Seres projects H1 2026 net loss of up to 1.8 billion yuan
Chinese automaker Seres anticipates a net loss attributable to parent company shareholders between 1.5 and 1.8 billion yuan for the first half of 2026, a shift from profitability driven by rising material costs and a subsidiary's poor performance.
Chinese automotive company Seres has issued a preliminary earnings forecast for the first half of 2026, predicting a net loss attributable to parent company shareholders in the range of 1.5 to 1.8 billion yuan. This marks a significant decline from a profitable position in the same period last year.
The company also expects its net profit excluding non-recurring items to turn negative, forecasting a loss between 2.2 to 2.5 billion yuan. Several factors contribute to the projected downturn. Increased production costs due to rising prices for key raw materials such as lithium carbonate, AI chips, and industrial metals are cited as a primary reason for the squeezed profit margins.
Furthermore, Seres has undertaken asset value adjustments based on a prudent approach. This involves revaluing certain existing assets that have limited adaptability due to technological advancements and model upgrades, aiming to enhance the overall quality of the company's assets long-term.
The core reason for the consolidated loss, however, stems from its subsidiary AITO Automobile. AITO's net profit is expected to have shifted to a loss in the second quarter of 2026, with an estimated loss of 1.9 to 2.15 billion yuan for the period. This subsidiary's performance is the main driver behind Seres' negative consolidated net profit forecast. The company notes that these figures are preliminary calculations and have not yet been audited.