Financial analysis indicates the company is expected to report a net loss attributable to shareholders for the first half of the year.

Seres Group Co.,Ltd. (SHSE: 601127) recently issued an announcement stating that, based on preliminary calculations by its finance department, it anticipates a net profit attributable to the listed company's shareholders in the range of -1.8 billion to -1.5 billion yuan for the first half of 2026, representing a shift into loss compared to the same period last year. Within this, its subsidiary SERES automobile unit is expected to report a net loss attributable to shareholders between -1.3 billion and -1.05 billion yuan for the first half of 2026.

The group also forecasts a net profit attributable to shareholders after deducting non-recurring gains and losses in the range of -2.5 billion to -2.2 billion yuan for the first half of 2026. For its automobile subsidiary, this figure is projected to be between -1.95 billion and -1.7 billion yuan.

In contrast, for the first half of 2025, Seres Group reported a total profit of 3.725 billion yuan, a net profit attributable to shareholders of 2.941 billion yuan, and a net profit attributable to shareholders after deducting non-recurring items of 2.474 billion yuan.

The company attributed the significant performance change in its announcement primarily to factors such as rising costs of key raw materials including memory chips, industrial metals, and lithium carbonate, which increased production expenses. Furthermore, adhering to the principle of prudence and to further consolidate overall asset quality, the company adjusted the book value of certain existing assets with limited adaptability due to technological iteration and model updates, based on expectations of their future returns. Influenced by these factors, the core subsidiary's performance experienced volatility, turning from profit to loss, with its second-quarter net profit attributable to shareholders estimated between -2.15 billion and -1.9 billion yuan. Consequently, the company expects its consolidated net profit attributable to shareholders for the current period to be negative.

The production and sales data for June released by Seres Group also presented a challenging picture.

Figures show the group's sales in June this year were 36,194 vehicles, a year-on-year decrease of 28.10%. Cumulative sales for the first half of the year reached 196,600 vehicles, down 1.02% compared to the same period last year. Within this, new energy vehicle sales in June were 33,669 units, a decline of 26.94% year-on-year, while sales for the SERES automobile brand specifically in June were 30,331 vehicles, falling 30.19% compared to the previous year.

Following the disappointing earnings pre-announcement, Seres Group's A-share price opened lower and quickly declined, hitting the daily limit-down to 53.91 yuan. Its current market capitalization stands at approximately 91.937 billion yuan, having fallen below the 100 billion yuan threshold.