Seres posts H1 loss as component costs and impairment weigh on earnings
Seres swung to a RMB 1.72 billion attributable loss in the first half as higher battery and chip costs collided with a RMB 1.75 billion intangible-asset impairment.
- RMB -1.72bn
- RMB 57.49bn
- 178,777
- +132.2% YoY
What Happened
Seres said first-half revenue fell 7.87% to RMB 57.49 billion, while the company moved from a RMB 2.94 billion profit a year earlier to a RMB 1.72 billion loss attributable to shareholders.
The company pointed to a difficult cost backdrop. Battery-grade lithium carbonate prices rose 132.2% on an average-daily basis year on year, and automotive chips became more expensive as supply tightened. Seres said it kept its premium component standards rather than trading quality for cost relief.
A RMB 1.75 billion impairment on intangible assets added to the pressure. Gross margin slipped to 21.8%, down 4.7 percentage points, while research and development spending rose 27.4% to RMB 3.73 billion.
Vehicle sales were comparatively resilient: Seres delivered 196,580 vehicles in the half, including 178,777 NEVs, whose volume increased 3.87%. Operating cash flow was negative RMB 12.38 billion, although the company ended the period with more than RMB 73.15 billion in cash.
Why this matters
The result shows how a cost shock can hit a premium EV maker even while its NEV volume is still growing. Seres enters the second half with substantial cash, but weaker revenue and cash flow raise the execution stakes for its product transition.
Terms in This Story
- Impairment
- An accounting charge that reduces the recorded value of an asset when its expected economic benefit falls.
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