SCHEDULE: Lightspeed China Partners Exits Major Hesai Stake

Lightspeed China Partners and related entities have filed an exit Schedule 13G, indicating they no longer beneficially own more than five percent of Hesai Group's Class B ordinary shares.

Summary

• Lightspeed China Partners III, L.P. and Lightspeed China Partners Select I, L.P., along with related entities and individuals, have filed an Amendment No. 1 to their Schedule 13G for Hesai Group.
• The filing serves as an exit statement, confirming that the reporting persons have ceased to be beneficial owners of more than five percent of Hesai Group's outstanding Class B ordinary shares.
• As of September 30, 2025, Lightspeed China Partners III, L.P. beneficially owns 3,234,448 Class B ordinary shares, representing 2.1% of the class.
• Lightspeed China Partners Select I, L.P. beneficially owns 1,751,282 Class B ordinary shares, representing 1.1% of the class.
• Guangyi HS Holding Limited beneficially owns 171,795 Class B ordinary shares, representing 0.1% of the class.
• James Qun Mi, through his indirect ownership in Lightspeed China Partners III, L.P. and Lightspeed China Partners Select I, L.P., beneficially owns 2,492,865 Class B ordinary shares, representing 1.6% of the class.
• Aibao Chai, through indirect ownership in Guangyi HS Holding Limited, beneficially owns 85,897.5 Class B ordinary shares, representing 0.1% of the class.
• The percentages are based on a total of 156,142,211 ordinary shares (26,998,861 Class A and 129,143,350 Class B) issued and outstanding as of September 30, 2025.

Sentiment

Score: 3

Explanation: The sentiment is moderately negative as a significant institutional investor group has reduced its stake below the 5% threshold, signaling a potential decrease in institutional support or confidence in Hesai Group.

Negatives

• A significant institutional investor group, Lightspeed China Partners and its affiliates, has reduced its stake in Hesai Group below the 5% beneficial ownership threshold, signaling a potential decrease in institutional support or confidence.
• The exit filing indicates a divestment or reduction in exposure by a notable early-stage investor, which could be interpreted negatively by the market.

Risks

• Reduced institutional investor interest: The exit of Lightspeed China Partners as a significant beneficial owner could lead to a perception of decreased institutional confidence in Hesai Group's future prospects.
• Potential for increased selling pressure: While the filing indicates a past event, the public disclosure of a major investor reducing its stake might prompt other investors to re-evaluate their positions, potentially leading to further selling pressure on the stock.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding Hesai Group's operational or financial performance.

Industry Context

The reduction in stake by a venture capital firm like Lightspeed China Partners could reflect a portfolio rebalancing strategy, a realization of investment gains, or a shift in investment focus within the broader technology or automotive LiDAR industry. It does not inherently provide insights into Hesai Group's competitive position or industry trends, but rather reflects an investor's specific decision.

Stakeholder Impact

• Shareholders: May interpret the reduction in stake by a prominent investor as a negative signal, potentially impacting investor sentiment and share price.
• Company Management: Could face questions regarding the reasons for the investor's reduced stake and its implications for future capital raising or strategic partnerships.

Key Dates

Recommendation

The exit of a significant institutional investor group, Lightspeed China Partners, from its major beneficial ownership position in Hesai Group is a notable negative signal. While the specific reasons for their divestment are not disclosed, such a move by a prominent investor often indicates a re-evaluation of the company's prospects or a strategic shift away from the investment. This could lead to decreased investor confidence and potential downward pressure on the stock price. A seasoned investor would likely view this as a cautionary sign, suggesting a 'sell' or 'reduce' position, especially if no other strong positive catalysts are present.

Keywords

Hesai Group, Lightspeed China Partners, Schedule 13G, Beneficial Ownership, Class B ordinary shares, Institutional Investor, Exit Filing, Shareholding, SEC Filing