Seres Group Co., Ltd. (SERES, HKEX: 09927) expects to post a consolidated net loss attributable to shareholders of RMB1.50 billion–1.80 billion for the six months ended 30 June 2026, according to preliminary unaudited figures released by the company. The guidance marks a sharp reversal from the prior-year period when the group reported a net profit of RMB2.94 billion.

The anticipated setback is driven mainly by subsidiary Seres Auto Co., Ltd. (“AITO Auto”), which is projected to incur a first-half net loss attributable to shareholders of RMB1.05 billion–1.30 billion. After stripping out non-recurring items, the group’s loss could widen to RMB2.20 billion–2.50 billion, with AITO Auto accounting for RMB1.70 billion–1.95 billion of that amount.

Management attributes the downturn to surging costs for key raw materials—specifically memory chips, industrial metals and lithium carbonate—which have inflated production expenses. In addition, the company booked asset value adjustments related to technology iterations and vehicle model upgrades, further pressuring profitability. These factors contributed to AITO Auto swinging to a second-quarter net loss of RMB1.90 billion–2.15 billion, pushing the consolidated half-year result into negative territory.

For context, in the first half of 2025, Seres Group generated total profit of RMB3.73 billion, including net profit attributable to shareholders of RMB2.94 billion and core net profit of RMB2.47 billion, translating into earnings per share of RMB1.87.

Despite the projected loss, the board highlighted the group’s “ample cash reserves” and “robust asset-liability structure,” asserting sufficient capacity to support ongoing operations, R&D initiatives and strategic investments. The interim results remain subject to review and will be formally disclosed in the company’s 2026 interim report.