Chinese lidar maker Hesai could be “close to profitability” in the last three months of this year, co-founder and chief executive Li Yifan told investors on Tuesday, when the company reported a narrower quarterly loss for the April-June period. Net loss for the Nasdaq-listed firm narrowed by 3% year-on-year to RMB 72.1 million ($9.9 million) in the second quarter of 2024, helped by cost-control measures and steady sales growth, while revenue was up 4.2% to nearly RMB 460 million. By comparison, US rival Luminar recorded a quarterly net loss of $130.6 million on revenue that was up 2% to $16.5 million over the same period.

Li also voiced optimism that his company could make a profit in the second half of this year on a non-GAAP (Generally Accepted Accounting Principles) basis, which usually excludes irregular or non-cash expenses. Hesai, a maker of lidar sensors for self-driving cars, was among a dozen Chinese companies blacklisted by the US Defense Department for allegedly working with China’s military early this year. However, the Pentagon has decided to remove the Shanghai-based and Nasdaq-listed firm from the blacklist due to a legal challenge, people familiar with the matter told the Financial Times.

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