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Hesai Group's shares surged in their Hong Kong debut, trading above its IPO price after the lidar‐sensor maker raised approximately HK$4.16 billion in its secondary listing.

Trading under code 2525, the stock opened at HK$229.20, about 7.7 per cent above the offer price of HK$212.80. Demand was strong: the international tranche was oversubscribed around 14 times, while the Hong Kong public tranche drew nearly 168.65 times subscription. Six cornerstone investors including HHLR Advisors, Taikang Life, and WT Asset Management committed some US$148 million worth of shares, agreeing to hold them for at least six months.

Hesai's second quarter performance helped set the stage. Its revenue rose by 54 per cent year-on-year, shipments more than tripled, and the company reported a net profit of roughly RMB 44.1 million, reversing a loss from the year before. These results support its strategy to scale lidar sensor shipments, especially for advanced driver-assistance systems and autonomous driving applications.

A key driver is Hesai's plan to cut manufacturing costs and selling prices. CEO David Li stated that the company is working to reduce the cost of its sensors dramatically, targeting a price of about US$200 per unit from previous models that sold for tens of thousands of dollars. To assist this, production expansion is underway, and Hesai is also pursuing international customers and counterparties in the autonomous vehicle and robotics sectors.

Geopolitical and regulatory pressures are also shaping Hesai's approach. The dual listing in Hong Kong while retaining its U. S. listing on Nasdaq reflects efforts to strengthen capital access amid U. S.-China tensions. Hesai had earlier denied accusations of misleading investors over revenue and alleged military links; the company stated its operations are independent and compliant with regulations.

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