Hesai Group: Standing Tall Against Short-Seller Allegations

In the fast-paced world of technology and innovation, companies often find themselves in the crosshairs of short-sellers, who seek to profit from the decline of a company's stock. Hesai Group, a global leader in three-dimensional light detection and ranging (lidar) solutions, recently found itself in such a situation. On March 19, 2025, the company issued a strong response to allegations made in a report by Blue Orca Capital, a noted short-seller. The report, which accused Hesai of various operational and financial missteps, has raised eyebrows within the investor community. However, Hesai's response has been swift and decisive, reaffirming its commitment to ethical standards and regulatory compliance.

The allegations made by Blue Orca Capital are not new in the tech industry. Short-sellers often target companies with high growth potential, aiming to drive down their stock prices by spreading negative information. In this case, Blue Orca Capital's report has put pressure on Hesai Group's stock, as noted by Benzinga, which reported that the stock was under pressure after the allegations were made. This immediate reaction highlights the potential for short-term market fluctuations.

However, Hesai Group's response to these allegations is a testament to its operational integrity and financial health. The company reported record-breaking financial results for 2024, which highlight its operational integrity and financial health. Firstly, Hesai Group achieved record net revenues of RMB2,077.2 million (approximately US$284.6 million) for the full year of 2024. This represents a 10.7% increase from the previous year's revenue of RMB1,880 million. This growth in revenue indicates that the company is successfully expanding its market presence and increasing its sales, which contradicts any allegations of financial misconduct or operational inefficiencies.

Secondly, Hesai Group became the world's first lidar company to achieve full-year non-GAAP net profits of RMB14 million in 2024. This is a significant turnaround from a loss of RMB241 million in 2023. The achievement of profitability is a strong indicator of the company's operational integrity and its ability to manage costs effectively. As stated by Hesai's Co-Founder and CEO, Yifan "David" Li, "In 2024, Hesai achieved a milestone year with record-breaking lidar shipments, more than doubling annually for four consecutive years, and achieving the industry’s highest revenues. We also made history as the world’s first lidar company to achieve full-year non-GAAP net profits, all while further strengthening our unmatched financial leadership with solid positive operating and net cash flows."

Furthermore, the company's positive operating cash flows of RMB63 million and net cash flows of RMB1.3 billion for the year further support its financial strength and operational integrity. These figures demonstrate that Hesai Group is generating sufficient cash from its operations to fund its growth and investments, which contradicts any claims of financial distress or mismanagement.



In conclusion, Hesai Group's financial performance in 2024, as evidenced by its record revenues, profitability, and positive cash flows, strongly supports the company's operational integrity and contradicts the claims made in the short-seller report. The company's ability to achieve these financial milestones indicates that it is well-managed and positioned for continued growth in the lidar industry. As the lidar industry continues to grow, the implications of short-seller reports like those from Blue Orca Capital will remain a significant factor for companies operating in this space. How Hesai and others respond to such challenges will set the tone for their ability to thrive amidst scrutiny and market fluctuations.