Chinese automaker Seres expects to post a net loss for the first half of 2026, reversing from a profit a year earlier as higher production costs and asset-related adjustments weighed on financial performance.
In a filing with the Shanghai Stock Exchange on Sunday, the company said it expects a net loss attributable to shareholders of between 1.5 billion yuan ($220 million) and 1.8 billion yuan for the January-June period, compared with a net profit of 2.94 billion yuan in the first half of 2025.
Net loss excluding non-recurring items is projected at between 2.2 billion yuan and 2.5 billion yuan, compared with a profit of 2.47 billion yuan a year earlier.
Rising Costs Pressure Earnings
Seres said production costs increased as prices for key raw materials, including memory chips, industrial metals and lithium carbonate, moved higher during the period.
The company also adjusted the book value of certain assets after determining that some had become less suitable because of technology upgrades and new vehicle development.
According to the filing, these factors contributed to weaker financial performance at Aito, the premium new energy vehicle (NEV) brand jointly developed by Seres and Huawei.
Aito Expected to Report Losses
Seres said Aito is expected to record a net loss attributable to shareholders of between 1.05 billion yuan and 1.3 billion yuan in the first half of 2026.
For the second quarter alone, the subsidiary is expected to post a loss of between 1.9 billion yuan and 2.15 billion yuan.
Seres reported a net profit attributable to shareholders of 754 million yuan in the first quarter, implying a second-quarter loss of roughly 2.25 billion yuan to 2.55 billion yuan for the parent company.
Vehicle Sales Mixed in First Half
The automaker sold 196,580 vehicles during the first six months of the year, down about 1% from the same period last year.
Sales of new energy vehicles reached 178,777 units, representing a 3.9% year-on-year increase.
June, however, saw weaker demand. Total group vehicle sales declined 28.1% year-on-year to 36,194 units, while NEV deliveries fell 26.9% to 33,669 units.
Company Highlights Financial Position
Despite the expected loss, Seres said it continues to maintain a solid balance sheet and sufficient cash reserves, supporting its ongoing operations and financial resilience.
The company has also been broadening its business portfolio beyond the Aito brand.
Last month, Seres-backed Saidou Technology introduced the Aiva automotive brand, with its first production model, the ME7, scheduled to debut later this year.
Following an earlier restructuring, Saidou Technology operates outside Seres’ consolidated financial statements. Chongqing state-backed Shaci Zhiyuan became the company’s largest shareholder, while CATL also invested in the business.
The restructuring is intended to reduce the impact of loss-making operations on Seres’ financial results while diversifying the group’s business beyond its partnership with Huawei.
