Hesai Group (abbrev. “Hesai”) has entered into a Supply of Products Framework Agreement with Shanghai Rift Valley Intelligent Technology Co., Ltd. (“Sharpa”) on 25 March 2026, under which Hesai will provide LiDAR products and robotic actuators—plus related manufacturing and support services—between the agreement date and 31 December 2026.

The annual transaction cap is set at RMB100.00 million. Pricing for LiDAR units will reference prevailing market prices offered to independent third-party customers, adjusted for order size, delivery timeline and after-sales terms. Robotic actuators and associated services will be priced on a cost-plus basis, with margins benchmarked against the median three-year weighted-average cost-plus margins of comparable companies, as determined by an independent transfer-pricing report.

Sharpa qualifies as a connected person because Hesai’s three co-founders collectively hold a majority of Sharpa’s voting rights. Consequently, the arrangement is classified as a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. Given that applicable percentage ratios exceed 0.1 % but remain below 5 %, the deal requires disclosure, annual review and announcement, but is exempt from circular, independent financial advice and shareholder approval.

The board views the agreement as aligned with Hesai’s strategy to extend its technology and manufacturing expertise into adjacent markets such as robotic power modules. Directors—including independent non-executive directors—consider the terms fair, reasonable and in the interests of shareholders. Co-founders with interests in Sharpa abstained from voting on the approving board resolutions.