Key Takeaways:
- Seres A-shares hit the 10% daily limit down on Monday.
- H-shares fell over 10% after the company warned of H1 net loss.
- The EV maker cited rising raw material costs and asset write-downs.
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Seres shares hit limit down on H1 loss warning of RMB 1.8B
Seres Group shares plunged 10% in Shanghai and over 10% in Hong Kong after the EV maker forecast a first-half net loss of up to RMB 1.8 billion ($270 million).
"The expected earnings decline was mainly driven by higher production costs from rising prices of key raw materials, including memory chips, industrial metals, and lithium carbonate," the company said in a stock exchange filing.
Seres expects a net loss attributable to shareholders of between RMB 1.5 billion and RMB 1.8 billion for the six months ended June 30, compared with a net profit of RMB 2.941 billion in the same period last year. The company also adjusted the carrying value of certain existing assets that had become less suitable due to technology upgrades and model replacements, it said.
The profit warning marks a sharp reversal for Seres, whose Aito brand had been one of China's fastest-growing EV marques. The company's core subsidiary, Aito, is expected to swing from profit to loss, dragging the consolidated results into negative territory. Final financial results will be disclosed in the company's interim report for the first half of 2026.
The earnings forecast is based on preliminary calculations and has not been audited by certified public accountants, the company said.
The selloff in Seres shares weighed on other Chinese EV stocks, with Li Auto falling 3.2% and Nio dropping 2.8% in Hong Kong trading, as investors reassessed the sector's cost outlook. The Hang Seng Index declined 1.1%, while the CSI 300 fell 0.8%.
The decline puts Seres shares at their lowest level since the company's H-share listing. Investors will watch the company's July delivery numbers, due in early August, for signs of whether demand can offset the mounting cost pressures from lithium carbonate and semiconductor prices.
This article is for informational purposes only and does not constitute investment advice.
