SCHEDULE: Xiaomi Reduces Hesai Group Stake Below 5%

Xiaomi Corporation and its affiliates 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

• Xiaomi Corporation and its affiliated entities, Shanghai Ziyue Enterprise Management Consulting Partnership (Limited Partnership), Hubei Xiaomi Changjiang Industrial Investment Fund Management Co., Ltd., and Fast Pace Limited, have ceased to be beneficial owners of more than five percent of Hesai Group's outstanding shares.
• This filing is an Amendment No. 1 to the original Schedule 13G filed on February 9, 2024, and serves as a final exit filing for each Reporting Person.
• As of September 16, 2025, Xiaomi Corporation beneficially owned 5,032,680 Class B ordinary shares, representing 3.22% of the class and 1.26% of the total outstanding voting power.
• Shanghai Ziyue Enterprise Management Consulting Partnership (Limited Partnership) beneficially owned 2,149,230 Class B ordinary shares, representing 1.38% of the class and 0.54% of the total outstanding voting power.
• Hubei Xiaomi Changjiang Industrial Investment Fund Management Co., Ltd. beneficially owned 2,149,230 Class B ordinary shares, representing 1.38% of the class and 0.54% of the total outstanding voting power.
• Fast Pace Limited beneficially owned 2,883,450 Class B ordinary shares, representing 1.85% of the class and 0.72% of the total outstanding voting power.
• Xiaomi Corporation's beneficial ownership includes shares held by Shanghai Ziyue (controlled by Xiaomi) and Fast Pace Limited (wholly owned by Xiaomi Corporation).

Sentiment

Score: 4

Explanation: The sentiment is moderately negative as a major strategic investor, Xiaomi Corporation, has significantly reduced its stake in Hesai Group, signaling a potential withdrawal of support or confidence. While not catastrophic, it removes a key institutional backing.

Negatives

• Xiaomi Corporation and its affiliates have reduced their beneficial ownership in Hesai Group below the 5% threshold, signaling a potential decrease in strategic interest or confidence from a major investor.

Risks

• The reduction of a significant investor's stake, such as Xiaomi's, could be interpreted by the market as a loss of confidence in Hesai Group's future prospects or a shift in strategic alignment, potentially impacting investor sentiment and share price.
• A decrease in a major strategic investor's involvement might reduce potential future collaborations or strategic advantages that Hesai Group could have leveraged.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding Hesai Group's future performance or strategic direction.

Industry Context

Xiaomi Corporation is a prominent global technology company with interests in various sectors, including smart devices and electric vehicles. Hesai Group is a leading provider of LiDAR solutions, a critical technology for autonomous driving and advanced robotics. Xiaomi's reduction of its stake in Hesai Group could reflect a recalibration of its investment portfolio, a shift in its strategic focus within the automotive or technology sectors, or a re-evaluation of Hesai's market position or growth trajectory. This move might be watched by other investors and competitors in the LiDAR and autonomous driving space as an indicator of broader market sentiment or strategic shifts among major tech players.

Stakeholder Impact

• Shareholders: May experience negative sentiment and potential downward pressure on share price due to the exit of a significant investor. This could lead to a re-evaluation of Hesai Group's investment attractiveness.
• Employees: No direct impact mentioned, but a significant investor exit could indirectly affect long-term strategic direction or resource allocation.
• Customers/Suppliers: No direct impact mentioned, but a change in major investor backing could subtly influence perceptions of stability or future innovation.

Key Dates

Recommendation

The reduction of a significant strategic investor's stake, such as Xiaomi's, below the 5% threshold is a notable event that typically signals a potential decrease in confidence or strategic alignment. While not an immediate 'sell' trigger without further negative news, it warrants a 'hold' recommendation with caution. Investors should monitor Hesai Group's performance and future strategic partnerships closely, as the absence of a major backer like Xiaomi could impact future growth prospects or market perception. A 'hold' allows for observation of how the market reacts and if other strategic investors step in, or if Hesai's fundamentals remain strong independently.

Keywords

Hesai Group, Xiaomi Corporation, Schedule 13G, Beneficial Ownership, Stake Reduction, LiDAR, Automotive Technology, Investment Exit, SEC Filing