SERES (09927) has released its interim results for the six months ended June 30, 2026, recording revenue of RMB 57.42 billion, a year-on-year decrease of 7.9%. The group posted a loss attributable to owners of the company of RMB 1.72 billion for the period, compared with a profit of RMB 2.94 billion in the same period last year, with a basic loss per share of RMB 0.99.
Despite short-term earnings pressure, the company's operational resilience remains intact. In the first half of 2026, amid rising upstream raw material prices, SERES adhered to its "five-high" standards—high safety, high reliability, high performance, high quality, and high value—in manufacturing premium vehicles, opting not to transfer costs by lowering component quality standards. This commitment to market-recognized high-end supply chain standards placed temporary pressure on operating profit during the period. The company's gross margin stood at 21.8%, down 4.7 percentage points year-on-year.
Meanwhile, as industrial transformation deepens, automotive technology innovation is entering a new phase of multi-path parallel breakthroughs, with L3 autonomous driving representing a necessary step for the large-scale commercialization of passenger vehicle self-driving technology. Against this backdrop, the company recognized impairment losses on certain existing assets with limited adaptability. These two factors combined squeezed profitability, resulting in the loss attributable to owners of RMB 1.72 billion for the reporting period.
Where challenges persist, underlying strength endures. In the second quarter of 2026, SERES' inventory turnover days were approximately 7.5 days, significantly below the automotive industry average, underscoring the operational efficiency advantages derived from its "production-on-demand" model combined with smart manufacturing. As of the reporting period end, the company's cash reserves exceeded RMB 73.15 billion, representing 57.0% of total assets, while interest-bearing debt accounted for only 3.2% of total assets—all in the form of borrowings, with only RMB 398 million due within one year. The company maintains a healthy financial structure with ample cash reserves and low debt pressure, providing strong resilience against risks and a solid foundation for sustainable development.
Additionally, property, plant, and equipment totaled RMB 15.69 billion, accounting for approximately 12.2% of total assets, with a turnover rate of approximately 3.6 times. This high asset operational efficiency reduces operating leverage risk while allowing greater resource allocation toward R&D and core business activities, offering stronger financial flexibility amid intensifying industry competition.
Stable operations and a healthy financial structure provide the foundation for increased technology investment and the commercialization of technological achievements. In the first half of 2026, SERES leveraged its unified platform-based technology architecture to achieve new breakthroughs across multiple technical domains, including foundational architecture, core systems, experience innovation, and AI and digital intelligence applications.
In foundational architecture, the company established a multi-dimensional redundant electronic and electrical architecture featuring a "global brain plus backup cerebellum" design. Through central computing and regional control coordination, this enables full-domain computing resource scheduling, flexible function orchestration, and full-scenario safety redundancy, supporting continuous vehicle lifecycle evolution while providing a homogeneous technology foundation for expansion into cutting-edge technology areas.
In core systems, the company achieved breakthroughs in 800V high-voltage platform technology across both range-extended and pure electric architectures, mass-producing 2.0T high-power range extenders and high-performance triple motors. Combined with an intelligent chassis comprising steer-by-wire, rear-wheel steering, and fully active suspension, these deliver exceptional power output and driving dynamics. On the body side, the company applied multiple new materials including 2200MPa hot-formed steel, 7-series aluminum alloy crash beams, and semi-solid magnesium alloy instrument panel cross members (CCB), while establishing a five-layer, 22-fold battery safety protection system, further enhancing vehicle lightweighting and safety performance.
In experience innovation, the company launched the industry's first holographic spatial perception network, enabling full-dimensional in-cabin spatial awareness. This is complemented by zero-gravity seats 3.0, surround privacy dimming glass, flat-rotating seats, and an in-vehicle full-active oxygen generation system, supporting flexible cabin space scenario switching and delivering a more comfortable and healthier in-cabin experience for users.
Simultaneously, the company is accelerating the engineering application of AI technology, leveraging big data to assist forward design, and refining automated testing closed loops to continuously enhance R&D efficiency and delivery quality. Its independently developed R&D digital intelligence platform improves R&D efficiency by more than 30%. Remote calibration technology combined with AI algorithms improves calibration data quality by over 5% while boosting calibration efficiency by more than 50%.
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