AI Capital Bureau, Shi Tao Reporting, July 12

On the evening of July 12, Seres (Stock Code: 9927.HK) unveiled its 2026 semi-annual profit and loss forecast. Preliminary estimates from the company's finance department suggest that the group will incur a substantial net loss attributable to the parent company in the first half of 2026, representing a stark reversal from the profitability enjoyed during the same period in 2025. AITO, Seres' primary vehicle manufacturing subsidiary, has been identified as the main driver behind this performance downturn.

Key data from the forecast reveal that Seres anticipates a net loss attributable to shareholders of listed companies ranging from RMB 1.5 billion to RMB 1.8 billion for the January-June 2026 period, with a net loss after non-recurring items between RMB 2.2 billion and RMB 2.5 billion. This stands in sharp contrast to the same period in 2025, when the company posted a net profit attributable to the parent company of RMB 2.941 billion and a net profit after non-recurring items of RMB 2.474 billion. The shift from profitability to a significant loss underscores notable volatility in the company's operational fundamentals.

Delving into the core business units, Seres Automobile (AITO) emerges as the major contributor to the loss. The forecast discloses that AITO expects a net loss attributable to the parent company ranging from RMB 1.05 billion to RMB 1.3 billion in the first half of the year, with a net loss after non-recurring items between RMB 1.7 billion and RMB 1.95 billion. In the second quarter alone, the subsidiary's net loss attributable to the parent company is projected to reach RMB 1.9 billion to RMB 2.15 billion, nearing the upper limit of the overall loss range for the first half of the year, highlighting concentrated operational pressures in the second quarter.

The company has pinpointed two primary factors driving this significant downturn. Firstly, the continued escalation in the cost of essential upstream raw materials, such as memory chips, industrial metals, and lithium carbonate, crucial for vehicle production, has directly elevated manufacturing costs and squeezed profit margins in the vehicle business. Secondly, adhering to accounting prudence, the company has made provisions for impairments and adjusted the book value of existing assets that have become obsolete due to technological advancements and model upgrades. These combined factors have severely impacted profits, causing AITO to transition from profitability to a loss and dragging down the group's consolidated financial performance.

In response to widespread market concerns regarding cash flow and sustained operational risks, Seres has projected a stable outlook in its announcement. The company asserts that it currently maintains ample cash reserves and a robust overall asset-liability structure. Its existing financial resources are sufficient to support ongoing vehicle technology research and development, business expansion, and medium- to long-term strategic investments, thereby providing a solid foundation for the company's risk resilience and sustained operations.

Simultaneously, the company has issued a clear risk warning, stating that the current performance forecast is based solely on preliminary internal calculations and has not yet been audited by independent auditors. There are no significant uncertainties that could materially affect the accuracy of the forecast. Comprehensive and authoritative financial data will be presented in the formal 2026 semi-annual report. The company advises investors to maintain a rational perspective on the periodic performance fluctuations of new energy vehicle companies, fully consider industry cycles and business risks, and exercise caution when making investment decisions.

AI Capital Bureau believes that Seres' projected loss also mirrors the common challenges faced by the current new energy vehicle industry: volatility in upstream raw material prices and the pressure of asset impairments due to rapid model iterations. The secondary market will closely monitor Seres' cost control measures and the launch schedule of new models in the second half of the year to evaluate the company's profit recovery cycle and medium- to long-term growth potential.

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