Hesai Group (Hesai) has signed a Revised Supply of Products Framework Agreement with Shanghai-based AI robotics firm Sharpa, boosting the 2026 annual transaction cap to RMB 300.00 million from the previous RMB 100.00 million. The supplement, executed on 31 July 2026 after market close, responds to faster-than-expected order growth and higher cost-plus margins for advanced robotic components.

Hesai will continue providing LiDAR modules and highly customised robotic actuators, alongside manufacturing and integration services for Sharpa’s dexterous hands and other embodied-intelligence hardware. The framework runs until 31 December 2026; individual purchase orders will be priced under updated policies:

• LiDAR units: priced by reference to at least three recent third-party sales, ensuring parity or better terms for Sharpa. • Robotic actuators: cost-plus model with margins now set at 70%–80%, up from 40%–50%, reflecting heavier R&D content and higher industry benchmarks. • Manufacturing & support services: cost-plus margins likewise rise to 70%–80%, versus 35%–45% previously.

Historical billings under the original March-to-June 2026 period totaled roughly RMB 42.00 million. Management projects a surge in demand for July–December, including a 116-fold jump in LiDAR unit sales and a nine-fold increase in actuator shipments and related services. A 10% buffer for volume and cost fluctuations is embedded in the new cap.

Compliance considerations:

• Sharpa qualifies as a connected person because Hesai’s co-founders collectively control its voting rights; therefore, the deal is a continuing connected transaction under HKEX Chapter 14A. • Applicable percentage ratios exceed 5%, triggering disclosure, annual review and independent shareholder approval. • An Independent Board Committee and Alliance Capital Partners (Independent Financial Adviser) have been appointed. Shareholders lacking conflicts will vote on the resolution at an Extraordinary General Meeting scheduled for 28 August 2026.

Hesai states that the expanded partnership will deepen its foothold in robotic actuation and embodied AI, leveraging existing R&D and manufacturing capabilities while diversifying revenue streams. Internal monitoring mechanisms—including monthly cap-utilisation tracking and transfer-pricing reviews by a Big Four accounting firm—are in place to ensure transactions remain on arm’s-length, market-comparable terms.