The LiDAR sector continued its strong momentum in the first half of 2026, with robust industry tailwinds. Despite a weaker overall vehicle consumption market, the penetration of intelligent driving features kept climbing, and an increasing number of models are being equipped with multiple LiDAR units. Consequently, all three Hong Kong-listed companies in the sector reported substantial growth in shipment volumes.

With Hesai establishing a clear benchmark for profitability, market attention has shifted to the contest for second place. The narrowing gap in revenue and net losses between RoboSense and SEYOND during the period has ignited debate over whether SEYOND has a genuine chance to overtake its rival. However, a closer look at their financial reports reveals that the convergence in top-line and bottom-line figures is superficial. Significant disparities remain in product pricing, gross margins, customer mix, the development of second growth curves, and R&D investment intensity.

Chasing Revenue, Closing Losses, but Still Constrained by Gross Margins

On the surface, the catch-up appears tangible. In H1 2026, RoboSense generated revenue of RMB 1.02 billion and reported a net loss of RMB 160 million. SEYOND (HK: 02665) achieved revenue of approximately RMB 940 million, a sharp 127.9% year-on-year increase, with a net loss of around RMB 170 million for the period. A gap of less than RMB 100 million in revenue and nearly identical losses means the two are statistically close, but these headline figures only tell part of the story. A deeper look into the business quality behind the numbers is essential.

A core contradiction lies in unit pricing and gross margin, which is pivotal to understanding whether SEYOND can truly close the gap. A higher unit price does not equate to stronger profitability; in fact, SEYOND's situation is the opposite, struggling with a high-price, low-margin model. Based on calculations from shipment and revenue data (an estimate, not official company disclosure), the average unit price for comprehensive LiDAR in H1 2026 was approximately RMB 1,356 per unit for Hesai, RMB 1,332 for RoboSense, but as high as RMB 2,017 for SEYOND. While SEYOND has significantly reduced its price from the roughly RMB 3,200 level seen in 2025, it remains notably higher than the pricing range of its competitors.

This higher price point, however, has not translated into greater profitability. SEYOND's overall gross margin for H1 2026 was just 11.2%, the lowest among its peers. The company does not separately disclose gross margins for its ADAS and robotics segments, but the low overall figure implies that neither business is likely generating healthy margins. The coexistence of high prices and low margins points to weaknesses in cost control, supply chain management, and manufacturing efficiency, essentially selling products at a premium without making money.

A deeper look at the price structure within these two challengers reveals a stark divergence. Assuming RoboSense's robotics business accounts for 45% of its product revenue, its estimated average price for robotics LiDAR is around RMB 1,520, while its ADAS LiDAR is estimated at only RMB 1,200. This creates a critical buffer for RoboSense. As intense competition in the automotive sector drives down ADAS prices and pressures margins, the robotics segment, with its less fierce competition and higher customer price tolerance, offers a crucial profit cushion. Not only is shipment volume exploding, but it also commands better per-unit pricing, helping to offset the profitability pressure from the automotive business.

In contrast, SEYOND's high-price strategy creates obstacles on both fronts. In the automotive market, its ADAS unit price is estimated at a steep RMB 1,888, far exceeding RoboSense's RMB 1,207, which significantly raises the barrier for OEM design wins and mass production scale-up. In the robotics sector, despite an estimated unit price of RMB 3,578, SEYOND's business is still nascent, with only 35,000 units shipped in H1. The scale is too small, and this premium pricing strategy, without an established customer base, further hinders its ability to penetrate robotics customers and replicate RoboSense's success in this area. In essence, SEYOND lacks the same margin-protecting robotics buffer to counter automotive price wars, while its uniformly high prices create customer acquisition headwinds in both sectors. This structural weakness remains a significant hurdle to any potential overtaking of RoboSense, even as on-paper revenue and losses converge.

Evolving Customer Dynamics: SEYOND Reduces Dependency but Concentration Risk Persists

The customer structure is where SEYOND has seen the most change in recent years. At the time of its listing, a major market concern was its heavy reliance on NIO, which at its peak contributed over 91.6% of revenue. By H1 2026, revenue from its core customer A (NIO) has dropped to 78.2%. While still highly concentrated, this is a downward trend, with new customers like GAC Aion and Trumpchi already in mass production. Given the high switching costs and long validation cycles for LiDAR suppliers in the automotive sector, once integrated, supplier relationships have significant stickiness. Each new mass-production customer reinforces the company's customer barrier. This naturally leads to market speculation about whether the past product quality concerns surrounding RoboSense could create a window of opportunity for SEYOND to win over design contracts.

Second Growth Curve Divergence: RoboSense Has a Pillar, SEYOND Still Nurturing

The disparity is even more apparent when examining their second and third growth curves, specifically the robotics business and physical AI initiatives, which are key to their long-term potential. RoboSense has transformed its robotics business into a concrete pillar, shipping 283,000 units of robotics LiDAR in H1 2026, even surpassing Hesai. This segment now contributes close to half of its product revenue, and with strong segment margins, it serves as a vital hedge against pressures from the automotive business. RoboSense has also expanded its portfolio to include spatial cameras, tactile sensors, and joint modules as part of its broader physical AI strategy.

SEYOND's second growth curve, however, is still in its infancy. With only 35,000 robotics LiDAR units shipped in H1 2026, its volume is dwarfed by both RoboSense and Hesai (which shipped 261,000 units). While its competitors are already investing in physical AI as a third growth curve, SEYOND is still working to scale up its robotics second curve, creating a situation where it perpetually appears a step behind.

Analyzing Loss Reduction: SEYOND Cuts Costs, Raising Long-Term Concerns

This raises a key question: How has SEYOND managed to dramatically narrow its losses despite such low gross margins? The answer lies in cost control. In H1 2026, SEYOND's R&D expense ratio was only 15.6%, compared to RoboSense's 34.0% and Hesai's 28.3%. Its selling expense ratio of 5.5% was also lower than its competitors. This indicates that SEYOND's loss reduction is largely built on restrained R&D spending, which raises questions about sustainability. The LiDAR sector is characterized by rapid technological iteration, with intense competition in new technologies like SPAD and solid-state LiDAR. Hesai and RoboSense are ramping up R&D to secure next-generation products, robotics, and physical AI. SEYOND's comparatively lower investment intensity may improve its income statement in the short term, but it risks sacrificing its long-term potential for product iteration and new business development.

A glance at cash reserves reveals further disparity. Hesai holds a commanding RMB 7.05 billion, RoboSense has RMB 2.06 billion, and SEYOND has only approximately RMB 760 million in cash. This smaller buffer leaves SEYOND with less room to weather industry price wars or sustain large-scale R&D investment.

Conclusion

In summary, while SEYOND is demonstrating rapid revenue growth and significantly narrowed losses, bringing its on-paper figures closer to RoboSense, it still faces clear disadvantages in product pricing, gross margins, the scale of its robotics second curve, R&D intensity, and cash reserves. RoboSense, despite facing pressures from profit shortfalls and public opinion, has successfully proven its robotics second growth curve and boasts a rich pipeline of design wins, making a comprehensive overtake by SEYOND unlikely in the near term. However, risks and variables remain. If SEYOND can secure more design wins with new automakers, further reduce product costs, and see its gross margins recover, especially alongside a ramp-up in its robotics business, its pace of catching up could accelerate. The LiDAR industry is still in the middle of a scale-competition phase. Automaker orders, price wars, and technological breakthroughs can reshape the competitive landscape at any time. Hesai has proven a path to profitability, while RoboSense and SEYOND are both still on their own journeys. The final outcome of the race for second place will hinge on continuous validation through future design win conversions, cost optimization, and the timely delivery of new business opportunities.