SERES (09927.HK) saw its shares plummet 5.05% during intraday trading, extending losses amid disappointing operational updates and concerns over earnings sustainability.

The decline follows the company's recent disclosure of its May production and sales report, which showed new energy vehicle monthly sales totaling 33,476 units, representing a 16.27% year-over-year decrease. Sales of SERES-branded vehicles specifically fell 17.18% year-over-year to 30,187 units. Additionally, the company's first-quarter report revealed non-recurring adjusted net profit of only 103 million yuan, plunging 73.87% year-over-year, with market participants noting heavy reliance on government subsidies which accounted for approximately 83% of net profit in Q1.

The broader automobile manufacturers sector also showed weakness during the session, contributing to negative sentiment toward SERES shares as investors reacted to the combination of declining sales, substantially reduced profitability, and concerns about the quality of earnings.