On March 16, 2023, Hesai announced in a press release its unaudited financial results for the three months and full year ended December 31, 2022. The Company failed to disclose in the Restatement that in their fourth quarter ended December 31, 2022 (“4Q2022”), the last completed quarter before the Company’s initial public offering (“IPO”), there was “lower in-house plant capacity utilization rate”, which caused the increased shipments of lower-margin advanced driver assistance systems (“ADAS”) and light detection and ranging (“LiDAR”) products. Loss from operations widened by 84.9% in 4Q2022 compared to their fourth quarter ended in December 31, 2021.
On this news, Hesai’s share price fell $1.55, or 10.17%, to close at $13.69 per share on March 16, 2023.