Hesai, a company specializing in LiDAR technology, makes a significant gain during its initial public offering on the Hong Kong stock exchange.
Hesai Group Makes Splashy Debut on Hong Kong Stock Market
China's largest LiDAR maker, Hesai Group, has made a strong debut on the Hong Kong stock market, marking a significant milestone in the company's growth. This listing is not only the largest in the global LiDAR industry to date but also the biggest capital raised by a US-listed Chinese company returning to Hong Kong in nearly four years.
Hesai, founded in 2014 and based in Shanghai, raised HK$4.16 billion ($535 million) through its listing. The company operates two production facilities: the Hertz factory in Hangzhou and the Maxwell Global R&D and Smart Manufacturing Center in Shanghai. The Hertz plant commenced operations in September 2023, while the Maxwell facility began trial operations in December 2023, focusing on new product design, testing, and calibration.
The company's success is evident in its financial performance. In 2024, Hesai recorded non-GAAP net income of about RMB 13.7 million ($1.9 million) and operating cash flow of RMB 63 million. For the six months ended June 30, 2025, the company recorded net income of RMB 26.5 million.
Hesai's LiDAR products have been deployed in millions of vehicles, making advanced safety and intelligent technologies accessible to the public. The company's cost-cutting efforts have also been noteworthy. As stated by Sun Kai, Hesai's co-founder and chief scientist, the cost of LiDAR has been reduced from $100,000 to only $200.
In a recent development, Hesai received a $40 million order from an unnamed US robotaxi firm, and another $40 million order from the US autonomous vehicle company Aurora. About 50 percent of net proceeds from the listing will be allocated to R&D investments, and another 35 percent will be used for production capacity expansion.
The strong market demand for Hesai's shares is evident in their performance. Hesai shares in Hong Kong have climbed 11 percent to HK$236.2 per share. With a market capitalization of HK$36 billion as of press time, Hesai is the first LiDAR manufacturer to achieve dual primary listings in both the US and Hong Kong.
Hesai's journey is a testament to the potential of Chinese technology companies and the growing importance of LiDAR technology in the autonomous vehicle industry. As the company continues to innovate and expand, it is poised to play a significant role in shaping the future of autonomous driving.
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