On August 26, an update on the Hong Kong Exchanges and Clearing (HKEX) website thrust Seyond back into the spotlight: the company is making its third attempt to go public.
Unlike Hesai Technology and RoboSense, which both listed smoothly, Seyond’s path to the market has been rocky. After an unsuccessful bid for a Nasdaq debut in 2023 and a lapsed HKEX filing earlier this year, the company is now pursuing a merger with a special purpose acquisition company (SPAC), seeking an indirect route to the capital market. Seyond is targeting a valuation of HKD 11.7 billion (USD 1.5 billion).
Seyond’s prospectus paints a mixed picture.
On the upside, data shows that its gross profit margin turned positive for the first time in the fourth quarter of 2023, reaching 5%. It improved further to 12.6% in the first quarter of 2025, generating USD 3.2 million in gross profit.
While returning to profitability marks a key milestone, Seyond’s performance is only catching up with the broader industry. Hesai Technology reported a 28% gross margin in 2024, and RoboSense nearly 20%. Seyond’s 12.6% margin merely aligns with the industry baseline.
The gap lies in its technology choices and cost structure.
Seyond focuses on 1,550-nanometer LiDAR (light detection and ranging) systems, which use indium gallium arsenide as a core material. This approach is two to three times more expensive than the 905-nm technology used by Hesai and RoboSense. Although the 1,550-nm design offers longer range and stronger resistance to interference, its higher cost has become a major burden amid intensifying price wars. LiDAR prices have fallen from RMB 20,000–30,000 (USD 2,800–4,200) in 2022 to below RMB 1,000 (USD 140) by 2025, leaving Seyond’s 1,550-nm products at a disadvantage based on price-performance ratio.
Heavy R&D and manufacturing expenses without corresponding sales have kept the company in the red. Between 2022 and the first quarter of 2025, Seyond accumulated more than USD 800 million in losses. Its annual losses widened from USD 188 million in 2022 to USD 219 million in 2023 and USD 398 million in 2024.
In contrast, Hesai has already turned profitable, posting a net profit of RMB 44.1 million (USD 6.2 million) in the second quarter of 2025.
Seyond’s reliance on a single client has long raised red flags among investors. As Nio’s primary LiDAR supplier, the automaker accounted for 88.7%, 90.6%, and 91.6% of Seyond’s total revenue between 2022–2024. Such dependence weakens bargaining power. Over the same period, the unit price of Seyond’s Falcon series (customized for Nio) dropped from USD 879 in 2022 to USD 704 in 2024.
In recent years, the company has sought to diversify, partnering with Hyperview, Zhito, and Pony.ai to integrate its LiDAR technology into commercial and logistics vehicles. However, contributions from these clients have yet to appear in financial disclosures.
In May, Seyond announced a new partnership with a leading Chinese automotive group, securing exclusive supplier status for multiple vehicle models under the group’s umbrella. Market observers speculate the client could be SAIC Motor or FAW Group. However, in the automotive sector, purchase orders typically take 12–18 months to materialize, meaning mass production and delivery may not begin until late next year.
Meanwhile, Seyond’s liquidity is under strain. As of March, it held only USD 24.3 million in cash and equivalents against USD 97.8 million in current liabilities, leaving just USD 6.5 million in net current assets.
From a market perspective, Seyond’s valuation appears reasonable. HKEX filings show that its SPAC merger is based on an RMB 10.9 billion (USD 1.5 billion) valuation, while Hesai’s market capitalization stands at roughly RMB 25 billion (USD 3.5 billion). In 2024, Seyond spent RMB 460 million (USD 64.4 million) on R&D, compared with Hesai’s RMB 850 million (USD 119 million). This gives Seyond a valuation-to-R&D ratio of 23.7, versus 29.4 for Hesai.
Given two failed listing attempts, Seyond’s urgency to complete a SPAC merger is unsurprising. LiDAR has evolved from a niche component into a standard safety feature, shifting competition from technological breakthroughs to scale and cost efficiency. Market leaders have cemented their positions, leaving latecomers like Seyond struggling to stay relevant in a maturing sector.
By market share, Seyond’s portion of the global passenger vehicle LiDAR market fell to 12.8% in 2024, well behind Hesai’s 20.3%, Huawei’s 19.1%, and RoboSense’s 16.7%. Together, these three firms control nearly 60% of the global market.
At its core, Seyond’s decline reflects a misalignment between its technology and market demand. Its 1,550-nm LiDAR is well suited for high-end advanced driver assistance systems (ADAS) or Level 4 autonomous driving applications. However, the mainstream market now prioritizes Level 2 or higher assisted driving systems that emphasize affordability and reliability. These are areas where 905-nm products typically excel.
Despite these challenges, the broader LiDAR market remains promising. According to the International Data Corporation (IDC), global smart vehicle penetration will reach 45% by 2025, with LiDAR adoption rising from 10% in 2023 to 35% in 2025. The global LiDAR market is projected to expand from USD 3 billion in 2023 to USD 10 billion in 2025, representing a compound annual growth rate of 77%.
Yet behind this growth lies an unforgiving price war. With unit prices plunging into the four-figure RMB range, profit margins across the industry are under severe pressure. As a result, LiDAR companies are pursuing new growth avenues, with robotics emerging as a promising frontier.
The robotics segment is expanding far faster than the passenger vehicle market. RoboSense shipped around 46,300 units of robotics LiDAR in the first half of 2025, up 400% year-on-year. Hesai delivered approximately 98,300 units, an increase of about 693%. Seyond, meanwhile, shipped only 5,000 units during the same period, despite securing orders from Zelos and Tongdy, well behind its competitors in scale.
Leading LiDAR manufacturers are now pursuing a two-pronged strategy. For Hesai, the advanced driver assistance systems (ADAS) segment remains the core business, contributing most of its revenue and gross profit. Meanwhile, the robotics segment, though smaller in scale, helps lift margins and enhance valuation potential.
In this environment, Seyond faces a difficult position. Its ADAS business is under intense competitive and pricing pressure, while its robotics offerings are still far from commercial maturity. Even with a SPAC listing, Seyond’s uphill battle is only beginning.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Song Wanxin for 36Kr.