| 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, 2024 and 2025 (Amounts in thousands, except share and per share data or otherwise noted) | | | | | | | | | As of December 31, | | | 2024 | | 2025 | | | RMB | | RMB | | US$ | | | | | | | (Note 2) | ASSETS | | | | | | | Cash and cash equivalents | | 1,056,383 | | 512,091 | | 73,228 | Short-term investments | | — | | 2,195,535 | | 313,957 | Prepayments and other current assets | | 4,100 | | 1,517 | | 217 | Investments in subsidiaries | | 2,915,337 | | 3,542,692 | | 506,598 | Property and equipment, net | | — | | — | | — | Long term investments | | — | | 2,751,670 | | 393,484 | TOTAL ASSETS | | 3,975,820 | | 9,003,505 | | 1,287,484 | LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | Amounts due to subsidiaries | | 8,997 | | — | | — | Accrued expenses and other current liabilities | | 35,092 | | 44,751 | | 6,400 | TOTAL LIABILITIES | | 44,089 | | 44,751 | | 6,400 | | | | | | | | Shareholders’ equity | | | | | | | Class A Ordinary shares (US$0.0001 par value, 50,000,000 shares authorized, 30,015,905 and 26,998,861 shares issued and outstanding as of December 31, 2024 and 2025, respectively) | | 19 | | 17 | | 2 | Class B Ordinary shares (US$0.0001 par value, 900,000,000 shares authorized, 101,143,806 and 130,143,350 shares issued, 101,143,806 and 129,146,306 shares outstanding as of December 31, 2024 and 2025, respectively) | | 70 | | 90 | | 13 | Additional paid-in capital | | 7,577,113 | | 11,925,963 | | 1,705,390 | Subscription receivables | | (292,721) | | — | | — | Accumulated other comprehensive income | | 56,975 | | 6,529 | | 933 | Accumulated deficit | | (3,409,725) | | (2,973,845) | | (425,254) | Total shareholders’ equity | | 3,931,731 | | 8,958,754 | | 1,281,084 | TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | 3,975,820 | | 9,003,505 | | 1,287,484 |
ADDITIONAL INFORMATION OF THE PARENT COMPANY FINANCIAL STATEMENTS SCHEDULE I HESAI GROUP CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (INCOME) FOR THE YEARS ENDED DECEMBER 31, 2023, 2024 and 2025 (Amounts in thousands, except share and per share data or otherwise noted) | | | | | | | | | | | For the years ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | | US$ | | | | | | | | | (Note 2) | Net revenues | | — | | — | | — | | — | Sales and marketing expenses | | — | | (6,741) | | (2,319) | | (332) | General and administrative expenses | | (98,099) | | (67,475) | | (25,856) | | (3,697) | Other operating income, net | | — | | — | | 45,212 | | 6,465 | Interest income | | 42,402 | | 50,754 | | 89,496 | | 12,799 | Foreign exchange (loss) gain | | (12) | | (9) | | 14,950 | | 2,138 | Other income, net | | — | | — | | 8,220 | | 1,175 | Equity in (deficit) earnings of subsidiaries | | (420,259) | | (78,905) | | 309,545 | | 44,264 | Net (loss) income before income tax | | (475,968) | | (102,376) | | 439,248 | | 62,812 | Income tax expense | | — | | — | | (3,368) | | (482) | Net (loss) income | | (475,968) | | (102,376) | | 435,880 | | 62,330 | Net (loss) income attributable to ordinary shareholders of the Company | | (475,968) | | (102,376) | | 435,880 | | 62,330 | | | | | | | | | | Net (loss) income | | (475,968) | | (102,376) | | 435,880 | | 62,330 | Comprehensive income (loss), net of tax of nil: | | | | | | | | | Foreign currency translation adjustments | | 42,048 | | 18,535 | | (50,446) | | (7,214) | Comprehensive (loss) income | | (433,920) | | (83,841) | | 385,434 | | 55,116 |
ADDITIONAL INFORMATION OF THE PARENT COMPANY FINANCIAL STATEMENTS SCHEDULE I HESAI GROUP CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023, 2024 and 2025 (Amounts in thousands, except share and per share data or otherwise noted) | | | | | | | | | | | Year ended December 31, | | | 2023 | | 2024 | | 2025 | | | RMB | | RMB | | RMB | | US$ | | | | | | | | | (Note 2) | Cash flows from operating activities: | | | | | | | | | Net (loss) income | | (475,968) | | (102,376) | | 435,880 | | 62,330 | Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | Depreciation and amortization | | 3 | | 3 | | 1 | | 1 | Income from equity in earnings of subsidiaries | | 420,259 | | 78,905 | | (309,545) | | (44,264) | Share-based compensation | | 42,379 | | 11,922 | | — | | — | Fair value change of financial instruments | | (12,500) | | 12,500 | | — | | — | Foreign exchange loss (gain), net | | 12 | | 9 | | (14,950) | | (2,138) | Changes in operating assets and liabilities: | | | | | | | | | Prepayments and other current assets | | (1,544) | | 3,905 | | (45,549) | | (6,514) | Accrued expenses and other current liabilities | | 6,281 | | 27,885 | | 9,657 | | 1,381 | Net cash (used in) provided by operating activities | | (21,078) | | 32,753 | | 75,494 | | 10,796 | Cash flows from investing activities: | | | | | | | | | Purchases of short-term investments | | (742,287) | | (309,349) | | (2,175,414) | | (311,080) | Maturity of short-term investments | | 176,302 | | 878,812 | | — | | — | Purchases of long-term investments | | — | | — | | (2,723,660) | | (389,478) | Purchases of property and equipment | | — | | — | | — | | — | Payment and collection of loans to and investments in subsidiaries | | (379,237) | | 55,792 | | (185,194) | | (26,482) | Net cash (used in) provided by investing activities | | (945,222) | | 625,255 | | (5,084,268) | | (727,040) | Cash flows from financing activities: | | | | | | | | | Cash contribution from shareholders in connection with the 2021 Reorganization | | 17,506 | | — | | 292,721 | | 41,859 | Proceeds from issuance of ordinary shares in connection to IPO | | 1,225,470 | | — | | 4,249,946 | | 607,734 | Payment of offering costs | | (22,828) | | — | | (43,689) | | (6,247) | Proceeds from issuance of ordinary shares upon the exercise of stock options | | 2,872 | | 34,139 | | 27,346 | | 3,910 | Collection and payments of amounts due to subsidiaries | | 14,024 | | (15,710) | | (17,102) | | (2,446) | Net cash provided by financing activities | | 1,237,044 | | 18,429 | | 4,509,222 | | 644,810 | Net increase (decrease) in cash and cash equivalents | | 270,744 | | 676,437 | | (499,552) | | (71,434) | Cash and cash equivalents, beginning of the year | | 35,411 | | 363,778 | | 1,056,383 | | 151,061 | Effect of foreign exchange rate changes on cash and cash equivalents | | 57,623 | | 16,168 | | (44,740) | | (6,399) | Cash and cash equivalents, end of the year | | 363,778 | | 1,056,383 | | 512,091 | | 73,228 |
ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY FINANCIAL STATEMENTS SCHEDULE I HESAI GROUP FINANCIAL INFORMATION OF PARENT COMPANY NOTES TO SCHEDULE I 1.Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of SEC Regulation S-X, which requires condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same date and for the same period for which audited financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company does not include condensed financial information as to the changes in deficit as such financial information is the same as the consolidated statements of changes in shareholders’ deficit. 2.The condensed financial information has been prepared using the same accounting policies as set out in the financial statements except that the equity method has been used to account for investments in its subsidiaries. For the parent company, the Company records its investments in subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments - Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheet as “Investment in subsidiaries” and the subsidiaries’ profit or loss as “Loss from equity in earnings of subsidiaries” on the Condensed Statements of Comprehensive Loss. Ordinarily under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this Schedule I, the parent company has continued to reflect its share, based on its proportionate interest, of the losses of subsidiaries regardless of the carrying value of the investment even though the parent company is not obligated to provide continuing support or fund losses. 3.As of December 31, 2024 and 2025, there were no material contingencies, significant provisions of long-term obligations, guarantees of the Company. 4.Translations of balances from RMB into US$ as of and for the year ended December 31, 2025 are solely for the convenience of the readers and were calculated at the rate of US$1.00= RMB6.9931, as set forth in H.10 statistical release of the Federal Reserve Board on December 31, 2025. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into United States dollars at that rate on December 31, 2025, or at any other rate.
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