Hello, ladies and gentlemen. Thank you for standing by. Welcome to Hesai Group's First Quarter 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. Please note that today's conference call is being recorded. I will now turn the call over to our first speaker today, Yuanting Shi, the company's Head of Capital Markets. Please go ahead. Thank you, operator. Hello, everyone. Thank you for joining Hesai Group's first quarter 2026 earnings conference call. Our earnings release is now available on our IR website at investor.hesaitech.com, as well as via Newswire services. Today you will hear from our CEO, Dr. David Li, who will provide an overview of our recent updates. Next, our CFO, Mr. Andrew Fan, will address our financial results before we open the call for questions. Before we continue, I refer you to the safe harbor statement in our earnings press release, which applies to this call, as we will make forward-looking statements. Please also note that the company will discuss non-GAAP measures today, which are more thoroughly explained and reconciled to the most comparable measures reported under GAAP in our earnings release and SEC filings. With that, I'm pleased to turn over the call to our CEO, Dr. David Li. David, please go ahead. Thank you, Yuanting, and thank you, everyone. Today, we are incredibly honored and excited to announce that Hesai serves as strategic lidar partner and confirmed supplier for Mercedes-Benz models enabling Level 3 autonomy. We see this as a major milestone, not only a strong validation of our technology leadership, but also a clear signal that lidar is moving to core infrastructure in the global evolution of intelligent driving. More importantly, I am thrilled to announce that Hesai has officially entered a new era of growth and possibility. 2026 marks a transformative chapter for us as we initiate a strategic paradigm shift evolving from spatial perception to spatial intelligence. Beyond our lidar business, we are actively forging the eyes and muscles of physical AI. This evolution underscores what has always been at the core of Hesai's DNA, a deep tech enterprise that leverages hardcore technological innovation and sustained R&D intensity to deliver the world's most cutting-edge products, ultimately unlocking profound long-term industry value. At our recent 2026 Tech Open Day, we unveiled several breakthrough innovations that we believe will redefine the industry landscape. I will come back to these in more details later in my remarks. Before turning to the broader opportunities in physical AI, let me first walk through our lidar business highlights for the quarter. Last year, we delivered a record 1.6 million lidar units. This year, we expect our total shipments to approximately double, reaching between 3 million-3.5 million units. We are confident that this level of scale firmly reinforces our leadership position in the global lidar industry. The trend we highlighted before is only accelerating. LiDAR is fast becoming the invisible airbag deployed across vehicles at scale. This was clearly demonstrated at the recent Beijing Auto Show, where Hesai LiDAR was featured in 56 vehicle models across 24 leading automotive brands, ranking number one in LiDAR presence across exhibited models. At the show, our LiDARs were deployed across the automotive ecosystem. From leading brands such as Audi, Cadillac, Lotus, Li Auto, Xiaomi, BYD, Leapmotor, Geely, Great Wall Motor, Changan, Chery, to autonomous driving leaders like Pony.ai and WeRide. This broad adoption reflects our deep ecosystem penetration and the growing strength of the Hesai Inside effect. According to Yole Group, we ranked number one globally in long-range ADAS LiDAR shipments with a 43% market share in 2025. Our leadership only strengthened in March 2026, when our China market share surged to 55%, according to Gasgoo, roughly triple that of the second-ranked player, marking our 14th consecutive month in the number one position. This momentum was fueled by our industry-leading product portfolio, with our flagship ATX continuing to scale across major platforms. In April 2026, we began SOP for the revamped version of ATX. OEM demand remained exceptionally strong, with backlog now exceeding 6 million units. As Level 2 scales, Level 3 is emerging as the next major growth driver for the lidar industry. As responsibility shifts from the driver to the automaker, vehicle safety requirements are rising rapidly, driving architectures from typically one lidar per vehicle last year, representing roughly $200 of lidar content per car, to three to six lidars in Level 3 platforms. Increasing content to about $350 in entry-level multi-lidar setups and $500-$1,000 in more advanced configurations. We are well-positioned for this transition with multi-lidar design wins secured across leading OEMs such as Li Auto, Xiaomi, and Changan. Notably, Li Auto officially commenced deliveries of its multi-lidar model on May 15th, 2026, marking the first mass production deployment of our FTX blind spot lidar. Level 3 is not just about more sensors. It fundamentally elevates the role of lidar from a passive backup to an active decision enabler in safety-critical driving scenarios. To lead this shift, we introduced Picasso, the world’s first 6D full-color ultra-sensitive SPAD-SoC. It fuses RGB color and precise 3D geometry at the true chip level, generating real-time colorized point clouds. In plain terms, it enables systems to see and understand the world more like humans do and directly addresses the long-standing lidar versus camera debate. For the first time, we are delivering a unified perception stack in a single chip, bringing both worlds together and taking a real leap in how machines perceive and understand the physical world. For example, through native pixel-level fusion of color and depth, Picasso-equipped lidars help address challenging real-world edge cases across intelligent systems, not only in autonomous driving, but also in robotics and industrial applications, such as distinguishing overlapping traffic lights at adjacent intersections or differentiating a yellow signal from sunlight, scenarios where vision-based systems can struggle. Powered by the Picasso, our flagship ETX now supports up to 4,320 channels and delivers a maximum 600 m range, enabling ultra-high resolution, full-color, 3D imaging. With enhanced small object detection, ETX pushes safety margins to unprecedented heights. Commercial momentum is already building for this industry-first technology. We secured an exclusive design win with KargoBot for its Phase 2 transport robots, deploying our 4,320 channel ETX together with FTX blind spot lidars. This marks the first commercial vehicle contract for our 6D full-color lidar. ETX is expected to enter mass production in the second half of 2026 across multiple flagship programs, with additional engagements actively progressing among both ADAS and robotics clients. Looking ahead, we see lidar expanding far beyond today’s boundaries, with many camera-dominated applications naturally shifting toward lidar over time, positioning us for the next wave of physical AI. On the global side, we are incredibly honored and excited to announce that Hesai serves as strategic lidar partner and confirmed supplier for Mercedes-Benz models enabling Level 3 autonomy. The new supply agreement supports Mercedes-Benz programs in Europe and China, with lidar production supported by Hesai’s new Galileo manufacturing center in Thailand. In parallel, we continue to deepen our footprint with Chinese joint ventures, as well as fast-growing Chinese automakers expanding overseas. We have been selected for GAC Toyota’s 2026 bZ3X model, marking our first entry into the Japanese automotive ecosystem. We have also secured new overseas design wins with Xiaomi, one of our largest customers, with SOP expected to begin in 2027. Looking ahead, we see strong and sustained momentum driven by both global OEM partnerships and the continued international expansion of Chinese automakers. Together, these two forces are becoming the key structural growth drivers for Hesai in the years ahead. Beyond ADAS, robotics is emerging as an addressable market roughly 10 times larger. We are already a leader across key segments, including humanoid and quadruped robots, robotaxis, robovans, and robotic lawnmowers. Ranking number one, according to GGII, Yole Group, and Frost & Sullivan. To share a few recent highlights, in humanoid robotics, our JT128 lidar-powered Honor's Lighting robot to deliver a championship-winning performance and break the human world record at the world's first humanoid robot half-marathon. In robovans, we secured an exclusive design win with Zelos for 200,000 lidar units and deepened our partnership with Neolix as its largest lidar supplier. We are also expanding into smart mobility with an FTX design win from NIU Technologies for next-generation electric two-wheelers, a market with more than 60 million units sold annually in China. Having established ourselves as a global leader in 3D perception solutions, one thing is clear: bringing AI into the physical world takes more than just lidar. We are taking our most exciting step yet, expanding from spatial perception to spatial intelligence. To build the uncompromised digital foundation for the physical AI era, we introduced Kosmo, an AI algorithm integrated spatial intelligence device. As physical AI accelerates, we believe richer, higher fidelity spatial data is becoming an increasingly scarce strategic resource, arguably even more critical than computing power itself. Kosmo is purpose-built to break this bottleneck. Unlike traditional 3D reconstruction solutions that rely on bulky hardware and costly workflows, Kosmo combines Hesai's ultra-high precision lidar with proprietary 3DGS and AIGC algorithms to rapidly generate photorealistic production-grade 3D environments at scale. For a 200 sq m space, Kosmo requires only one-fifth the time of existing 3DGS solutions and roughly one-fiftieth the time of traditional methods with dramatically lower labor costs. More importantly, Kosmo is far beyond a hardware AI integrated product. It is the starting point of a scalable new business model. Combining hardware, AI software, spatial data, and future platform services, creating recurring revenue streams, strong ecosystem effects, and a durable long-term moat. We believe Kosmo unlocks RMB 1 trillion downstream opportunities across robotics, simulation and training, immersive media, 4D entertainment, and beyond. Commercial traction is already building rapidly. We are actively engaging with a powerhouse roster of industry leaders, spanning global pioneering embodied AI companies and top-tier entertainment studios to market-leading tech giants, AI-driven industrial titans, and global luxury brands, with some customers already having placed orders. We are incredibly excited about the long-term growth potential ahead. Beyond perception, bringing AI into the physical world also means enabling it to act, giving it the muscles to truly come to life. This leads to our next strategic pillar, robotic actuation modules. This is a natural extension of our systemic expertise in materials, simulation, physical design, and the manufacturing of delicate components. We also bring proven know-how gained from millions of in-house developed automotive-grade motors and encoders deployed in our LiDAR products. Consider this a first glimpse, an Easter egg. More exciting updates will follow in the near future. To wrap up, let me bring us back to the core theme today, our evolution from spatial perception to spatial intelligence. We are executing this across three clear dimensions. First, perceiving the world powered by our chip-based lidar solutions, giving robots the eyes to see the physical world in high fidelity. Second, understanding the world with Kosmo and its ecosystem, transforming rich spatial data into actionable intelligence for real reasoning and decision-making. Third, changing the world through our robotic actuation modules, the muscles that allow machines to truly interact with the physical world and serve humanity. Together, these are unlocking powerful new growth engines and positioning us as a core enabler of physical AI, digitizing the real world and redefining how humans and robots perceive and act. With that, I will now turn the call over to Andrew to discuss our financial performance and outlook. Andrew, please go ahead. Thank you, David. Hello, everyone. Before diving into our first quarter financial and operating performance, I would like to provide an important update on our financial reporting structure. As David highlighted, 2026 marks a year of strategic evolution for Hesai as we expand our boundaries to become the key enabler of physical AI. To better reflect this shift and further enhance our disclosure transparency, starting this quarter, we are updating our segmentation into two distinct categories. Our core lidar business and our strategic growth initiatives, or SGI, which includes our new AI algorithm integrated spatial intelligence device, Kosmo. We believe this updated reporting framework will help investors better appreciate the distinct financial profiles, independent growth trajectories, and underlying value drivers of these two segments. By separately reporting our robust, rapidly scaling core lidar business from our highly transformative SGI segment, we aim to provide you with clearer visibility to better model our business and track how each engine contributes to our long-term shareholder value. With that, let me walk you through our first quarter operating and financial performance, followed by our outlook for the second quarter and the rest of 2026. To be mindful of the length of our call, I encourage listeners to refer to our earnings release for further details. We kicked off 2026 with strong momentum and delivered another strong quarter of robust growth, improving scale, and disciplined profitability. Starting with the top line, total net revenues reached RMB 681 million, or $99 million, representing an increase of 30% year-over-year. This marks our eighth consecutive quarter of year-over-year revenues growth, reflecting both sustained demand across our core markets and our ability to scale with consistency and operational rigor. This performance was supported by total LiDAR shipments of over 471,000 units for the first quarter, with both broad-based ADAS and robotics shipments more than doubling year-over-year. Our gross margin for the quarter stayed healthy at over 39%. On operating expenses, we maintained a disciplined approach while continuing to invest strategically in long-term growth. During the quarter, total operating expenses increased by 9% year-over-year, primarily reflecting targeted R&D investments in the new initiatives that David outlined earlier, partially offset by savings from scaled adoption of AI tools across the company. Excluding these investments, our LiDAR operating expenses declined year-over-year, driven by ongoing efficiency gains and cost discipline. This brings us to the underlying profitability of our two segments. For the first quarter, our LiDAR business delivered a robust operating profit of RMB 42 million, demonstrating its strong self-sustaining profitability. Meanwhile, our SGI business recorded an operating loss of RMB 51 million, representing our deliberate and forward-looking investment in building the infrastructure of physical AI. As a result, we delivered GAAP net income of RMB 18 million, or $2.7 million, and non-GAAP net income of RMB 48 million, or $6.9 million, for the quarter. This extends our track record to four consecutive quarters of GAAP profitability and six consecutive quarters on a non-GAAP basis. The sustained profitability reflects the strength of our operating model and the benefits of scale as our business continues to expand, firmly positioning us at the forefront of the industry. Looking ahead, we expect to build on this strong momentum. For the second quarter of 2026, we expect net revenues to be in the range of RMB 850 million-RMB 900 million, or $123 million-$130 million, representing year-over-year growth of approximately 20%-27%. We also expect revenue momentum to strengthen progressively each quarter throughout the year. From a broader perspective, we believe our business is entering a more sustainable growth trajectory. Our core LiDAR business will continue to drive growth, scale, and cash generation, while SGI is beginning to contribute and significantly expand our long-term growth potential. Supported by our strong customer base and the momentum from early adoption, we expect SGI to generate approximately RMB 100 million in revenues this year, with revenue contributions expected to start in the second quarter of 2026. Looking further ahead, we aim to scale this to around RMB 500 million by 2027, and over time, establish it as a meaningful and long-term growth driver for Hesai. Together, these developments are accelerating our evolution into a key enabler of physical AI, unlocking the next phase of growth with greater scale and global impact. This concludes our prepared remarks today. Operator, we are now ready to take questions. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. For the benefit of all participants on today's call, if you wish to ask your question to the management in Chinese, please immediately repeat your question in English. For the sake of clarity and order, please ask one question at a time. Management will respond, and then feel free to follow up with your next question. Your first question comes from Tina Hou with Goldman Sachs. Hi, management. Thank you very much for taking my question, and congrats on a strong set of results. Very excited about our new opportunities here. My question is more related to our announcement with Mercedes-Benz and supplying to their L3 models going forward. Wondering how should we think about the opportunity in terms of volume, revenue, and margin contribution over the next, let's say, one to three years, and then longer term from this collaboration? Thank you. I'll take this question. This is David. We are pleased to announce that Hesai serves as strategic lidar partner and confirmed supplier for Mercedes-Benz models enabling L3 autonomy. The new supply agreement supports Mercedes-Benz programs in Europe and China, with lidar production supported by Hesai Group's new Galileo manufacturing center in Thailand. We will not be able to disclose further details on the strategies of the customer, we do confirm the new contracts are a continuation of the existing collaboration with additional volumes and car models. Our global expansion is fully supported by our new Thailand manufacturing center, unified product architecture, and strategic NVIDIA partnership, uniquely positioning Hesai to lead the global ADAS market. We are expanding our overseas reach with Chinese joint ventures and fast-growing domestic OEMs going global. Winning a design win on GAC Toyota's 2026 bZ3X model marks our breakthrough into the Japanese auto ecosystem. We've also locked in new overseas design wins with Xiaomi, a top customer targeting a 2027 SOP. Looking ahead, our growth will be structurally driven by two powerful engines: international OEM partnerships and a global expansion of Chinese automakers. That's my response to your question. Thank you. Thanks, David. Your next question comes from Tim Hsiao with Morgan Stanley. Hi, this is Tim from Morgan Stanley. Thanks for taking my questions. Switching gears to the spatial intelligence device, because we noticed Kosmo has already received early orders, and it's also highlighted in the announcement that as a scalable business model. Wondering if you could elaborate a bit more about how we should think about the fundamental difference or synergy between the Kosmo and the conventional lidar business. Are there any comparable products currently available in the market? How does Kosmo stand out against such alternatives, if any? Additionally, it'd be great if the management team can share more details regarding if the existing client base. I think David also shared a lot of information. In the meantime, timeline for consumer-facing rollout as well as, your expectation for financial contribution from Kosmo. Yeah, that's a few follow-ups. Thank you. Thank you for raising the question. Well, you know, Kosmo is much more than a sensor or a hardware device. I would describe it as the world's first AI algorithm integrated spatial intelligence device. It combines our custom LiDAR, multiple sensors, and our in-house 3DGS and AIGC algorithms together into one system, like allowing us to capture and reconstruct the physical world in a very seamless and photorealistic way. We believe in the era of physical AI, high-quality spatial data is becoming a scarce strategic resource. Arguably, I mean, even more important than compute itself. Kosmo is designed to provide what we call the uncompromised digital foundation for this new era, right? One key difference between traditional LiDAR and Kosmo is really the output. Traditional LiDAR gives you raw point clouds, which are almost like the wireframe or skeleton of the world. Kosmo goes much further. Using AI algorithms, it reconstructs a fully photorealistic 3D model with color, texture, and shadow, much closer to how humans actually experience the real world, right? We think we have two very important advantages here. First is hardware. Since we use our own custom high-performance lidar, the raw input quality is already extremely strong compared to, you know, most third-party solutions. Second is software. Our proprietary reconstruction and AIGC algorithms are a major differentiator. Based on early customer feedback, you know, our models consistently deliver higher quality results compared with other software solutions. As a result, efficiency improvement is actually very significant. For example, for a 200 sq m space, Kosmo can complete reconstruction in roughly one-fifth of the time of existing 3DGS solutions and around one-fiftieth of traditional workflows, while also reducing labor costs substantially, which is huge, right? The market opportunity here is still very early and evolving, so it's difficult to define a precise TAM today. Directionally, we think this could become a very large multi-industry opportunity spanning robotics, simulation and training, immersive media, 4D entertainment, industrial applications and beyond. What's even more important, in my view, is the business model we are building around Kosmo. The AI-integrated Kosmo is really just the front door. It gets us into the ecosystem, but recurring revenue is, you know, what we believe becomes the long-term engine over time. Today, we are already engaging with a very exciting group of customers, ranging from pioneering embodied AI companies and top-tier entertainment studios to, well, global technology leaders, industrial companies, and luxury brands. We also already have early orders in place. Beyond the device itself, customers also pay for software and platform usage, whether it's data processing, model training, or cloud-based services through licensing and subscription models. Compared with traditional LiDAR, I mean, this business naturally carries a more software-driven and potentially higher margin profile. Longer term, like in a couple of years, we see two major paths ahead for Kosmo. First is 4D V, essentially 3D plus time, where we believe a single lightweight Kosmo device can eventually replace today's bulky, expensive camera-based 4D capture systems. Second is a broader consumer-facing opportunity. Over time, we believe even ordinary consumers will be able to use Kosmo to create immersive 4D content themselves, much like how smartphones democratized photography and video creation over the last decade, right? Overall, we see Kosmo as the starting point of a scalable new business model and a very important expansion opportunity for Hesai beyond traditional lidar. We will soon begin demo shipments, and we believe it can become a meaningful growth driver for us in the physical AI era, with initial eight-digit revenues expected this year. That's my answer for your question. Thank you. Thank you very much for sharing all the details, David. Thank you. Your next question comes from Nora Min with UBS. Hi, this is Nora Min from UBS. Thank you for taking my question. My question is about your progress of the humanoid robot actuator business, and what do you think is the current technical bottleneck, and who are your potential customers? Also, are the actuators for the body or hand? Thank you. Thank you for the question. Well, people often think LiDAR is simply a sensor, but in reality, you know, it's much more like a precision machine. Inside a LiDAR system, I mean, you have optics, electronics, software, and sophisticated mechanical engineering all working together in tight synchronization, right? For both our mechanical and semi-solid state LiDARs, the moving components are extremely demanding from an engineering standpoint. They must meet automotive-grade standards and survive years of continuous vibration, heat, cold, and harsh real-world driving conditions while still maintaining extremely high precision every single second, right? I mean, it's a bit like asking a professional athlete to run a marathon every day for years without ever losing form or accuracy. Over the past decade, you see, we have already developed and shipped more than 1 million automotive-grade motors and encoders into our LiDAR systems. Fundamentally, like, the physics behind LiDAR scanning modules and robotic actuation modules are very similar. Both require extremely precise control of velocity, position, and force. In many ways, moving from LiDAR into robotic actuation was a very natural extension for us, really. The same capabilities we built for LiDAR, such as material science, simulation, proprietary ASICs, precision manufacturing, and system-level engineering, can now be extended from helping robots see the world to helping them move within it. Now, on robotic actuation, we haven't yet disclosed detailed information, but early signals are very encouraging. Key performance metrics are already reaching what we believe is, well, among the industry's highest level. We look forward to sharing more details in the coming quarters as this business develops, of course. That's my answer. Thank you. Thank you, David. Your next question comes from Jessie Lo with Bank of America Securities. Hi. Thank you for taking my question. My question is around the strategic growth initiatives as well. Could you talk about the ASP revenue and also margin on both the Kosmo and also robotic actuator modules? Thank you for the question. This is Andrew. Both the robotic actuation modules and Kosmo are part of our new strategic growth initiatives or SGI segment. Think of this as an early-stage innovation layer sitting alongside our core lidar business. At this stage, because these products are still in early commercialization, we are reporting them on a consolidated basis within SGI rather than splitting them out individually. On the revenue side, we expect SGI to start contributing in the second quarter this year. With strong early customer interest and initial adoption, we currently anticipate around RMB 100 million in full year 2026 revenues. Looking further out, we see a clear scaling path, potentially reaching around RMB 500 million in 2027. Over a longer horizon, within five years, we believe this business could grow to a scale that is comparable to our core lidar business. On profitability, SGI is expected to be accretive to group gross margin over time as this segment scale and matures. Kosmo, in particular, should carry a structurally higher margin profile because it is not just a hardware product. It integrates hardware, software, and data workflows. Over time, we also expect part of Kosmo to evolve toward a recurring ARR model through software and platform services, which naturally improves profitability as the installed base expands. On ASP, it's important to note that we are still in a very early deployment phase, so current pricing is highly customized and driven by pilot programs. At this stage, these early data points are not representative of long-term economics. As we move into mass production and the product lines mature, we will provide more normalized unit economics to the market. That's my answer to your question. Thank you. Sure. Thank you very much, Andrew. Your next question comes from Danlin Ren with CICC. Hello, everyone. This is Danlin Ren from CICC Auto Team. Thanks for taking my question, and congratulations on your strong results and exciting partnership with [Mercedes]. My question is regarding your Picasso chip. We think the market has came to understand how your product interacts with cameras. To what extent can 6D lidar replace certain camera functions? Additionally, some of your peers are also promoting camera lidar fusion solutions. How does your approach differ from theirs? What has the customer feedback been so far? Thanks. Thank you for the question. First, let me set the stage here. People often debate cameras versus LiDAR, but I think that's a little bit like asking whether humans should choose between seeing colors or seeing depth. In the real world, we naturally use both together. That's exactly what our 6D full-color LiDAR does. It helps machines not only detect objects, but truly understand the physical world more like humans do. This is why we believe, in many future applications, your next camera may not even be a camera anymore. It could be a 6D full-color LiDAR. The opportunity is massive across autonomous driving, robotics, industrial automation, infrastructure, and even electronics like Kosmo. What makes us different is that many existing solutions are still basically a camera and a LiDAR packaged into one box with software trying to combine the information afterward. That's still system-level fusion. With Picasso, our world's first 6D full-color SPAD SoC, we fuse RGB color and precise 3D geometry directly at the chip level from the very beginning, almost like the human brain naturally combining both eyes in real time. You can think of it as early fusion. The benefit is very clear. The system instantly understands both depth and color together in fully aligned real time, improving perception capability, reducing edge case errors, and enhancing safety. We understand some peers are moving in a similar direction now, which we see as validation of the trend, but we believe we are roughly about one year ahead in R&D. Customer feedback so far has been extremely encouraging across both ADAS and robotics. For example, with overlapping traffic lights at adjacent intersections, traditional cameras struggle with depth, while traditional LiDARs cannot understand colors. Our 6D full- color lidar solves both simultaneously. We believe this creates a strong differentiator for us and supports premium pricing given the very clear value add. Importantly, customers also do not need to completely rebuild their perception stack. The data from 6D full- color lidar and traditional lidar are compatible. Commercially, the momentum is already starting. We recently secured an exclusive design win with KargoBot for its transport robot, which marks the industry's first mass production deployment of 6D full- color lidar on commercial vehicles. We are also actively engaging with both Robotaxi and ADAS customers. Looking ahead, we expect the Picasso-equipped ETX to enter SOP in the second half of 2026, with broader global adoption ramping through 2027 and 2028. We really believe this could become one of the key technology transitions for the entire perception industry over the next several years. That's my response to your question. Thank you. Yeah. Thanks, David. It's very clear. That's all from me. Thank you. Your next question comes from Jeff Chung with Citi. Hey. Hi, David. What's the updated [2026] revenue forecast right now, and how much SGI contribution to the full year revenue? First question. Secondly, if we take out the RMB 100 million R&D revenue from SGI in the second quarter, the core revenue excluding SGI Q-on-Q growth will become 18%. Would that be a little bit conservative? Finally, any volume guidance for the second quarter. Thank you. Thank you. It's Andrew here. For the second quarter, we expect total revenues to be in the range of RMB 850 million-RMB 900 million, with around 650,000 LiDAR shipments. Importantly, the second quarter will also mark the initial revenue contribution from SGI. Gross margin has remained resilient even as our ADAS business continues to scale rapidly. We've now delivered a GAAP net income for four consecutive quarters and non-GAAP net income for six consecutive quarters. We expect to maintain this momentum. If you look at the pattern of our business and OEM production cycles, we also expect financial performance to continue improving sequentially through the year, with SGI expected to contribute around RMB 100 million in 2026 during this early ramp stage. For the full year 2026, we are reaffirming our LiDAR shipment guidance of a record 3 million-3.5 million units. We remain highly confident in our top line and delivery trajectory, supported by several strong and accelerating drivers, including higher LiDAR penetration across the market, increasing LiDAR content per vehicle as the industry moves toward Level 3. The early ramp of global ADAS programs, including the overseas expansion of Chinese OEMs, as well as broader robotics adoption across increasingly diverse applications. Overall, we believe Hesai is executing strongly across all fronts. Our LiDAR business continues to serve as a very solid foundation with clear market leadership and global scale. At the same time, we are extremely excited about the future of SGI, and we look forward to sharing more updates on these new businesses very soon. That's my answer to your question. Thank you. Your next question comes from Zhang Yu with Huatai Securities. Hi, management. This is coming from [audio distortion]. I have a question about ASP. How do we interpret the ongoing decline in LiDAR ASP? What's your long-term outlook for pricing as the market matures? Thank you for the question. We think it's important to look beyond headline blended ASP because what we are really seeing today is a reflection of strong market expansion and a clear product mix shift. As we scale into the mass market, ADAS LiDAR naturally takes the largest share of volume. These products usually carry lower unit prices than robotics LiDARs, blended ASP comes down. Fundamentally, this is a healthy signal. It reflects LiDAR becoming a mainstream standard across both automotive and robotics. Looking ahead, we see a clear structural catalyst as the industry moves towards Level 3 autonomy. Level 3 raises the bar on safety, redundancy, and sensing performance, which directly drives higher sensor content per vehicle. At Level 2, LiDAR content per vehicle last year was roughly around $200, typically anchored by one long-range ATX. At Level 3, it already steps up to about $350 as a starting point. For example, 1 ATX plus 2 FTX for blind spot coverage. As systems evolve further with ATX high-end LiDAR and additional blind spot FTX, contents can increase to roughly $500-$1,000 per vehicle. This is already emerging in early customer adoption and is increasingly reflected in ongoing engagements. What's more, with our newly launched Picasso 6D full-color SPAD SoC, LiDAR is also evolving from a passive safety sensor into an active intelligence layer, enabling richer perception through real-time colorized point clouds. That shift from safety only to active functionality creates a clear upgrade cycle, and we do see this value add potentially supporting higher pricing for advanced LiDAR configurations. Ultimately, we see the market evolving very much like smartphones. Once users experience a better smartphone, they don't go back because they truly appreciate the value it creates in daily life. In the same way, as automotive and robotics applications become more intelligent over time, end users will increasingly recognize and cherish the value enabled by our technology, not as a cost, but as a capability upgrade in how they move, work, and interact with the physical world. That's my answer to the question you just raised. Well, thank you, Andrew. Thanks for your insights. Thank you. Your next question comes from Jia Lou with BOCI. Hello, management. Thank you for taking my questions. I have a question regarding the competition dynamics. Over the past few years, the LiDAR industry has been focused on cost reduction. However, since beginning of this year, we've observed a shift towards performance race, such as escalation in channel counts, while the technology roadmap have begun to convert. How does management envision the evolution of the competitive landscape of LiDAR industry? What will be the key differentiator for Hesai to maintain its leadership? Thank you. Thank you. That's a very good question. When people talk about LiDAR competition, the discussion often goes straight to price. Yes, the price of a single LiDAR has come down over the years, but that's really the result of strong in-house ASIC capability and system integration, which helped bring LiDAR from a luxury technology into mass adoption without sacrificing performance. That is exactly why today LiDAR can be deployed not only in $10,000 vehicles, but even in affordable home appliances. We are seeing penetration rapidly expand across sectors, including categories many people did not initially expect, such as robotic lawnmowers and two-wheelers. Once the cost performance curve crosses a certain inflection point, adoption doesn't grow linearly. It starts to expand across industries, and ultimately, the results speak for themselves. According to Yole Group, we ranked number one globally in long-range ADAS LiDAR shipments in 2025, with 43% market share. In March this year, Gasgoo data shows our share further increased to 55%, roughly 3x that of the second player. Beyond automotive, we are also seeing strong momentum in robotics, where we believe we are already the number one global player in robotics LiDAR revenues across robo-taxis, robo-vans, lawnmowers, humanoids, and other emerging applications. The more important question is not price. It is who can lead across multiple technology cycles. Today, the industry is moving toward higher performance, higher resolution, new architectures, and new types of demand. We are already at 4,320 channel level products. At the same time, we are expanding into blind spot LiDAR with full 360 degree coverage for large-scale deployments like the Li Auto's L series platform. We are moving towards deeper fusion of LiDAR and imaging with Picasso, our 6D full- color SPAD-SoC, as well as into physical AI with Kosmo for high fidelity spatial intelligence. Across all these shifts, our key advantage is the engineering capability and talent we have built over the past decade. We have built multiple distinct product architectures. From gas detection to mechanical LiDAR, semi solid-state, and the fully solid-state systems. While they all fall under LiDAR, they are fundamentally different in architectures. Today, we are extending that same capability into physical AI, including Kosmo and robotic actuation modules. At the end of the day, whether competition is in technology, products, or market share, we welcome it. We remain confident in our long-term structural advantages and our ability to continue launching category-defining products with a strong pipeline of major launches in 2026. Our leadership in physical AI is, in our view, an important differentiator versus peers. Ultimately, this is a deep tech business. That's my answer to your question. Thanks for that. There are no further questions at this time. I'll now hand back to Yuanting Shi for closing remarks. Thank you once again for joining us today. If you have any further questions, please feel free to contact our IR team. This concludes today's call. We look forward to speaking to you again next quarter. Thank you and goodbye. That does conclude our conference for today. Thank you for participating. You may now disconnect.