Seres Group warns of RMB1.8 billion interim loss after profit

Seres Group expects an interim net loss of as much as RMB1.8 billion, swinging from a RMB2.94 billion profit a year earlier.

"The significant increases in production costs, especially for major raw materials such as memory chips, industrial metals, and lithium carbonate, have pressured our margins," Chairman Zhang Xinghai said in a stock exchange filing.

The company's core subsidiary, AITO Auto, is estimated to record a net loss of RMB1.05 billion to RMB1.3 billion for the first half, with the second quarter alone contributing a loss of RMB1.9 billion to RMB2.15 billion. After stripping out non-recurring items, the group's net loss attributable to shareholders is projected at RMB2.2 billion to RMB2.5 billion.

The profit warning sent shares of Seres down 9.6% to HKD43.2 on Friday, their lowest level in months. The company cited asset value adjustments from rapid technology iterations and vehicle model upgrades as additional factors behind the reversal.

The Shenzhen-listed EV maker, which also trades in Hong Kong via depositary receipts, reported strong cash reserves and a robust asset-liability structure, according to the filing. The company said there are no material uncertainties that would impact the accuracy of the preliminary estimates.

The figures are unaudited and based on PRC Accounting Standards. Final numbers will be disclosed in the 2026 Interim Report.

The swing from profit to a major loss signals that Seres faces mounting cost pressures amid China's intensifying EV price war. Investors will watch the interim report for updated margins and any strategic response to the raw material cost headwinds.

This article is for informational purposes only and does not constitute investment advice.