Seres Group Co., Ltd. (SERES) reported a sharp swing to loss for the six months ended 30 June 2026 as model transitions, higher battery and chip costs and asset impairments weighed on performance.

• Revenue declined 7.9% year-on-year (YoY) to RMB 57.42 billion, reflecting a second-quarter production shift to new vehicle models and delayed scale effects.

• Gross profit fell 24.3% to RMB 12.52 billion; gross margin slipped 4.7 percentage points to 21.8%.

• The Group posted a loss before tax of RMB 2.35 billion versus a RMB 3.72 billion profit a year earlier. Net loss reached RMB 2.19 billion, with loss attributable to shareholders at RMB 1.72 billion (H1 2025 profit: RMB 2.94 billion). Basic and diluted EPS dropped to –RMB 0.99 from RMB 1.87.

Operating Metrics and Costs • NEV sales climbed 3.87% YoY to 178,800 units; Seres Auto contributed 160,800 units (+5.6% YoY). • R&D spending increased 27.4% to RMB 3.73 billion as the company advanced 800 V platforms, AI-enabled R&D tools and safety-redundant E/E architecture. • Selling & distribution expenses eased 5.3% to RMB 8.47 billion; administrative expenses were broadly flat at RMB 1.96 billion. • Other gains and losses swung to a RMB 2.31 billion deficit, driven mainly by RMB 1.75 billion of intangible-asset impairments tied to technology upgrades.

Balance Sheet and Liquidity • Total assets shrank 10.8% from end-2025 to RMB 128.35 billion; equity attributable to owners slipped 8.4% to RMB 37.47 billion. • Cash reserves—including bank balances, time deposits, pledged deposits and short-term investments—exceeded RMB 73.15 billion, representing 57.0% of total assets. Interest-bearing liabilities were modest at 3.2% of total assets, with only RMB 398 million due within 12 months. • Gearing ratio improved to 68.33% (end-2025: 70.91%), and debt-to-equity fell to 2.16 from 2.44.

Capital Deployment • First-half capital expenditure totalled RMB 4.50 billion, mainly for capacity and technology investments. • SERES repurchased 4.17 million A shares for RMB 327.01 million between April and June; all repurchased shares are slated for cancellation. • Cash dividends of RMB 1.39 billion were distributed during the period; no interim dividend was declared.

Strategic Investments • The Group’s two largest holdings were Longsheng New Energy (carrying value RMB 8.52 billion, 6.63% of total assets) and Yinwang Intelligent Technology (RMB 11.51 billion, 8.97% of assets).

Post-Balance Sheet Event • In July 2026 SERES diluted its stake in Chongqing Saidou Technology following a RMB 6.67 billion capital injection by external investors, leading to deconsolidation of Saidou Technology from group accounts; remaining interest will be equity-accounted.

Outlook Management highlighted operational resilience supported by robust liquidity and low leverage, but noted persistent raw-material inflation and intensified industry competition as ongoing challenges while new AITO models ramp up production.