Seres Group Co., Ltd. (SERES) released its unaudited results for the three months ended 31 March 2026. The figures reflect robust top-line growth driven by new-energy vehicle (NEV) sales, offset by heavier research and development spending and a sharp contraction in operating cash flow. Key highlights follow:

Revenue and Profitability • Operating revenue rose 34.46% year on year to RMB 25.75 billion, supported by expanded NEV sales volumes. • Net profit attributable to shareholders edged up 0.89% to RMB 0.75 billion. • Excluding non-recurring gains of RMB 0.65 billion—largely government subsidies—adjusted net profit dropped 73.87% to RMB 0.10 billion, reflecting higher cost pressures. • R&D expenses climbed RMB 0.74 billion to RMB 1.79 billion, underlining continued investment in product development.

Cash Flow and Liquidity • Operating activities consumed RMB 20.95 billion in cash, a steep increase from the prior-year outflow of RMB 7.63 billion, as supplier settlements outpaced cash receipts from vehicle sales. • Cash and bank balances stood at RMB 63.85 billion at quarter-end, down from RMB 87.29 billion three months earlier. • Net cash used in investing activities reached RMB 4.35 billion, driven by RMB 31.96 billion of new investments that outweighed redemptions. • Financing cash flow turned negative at RMB 0.62 billion after modest borrowings and higher debt repayments.

Balance Sheet Movements • Total assets contracted 14.01% quarter-to-date to RMB 123.75 billion, chiefly because of lower cash balances and a reduction in accounts payable. • Owners’ equity attributable to shareholders rose 0.96% to RMB 41.31 billion, supported by retained earnings. • Accounts payable nearly halved to RMB 21.13 billion, while contract liabilities fell to RMB 5.67 billion, indicating settlement of prior obligations and potential order delivery.

Earnings Per Share and Returns • Basic and diluted earnings per share were RMB 0.43, down from RMB 0.50 a year earlier. • Return on weighted average net assets declined to 1.83%, from 5.90% in Q1 2025.

Capital Structure • The company’s registered share capital remained RMB 1.74 billion. The largest shareholder, Chongqing Sokon Holding Company Limited, held 20.98% of shares outstanding; Dongfeng Motor Corporation followed with 18.79%.

Outlook Remarks Management attributed first-quarter revenue growth to continued momentum in NEV sales, while acknowledging that intensified R&D spending weighed on underlying profitability. No forward-looking financial guidance was provided in the report.