By Jiahui Huang
Car-sensor maker Hesai Group's shares fell sharply in Hong Kong after the company reported third-quarter earnings.
Its Hong Kong-listed shares dropped 10% to 168.6 Hong Kong dollars, equivalent to $21.69. The losses came even as the company reported stronger-than-expected earnings for the quarter, suggesting the market may have already priced in the robust results on Tuesday.
Hesai's net profit for the period was CNY256.2 million, compared with a net loss of CNY70.4 million a year earlier. The better-than-expected earnings was mainly driven by CNY173 million in other income from the disposal of an equity investment in an early-stage tech company, Citi analysts wrote in a note.
The company also sharply lifted its 2025 full-year guidance, lifting its net income guidance to CNY350 million to CNY415 million, Citi adds.
Next year, Hesai is expected to see growth driven by both advanced autonomous driving systems and robotaxi services.
Shanghai-based Hesai produces lidar sensors, which help cars detect their surroundings. It is a dominant supplier of the technology--short for light detection and ranging--for the robotaxi industry. That has been good for business but also placed the company in the middle of the U.S.-China technology rivalry.
Labeled a security concern, Hesai was added to the Pentagon's list of companies with alleged ties to the Chinese military last year--claims the company has repeatedly denied.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
November 11, 2025 22:07 ET (03:07 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.