes on cash and cash equivalents — (453) 956 138 Cash and cash equivalents, end of the year — 36,160 35,411 5,134 Supplemental disclosure of non-cash financing activities: Accrued purchases of property and equipment — 1,950,338 — — Accrued offering cost — — 480 70 ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY FINANCIAL STATEMENTS SCHEDULE I HESAI GROUP FINANCIAL INFORMATION OF PARENT COMPANY NOTES TO SCHEDULE I 1. 2. 3. 4. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | Basis of presentation The combined and consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Basis of Consolidation | Basis of Consolidation The financial statements presented herein represent (1) prior to the 2021 Reorganization, the financial statements of Shanghai Hesai and its subsidiaries; (2) subsequent to the 2021 Reorganization, the financial statements of the Company and its subsidiaries. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. |
Use of estimates | Use of estimates The preparation of combined and consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Group’s management reviews these estimates based on information that is currently available. Changes in facts and circumstances may cause the Group to revise its estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements mainly include the estimated project progress towards certain services revenue, warranty reserves, right-of-use assets, lease liabilities, inventory write-down, allowance for doubtful accounts, the useful lives of property and equipment, intangible assets and land-use rights, valuation of ordinary shares and share-based compensation. |
Fair value measurements | Fair value measurements The established fair value hierarchy as defined by U.S. GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs may be used to measure fair value include: Level 1 Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. Level 2 Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Fair value measurements – continued Level 3 Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Group’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group’s financial instruments include cash and cash equivalents, accounts receivable, short-term investments, amounts due from/to related parties, other receivables included in other current assets, accounts payable, other current liabilities, and long-term borrowings. With the exception of short-term investments, the carrying amounts of the short-term financial instruments approximate their fair values due to their short-term nature. The fair value of long-term borrowings is approximate to their carry amounts because the annual interest rates of such borrowings are the similar to the prevailing market annual interest rate. Short-term investments consisted of structured deposits with commercial banks in the PRC. These structured deposits are financial instruments with variable interest rates indexed mainly to exchange rates and/or price of commodities. In accordance with ASC 820, Fair Value Measurement |
Functional currency and foreign currency translation | Functional currency and foreign currency translation The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company and its subsidiary located outside of PRC is the United States dollar (“US$”), and the functional currency of subsidiaries located in PRC is RMB. Assets and liabilities are translated from each entity’s functional currency to the reporting currency at the exchange rate on the balance sheet date. Equity amounts are translated at historical exchange rates, and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of accumulated other comprehensive income (loss) in the combined and consolidated statements of changes in shareholders’ deficit. Monetary assets and liabilities denominated in currencies other than the entity’s applicable functional currencies are translated into the functional currencies at the prevailing rates of exchange at the balance sheet date. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates. Transactions in currencies other than the applicable functional currencies during the year are converted into the functional currencies at the applicable rates of exchange prevailing at the transaction dates. Transaction gains and losses are recognized as foreign exchange (loss) gain, net in the combined and consolidated statements of operations and comprehensive loss. |
Cash and cash equivalents | Cash and cash equivalents The Group classifies cash on hand and cash in bank with original maturities of three months or less, and are unrestricted as to withdrawal or use, as cash and cash equivalents. |
Accounts receivable, net | Accounts receivable, net Accounts receivable mainly consists of amount due from the Group’s customers, which are recorded net of allowance for credit losses. The Group divides its portfolio into two pools — domestic PRC customers and overseas customers for the purposes of performing ongoing credit evaluation by reviewing their credit rating and industry geographic distribution and assessing allowance for credit loss based on expected credit loss model for each pool of the portfolio. The Group develops a current expected credit loss (“CECL”) model based on historical collection experience, the age of the accounts receivable balances, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. Account receivable balances are written off after all collection efforts have been exhausted. |
Inventories | Inventories Inventories consists of raw materials, work-in-process, and finished goods and are stated at lower of cost or net realizable value. Costs are computed under the weighted average method. Net realizable value is determined as estimated selling prices in the ordinary course of business, less reasonably predictable costs to sell. Valuation of inventories is based on currently available information about expected recoverable value. The estimate is dependent upon factors such as market trends, inventory ageing, and historical and forecasted customer demands. Inventory write-down is recorded as cost of revenues. |
Property and equipment, net | Property and equipment, net Property and equipment is stated at cost less accumulated depreciation and impairment. Property and equipment are depreciated at rates sufficient to write off its costs less impairment, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follows: Electronic equipment 3 – 5 years Machinery and equipment 10 years Furniture and fixture 5 years Transportation vehicles 4 years Leasehold improvements Over the shorter of the expected lease term or useful lives |
Intangible assets, net | Intangible assets, net Intangible assets are recognized and measured at cost upon acquisition. Following the initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The identifiable intangible assets acquired are amortized on a straight-line basis over the respective useful lives as follows: Software 3 – 10 years Technology 3 – 5 years |
Land-use rights, net | Land-use rights, net Land-use rights are recognized and measured at cost upon acquisition. Following the initial recognition, land-use rights are carried at cost less any accumulated amortization and any accumulated impairment losses. According to the land-use rights policy in the PRC, the useful life of land-use rights is 50 years. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of assets and liabilities acquired in a business combination in connection with acquisition of 100% equity interests of Oxigraf Inc. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. In evaluation of goodwill impairment, the Group has the option to choose whether it will apply the qualitative assessment first and then the quantitative assessment, if necessary, or to apply the quantitative assessment directly. If the Group chooses to apply a qualitative assessment first, it starts the goodwill impairment test by assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Group determines that it is more likely than not the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of comparison of the fair value of a reporting unit to its carrying amount. Application of a goodwill impairment test requires significant management judgments, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. No goodwill impairment was recorded for the years ended December 31, 2020, 2021 and 2022. |
Long-term investments | Long-term investments Investment in equity method investee The Group uses equity method to account for common stock investments in entities over which it has significant influence but does not have controlling interests. Under the equity method of accounting, the Group’s share of the earnings or losses of the investee companies, impairments, and other adjustments required by the equity method are reflected in the combined and consolidated statements of operations and comprehensive loss. When the Group’s share of losses in an investee equals or exceeds its carrying amount of the investment in the investee, the Group does not recognize further losses, unless the Group has guaranteed the obligations of the investee or is otherwise committed to provide further financial support for the investee. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group estimated the fair value of investments in equity investees under discounted cash flow analysis which requires significant judgments, including the estimation of future cash flows, which is dependent on internal forecasts, the estimation of long term growth rate of a company’s business, the estimation of the useful life over which cash flows will occur, and the determination of the weighted average cost of capital. The Group did not record any impairment on its equity method investment during the years ended December 31, 2020, 2021 and 2022. Equity securities without readily determinable fair value The Group has elected to measure the investment in equity securities without readily determinable fair values at cost minus impairment, if any, adjusted up or down for observable price changes. Any adjustment to the carrying amount is recorded in other income (loss), net. At each reporting period end, the Group makes a qualitative assessment considering impairment indicators to evaluate whether any of these investments is impaired. If the assessment indicates that the fair value of an investment is less than the carrying value, the investment in equity securities will be written down to its fair value, with the difference between the fair value of the investment and its carrying amount as an impairment loss. No fair value adjustment was recognized for the investment for the year ended December 31, 2022. |
Revenue recognition | Revenue recognition The majority of the Group’s revenue comes from sales of LiDAR products and gas detection products. The Group recognizes revenue at a point in time when control of the products is transferred to the customers, generally occurs upon delivery according to the terms of the underlying contracts. Product sales to certain customers may require customer acceptance due to performance acceptance criteria that is considered more than a formality. For these product sales, revenue is recognized upon the expiration of the customer acceptance period. The Group’s standalone selling prices are based on the prices charged to customers for the single performance obligation which is transfer of control of products upon delivery to the customers or upon expiration of the customer acceptance period. The Group’s general terms and conditions for its contracts do not contain a right of return that allows the customer to return products and receive a credit, and therefore the Group does not estimate returns. Amounts billed to customers for shipping and handling are included in revenue. Taxes collected from customers and remitted to governmental authorities are excluded from revenue on the net basis of accounting. Accounts receivable are due under normal trade terms, typically within 30 to 90 days. For engineering design, development and validation service projects, control of the goods and services may be transferred over time or at a point in time depending on the terms of the contract. Control of the goods and services is transferred over time since the Group’s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. The Group recognizes revenue over time using an input method based on contract cost incurred to date compared to total estimated contract cost (cost-to-cost) as the services are provided. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services. The Group typically provides standard product warranties on LiDARs. For LiDARs used in autonomous mobility sector, such warranties last one year. For those used in advanced driver assistance system sector, such warranties cover five years or 100 thousand kilometres, whichever comes first. Standard warranties are considered to be assurance type warranties and are not accounted for as separate performance obligations. The Group accrues estimated future warranty costs and charges to cost of revenues in the period that the related revenue is recognized. These estimates are based on historical warranty experience and any known or expected changes in warranty exposure, such as trends of product reliability and costs of repairing and replacing defective products. The Group also started to provide extended warranties as a service for an additional term ranging one two Changes in the Group’s accrued warranty liability was as follows: For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Balance as of the beginning of the year 7,457 10,042 13,932 Warranty provision 8,752 10,766 8,467 Consumption (6,167) (6,876) (4,705) Balance as of the end of the year 10,042 13,932 17,694 A contract asset is recorded when the Group has transferred products or services to the customer before payment is received or is due, and the Group’s right to consideration is conditional on future performance in the contract. The Group records a contract asset for unbilled receivables for certain customers where the control of the goods or services has been transferred. A contract liability exists when the Group has received consideration but has not transferred the related goods or services to the customer. The Group’s contract liabilities mainly consist of payments received from customers before they received the products. |
Cost of revenues | Cost of revenues Cost of revenues includes the manufacturing cost of LiDAR sensors and gas detection products, which primarily consists of direct material costs, personnel-related costs, purchasing costs, depreciation, amortization and overhead associated with manufacturing operations, accrued warranty costs, shipping costs, licensing fees, and write-downs of excess inventories and obsolete inventories. |
Research and development expenses | Research and development expenses Research and development expenses consist primarily of personnel-related costs directly associated with research and development organization, with the remainder being prototype expenses, third-party engineering and contractor costs, an allocated portion of facility and IT costs and depreciation. The Group’s research and development costs are related to enhancing and developing additional functionality for its existing products and on new product development, including new releases and upgrades to LiDAR sensors. The Group expenses research and development costs as incurred. |
Government grants | Government grants Government grants consist of cash subsidies received by the Group from PRC local governments. Grants received as incentives for conducting business in certain local districts with no performance obligation or other restriction as to the use are recognized when cash is received. Grants received with government specified performance obligations are recognized when all the obligations have been fulfilled. Government grants received related to the purchases of long-term assets are used to net the cost of the respective assets. The grants related to unfulfilled obligations of RMB7,614, nil and nil were included in the other non-current liabilities as of December 31, 2020, 2021 and 2022, respectively. The Group recorded government grants RMB15,384, RMB27,446 and RMB10,825 in other operating income(loss), net for the years ended December 31, 2020, 2021 and 2022, respectively. |
Loss per share | Loss per share Basic loss per share is computed by dividing net loss attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The Group had share options, which could potentially dilute basic earnings per ordinary share in the future. To calculate the number of shares for diluted earnings per ordinary share, the effect of the share options is computed using the treasury stock method. |
Share-based compensation | Share-based compensation The Group grants share-based awards of the Company to eligible employees and accounts for these share-based awards in accordance with ASC 718, Compensation - Stock Compensation. Share-based awards that are subject to both the service period and the occurrence of a Qualified IPO as performance condition are measured at the grant date fair value and share-based compensation expenses are recognized for the cumulatively vested amount upon the completion of the Qualified IPO first and then over the remaining requisite service period, net of actual forfeitures, if any. Share-based awards that are subject to only the service period are measured at the grant date fair value and share-based compensation expenses are recognized on a straight-line basis over the requisite service period of the individual grants. The Group recognizes share-based compensation expenses based on the target number of Class B ordinary shares that may be earned pursuant to the award. Forfeitures are recognized as reductions to share-based compensation when they occur. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Share-based compensation - continued The fair value of the share options granted to employees is determined with the assistance of an independent valuation specialist using widely accepted valuation techniques, including discounted cash flow analysis on the expected future free cash flows and binomial option pricing model. The Group accounts for the effects of a modification as described in ASC 718. The Group calculates incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified. For vested options, the Group would recognize incremental compensation cost on the date of modification and for unvested options, the Group would recognize, prospectively and over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award. Share-based compensation with cash settlement features are classified as liabilities. The percentage of the fair value that is recorded as compensation cost at the end of each period is based on the percentage of the requisite service that has been rendered at that date. Changes in fair value of the liability classified award that occurs during the requisite service period are recognized as compensation costs rateably over time during the services to be rendered. |
Income Taxes | Income Taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are provided using assets and liabilities method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that these assets are more likely than not to be realized. In making such a determination, the management consider all positive and negative evidence, including future reversals of projected future taxable income and results of recent operation. Deferred tax assets are then reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more likely than not that a portion of or all of the deferred tax assets will not be realized. The Group accounts for uncertainty in income taxes recognized in the financial statements by applying a two-step process to determine the amount of the benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained (defined as a likelihood of more than fifty percent of being sustained upon an audit, based on the technical merits of the tax position), the tax position is then assessed to determine the amount of benefits to recognize in the combined and consolidated financial statements. The amount of the benefits that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. The Group did not recognize any income tax due to uncertain tax position or incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2021 and 2022. |
Leases | Leases The Group leases office space, manufacturing plants and warehouses in Shanghai, PRC and California, USA under non-cancellable operating lease agreements that expire at various dates through October 31, 2025. Before January 1, 2022, the Group used the Accounting Standards Codification, Leases (“ASC 840”), in which each lease is classified at the inception date as either a capital lease or an operating lease. All the Group’s leases are classified as operating lease under ASC 840. The Group’s reporting for periods prior to January 1, 2022 continued to be reported in accordance with Leases (ASC 840). 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Leases - continued Effective from January 1, 2022, the Group adopted ASU No. 2016-02 “Leases” (“ASC 842”) using the modified retrospective approach. The Group elected the transition package of practical expedients permitted within the standard, which allowed it not to reassess initial direct costs, lease classification, or whether the contracts contain or are leases for any leases that existed prior to January 1, 2022. The Group also elected the short-term lease exemption for all contracts with an original lease term of 12 months or less. Upon the adoption, the Group recognized operating lease right-of-use (“ROU”) assets of RMB36,030 with corresponding lease liabilities of RMB36,599 on the combined and consolidated balance sheets. The operating lease ROU assets include adjustments for prepayments. The adoption did not impact the Group’s beginning retained earnings as of January 1, 2022, or the Group’s prior years’ financial statements. The impact on the combined and consolidated balance sheets upon adoption of ASC842 was as follows: December 31, 2021 January 1, 2022 Effect of the After adoption As reported adoption of ASC 842 of ASC 842 RMB RMB RMB ASSETS Right-of-use assets — 36,030 36,030 TOTAL ASSETS — 36,030 36,030 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued expenses and other current liabilities 569 12,566 13,135 Lease liabilities, non-current — 23,464 23,464 TOTAL LIABILITIES 569 36,030 36,599 TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 569 36,030 36,599 Under ASC 842, the Group determines whether an arrangement constitutes a lease and records lease liabilities and ROU assets on its combined and consolidated balance sheets at the lease commencement date. The Group measures the operating lease liabilities at the commencement date based on the present value of remaining lease payments over the lease term, which is computed using the Group’s incremental borrowing rate, an estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the lease term. The Group measures the operating lease ROU assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing operating lease expense based on lease payments on a straight-line basis over the lease term after the lessor makes the underlying asset available to the Group. Some of the Group’s lease contracts include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group does not include renewal option periods in the lease term for which it is not reasonably certain to exercise. |
Comprehensive loss | Comprehensive loss Comprehensive loss is defined as the change in equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive loss is reported in the consolidated statement of operations and comprehensive income. Accumulated other comprehensive loss, as presented on the accompanying combined and consolidated balance sheets consists of accumulated foreign currency translation adjustments. |
Segment | Segment The Chief Executive Officer, Chief Scientist and Chief Technology Officer (collectively referred to the “founders”) are identified as the chief operating decision maker (CODM). The Group organized its operations into two segments: LiDAR segment and gas detection segment. The financial information of the respective segments are disclosed in Note 22. |
Concentration of risks | Concentration of risks Concentration of credit risk Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, accounts receivable, contract assets, amount due from related parties, and prepayments and other current assets. The Group places its cash and cash equivalents and short-term investments in various financial institutions in the PRC, Hong Kong Special Administrative Region, and the United States. The Group believes that no significant credit risk exists as all of the Group’s cash and cash equivalents are held with financial institutions that Group’s management believes to be high credit quality. Accounts receivable, contract assets and amount due from related parties are typically unsecured and are derived from revenue earned from the customers. The Group conducts credit evaluations of customers to whom credit terms are extended. The Group establishes an allowance for doubtful accounts based on CECL model developed by the Group, which considers historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. Prepayments and other current assets mainly consists of deposits of rent, and prepaid expenses, which can be applied for deduction of future payments for expenses. The Group has no significant concentrations of credit risk with respect to its prepayments and other current assets. Concentration of customers The following customers accounted for 10% or more of revenue for the years ended December 31, 2020, 2021 and 2022: For the Year ended December 31, 2020 2021 2022 Customer A — * — * 24.3 % Customer B 10.4 % 17.5 % 13.7 % Customer C — * 12.7 % — * Customer D 11.6 % — * — * 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Concentration of customers - continued The following customers accounted for 10% or more of the Group’s accounts receivable, contract assets and amount due from related parties as of December 31, 2021 and 2022: As of December 31, 2021 2022 Customer A — * 61.0 % Customer B 64.4 % 15.3 % Concentration of suppliers The Group has one supplier accounted for 10% or more of purchases for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 Supplier A 11.5 % 13.7 % 12.3 % |
Foreign currency risk | Foreign currency risk A significant portion of Group’s cash and cash equivalents and short-term investments are denominated in US$, fluctuations in exchange rates between US$ and RMB may result in foreign exchange gains or losses. The value of US$ is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group has cash and cash equivalents that are denominated in US$, totalling US$26,545 and US$51,351 as of December 31, 2021 and 2022, respectively. |
Recent accounting pronouncements | Recent accounting pronouncements Under the Jumpstart Our Business Startups Act of 2012, as amended (“the JOBS Act”), the Group meets the definition of an emerging growth company, or EGC as of December 31, 2022, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. Once the Group ceases to qualify as EGC, it will immediately adopt the new and revised accounting standards already effective for public companies. There are no recent accounting pronouncements which are expected to have a material effect on the Company’s consolidated financial statements in the current or any future periods. |
Convenience translation | Convenience translation The Group’s business is primarily conducted in China and most of its revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into US$ using the then current exchange rates, for the convenience of the readers. Translations of balances in the combined and consolidated balance sheet, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2022 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.8972 representing the noon buying rate set forth in the H.10 statistical release of the United States as of December 30, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of property and equipment over estimated useful life | Electronic equipment 3 – 5 years Machinery and equipment 10 years Furniture and fixture 5 years Transportation vehicles 4 years Leasehold improvements Over the shorter of the expected lease term or useful lives |
Schedule of intangible assets useful life | Software 3 – 10 years Technology 3 – 5 years |
Schedule of accrued warranty liability | For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Balance as of the beginning of the year 7,457 10,042 13,932 Warranty provision 8,752 10,766 8,467 Consumption (6,167) (6,876) (4,705) Balance as of the end of the year 10,042 13,932 17,694 |
Schedule of impact on condensed consolidated balance sheets | December 31, 2021 January 1, 2022 Effect of the After adoption As reported adoption of ASC 842 of ASC 842 RMB RMB RMB ASSETS Right-of-use assets — 36,030 36,030 TOTAL ASSETS — 36,030 36,030 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued expenses and other current liabilities 569 12,566 13,135 Lease liabilities, non-current — 23,464 23,464 TOTAL LIABILITIES 569 36,030 36,599 TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT 569 36,030 36,599 |
Schedule of concentration of risks | Concentration of customers The following customers accounted for 10% or more of revenue for the years ended December 31, 2020, 2021 and 2022: For the Year ended December 31, 2020 2021 2022 Customer A — * — * 24.3 % Customer B 10.4 % 17.5 % 13.7 % Customer C — * 12.7 % — * Customer D 11.6 % — * — * 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Concentration of customers - continued The following customers accounted for 10% or more of the Group’s accounts receivable, contract assets and amount due from related parties as of December 31, 2021 and 2022: As of December 31, 2021 2022 Customer A — * 61.0 % Customer B 64.4 % 15.3 % Concentration of suppliers The Group has one supplier accounted for 10% or more of purchases for the years ended December 31, 2020, 2021 and 2022: For the Year Ended December 31, 2020 2021 2022 Supplier A 11.5 % 13.7 % 12.3 % |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of accounts receivable and expected credit losses | As of December 31, 2021 2022 RMB RMB Accounts receivable 93,115 491,293 Less: allowance for expected credit losses (7,294) (6,249) Total accounts receivable, net 85,821 485,044 |
Schedule of allowance for credit losses related to accounts receivable | For the Year ended December 31, 2021 2022 RMB RMB Balance at beginning of year 5,270 7,294 Provision (reversal) for expected credit losses 2,024 (1,045) Balance at end of year 7,294 6,249 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES | |
Schedule of inventories | As of December 31, 2021 2022 RMB RMB Raw materials 123,940 290,121 Work-in-process 91,898 180,367 Finished goods 160,406 176,364 Inventories 376,244 646,852 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
Schedule of prepayments and other current assets | As of December 31, 2021 2022 RMB RMB Advances to suppliers 53,666 82,419 Deposits 8,941 11,998 Prepaid expenses 9,123 10,108 Value-added tax recoverable 9,360 6,748 Others 8,029 15,179 Total 89,119 126,452 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment | As of December 31, 2021 2022 RMB RMB Cost Electronic equipment 46,856 79,663 Leasehold improvements 48,901 63,995 Machinery and equipment 12,622 121,614 Furniture and fixture 32,599 54,851 Transportation vehicles 2,003 4,411 Total cost 142,981 324,534 Less: Accumulated depreciation (39,810) (84,329) Property and equipment, net 103,171 240,205 Construction in Progress 218,456 264,748 Total 321,627 504,953 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM INVESTMENTS | |
Schedule of investment in equity method investee | As of December 31, 2021 2022 RMB RMB Investments in equity securities — 30,000 Investments in equity method investee 1,902 1,856 Total 1,902 31,856 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets over the respective useful lives | As of December 31, 2021 2022 RMB RMB Software 21,346 30,095 Technology 8,178 8,390 Total cost 29,524 38,485 Less: Accumulated amortization (9,971) (17,885) Intangible assets, net 19,553 20,600 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other non-current assets | As of December 31, 2021 2022 RMB RMB Prepayments for purchase of property and equipment 55,207 46,083 Demonstration fleet 5,790 4,936 Long-term deposits 6,909 3,836 Others 2,053 2,243 Other non-current assets 69,959 57,098 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | As of December 31, 2021 2022 RMB RMB Salaries and welfare payables 122,489 166,923 Payables for purchase of property and equipment 114,446 102,181 Accrued expenses 12,798 41,558 Current portion of operating lease liabilities — 34,975 VAT and other tax payables 115,540 5,903 Advances from employee 5,581 4,962 Total 370,854 356,502 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
Schedule of maturities of lease liabilities in accordance with leases | As of December 31, 2021 RMB 2022 30,429 2023 26,071 2024 4,536 2025 3,096 Total lease payment 64,132 As of December 31, 2022 RMB 2023 36,025 2024 7,145 2025 3,282 Total lease payment 46,452 Less: imputed interest (1,338) Present value of minimum operating lease payments 45,114 Less: Current operating lease liabilities (34,975) Long-term operating lease liabilities 10,139 |
LONG-TERM BORROWINGS (Tables)
LONG-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM BORROWINGS | |
Schedule of principal payments for outstanding long-term loans | For the year ended December 31, RMB 2025 5,542 2026 5,542 2027 7,388 Total 18,472 |
REDEEMABLE EQUITY (Tables)
REDEEMABLE EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REDEEMABLE EQUITY | |
Schedule of redeemable equity financing | As Proceeds Upon percent of from December 31, August 1, Completion December 31, equity at Issuance, net 2019 2020 of the 2020 2020 Issuance issuance of issuance Carrying Carrying Reorganization Carrying Series Date date cost Amount Amount Amount Amount RMB RMB RMB RMB RMB Series A+ March 2017 10.9 % 75,750 93,773 93,773 (93,773) — Series B November 2017 10.9 % 104,611 124,645 124,645 (124,645) — Series B+ June 2018 6.0 % 96,316 109,525 109,525 (109,525) — Series C-1 May 2019 7.8 % 261,635 273,503 273,503 (273,503) — Series C-2 June 2019 7.0 % 254,052 265,060 265,060 (265,060) — Series C-3 July 2019 5.8 % 224,054 232,133 232,133 (232,133) — Total 1,016,418 1,098,639 1,098,639 (1,098,639) — |
REDEEMABLE SHARES (Tables)
REDEEMABLE SHARES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REDEEMABLE SHARES | |
Schedule of redeemable shares | Carrying value at Change in Carrying value at Number the date of re- carrying December 31, Series of shares classification value 2021 RMB RMB RMB Series A+ 3,029,522 284,480 — 284,480 Series B 7,881,155 742,091 — 742,091 Series B+ 3,957,617 375,599 — 375,599 Series C-1 4,289,102 416,021 — 416,021 Series C-2 6,176,311 598,974 — 598,974 Series C-3 5,594,483 542,489 — 542,489 Series C+ 956,657 96,763 — 96,763 Series D 22,666,666 2,404,316 79,758 2,484,074 Total 54,551,513 5,460,733 79,758 5,540,491 Change in Number of Carrying value at carrying Carrying value at Series shares December 31, 2021 value December 31, 2022 RMB RMB RMB Series A+ 3,029,522 284,480 — 284,480 Series B 7,881,155 742,091 — 742,091 Series B+ 3,957,617 375,599 — 375,599 Series C-1 4,289,102 416,021 — 416,021 Series C-2 6,176,311 598,974 — 598,974 Series C-3 5,594,483 542,489 — 542,489 Series C+ 956,657 96,763 — 96,763 Series D 22,666,666 2,484,074 446,419 2,930,493 Total 54,551,513 5,540,491 446,419 5,986,910 |
Schedule of redemption value of the redeemable shares | Redemption value as of Series December 31, 2022 RMB Series A+ 53,514 Series B 157,050 Series B+ 110,451 Series C-1 226,775 Series C-2 324,984 Series C-3 292,483 Series C+ 83,599 Series D 2,930,544 Total 4,179,400 |
NET REVENUES (Tables)
NET REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
NET REVENUES | |
Schedule of net revenues | For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Product revenues Revenue from LiDAR products 346,068 685,333 1,122,237 Revenue from gas detection products 68,599 19,533 23,967 Other revenues 847 1,200 5,663 Service revenues Engineering design, development and validation service — 14,026 43,101 Extended warranties — 676 7,702 Total 415,514 720,768 1,202,670 For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Revenue by geographic location Mainland China 185,516 269,634 697,294 North America 201,194 352,981 358,549 Europe 16,589 67,912 86,153 Other regions 12,215 30,241 60,674 Net revenues 415,514 720,768 1,202,670 |
Schedule of movements of the accounts receivable and contract balances | Accounts Contract Contract Receivable assets liabilities RMB RMB RMB Opening Balance as of January 1, 2020 36,511 — 11,843 Increase(decrease), net 19,808 38,337 (2,486) Opening Balance as of January 1, 2021 56,319 38,337 9,357 Increase, net 29,502 108,200 113,246 Ending Balance as of December 31, 2021 85,821 146,537 122,603 Increase(decrease), net 399,223 (133,937) (82,225) Ending Balance as of December 31, 2022 485,044 12,600 40,378 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAXES | |
Schedule of current and deferred portion of income tax expenses | For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Current tax expenses — — 2 Over-provision in prior year (125) (1,057) — Deferred tax benefits (74) (58) (68) Income tax (benefits) expenses (199) (1,115) (66) |
Schedule of net loss before income tax | For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Net loss before income tax from PRC operations (104,524) (92,498) (251,302) Net loss before income tax from non-PRC operations (2,891) (153,444) (49,529) Total net loss before income tax (107,415) (245,942) (300,831) |
Schedule of reconciliation between the effective income tax rate and statutory income tax rate | For the Year ended December 31, 2020 2021 2022 Statutory income tax rate 25.00 % 25.00 % 25.00 % Effect of different tax rate of different jurisdictions 0.10 % (4.39) % (3.09) % Non-deductible expenses (0.30) % (17.98) % (6.12) % Effect of super deduction on R&D expenses 38.83 % 34.83 % 41.00 % Effect of change of valuation allowance (63.56) % (37.44) % (56.77) % Over provision for prior years 0.12 % 0.43 % — Income tax expenses 0.19 % 0.45 % 0.02 % |
Schedule of deferred tax assets and deferred tax liabilities | As of December 31, 2021 2022 RMB RMB Deferred tax assets – Net operating loss carry forwards 220,480 373,215 – Deductible temporary differences 11,562 31,348 – Deferred revenue 9,443 6,294 Less: valuation allowance (241,485) (410,857) Net deferred tax assets — — Deferred tax liabilities – Identifiable intangible assets from business combination. 466 439 Total deferred tax liabilities 466 439 |
Schedule of movement of valuation allowance | For the Year ended December 31, 2020 2021 2022 RMB RMB RMB Balance at beginning of the year 67,985 136,269 241,485 Addition 68,284 105,216 169,372 Total 136,269 241,485 410,857 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SHARE-BASED COMPENSATION | |
Schedule of assumptions used to estimate the fair values of the share options granted | For the year ended December 31, 2021 December 31, 2022 Expected volatility 48.00% – 74.00 % 74.00% – 80.00 % Risk-free interest rate (per annum) 0.97% – 1.55 % 1.94% – 3.83 % Expected dividend yield 0.00 % 0.00 % Employee forfeiture rate (per annum) 3.80 % 3.80% – 3.92 % Exercise multiples 2.50 2.50 Expected term 7.00 7.00 Fair value of underlying ordinary share (per share) US$14.10 – 18.42 US$18.11 – 19.91 Fair value of awards on valuation date US$5.84 – 16.90 US$12.93 – 17.11 |
Schedule of stock option activity | Weighted Weighted Weighted average Number average average remaining Aggregate of exercise grant date contract intrinsic options price fair value life value RMB RMB Years RMB Outstanding at January 1, 2021 — — — — — Granted (the 2017 Replacement and the 2020 Replacement) 5,419,677 3.87 22.83 Granted (the New Grant) 4,286,828 15.25 102.74 Forfeited 220,831 5.96 Cancelled 312,051 0.90 Exercised — — Outstanding at January 1, 2022 9,173,623 9.23 56.58 6.32 1,005,546 Granted (the New Grant) 1,158,201 33.92 121.62 Forfeited 723,190 13.85 Exercised — — Outstanding at December 31, 2022 9,608,634 12.51 65.93 5.46 1,141,255 Vested and expected to vest as of December 31, 2022 5,088,920 19.66 101.08 5.88 568,013 Exercisable as of December 31, 2022 1,794,795 12.51 65.93 5.46 213,122 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
Schedule of companies that are related parties | Name of the related parties Relationship Mr. Kai Sun Founding Shareholders Mr. Yifan Li Founding Shareholders Mr. Shaoqing Xiang Founding Shareholders Mr. Minglie Hu Shareholder Mr. Min Ai Shareholder Shanghai Kunjie Phototonics Technology Co., Ltd. An equity method investee of the Group Shanghai Leyi Technology L.P. An affiliate of the shareholder of the Group Robert Bosch Kft. An affiliate of the shareholder of the Group Robert Bosch Ltd. An affiliate of the shareholder of the Group Robert Bosch France An affiliate of the shareholder of the Group Bosch Automotive Products (Suzhou) Co., Ltd. An affiliate of the shareholder of the Group Baidu USA LLC (Note) An affiliate of the shareholder of the Group Beijing Baidu Netcom Technology Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Transportation Technology (Guangzhou) Co., Ltd. An affiliate of the shareholder of the Group Baidu Smart Travel Information Technology (Chongqing) Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Transportation Technology (Hefei) Co., Ltd. An affiliate of the shareholder of the Group Luobo Yunli (Beijing) Technology Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Transportation Technology (Dalian) Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Technology (Beijing) Co., Ltd. An affiliate of the shareholder of the Group Apollo Intelligent Connection (Beijing) Co., Ltd. An affiliate of the shareholder of the Group |
Schedule of significant related party transactions | For year ended December 31, 2020 2021 2022 RMB RMB RMB Net revenues Affiliates of the shareholders of the Group 41,765 15,655 — Total 41,765 15,655 — For year ended December 31, 2020 2021 2022 RMB RMB RMB Research and development expenses An equity method investee of the Group 900 — — Total 900 — — For year ended December 31, 2020 2021 2022 RMB RMB RMB Purchases An equity method investee of the Group 83 — — Total 83 — — |
Schedule of outstanding balances with related parties | As of December 31, 2020 2021 2022 RMB RMB RMB Amounts due from related parties, net of allowance Affiliates of the shareholder of the Group 28,088 — — An equity method investee of the Group — — — Total 28,088 — — As of December 31, 2021 2022 RMB RMB Amounts due to related parties Founding Shareholders and certain shareholders (Note) 307,498 334,283 Total 307,498 334,283 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LOSS PER SHARE | |
Schedule of calculation of net loss per share, | For the year ended December 31, 2020 2021 2022 RMB RMB RMB Numerator Net loss (107,216) (244,827) (300,765) Deemed dividend — (2,211,330) (446,419) Net loss attributable to ordinary shareholders (107,216) (2,456,157) (747,184) Denominator Weighted average number of ordinary shares outstanding-basic and diluted 89,895,471 104,987,478 115,534,593 Basic and diluted net loss per share attributable to ordinary shareholders (1.19) (23.39) (6.47) |
Schedule of share options were excluded from the calculation of diluted net loss per ordinary share | For the year ended December 31, 2020 2021 2022 Number Number Number Shares issuable upon exercise of share options 5,490,261 9,173,623 9,608,634 |
SEGMENT (Tables)
SEGMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT | |
Schedule of operating segment results | Year ended December 31, 2020 2021 2022 RMB RMB RMB LiDAR segment LiDAR product revenues 346,915 701,235 1,178,703 Cost of revenues 155,986 330,769 720,300 Segment profit 190,929 370,466 458,403 Gas detection segment Gas detection product revenues 68,599 19,533 23,967 Cost of products sold 20,614 8,203 10,383 Segment profit 47,985 11,330 13,584 Total segment profit 238,914 381,796 471,987 |
Schedule of reconciliation of the reportable segments' to consolidated loss before income tax | Year ended December 31, 2020 2021 2022 RMB RMB RMB Total profit for reportable segments 238,914 381,796 471,987 Unallocated amounts* Sales and marketing expenses (49,904) (69,266) (104,835) General and administrative expenses (76,553) (236,713) (201,007) Research and development expenses (229,653) (368,435) (555,179) Other operating income, net 15,384 27,333 10,817 Interest income 20,925 32,584 58,734 Foreign exchange (loss) gains (25,696) (13,275) 20,858 Other (loss) income, net (828) 118 (2,161) Loss before income tax (107,411) (245,858) (300,786) * |
Schedule of long-term assets disaggregated by the different geographic locations | Year ended December 31, 2021 2022 RMB RMB Mainland China 432,528 665,511 North America 3,430 14,351 Total Long-term assets 435,958 679,862 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of future minimum capital payment under non-cancellable agreements | As of December 31, 2022 RMB 2023 314,793 2024 11,675 Total 326,468 |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | Jun. 30, 2021 shares | May 31, 2021 shares | |
ORGANIZATION AND NATURE OF OPERATIONS | ||||||
Cash distribution to shareholders of Shanghai Hesai in connection with the 2021 Reorganization | ¥ 507,620,000 | |||||
Subscription receivables | ¥ 310,227,000 | 310,227,000 | $ 44,979 | |||
Capital gain tax payments on behalf of certain shareholders | ¥ 82,347 | |||||
IPO | Class B | ||||||
ORGANIZATION AND NATURE OF OPERATIONS | ||||||
Number of shares issued | shares | 10,125,118 | 10,125,118 | ||||
Net proceeds from IPO | $ | $ 179,800 | |||||
Shanghai Hesai | ||||||
ORGANIZATION AND NATURE OF OPERATIONS | ||||||
Settlement through cash redemption | 817,847 | |||||
Cash distribution to shareholders of Shanghai Hesai in connection with the 2021 Reorganization | 507,620 | |||||
Subscription receivables | ¥ 310,227 | |||||
Shanghai Hesai | Founding shareholders | ||||||
ORGANIZATION AND NATURE OF OPERATIONS | ||||||
Percentage of equity interest acquired | 100% | |||||
Shanghai Hesai | Founding shareholders | Class A | ||||||
ORGANIZATION AND NATURE OF OPERATIONS | ||||||
Number of shares subscribed | shares | 30,033,379 | 30,033,379 | ||||
Shanghai Hesai | Existing investors | Class B | ||||||
ORGANIZATION AND NATURE OF OPERATIONS | ||||||
Number of shares subscribed | shares | 62,834,548 | 62,834,548 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair value measurements (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Level 2 | ||
Fair value measurements | ||
Short-term investments | ¥ 945,865 | ¥ 2,342,743 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment, net (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Electronic equipment | Minimum | |
Property and equipment, net | |
Estimated useful life of property and equipment | 3 years |
Electronic equipment | Maximum | |
Property and equipment, net | |
Estimated useful life of property and equipment | 5 years |
Machinery and equipment | |
Property and equipment, net | |
Estimated useful life of property and equipment | 10 years |
Furniture and fixture | |
Property and equipment, net | |
Estimated useful life of property and equipment | 5 years |
Transportation vehicles | |
Property and equipment, net | |
Estimated useful life of property and equipment | 4 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Software | Minimum | |
INTANGIBLE ASSETS, NET | |
Useful life of intangible assets | 3 years |
Software | Maximum | |
INTANGIBLE ASSETS, NET | |
Useful life of intangible assets | 10 years |
Technology | Minimum | |
INTANGIBLE ASSETS, NET | |
Useful life of intangible assets | 3 years |
Technology | Maximum | |
INTANGIBLE ASSETS, NET | |
Useful life of intangible assets | 5 years |
Land-use rights | |
INTANGIBLE ASSETS, NET | |
Useful life of intangible assets | 50 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Goodwill | ||||
Equity method investment, impairment | ¥ 0 | ¥ 0 | ¥ 0 | |
Extended warranty service expense | 7,702,000 | 676,000 | 0 | |
Accrued warranty liability | ||||
Balance as of the beginning of the year | 13,932,000 | 10,042,000 | 7,457,000 | |
Warranty provision | 8,467,000 | 10,766,000 | 8,752,000 | |
Consumption | (4,705,000) | (6,876,000) | (6,167,000) | |
Balance as of the end of the year | ¥ 17,694,000 | $ 2,565 | 13,932,000 | 10,042,000 |
Minimum | ||||
Goodwill | ||||
Period for extended warranty | 1 year | 1 year | ||
Maximum | ||||
Goodwill | ||||
Period for extended warranty | 2 years | 2 years | ||
Oxigraf Inc. | ||||
Goodwill | ||||
Percentage of equity interest acquired | 100% | 100% | ||
Impairment on goodwill | ¥ 0 | ¥ 0 | ¥ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - impact on the condensed consolidated balance sheets upon adoption of ASC842 (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liabilities | ¥ 45,114 | ||
ASSETS | |||
Right-of-use assets | 44,349 | $ 6,430 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Accrued Liabilities and Other Liabilities, as Reported | ¥ 569 | ||
Liabilities, Total, as Reported | 569 | ||
Liabilities and Equity, Total, as Reported | ¥ 569 | ||
Operating Lease, Liability, Current | ¥ 34,975 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
Operating Lease, Liability, Noncurrent | ¥ 10,139 | $ 1,470 | |
ASC 842 | Effect | |||
ASSETS | |||
Right-of-use assets | ¥ 36,030 | ||
TOTAL ASSETS | 36,030 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Operating Lease, Liability, Current | 12,566 | ||
Operating Lease, Liability, Noncurrent | 23,464 | ||
TOTAL LIABILITIES | 36,030 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | 36,030 | ||
ASC 842 | After adoption | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liabilities | 36,599 | ||
ASSETS | |||
Right-of-use assets | 36,030 | ||
TOTAL ASSETS | 36,030 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Operating Lease, Liability, Current | 13,135 | ||
Operating Lease, Liability, Noncurrent | 23,464 | ||
TOTAL LIABILITIES | 36,599 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | ¥ 36,599 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) segment | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Government grants related to unfulfilled obligations | ¥ 0 | ¥ 0 | ¥ 7,614 |
Government grants income | 10,825 | 27,446 | 15,384 |
Income tax, unrecognized | ¥ 0 | 0 | |
Number of operating segments | segment | 2 | ||
Fair value investments recognized | ¥ 0 | ¥ 0 | ¥ 0 |
Revenue | Customer concentration | Customer A | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Percentage of concentration risk | 24.30% | ||
Revenue | Customer concentration | Customer B | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Percentage of concentration risk | 13.70% | 17.50% | 10.40% |
Revenue | Customer concentration | Customer C | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Percentage of concentration risk | 12.70% | ||
Revenue | Customer concentration | Customer D | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Percentage of concentration risk | 11.60% | ||
Accounts receivables | Customer concentration | Customer A | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Percentage of concentration risk | 61% | ||
Accounts receivables | Customer concentration | Customer B | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Percentage of concentration risk | 15.30% | 64.40% | |
Accounts payable | Supplier concentration | Supplier A | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Percentage of concentration risk | 12.30% | 13.70% | 11.50% |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign currency risk and Convenience translation (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Cash and cash equivalents and time deposits | $ 51,351 | $ 26,545 |
Exchange rate used for translations of balances | 6.8972 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
ACCOUNTS RECEIVABLE, NET | |||||
Accounts receivable | ¥ 491,293 | ¥ 93,115 | |||
Less: allowance for expected credit losses | (6,249) | (7,294) | |||
Total accounts receivable, net | ¥ 485,044 | $ 70,325 | ¥ 85,821 | ¥ 56,319 | ¥ 36,511 |
ACCOUNTS RECEIVABLE, NET - Allo
ACCOUNTS RECEIVABLE, NET - Allowance for credit losses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
ACCOUNTS RECEIVABLE, NET | ||
Balance at beginning of year | ¥ 7,294 | ¥ 5,270 |
Provision (reversal) for expected credit losses | (1,045) | 2,024 |
Balance at end of year | ¥ 6,249 | ¥ 7,294 |
INVENTORIES (Details)
INVENTORIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
INVENTORIES | |||||
Raw materials | ¥ 290,121 | ¥ 123,940 | |||
Work-in-process | 180,367 | 91,898 | |||
Finished goods | 176,364 | 160,406 | |||
Inventories | 646,852 | 376,244 | $ 93,785 | ||
Inventory write-down | ¥ 39,431 | $ 5,717 | ¥ 16,600 | ¥ 7,060 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
PREPAYMENTS AND OTHER CURRENT ASSETS | |||
Advances to suppliers | ¥ 82,419 | ¥ 53,666 | |
Deposits | 11,998 | 8,941 | |
Prepaid expenses | 10,108 | 9,123 | |
Value-added tax recoverable | 6,748 | 9,360 | |
Others | 15,179 | 8,029 | |
Total | ¥ 126,452 | $ 18,333 | ¥ 89,119 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | |
Property and equipment, net | |||
Cost | ¥ 324,534 | ¥ 142,981 | |
Less: Accumulated depreciation | (84,329) | (39,810) | |
Total | 504,953 | 321,627 | $ 73,211 |
Depreciation expenses | 44,856 | 21,187 | |
Electronic equipment | |||
Property and equipment, net | |||
Cost | 79,663 | 46,856 | |
Leasehold improvements | |||
Property and equipment, net | |||
Cost | 63,995 | 48,901 | |
Machinery and equipment | |||
Property and equipment, net | |||
Cost | 121,614 | 12,622 | |
Furniture and fixture | |||
Property and equipment, net | |||
Cost | 54,851 | 32,599 | |
Transportation vehicles | |||
Property and equipment, net | |||
Cost | 4,411 | 2,003 | |
Property and equipment, net | |||
Property and equipment, net | |||
Total | 240,205 | 103,171 | |
Construction in progress | |||
Property and equipment, net | |||
Total | ¥ 264,748 | ¥ 218,456 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Jul. 31, 2022 CNY (¥) | |
LONG-TERM INVESTMENTS | |||||
Long-term investments | ¥ 31,856 | ¥ 1,902 | |||
Investment in equity securities without readily determinable fair value | 0 | 0 | ¥ 0 | ||
Share of loss in equity method investment | (45) | $ (7) | (84) | (4) | |
Equity method investment, impairment | 0 | 0 | ¥ 0 | ||
Vertilite | |||||
LONG-TERM INVESTMENTS | |||||
Percentage of equity interest acquired | 1.20% | ||||
Investment in equity securities without readily determinable fair value | ¥ 30,000 | ||||
Investments in equity securities | |||||
LONG-TERM INVESTMENTS | |||||
Long-term investments | 30,000 | ||||
Investments in equity method investee | |||||
LONG-TERM INVESTMENTS | |||||
Long-term investments | ¥ 1,856 | ¥ 1,902 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INTANGIBLE ASSETS, NET | ||
Total cost | ¥ 38,485 | ¥ 29,524 |
Less: Accumulated amortization | (17,885) | (9,971) |
Intangible assets, net | 20,600 | 19,553 |
Amortization expenses | 7,914 | 6,326 |
Software | ||
INTANGIBLE ASSETS, NET | ||
Total cost | 30,095 | 21,346 |
Technology | ||
INTANGIBLE ASSETS, NET | ||
Total cost | ¥ 8,390 | ¥ 8,178 |
INTANGIBLE ASSETS, NET - Expect
INTANGIBLE ASSETS, NET - Expected amortization expenses (Details) ¥ in Thousands | Dec. 31, 2022 CNY (¥) |
INTANGIBLE ASSETS, NET | |
2023 | ¥ 7,053 |
2024 | 4,237 |
2025 | 2,975 |
2026 | 2,425 |
2027 and thereafter | ¥ 3,910 |
LAND-USE RIGHTS, NET (Details)
LAND-USE RIGHTS, NET (Details) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 CNY (¥) m² | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
LAND-USE RIGHTS, NET | ||||
Purchases of land-use right | ¥ 43,188 | |||
Amortization expenses | ¥ 7,914 | 6,326 | ||
Land-use rights | ||||
LAND-USE RIGHTS, NET | ||||
Useful life of intangible assets | 50 years | |||
Land-use rights | Land in Shanghai | ||||
LAND-USE RIGHTS, NET | ||||
Purchases of land-use right | ¥ 43,188 | |||
Number of square meters acquired | m² | 26,615 | |||
Useful life of intangible assets | 50 years | |||
Amortization expenses | ¥ 864 | ¥ 718 | ¥ 0 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
OTHER NON-CURRENT ASSETS | |||
Prepayments for purchase of property and equipment | ¥ 46,083 | ¥ 55,207 | |
Demonstration fleet | 4,936 | 5,790 | |
Long-term deposits | 3,836 | 6,909 | |
Others | 2,243 | 2,053 | |
Other non-current assets | ¥ 57,098 | $ 8,278 | ¥ 69,959 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Salaries and welfare payables | ¥ 166,923 | ¥ 122,489 | |
Payables for purchase of property and equipment | 102,181 | 114,446 | |
Accrued expenses | 41,558 | ¥ 12,798 | |
Operating lease liabilities, current | ¥ 34,975 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
VAT and other tax payables | ¥ 5,903 | ¥ 115,540 | |
Advances from employee | 4,962 | 5,581 | |
Accrued expenses and other current liabilities | ¥ 356,502 | $ 51,689 | ¥ 370,854 |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
LEASES | |||
2022 / 2023 | ¥ 36,025 | ¥ 30,429 | |
2023 / 2024 | 7,145 | 26,071 | |
2024 / 2025 | 3,282 | 4,536 | |
2025 | 3,096 | ||
Total | 46,452 | ¥ 64,132 | |
Less: imputed interest | (1,338) | ||
Operating lease liabilities | 45,114 | ||
Operating lease liabilities, current | (34,975) | ||
Long-term operating lease liabilities | ¥ 10,139 | $ 1,470 |
LEASES - Additional Information
LEASES - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
LEASES | ||||
Right-of-use assets | ¥ 44,349 | $ 6,430 | ||
Operating lease liabilities, current | 34,975 | |||
Long-term operating lease liabilities | ¥ 10,139 | $ 1,470 | ||
Weighted average remaining lease term | 1 year 10 months 9 days | 1 year 10 months 9 days | ||
Weighted average discount rate | 4.25% | 4.25% | ||
Lease expenses | ¥ 34,596 | ¥ 21,792 | ¥ 15,465 | |
Short-term leases not capitalized | 2,127 | ¥ 2,127 | ¥ 2,127 | |
Cash payments for operating lease liabilities | 28,163 | |||
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 37,414 |
LONG-TERM BORROWINGS - Schedule
LONG-TERM BORROWINGS - Scheduled principal payments for the outstanding long-term loans (Details) - Dec. 31, 2022 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
LONG-TERM BORROWINGS | ||
2025 | ¥ 5,542 | |
2026 | 5,542 | |
2027 | 7,388 | |
Total | ¥ 18,472 | $ 2,678 |
LONG-TERM BORROWINGS - Addition
LONG-TERM BORROWINGS - Additional Information (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 18, 2022 | Nov. 30, 2022 | Dec. 31, 2022 | |
LONG-TERM BORROWINGS | |||
Term of borrowings (in years) | 2 years | 1 year | |
Line of credit facility, maximum borrowing capacity | ¥ 700,000 | ||
Period of LPR considered | 1 year | ||
Percentage of difference to LPR | 100% | ||
Amount withdrawn | ¥ 18,472 | ||
Interest rate | 2.65% | ||
Unused bank facility | ¥ 681,528 |
REDEEMABLE EQUITY (Details)
REDEEMABLE EQUITY (Details) - CNY (¥) | 12 Months Ended | ||
Aug. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2019 | |
REDEEMABLE EQUITY | |||
Proceeds from issuance of ordinary shares of Hesai Group | ¥ 453,978,000 | ||
Redeemable equity shares | |||
REDEEMABLE EQUITY | |||
Percentage of redeemable equity out of total equity interest | 40.80% | ||
2020 Reorganization | Shanghai Hesai | |||
REDEEMABLE EQUITY | |||
Proceeds from issuance of ordinary shares of Hesai Group | ¥ 0 | ||
2020 Reorganization | Shanghai Hesai | Redeemable equity shares | |||
REDEEMABLE EQUITY | |||
Number of shares issued | 51,485,191 | ||
Proceeds from issuance of ordinary shares of Hesai Group | ¥ 0 | ||
Transfer from accumulated deficits to additional paid in capital | ¥ 221,929,000 |
REDEEMABLE EQUITY - Redeemable
REDEEMABLE EQUITY - Redeemable equity financing (Details) - CNY (¥) ¥ in Thousands | 3 Months Ended | 5 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2019 | |
REDEEMABLE EQUITY | ||||
Proceeds from Issuance, net of issuance cost | ¥ 1,016,418 | |||
Carrying amount | ¥ 1,098,639 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Balance at the beginning of the year | ¥ 1,098,639 | |||
Upon Completion of the 2020 Reorganization | (1,098,639) | |||
Compounded interest rate | 8% | 8% | ||
Minimum percentage on issuance price and unpaid dividends for no liquidation preference | 140% | |||
Series A+ | ||||
REDEEMABLE EQUITY | ||||
As percent of equity at issuance date | 10.90% | |||
Proceeds from Issuance, net of issuance cost | ¥ 75,750 | |||
Carrying amount | 93,773 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Balance at the beginning of the year | 93,773 | |||
Upon Completion of the 2020 Reorganization | (93,773) | |||
Series B | ||||
REDEEMABLE EQUITY | ||||
As percent of equity at issuance date | 10.90% | |||
Proceeds from Issuance, net of issuance cost | ¥ 104,611 | |||
Carrying amount | 124,645 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Balance at the beginning of the year | 124,645 | |||
Upon Completion of the 2020 Reorganization | (124,645) | |||
Series B+ | ||||
REDEEMABLE EQUITY | ||||
As percent of equity at issuance date | 6% | |||
Proceeds from Issuance, net of issuance cost | ¥ 96,316 | |||
Carrying amount | 109,525 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Balance at the beginning of the year | 109,525 | |||
Upon Completion of the 2020 Reorganization | (109,525) | |||
Series C-1 | ||||
REDEEMABLE EQUITY | ||||
As percent of equity at issuance date | 7.80% | |||
Proceeds from Issuance, net of issuance cost | ¥ 261,635 | |||
Carrying amount | 273,503 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Balance at the beginning of the year | 273,503 | |||
Upon Completion of the 2020 Reorganization | (273,503) | |||
Series C-2 | ||||
REDEEMABLE EQUITY | ||||
As percent of equity at issuance date | 7% | |||
Proceeds from Issuance, net of issuance cost | ¥ 254,052 | |||
Carrying amount | 265,060 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Balance at the beginning of the year | 265,060 | |||
Upon Completion of the 2020 Reorganization | (265,060) | |||
Series C-3 | ||||
REDEEMABLE EQUITY | ||||
As percent of equity at issuance date | 5.80% | |||
Proceeds from Issuance, net of issuance cost | ¥ 224,054 | |||
Carrying amount | ¥ 232,133 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Balance at the beginning of the year | 232,133 | |||
Upon Completion of the 2020 Reorganization | ¥ (232,133) |
REDEEMABLE SHARES (Details)
REDEEMABLE SHARES (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 CNY (¥) shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
REDEEMABLE SHARES | ||||
Threshold period from dates of the agreements to complete overseas IPO | 12 months | |||
Compounded interest rate | 8% | 8% | 8% | |
Fair value of the reclassified shares | ¥ | ¥ 3,056,417 | |||
Deemed dividend | ¥ 2,131,572 | ¥ 446,419 | $ 64,725 | ¥ 2,211,330 |
Class B | ||||
REDEEMABLE SHARES | ||||
Option to re-designate to preferred shares on failure to complete overseas IPO with in the threshold period, shares | 54,551,513 | |||
Number of shares reclassified from permanent to mezzanine equity | 54,551,513 |
REDEEMABLE SHARES - Details of
REDEEMABLE SHARES - Details of redeemable shares (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2022 USD ($) shares | |
REDEEMABLE SHARES | |||
Number of shares | shares | 54,551,513 | 54,551,513 | 54,551,513 |
Carrying value at reclassification | ¥ 5,540,491 | ¥ 5,460,733 | |
Change in carrying value | 446,419 | 79,758 | |
Carrying value | ¥ 5,986,910 | ¥ 5,540,491 | $ 868,020 |
Series A+ | |||
REDEEMABLE SHARES | |||
Number of shares | shares | 3,029,522 | 3,029,522 | 3,029,522 |
Carrying value at reclassification | ¥ 284,480 | ¥ 284,480 | |
Carrying value | ¥ 284,480 | ¥ 284,480 | |
Series B | |||
REDEEMABLE SHARES | |||
Number of shares | shares | 7,881,155 | 7,881,155 | 7,881,155 |
Carrying value at reclassification | ¥ 742,091 | ¥ 742,091 | |
Carrying value | ¥ 742,091 | ¥ 742,091 | |
Series B+ | |||
REDEEMABLE SHARES | |||
Number of shares | shares | 3,957,617 | 3,957,617 | 3,957,617 |
Carrying value at reclassification | ¥ 375,599 | ¥ 375,599 | |
Carrying value | ¥ 375,599 | ¥ 375,599 | |
Series C-1 | |||
REDEEMABLE SHARES | |||
Number of shares | shares | 4,289,102 | 4,289,102 | 4,289,102 |
Carrying value at reclassification | ¥ 416,021 | ¥ 416,021 | |
Carrying value | ¥ 416,021 | ¥ 416,021 | |
Series C-2 | |||
REDEEMABLE SHARES | |||
Number of shares | shares | 6,176,311 | 6,176,311 | 6,176,311 |
Carrying value at reclassification | ¥ 598,974 | ¥ 598,974 | |
Carrying value | ¥ 598,974 | ¥ 598,974 | |
Series C-3 | |||
REDEEMABLE SHARES | |||
Number of shares | shares | 5,594,483 | 5,594,483 | 5,594,483 |
Carrying value at reclassification | ¥ 542,489 | ¥ 542,489 | |
Carrying value | ¥ 542,489 | ¥ 542,489 | |
Series C+ | |||
REDEEMABLE SHARES | |||
Number of shares | shares | 956,657 | 956,657 | 956,657 |
Carrying value at reclassification | ¥ 96,763 | ¥ 96,763 | |
Carrying value | ¥ 96,763 | ¥ 96,763 | |
Series D | |||
REDEEMABLE SHARES | |||
Number of shares | shares | 22,666,666 | 22,666,666 | 22,666,666 |
Carrying value at reclassification | ¥ 2,484,074 | ¥ 2,404,316 | |
Change in carrying value | 446,419 | 79,758 | |
Carrying value | 2,930,493 | 2,484,074 | |
Change in redemption value | ¥ 446,419 | ¥ 79,758 |
REDEEMABLE SHARES - Redemption
REDEEMABLE SHARES - Redemption value (Details) ¥ in Thousands | Dec. 31, 2022 CNY (¥) |
REDEEMABLE SHARES | |
Redemption Value | ¥ 4,179,400 |
Re-designate ordinary shares to preferred shares | 0 |
Series A+ | |
REDEEMABLE SHARES | |
Redemption Value | 53,514 |
Series B | |
REDEEMABLE SHARES | |
Redemption Value | 157,050 |
Series B+ | |
REDEEMABLE SHARES | |
Redemption Value | 110,451 |
Series C-1 | |
REDEEMABLE SHARES | |
Redemption Value | 226,775 |
Series C-2 | |
REDEEMABLE SHARES | |
Redemption Value | 324,984 |
Series C-3 | |
REDEEMABLE SHARES | |
Redemption Value | 292,483 |
Series C+ | |
REDEEMABLE SHARES | |
Redemption Value | 83,599 |
Series D | |
REDEEMABLE SHARES | |
Redemption Value | ¥ 2,930,544 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 CNY (¥) shares | Sep. 30, 2021 USD ($) $ / shares shares | Jun. 30, 2021 shares | Dec. 31, 2022 Vote | Dec. 31, 2021 CNY (¥) | |
ORDINARY SHARES | |||||
Cash consideration | ¥ | ¥ 453,978 | ||||
Class A | |||||
ORDINARY SHARES | |||||
Number of votes per share | Vote | 10 | ||||
Class B | |||||
ORDINARY SHARES | |||||
Number of votes per share | Vote | 1 | ||||
Shares issued upon conversion of ordinary shares | shares | 18,424,242 | 18,424,242 | 18,424,242 | ||
Temporary equity, shares issued, new issues | shares | 4,242,424 | 4,242,424 | |||
Temporary equity, issue price per share | $ / shares | $ 16.50 | ||||
Cash consideration | ¥ 453,978 | $ 70,000 |
NET REVENUES (Details)
NET REVENUES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
NET REVENUES | ||||
Net revenues | ¥ 1,202,670 | $ 174,371 | ¥ 720,768 | ¥ 415,514 |
Revenue from LiDAR products | ||||
NET REVENUES | ||||
Net revenues | 1,122,237 | 685,333 | 346,068 | |
Revenue from gas detection products | ||||
NET REVENUES | ||||
Net revenues | 23,967 | 19,533 | 68,599 | |
Other revenues | ||||
NET REVENUES | ||||
Net revenues | 5,663 | 1,200 | ¥ 847 | |
Engineering design, development and validation service | ||||
NET REVENUES | ||||
Net revenues | 43,101 | 14,026 | ||
Extended warranties | ||||
NET REVENUES | ||||
Net revenues | ¥ 7,702 | ¥ 676 |
NET REVENUES - Revenues disaggr
NET REVENUES - Revenues disaggregated by geographic location (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
NET REVENUES | ||||
Net revenues | ¥ 1,202,670 | $ 174,371 | ¥ 720,768 | ¥ 415,514 |
Mainland China | ||||
NET REVENUES | ||||
Net revenues | 697,294 | 269,634 | 185,516 | |
North America | ||||
NET REVENUES | ||||
Net revenues | 358,549 | 352,981 | 201,194 | |
Europe | ||||
NET REVENUES | ||||
Net revenues | 86,153 | 67,912 | 16,589 | |
Other regions | ||||
NET REVENUES | ||||
Net revenues | ¥ 60,674 | ¥ 30,241 | ¥ 12,215 |
NET REVENUES - Accounts receiva
NET REVENUES - Accounts receivable and contract balances (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Accounts receivable | ||||
Opening Balance | ¥ 85,821 | ¥ 56,319 | ¥ 36,511 | |
Increase(decrease), net | 399,223 | 29,502 | 19,808 | |
Ending Balance | 485,044 | $ 70,325 | 85,821 | 56,319 |
Contract assets | ||||
Opening Balance | 146,537 | 38,337 | ||
Increase(decrease), net | (133,937) | 108,200 | 38,337 | |
Ending Balance | 12,600 | 1,827 | 146,537 | 38,337 |
Contract liabilities | ||||
Opening Balance | 122,603 | 9,357 | 11,843 | |
Increase(decrease), net | (82,225) | 113,246 | (2,486) | |
Ending Balance | 40,378 | $ 5,854 | 122,603 | 9,357 |
Contract liabilities, revenue recognized | ¥ 109,120 | ¥ 8,048 | ¥ 11,843 |
INCOME TAXES (Details)
INCOME TAXES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||
Enterprise income tax | 0.02% | 0.45% | 0.19% |
Retained earnings | ¥ 0 | ¥ 0 | ¥ 0 |
United States | |||
INCOME TAXES | |||
Applicable income tax rate | 27.98% | 27.98% | |
PRC | |||
INCOME TAXES | |||
Enterprise income tax | 25% | ||
Preferential tax rate | 15% | 15% | 15% |
HNTE status review period | 3 years | ||
Percentage of tax deductible expenses engaged in R&D activities | 175% | ||
Percentage of tax deductible expenses engaged in manufacturing business | 200% | ||
Percentage of withholding tax on foreign investors, non-resident enterprises | 10% |
INCOME TAXES - Current and defe
INCOME TAXES - Current and deferred portion (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
INCOME TAXES | ||||
Current tax expenses | ¥ 2 | |||
Over-provision in prior year | ¥ (1,057) | ¥ (125) | ||
Deferred tax benefits | (68) | (58) | (74) | |
Income tax (benefits) expenses | ¥ (66) | $ (10) | ¥ (1,115) | ¥ (199) |
INCOME TAXES - Net Loss before
INCOME TAXES - Net Loss before income tax (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||
Net loss before income tax from PRC operations | ¥ (251,302) | ¥ (92,498) | ¥ (104,524) |
Net loss before income tax from non-PRC operations | (49,529) | (153,444) | (2,891) |
Total net loss before income tax | ¥ (300,831) | ¥ (245,942) | ¥ (107,415) |
INCOME TAXES - Reconciliation b
INCOME TAXES - Reconciliation between the effective income tax rate and statutory income tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||
Statutory income tax rate | 25% | 25% | 25% |
Effect of different tax rate of different jurisdictions | (3.09%) | (4.39%) | 0.10% |
Non-deductible expenses | (6.12%) | (17.98%) | (0.30%) |
Effect of super deduction on R&D expenses | 41% | 34.83% | 38.83% |
Effect of change of valuation allowance | (56.77%) | (37.44%) | (63.56%) |
Over provision for prior years | 0.43% | 0.12% | |
Income tax expenses | 0.02% | 0.45% | 0.19% |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and deferred tax liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||||
Net operating loss carry forwards | ¥ 373,215 | ¥ 220,480 | ||
Deductible temporary differences | 31,348 | 11,562 | ||
Deferred revenue | 6,294 | 9,443 | ||
Less: valuation allowance | (410,857) | (241,485) | ¥ (136,269) | ¥ (67,985) |
Deferred tax liabilities | ||||
Identifiable intangible assets from business combination. | 439 | 466 | ||
Total deferred tax liabilities | ¥ 439 | ¥ 466 |
INCOME TAXES - Movement of valu
INCOME TAXES - Movement of valuation allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAXES | |||
Balance at beginning of the year | ¥ 241,485 | ¥ 136,269 | ¥ 67,985 |
Addition | 169,372 | 105,216 | 68,284 |
Total | 410,857 | 241,485 | 136,269 |
Net operating loss carry forwards | ¥ 1,492,808 | ¥ 881,256 | ¥ 476,996 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
SHARE-BASED COMPENSATION | |||
Options outstanding | 9,608,634 | 9,173,623 | 0 |
Advances from employee | ¥ 4,962 | ¥ 5,581 | |
Unrecognized share-based compensation expense | ¥ 324,359 |
SHARE-BASED COMPENSATION - Assu
SHARE-BASED COMPENSATION - Assumptions used to estimate the fair values of the share options granted (Details) - 2022 Option Incentive Plan | 12 Months Ended | |
Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares | |
SHARE-BASED COMPENSATION | ||
Expected volatility, minimum | 74% | 48% |
Expected volatility, maximum | 80% | 74% |
Risk-free interest rate, minimum (per annum) | 1.94% | 0.97% |
Risk-free interest rate, maximum (per annum) | 3.83% | 1.55% |
Expected dividend yield | 0% | 0% |
Employee forfeiture rate (per annum) | 3.80% | |
Exercise multiples | 2.50 | 2.50 |
Expected term | 7 years | 7 years |
Minimum | ||
SHARE-BASED COMPENSATION | ||
Employee forfeiture rate (per annum) | 3.80% | |
Fair value of underlying ordinary share (per share) | $ 18.11 | $ 14.10 |
Fair value of awards on valuation date | $ 12.93 | 5.84 |
Maximum | ||
SHARE-BASED COMPENSATION | ||
Employee forfeiture rate (per annum) | 3.92% | |
Fair value of underlying ordinary share (per share) | $ 19.91 | 18.42 |
Fair value of awards on valuation date | $ 17.11 | $ 16.90 |
SHARE-BASED COMPENSATION - 2020
SHARE-BASED COMPENSATION - 2020 Plan (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 1 Months Ended | 12 Months Ended |
Oct. 31, 2020 | Dec. 31, 2022 | |
SHARE-BASED COMPENSATION | ||
Unrecognized share-based compensation expense | ¥ 324,359 | |
2020 Option Incentive Plan | Employees | ||
SHARE-BASED COMPENSATION | ||
Number of options authorized for grant | 5,054,138 | |
Number of options granted | 5,054,138 | |
Exercise price | ¥ 3.25 | |
Contractual life | 5 years | |
2020 Option Incentive Plan | Employees | Vested at the latter of the first anniversary | ||
SHARE-BASED COMPENSATION | ||
Vesting percentage | 33.33% | |
2020 Option Incentive Plan | Employees | Remaining vested at each of the 12 months from the First Vesting Date | ||
SHARE-BASED COMPENSATION | ||
Vesting percentage | 66.67% |
SHARE-BASED COMPENSATION - 2021
SHARE-BASED COMPENSATION - 2021 Plan (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 shares | Jun. 30, 2021 shares | Jan. 01, 2021 shares | |
SHARE-BASED COMPENSATION | |||||
Number of share options canceled | 312,051 | 312,051 | |||
2021 Share Incentive Plan | |||||
SHARE-BASED COMPENSATION | |||||
Number of shares authorized for issuance | 16,365,047 | ||||
2017 Replacement | |||||
SHARE-BASED COMPENSATION | |||||
Number of shares outstanding | 14,710,802 | ||||
Number of shares repurchased | 136,269 | ||||
Minimum service period required for not to exercise the right to repurchase of equity interest | 5 years | ||||
Required service period and prior to qualified IPO for not to exercise the right to repurchase of equity interest | 5 years | ||||
Fixed annual rate of return on termination of employment in the required service period | 8% | ||||
Incremental fair value after replacement | $ | $ 0 | ||||
2017 Replacement | 2021 Reorganization | |||||
SHARE-BASED COMPENSATION | |||||
Number of shares replaced with options | 14,574,533 | ||||
Options to purchase shares of common stock on replacement | 4,048,536 | ||||
Replacement ratio for shares | 3.6 | ||||
2020 Replacement | |||||
SHARE-BASED COMPENSATION | |||||
Number of options outstanding | 5,054,138 | ||||
Number of shares forfeited | 118,079 | ||||
2020 Replacement | 2021 Reorganization | |||||
SHARE-BASED COMPENSATION | |||||
Number of shares replaced with options | 4,936,059 | ||||
Options to purchase shares of common stock on replacement | 1,371,141 | ||||
Replacement ratio for shares | 3.6 |
SHARE-BASED COMPENSATION - Opti
SHARE-BASED COMPENSATION - Option awards to new incentive recipients (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
May 31, 2022 $ / shares shares | Mar. 31, 2021 shares | Dec. 31, 2022 ¥ / shares shares | Dec. 31, 2021 shares | |
SHARE-BASED COMPENSATION | ||||
Weighted average exercise price | ¥ / shares | ¥ 12.51 | |||
Vested and expect to vest (in years) | 5 years 10 months 17 days | |||
Vested and expect to vest | ¥ / shares | ¥ 19.66 | |||
Option awards to new incentive recipients | ||||
SHARE-BASED COMPENSATION | ||||
Number of options granted | 1,158,201 | 4,286,828 | ||
Option awards to new incentive recipients | Senior executive and employees | ||||
SHARE-BASED COMPENSATION | ||||
Number of options granted | 4,286,828 | |||
Option awards to new incentive recipients | Senior executive and employees | On 2,000,000 share options | ||||
SHARE-BASED COMPENSATION | ||||
Vesting term | 4 years | |||
Number of shares vest per quarter | 125,000 | |||
Maximum number of shares grantee may early exercise and accelerate | 500,000 | |||
Option awards to new incentive recipients | Senior executive and employees | On 26,743 share options | ||||
SHARE-BASED COMPENSATION | ||||
Number of options granted | 26,743 | |||
Option awards to new incentive recipients | Senior executive and employees | On 26,743 share options | First portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 33% | |||
Option awards to new incentive recipients | Senior executive and employees | On 26,743 share options | Second portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 33% | |||
Option awards to new incentive recipients | Senior executive and employees | On 26,743 share options | Third portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 34% | |||
Option awards to new incentive recipients | Senior executive and employees | On 2,248,185 share options | ||||
SHARE-BASED COMPENSATION | ||||
Number of options granted | 2,248,185 | |||
Option awards to new incentive recipients | Senior executive and employees | On 2,248,185 share options | First portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% | |||
Option awards to new incentive recipients | Senior executive and employees | On 2,248,185 share options | Second portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% | |||
Option awards to new incentive recipients | Senior executive and employees | On 2,248,185 share options | Third portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% | |||
Option awards to new incentive recipients | Senior executive and employees | On 2,248,185 share options | Fourth portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% | |||
Option awards to new incentive recipients | Senior executive and employees | On 11,900 share options | ||||
SHARE-BASED COMPENSATION | ||||
Number of options granted | 11,900 | |||
Option awards to new incentive recipients | Senior executive and employees | On 11,900 share options | First portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 33% | |||
Option awards to new incentive recipients | Senior executive and employees | On 11,900 share options | Second portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 33% | |||
Option awards to new incentive recipients | Senior executive and employees | On 11,900 share options | Third portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 34% | |||
Option Awards To New Incentive Recipients 2022 New Grant | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% | |||
Number of options award | 60,000 | |||
Weighted average exercise price | $ / shares | $ 18.65 | |||
Vested and expect to vest (in years) | 4 years | |||
Vested and expect to vest | $ / shares | $ 8 | |||
Option Awards To New Incentive Recipients 2022 New Grant | On 115806 share option | First portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 33% | |||
Option Awards To New Incentive Recipients 2022 New Grant | On 115806 share option | Second portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 33% | |||
Option Awards To New Incentive Recipients 2022 New Grant | On 115806 share option | Third portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 34% | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | ||||
SHARE-BASED COMPENSATION | ||||
Number of options granted | 1,158,201 | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 115806 share option | ||||
SHARE-BASED COMPENSATION | ||||
Number of options granted | 115,806 | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 1,007,458 share option | ||||
SHARE-BASED COMPENSATION | ||||
Number of options granted | 1,007,458 | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 1,007,458 share option | First portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 1,007,458 share option | Second portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 1,007,458 share option | Third portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 1,007,458 share option | Fourth portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 12,300 share option | ||||
SHARE-BASED COMPENSATION | ||||
Number of options granted | 12,300 | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 12,300 share option | First portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 33% | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 12,300 share option | Second portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 33% | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 12,300 share option | Third portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 34% | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 1,189 share option | ||||
SHARE-BASED COMPENSATION | ||||
Number of options granted | 1,189 | |||
Vesting percentage | 100% | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 21,448 share option | ||||
SHARE-BASED COMPENSATION | ||||
Number of options granted | 21,448 | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 21,448 share option | First portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 21,448 share option | Second portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 21,448 share option | Third portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% | |||
Option Awards To New Incentive Recipients 2022 New Grant | Employees | On 21,448 share option | Fourth portion | ||||
SHARE-BASED COMPENSATION | ||||
Vesting percentage | 25% |
SHARE-BASED COMPENSATION - Op_2
SHARE-BASED COMPENSATION - Option activity (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 ¥ / shares | Dec. 31, 2020 USD ($) shares | |
Number of options | |||||||
Options outstanding, Beginning | shares | 9,173,623 | 9,173,623 | 0 | 0 | |||
Forfeited | shares | 723,190 | 723,190 | 220,831 | 220,831 | |||
Cancelled | shares | 312,051 | 312,051 | 312,051 | ||||
Options outstanding, Ending | shares | 9,173,623 | 9,608,634 | 9,608,634 | 9,173,623 | 9,173,623 | 0 | |
Vested and expected to vest at ending | shares | 5,088,920 | ||||||
Exercisable at ending | shares | 1,794,795 | ||||||
Weighted average exercise price | |||||||
At the beginning (in dollars per share) | ¥ 9.23 | ¥ 0 | |||||
Forfeited (in dollars per share) | 13.85 | 5.96 | |||||
Cancelled (in dollars per share) | 0.90 | ||||||
Outstanding at ending (in dollars per share) | ¥ 9.23 | 12.51 | 9.23 | ¥ 0 | |||
Vested and expect to vest | 19.66 | ||||||
Weighted average exercise price | 12.51 | ||||||
Weighted average grant date fair value | |||||||
At the beginning | 56.58 | ||||||
Weighted average grant-date fair value | 121.62 | 102.74 | 62.21 | ||||
Outstanding at ending | ¥ 56.58 | 65.93 | ¥ 56.58 | ||||
Vested and expected to vest at ending | 101.08 | ||||||
Exercisable at ending | ¥ 65.93 | ||||||
Weighted average remaining contract life and Aggregate intrinsic value | |||||||
Outstanding | 5 years 5 months 15 days | 5 years 5 months 15 days | 6 years 3 months 25 days | 6 years 3 months 25 days | |||
Vested and expect to vest (in years) | 5 years 10 months 17 days | 5 years 10 months 17 days | |||||
Exercisable at ending | 5 years 5 months 15 days | 5 years 5 months 15 days | |||||
Outstanding | ¥ | ¥ 1,005,546 | ¥ 1,141,255 | ¥ 1,005,546 | ||||
Vested and expected to vest at ending | ¥ | 568,013 | ||||||
Exercisable at ending | ¥ | 213,122 | ||||||
Unrecognized share-based compensation expense | ¥ | ¥ 324,359 | ||||||
Unrecognized stock compensation expense, expected to be recognized over a weighted-average period | 2 years 7 months 17 days | 2 years 7 months 17 days | |||||
Weighted average grant-date fair value | ¥ 121.62 | ¥ 102.74 | ¥ 62.21 | ||||
Options exercised | $ | $ 0 | $ 0 | $ 0 | ||||
Share-based compensation expenses related to share options without IPO condition | ¥ | ¥ 104,750 | ¥ 54,283 | |||||
Replacement | |||||||
Number of options | |||||||
Number of options granted | shares | 5,419,677 | 5,419,677 | |||||
Weighted average exercise price | |||||||
Granted (in dollars per share) | ¥ 3.87 | ||||||
Weighted average grant date fair value | |||||||
Weighted average grant-date fair value | 22.83 | ||||||
Weighted average remaining contract life and Aggregate intrinsic value | |||||||
Unrecognized share-based compensation expense | ¥ | ¥ 103,318 | ||||||
Unrecognized stock compensation expense, expected to be recognized over a weighted-average period | 2 years 1 month 6 days | 2 years 1 month 6 days | |||||
Weighted average grant-date fair value | ¥ 22.83 | ||||||
Option awards to new incentive recipients | |||||||
Number of options | |||||||
Number of options granted | shares | 1,158,201 | 1,158,201 | 4,286,828 | 4,286,828 | |||
Weighted average exercise price | |||||||
Granted (in dollars per share) | ¥ 33.92 | ¥ 15.25 | |||||
Weighted average grant date fair value | |||||||
Weighted average grant-date fair value | 121.62 | 102.74 | |||||
Weighted average remaining contract life and Aggregate intrinsic value | |||||||
Weighted average grant-date fair value | ¥ 121.62 | ¥ 102.74 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |||
Revenues from related parties | ¥ 0 | ¥ 15,655 | ¥ 41,765 |
Research and development expenses | 900 | ||
Purchases | 83 | ||
Affiliates | |||
RELATED PARTY TRANSACTIONS | |||
Revenues from related parties | ¥ 15,655 | 41,765 | |
Equity method investee | |||
RELATED PARTY TRANSACTIONS | |||
Research and development expenses | 900 | ||
Purchases | ¥ 83 |
RELATED PARTY TRANSACTIONS - Ba
RELATED PARTY TRANSACTIONS - Balances (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
RELATED PARTY TRANSACTIONS | |||
Amounts due from related parties, net of allowance | ¥ 28,088 | ||
Amounts due to related parties | ¥ 334,283 | ¥ 307,498 | |
Affiliates | |||
RELATED PARTY TRANSACTIONS | |||
Amounts due from related parties, net of allowance | ¥ 28,088 | ||
Founding Shareholders and certain shareholders | |||
RELATED PARTY TRANSACTIONS | |||
Amounts due to related parties | ¥ 334,283 | ¥ 307,498 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Numerator | |||||
Net loss | ¥ (300,765) | $ (43,606) | ¥ (244,827) | ¥ (107,216) | |
Deemed dividend | ¥ (2,131,572) | (446,419) | (64,725) | (2,211,330) | |
Net loss attributable to ordinary shareholders | ¥ (747,184) | $ (108,331) | ¥ (2,456,157) | ¥ (107,216) | |
Denominator | |||||
Weighted average number of ordinary shares outstanding, basic | 115,534,593 | 115,534,593 | 104,987,478 | 89,895,471 | |
Weighted average number of ordinary shares outstanding, diluted | 115,534,593 | 115,534,593 | 104,987,478 | 89,895,471 | |
Net loss per share, basic | (per share) | ¥ (6.47) | $ (0.94) | ¥ (23.39) | ¥ (1.19) | |
Net loss per share, diluted | (per share) | ¥ (6.47) | $ (0.94) | ¥ (23.39) | ¥ (1.19) |
LOSS PER SHARE - Anti-dilutive
LOSS PER SHARE - Anti-dilutive securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share options | |||
LOSS PER SHARE | |||
Shares issuable upon exercise of share options | 9,608,634 | 9,173,623 | 5,490,261 |
SEGMENT (Details)
SEGMENT (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) segment | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
SEGMENT | ||||
Number of operating segments | segment | 2 | 2 | ||
Net revenues | ¥ 1,202,670 | $ 174,371 | ¥ 720,768 | ¥ 415,514 |
Segment profit | 471,987 | $ 68,432 | 381,796 | 238,914 |
LiDAR segment | Operating segments | ||||
SEGMENT | ||||
Net revenues | 1,178,703 | 701,235 | 346,915 | |
Cost of revenues | 720,300 | 330,769 | 155,986 | |
Segment profit | 458,403 | 370,466 | 190,929 | |
Gas detection segment | Operating segments | ||||
SEGMENT | ||||
Net revenues | 23,967 | 19,533 | 68,599 | |
Cost of revenues | 10,383 | 8,203 | 20,614 | |
Segment profit | ¥ 13,584 | ¥ 11,330 | ¥ 47,985 |
SEGMENT - Reportable segments (
SEGMENT - Reportable segments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
SEGMENT | ||||
Total profit | ¥ 471,987 | $ 68,432 | ¥ 381,796 | ¥ 238,914 |
Sales and marketing expenses | (104,835) | (15,200) | (69,266) | (49,904) |
General and administrative expenses | (201,007) | (29,143) | (236,713) | (76,553) |
Research and development expenses | (555,179) | (80,493) | (368,435) | (229,653) |
Other operating income, net | 10,817 | 1,568 | 27,333 | 15,384 |
Interest income | 58,734 | 8,516 | 32,584 | 20,925 |
Foreign exchange (loss) gain | 20,858 | 3,024 | (13,275) | (25,696) |
Other (loss) income, net | (2,161) | (313) | 118 | (828) |
Net loss before income tax and share of loss in equity method investments | (300,786) | $ (43,609) | (245,858) | (107,411) |
Reportable segments | ||||
SEGMENT | ||||
Total profit | 471,987 | 381,796 | 238,914 | |
Sales and marketing expenses | (104,835) | (69,266) | (49,904) | |
General and administrative expenses | (201,007) | (236,713) | (76,553) | |
Research and development expenses | (555,179) | (368,435) | (229,653) | |
Other operating income, net | 10,817 | 27,333 | 15,384 | |
Interest income | 58,734 | 32,584 | 20,925 | |
Foreign exchange (loss) gain | 20,858 | (13,275) | (25,696) | |
Other (loss) income, net | (2,161) | 118 | (828) | |
Net loss before income tax and share of loss in equity method investments | ¥ (300,786) | ¥ (245,858) | ¥ (107,411) |
SEGMENT - Long-term assets (Det
SEGMENT - Long-term assets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
SEGMENT | ||
Total Long-term assets | ¥ 679,862 | ¥ 435,958 |
Mainland China | ||
SEGMENT | ||
Total Long-term assets | 665,511 | 432,528 |
North America | ||
SEGMENT | ||
Total Long-term assets | ¥ 14,351 | ¥ 3,430 |
EMPLOYEE BENEFIT (Details)
EMPLOYEE BENEFIT (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
EMPLOYEE BENEFIT | |||
Contribution for employee benefits | ¥ 82,877 | ¥ 50,648 | ¥ 15,732 |
STATUTORY RESERVES AND RESTRI_2
STATUTORY RESERVES AND RESTRICTED NET ASSETS - (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |||
Required minimum percentage of annual appropriations | 10% | ||
Statutory threshold percentage of the reserve fund to the registered capital of the respective company, above which the appropriation is not required | 50% | ||
Statutory reserves | $ | $ 0 | $ 0 | |
Restricted net assets | ¥ | ¥ 3,334,624 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Capital expenditure commitments (Details) ¥ in Thousands | Dec. 31, 2022 CNY (¥) |
Future minimum capital payment under non-cancellable agreements | |
2023 | ¥ 314,793 |
2024 | 11,675 |
Total | ¥ 326,468 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Royalty commitments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
COMMITMENTS AND CONTINGENCIES | |
Base payment for royalty | $ 3,000 |
2030 | |
COMMITMENTS AND CONTINGENCIES | |
Payment for royalty expense | 3,000 |
Base payment for royalty | $ 300 |
Net revenues of rotational scanning product from US$0 to US$425,000 | |
COMMITMENTS AND CONTINGENCIES | |
Percentage of royalty on net revenue | 4% |
Net revenues of rotational scanning product from US$0 to US$425,000 | Minimum | |
COMMITMENTS AND CONTINGENCIES | |
Net revenues of rotational scanning product | $ 0 |
Net revenues of rotational scanning product from US$0 to US$425,000 | Maximum | |
COMMITMENTS AND CONTINGENCIES | |
Net revenues of rotational scanning product | $ 425,000 |
Net revenues of rotational scanning product from US$425,000 to US$2,925,000 | |
COMMITMENTS AND CONTINGENCIES | |
Percentage of royalty on net revenue | 3% |
Net revenues of rotational scanning product from US$425,000 to US$2,925,000 | Minimum | |
COMMITMENTS AND CONTINGENCIES | |
Net revenues of rotational scanning product | $ 425,000 |
Net revenues of rotational scanning product from US$425,000 to US$2,925,000 | Maximum | |
COMMITMENTS AND CONTINGENCIES | |
Net revenues of rotational scanning product | $ 2,925,000 |
Net revenues of rotational scanning product from US$2,925,000 to above | |
COMMITMENTS AND CONTINGENCIES | |
Percentage of royalty on net revenue | 2% |
Net revenues of rotational scanning product | $ 2,925,000 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Standby credit facility (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | |
Nov. 18, 2022 | Nov. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | ||
Credit facility agreement | ¥ 300,000 | |
Term of borrowings (in years) | 2 years | 1 year |
ADDITIONAL INFORMATION OF THE_2
ADDITIONAL INFORMATION OF THE PARENT COMPANY - CONDENSED BALANCE SHEETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
ASSETS | |||||
Cash and cash equivalents | ¥ 913,277 | $ 132,413 | ¥ 449,352 | ||
Prepayments and other current assets | 126,452 | 18,333 | 89,119 | ||
Property and equipment, net | 504,953 | 73,211 | 321,627 | ||
TOTAL ASSETS | 3,839,396 | 556,660 | 3,952,369 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Accrued expenses and other current liabilities | 356,502 | 51,689 | 370,854 | ||
TOTAL LIABILITIES | 997,663 | 144,648 | 902,548 | ||
MEZZANINE EQUITY | |||||
MEZZANINE EQUITY | 5,986,910 | 868,020 | 5,540,491 | ||
Shareholders' deficit | |||||
Subscription receivables | (310,227) | (44,979) | (310,227) | ||
Accumulated other comprehensive income (loss) | (3,608) | (523) | 8,465 | ||
Accumulated deficit | (2,831,381) | (410,512) | (2,188,947) | ||
Total shareholders' deficit | (3,145,177) | (456,008) | (2,490,670) | ¥ 1,137,193 | ¥ (169,427) |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT | 3,839,396 | 556,660 | 3,952,369 | ||
Class A | |||||
Shareholders' deficit | |||||
Ordinary shares | 19 | 3 | 19 | ||
Class B | |||||
Shareholders' deficit | |||||
Ordinary shares | 20 | 3 | 20 | ||
Parent company | Reportable legal entities | |||||
ASSETS | |||||
Cash and cash equivalents | 35,411 | 5,134 | 36,160 | ||
Prepayments and other current assets | 1,041 | 151 | 496 | ||
Investments in subsidiaries | 2,806,201 | 406,860 | 3,037,606 | ||
Property and equipment, net | 7 | 1 | |||
TOTAL ASSETS | 2,842,660 | 412,146 | 3,074,262 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Amounts due to subsidiaries | 272 | ||||
Accrued expenses and other current liabilities | 927 | 134 | 24,169 | ||
TOTAL LIABILITIES | 927 | 134 | 24,441 | ||
MEZZANINE EQUITY | |||||
MEZZANINE EQUITY | 5,986,910 | 868,020 | 5,540,491 | ||
Shareholders' deficit | |||||
Subscription receivables | (310,227) | (44,979) | (310,227) | ||
Accumulated other comprehensive income (loss) | (3,608) | (523) | 8,465 | ||
Accumulated deficit | (2,831,381) | (410,512) | (2,188,947) | ||
Total shareholders' deficit | (3,145,177) | (456,008) | (2,490,670) | ||
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT | 2,842,660 | 412,146 | 3,074,262 | ||
Parent company | Reportable legal entities | Class A | |||||
Shareholders' deficit | |||||
Ordinary shares | 19 | 3 | 19 | ||
Parent company | Reportable legal entities | Class B | |||||
Shareholders' deficit | |||||
Ordinary shares | ¥ 20 | $ 3 | ¥ 20 |
ADDITIONAL INFORMATION OF THE_3
ADDITIONAL INFORMATION OF THE PARENT COMPANY - CONDENSED BALANCE SHEETS (Parenthetical) (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
ADDITIONAL INFORMATION OF THE PARENT COMPANY | ||
Redeemable shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Redeemable shares, issued | 54,551,513 | 54,551,513 |
Redeemable shares, outstanding | 54,551,513 | 54,551,513 |
Class A | ||
ADDITIONAL INFORMATION OF THE PARENT COMPANY | ||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 35,000,000 | 35,000,000 |
Ordinary shares, issued | 30,033,379 | 30,033,379 |
Ordinary shares, outstanding | 30,033,379 | 30,033,379 |
Class B | ||
ADDITIONAL INFORMATION OF THE PARENT COMPANY | ||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 150,000,000 | 150,000,000 |
Ordinary shares, issued | 30,949,701 | 30,949,701 |
Ordinary shares, outstanding | 30,949,701 | 30,949,701 |
Parent company | Reportable legal entities | ||
ADDITIONAL INFORMATION OF THE PARENT COMPANY | ||
Redeemable shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Redeemable shares, issued | 54,551,513 | 54,551,513 |
Redeemable shares, outstanding | 54,551,513 | 54,551,513 |
Parent company | Reportable legal entities | Class A | ||
ADDITIONAL INFORMATION OF THE PARENT COMPANY | ||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 35,000,000 | 35,000,000 |
Ordinary shares, issued | 30,033,379 | 30,033,379 |
Ordinary shares, outstanding | 30,033,379 | 30,033,379 |
Parent company | Reportable legal entities | Class B | ||
ADDITIONAL INFORMATION OF THE PARENT COMPANY | ||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 150,000,000 | 150,000,000 |
Ordinary shares, issued | 30,949,701 | 30,949,701 |
Ordinary shares, outstanding | 30,949,701 | 30,949,701 |
ADDITIONAL INFORMATION OF THE_4
ADDITIONAL INFORMATION OF THE PARENT COMPANY - CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
ADDITIONAL INFORMATION OF THE PARENT COMPANY | ||||
Net revenues | ¥ 1,202,670 | $ 174,371 | ¥ 720,768 | ¥ 415,514 |
General and administrative expenses | (201,007) | (29,143) | (236,713) | (76,553) |
Foreign exchange (loss) gain | 20,858 | 3,024 | (13,275) | (25,696) |
Other income, net | (2,161) | (313) | 118 | (828) |
Equity in deficit of subsidiaries | (45) | (7) | (84) | (4) |
Net Loss | (300,765) | (43,606) | (244,827) | (107,216) |
Net loss attributable to ordinary shareholders | (747,184) | (108,331) | (2,456,157) | (107,216) |
Comprehensive income (loss), net of tax of nil: | ||||
Foreign currency translation adjustments | (12,073) | (1,750) | 9,083 | (1,950) |
Comprehensive loss | (312,838) | (45,356) | (235,744) | (109,166) |
Parent company | Reportable legal entities | ||||
ADDITIONAL INFORMATION OF THE PARENT COMPANY | ||||
General and administrative expenses | (37,105) | (5,379) | (146,838) | |
Foreign exchange (loss) gain | 2 | (2,324) | ||
Other income, net | 34 | |||
Equity in deficit of subsidiaries | (263,662) | (38,227) | (95,699) | (107,216) |
Net Loss | (300,765) | (43,606) | (244,827) | (107,216) |
Deemed dividend | (446,419) | (64,725) | (2,211,330) | |
Net loss attributable to ordinary shareholders | (747,184) | (108,331) | (2,456,157) | (107,216) |
Comprehensive income (loss), net of tax of nil: | ||||
Foreign currency translation adjustments | (12,073) | (1,750) | 9,083 | (1,950) |
Comprehensive loss | ¥ (312,838) | $ (45,356) | ¥ (235,744) | ¥ (109,166) |
ADDITIONAL INFORMATION OF THE_5
ADDITIONAL INFORMATION OF THE PARENT COMPANY - CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | |
ADDITIONAL INFORMATION OF THE PARENT COMPANY | ||||||
Other comprehensive income (loss), tax | $ | $ 0 | $ 0 | $ 0 | |||
Parent company | Reportable legal entities | ||||||
ADDITIONAL INFORMATION OF THE PARENT COMPANY | ||||||
Other comprehensive income (loss), tax | ¥ | ¥ 0 | ¥ 0 | ¥ 0 |
ADDITIONAL INFORMATION OF THE_6
ADDITIONAL INFORMATION OF THE PARENT COMPANY - CONDENSED STATEMENTS OF CASH FLOWS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (300,765) | $ (43,606) | ¥ (244,827) | ¥ (107,216) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 53,634 | 7,776 | 28,231 | 19,215 |
Loss from equity in earnings of subsidiaries | 45 | 7 | 84 | 4 |
Share-based compensation | 105,219 | 15,255 | 54,283 | |
Foreign exchange loss (gain), net | (20,858) | (3,024) | 13,275 | 25,696 |
Changes in operating assets and liabilities: | ||||
Prepayments and other current assets | (33,556) | (4,865) | (48,618) | (8,790) |
Amounts due from related parties | 24,788 | (20,842) | ||
Accrued expenses and other current liabilities | (41,074) | (5,955) | 170,125 | (143,526) |
Net cash used in operating activities | (696,015) | (100,914) | (228,386) | (352,015) |
Cash flows from investing activities: | ||||
Purchases of property and equipment | (231,210) | (33,523) | (220,096) | (66,000) |
Net cash used in investing activities | 1,119,646 | 162,332 | (1,980,237) | 179,027 |
Cash flows from financing activities: | ||||
Cash contribution from shareholders in connection with the 2021 Reorganization | 507,620 | |||
Proceeds from issuance of convertible loans | 1,950,338 | |||
Cash consideration | 453,978 | |||
Net cash provided by financing activities | 15,176 | 2,200 | 2,403,726 | 323,437 |
Net increase (decrease) in cash and cash equivalents | 438,807 | 63,618 | 195,103 | 150,449 |
Cash and cash equivalents, beginning of the year | 449,352 | 65,150 | 256,688 | 112,737 |
Effect of foreign exchange rate changes on cash and cash equivalents | 25,118 | 3,645 | (2,439) | (6,498) |
Cash and cash equivalents, end of the year | 913,277 | 132,413 | 449,352 | 256,688 |
Supplemental disclosure of non-cash financing activities: | ||||
Accrued purchases of property and equipment | 102,181 | 14,815 | 114,446 | 3,823 |
Accrued offering cost | 480 | 70 | ||
Parent company | Reportable legal entities | ||||
Cash flows from operating activities: | ||||
Net loss | (300,765) | (43,606) | (244,827) | (107,216) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 2 | |||
Loss from equity in earnings of subsidiaries | 263,662 | 38,227 | 95,699 | ¥ 107,216 |
Share-based compensation | 33,342 | 4,834 | 35,056 | |
Foreign exchange loss (gain), net | (2) | 2,324 | ||
Changes in operating assets and liabilities: | ||||
Prepayments and other current assets | (545) | (79) | (496) | |
Amounts due from related parties | (255) | |||
Accrued expenses and other current liabilities | 2,611 | 379 | 24,746 | |
Net cash used in operating activities | (1,695) | (245) | (87,753) | |
Cash flows from investing activities: | ||||
Purchases of property and equipment | (10) | (2) | ||
Investments in subsidiaries | (2,787,570) | |||
Net cash used in investing activities | (10) | (2) | (2,787,570) | |
Cash flows from financing activities: | ||||
Cash contribution from shareholders in connection with the 2021 Reorganization | 507,620 | |||
Proceeds from issuance of convertible loans | 1,950,338 | |||
Cash consideration | 453,978 | |||
Net cash provided by financing activities | 2,911,936 | |||
Net increase (decrease) in cash and cash equivalents | (1,705) | (247) | 36,613 | |
Cash and cash equivalents, beginning of the year | 36,160 | 5,243 | ||
Effect of foreign exchange rate changes on cash and cash equivalents | 956 | 138 | (453) | |
Cash and cash equivalents, end of the year | 35,411 | 5,134 | 36,160 | |
Supplemental disclosure of non-cash financing activities: | ||||
Accrued purchases of property and equipment | ¥ 1,950,338 | |||
Accrued offering cost | ¥ 480 | $ 70 |
ADDITIONAL INFORMATION OF THE_7
ADDITIONAL INFORMATION OF THE PARENT COMPANY - NOTES (Details) | Dec. 31, 2022 |
ADDITIONAL INFORMATION OF THE PARENT COMPANY | |
Exchange rate used for translations of balances | 6.8972 |
Parent company | Reportable legal entities | |
ADDITIONAL INFORMATION OF THE PARENT COMPANY | |
Exchange rate used for translations of balances | 6.8972 |