Seres swings to loss as costs rise and EV sales slump
Raw material costs push H1 into loss Seres forecast a first-half loss of 1.5–1.8 billion yuan, reversing last year's profit. Rising prices for memory chips, industrial metals and lithium carbonate raised production costs, while asset write-downs hit its AITO unit. Higher costs and weaker profitability weigh on the stock.
This is the first hard signal of profitability turning negative and explains the cost pressure behind it.
Weak domestic demand drags sector and Seres Passenger car retail sales fell 15% year-on-year and new energy vehicle sales dropped 9% in early July. Seres shares fell 6.89% as investors worried about soft domestic demand. A weak demand backdrop makes it harder for Seres to sell cars at profitable prices.
It shows the demand environment that directly pressures Seres' sales and stock price.
Insider buying and R&D boost confidence Directors and senior management planned to buy 119–154 million yuan of shares, signaling belief in the company. First-half revenue was 57.5 billion yuan and R&D spending rose 34.8% to 7 billion yuan, with AITO deliveries up 10.2%. These support the stock by showing commitment and investment in future models.
It provides a positive counterweight: insider buying and higher R&D show confidence despite the loss.
September sales plunge deepens demand worries Seres' September new energy vehicle sales fell 34.48% year-on-year to 29,271 units, with cumulative sales down 15.79%. The steep decline signals that end-customer demand remains weak, making it harder for the company to return to profit and pressuring the stock.
It is the latest hard data showing the sales downturn is worsening, a key driver of the stock's weak outlook.