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    Home»Electric Vehicles»Seres flags H1 loss on rising material costs, asset writedowns
    Electric Vehicles

    Seres flags H1 loss on rising material costs, asset writedowns

    kirklandc008@gmail.comBy kirklandc008@gmail.comJuly 12, 2026No Comments3 Mins Read
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    An Aito M9 on display at the Beijing Auto Show in April 2026.
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    An Aito M9 on display at the Beijing Auto Show in April 2026. Credit: CnEVPost

    • Seres expects a net loss of 1.5 billion yuan ($220 million) to 1.8 billion yuan for the first half of 2026, compared with a profit of 2.94 billion yuan a year earlier.
    • Rising raw material prices and impairment of existing assets weighed on results, with core subsidiary Aito swinging to a loss in the second quarter.

    Chinese automaker Seres (HKEX: 9927) said on Sunday that it expects a net loss attributable to shareholders of 1.5 billion yuan ($220 million) to 1.8 billion yuan for the first half of 2026, compared with a profit of 2.94 billion yuan a year earlier.

    The Huawei carmaking partner expects a net loss excluding non-recurring items of 2.2 billion yuan to 2.5 billion yuan for the first half, compared with a profit of 2.47 billion yuan a year earlier.

    In a filing to the Shanghai Stock Exchange, Seres said its production costs rose due to increases in the prices of major raw materials such as memory chips, industrial metals and lithium carbonate.

    At the same time, based on the principle of prudence, the company adjusted the book value of some existing assets whose adaptability has been limited by technological iteration and model upgrades.

    As a result of these factors, the performance of the company’s core subsidiary Aito fluctuated, swinging from profit to loss. The subsidiary operates the Aito brand jointly built by Seres and Huawei.

    According to the filing, Aito’s net loss attributable to shareholders is expected to be 1.9 billion yuan to 2.15 billion yuan for the second quarter, and 1.05 billion yuan to 1.3 billion yuan for the first half.

    Seres posted a net profit attributable to shareholders of 754 million yuan in the first quarter. Based on this, the company’s overall net loss attributable to shareholders for the second quarter was about 2.25 billion yuan to 2.55 billion yuan, swinging from profit to loss on a sequential basis.

    In terms of sales, the Seres Group’s cumulative sales for the first half were 196,580 vehicles, down about 1% year-on-year. Of these, cumulative NEV sales were 178,777 units, up 3.87% year-on-year.

    However, performance weakened notably in June. Group sales for the month were 36,194 vehicles, down 28.1% year-on-year, while NEV sales were 33,669 units, down 26.9% year-on-year.

    Seres Group Monthly Sales 2024-2026

    Month
    2024
    2025
    2026

    January
    41,397
    22,430
    45,948

    February
    35,211
    21,329
    15,013

    March
    37,530
    24,609
    27,484

    April
    33,864
    35,741
    35,461

    May
    38,629
    44,152
    36,480

    June
    49,169
    50,342
    36,194

    July
    46,788
    47,943

    August
    42,255
    45,818

    September
    44,574
    48,286

    October
    43,471
    54,384

    November
    42,625
    58,113

    December
    41,495
    63,713

    Seres Group monthly sales



    2024



    2025



    2026

    Seres said the company currently maintains ample cash reserves and a sound balance-sheet structure, giving it strong going-concern capability and risk resilience.

    Last month, Seres-backed Saidou Technology unveiled a new AI (artificial intelligence) car brand, Aiva, with its first mass-produced model, the ME7, expected to debut within 2026.

    Through an earlier asset restructuring, Seres has already carved out the business from the listed company’s consolidated statements. Chongqing state-backed Shaci Zhiyuan became Saidou’s largest shareholder, and CATL (HKEX: 3750) also participated in the investment.

    The move is seen as helping to ease the drag of loss-making operations on the listed company, while reducing Seres’s excessive reliance on the Aito brand it developed with Huawei.

    Seres showed off a humanoid robot called Xiaosai, saying more embodied intelligence products are in the pipeline.

    ($1 = 6.7770 yuan)

    asset Costs flags loss material rising Seres writedowns
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