{"text":[[{"start":6.2,"text":"It’s never too early to look for the next big thing. That’s a key message in the latest earnings report from Hesai Group (HSAI.US; 2525.HK), which described this year’s second quarter as a “defining milestone” as it turned up its move into robotics. Co-founder and CEO Li Yifan, who also goes by David, said Hesai has evolved into “a full-stack infrastructure platform for robotics and Physical AI — empowering them to see, understand, and act.”"}],[{"start":32.08,"text":"Leveraging its expertise in light detection and ranging (LiDAR) technology, the company has expanded into the fast-growing robotics sector, developing products for humanoid robots that also rely on such systems. Its Kosmo spatial intelligence platform and new robotic actuation modules are two of the company’s key strategic initiatives rapidly gaining commercial momentum in that space."}],[{"start":54.44,"text":"The company’s second quarter results, released on Tuesday, showed strong initial traction for those two new growth engines. Its revenue for the quarter reached 861 million yuan ($127 million), while its net profit rose 60% year-on-year to 71 million yuan, despite the need for continued investments to build up its new strategic initiatives. The latest quarterly profit also marked Hesai’s fifth consecutive quarter of profitability on a GAAP basis."}],[{"start":54.94,"text":"First Kosmo orders"}],[{"start":84,"text":"Kosmo, one of Hesai’s strategic growth initiatives, is a spatial intelligence platform that combines an AI-powered spatial camera, AI algorithms, 3D spatial data and cloud services into a unified system. Hesai says the platform converts real-world environments into editable, interactive 3D models that can be used for applications in robotics, cultural tourism, film and television production, gaming and advertising."}],[{"start":110.44,"text":"Hesai delivered initial Kosmo prototypes in July and has received orders from several humanoid robotics companies, including Galbot, the company said. It added that it is in talks with more than 200 prospective partners across industries and expects Kosmo to generate initial revenue in the third quarter of 2026."}],[{"start":110.94,"text":"Actuation modules start generating revenue"}],[{"start":128.08,"text":"In robotic actuation modules, Hesai said its proprietary modules combine precise control, compact size, high force output and true backdrivability. Compared with other leading products, it says, the modules deliver approximately three times the torque and power density in a package that is 37% smaller. The modules also began generating revenue in the second quarter."}],[{"start":151.2,"text":"Hesai said its dedicated production line for the actuation modules is fully operational and delivered more than 10,000 units by the end of the second quarter, with shipments expanding from dexterous hands to full-body applications. Shipments are expected to reach six-digit volumes in 2027."}],[{"start":168.84,"text":"Morgan Stanley projects that cumulative global adoption of humanoid robots will reach approximately 1 billion units by 2050, with the annual market potentially hitting a massive $7.5 trillion in revenue. China is fast becoming a critical piece of that equation, with the investment bank recently raising its forecast for China’s humanoid robot shipments to 50,000 this year, nearly double its previous forecast of 28,000."}],[{"start":196.04,"text":"The company was the first in its class to become profitable when it recorded its first annual profit of 436 million yuan last year, even as most of its peers continue to lose money. Reflecting that, the company’s stock currently trades at a price-to-sales (P/S) ratio of 6.32, ahead of the 4.87 for RoboSense (2498.HK) and a lowly 0.70 for Seyond (2665.HK), both of which are still losing money."}],[{"start":196.54,"text":"Strong LiDAR Growth"}],[{"start":225.94,"text":"While the Kosmo and robotic actuation modules initiatives took center stage, Hesai’s latest report showed the company’s core LiDAR business also continued to post strong growth in the second quarter."}],[{"start":238.5,"text":"The company’s LiDAR shipments rose 78.5% to 628,275 during the second quarter, outpacing its revenue growth rate, showing that the revenue share of relatively low-unit-price ADAS LiDAR is growing rapidly as it gains wider adoption. Within that total, ADAS-use LiDAR for autonomous cars still accounts for the majority, with shipments up 60% to 485,904 units for the quarter. Robotics-use LiDAR is rapidly closing the gap, however, with shipments up 193% to 142,371 units during the period."}],[{"start":274.9,"text":"On the auto side, the LiDAR business is being driven partly by shifting industry trends toward multi-LiDAR setups for Level 3 (L3) autonomous driving, which include safety redundancy requirements. As that happens, each L3 vehicle is expected to require three to six LiDAR devices, worth $500 to $1,000 per car for companies like Hesai."}],[{"start":298.38,"text":"The company says its products were featured in 56 models at the latest Beijing Auto Show in April, including leading brands like Geely, Cadillac, Audi, BYD and Chery, as well as electric vehicle specialists like Xiaomi, Li Auto and Leapmotor, and robotaxi operator Pony AI. Its LiDAR products are also used by over 50 embodied AI and robotics companies."}],[{"start":322.9,"text":"To keep its core LiDAR business at the head of the pack, Hesai has developed Picasso, a single-photon avalanche diode system-on-chip (SPAD-SoC), which it unveiled in April this year and described as the brains behind its next generation of LiDAR products. In its latest report, it said Picasso is now ready for mass production, and the LiDAR unit containing the technology is currently in the customer validation phase."}],[{"start":348.66,"text":"Analysts are generally bullish on the company, with investment banks like Citigroup, Goldman Sachs and Morgan Stanley all rating Hesai a \"buy.\" Investors are also quite positive, with big names like Schroder Investment Management, Vanguard Capital Management, Fidelity Management & Research and BlackRock all holding stakes of more than 1%."}],[{"start":373.26,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1787099731_6423.mp3"}