SERES reported a net loss attributable to shareholders of 1.717 billion yuan for the first half of the year, a sharp reversal from the nearly 3 billion yuan profit recorded in the same period last year, signaling a significant deterioration in profitability.
According to the company's 2026 semi-annual report summary, revenue fell 7.87% year-on-year to 57.493 billion yuan. The company attributed the loss to a combination of factors: its flagship models being in a product iteration transition period, a temporary surge in prices for core components such as batteries and chips, and related asset impairment provisions.
The weaker performance has also strained the company's balance sheet. As of the end of the reporting period, SERES' total assets stood at 128.354 billion yuan, down 10.81% from the end of the previous year. Net assets attributable to shareholders contracted to 37.475 billion yuan, with the weighted average return on equity falling to -4.38%, a decrease of 20.25 percentage points compared to the same period last year.
Model Transition Weighs on Sales Volume
The core logic behind the revenue decline lies in a product cycle mismatch. The report shows that the main models were in a transition phase during the second quarter, preventing production capacity and sales scale effects from being fully realized. This directly dragged current-period revenue down 7.87% year-on-year to 57.493 billion yuan.
At the same time, shifts in the product sales mix further compressed profit margins. Total profit swung from a profit of 3.725 billion yuan in the same period last year to a loss of 2.353 billion yuan, a year-on-year decrease of 163.18%.
Parts Price Hikes and Asset Write-Downs Create Dual Drag
Cost-side pressures emerged prominently during this period. Prices for core new energy vehicle components, including batteries and chips, rose temporarily, directly elevating manufacturing costs. Combined with the under-realized sales scale effects, this dual impact squeezed gross margins.
Additionally, asset impairment provisions further eroded profits. The report explicitly attributes the decline in profitability to these multiple factors, with the impairment charge singled out as a key contributor. This reflects the company's reassessment of existing asset values during the product transition period.
Cash Flow Turns Sharply Negative, Bill Payments Create Short-Term Strain
Cash flow conditions represent another notable change in this report. Net cash flow from operating activities in the first half was -12.376 billion yuan, compared to a positive 14.637 billion yuan in the same period last year, representing a year-on-year decrease of 185.73%.
The company offered two explanations for this shift: first, a reduction in vehicle sales collections, which aligns with the revenue decline; and second, the successive maturity and payment of previously issued bank acceptance bills, resulting in concentrated cash outflows. These two factors combined have placed significant short-term pressure on cash flow, and investors should monitor subsequent liquidity management.
From a shareholder structure perspective, the company's actual controller, Zhang Xinghai, holds approximately 22.99% of the company's A-shares through Chongqing Xiaokang Holdings Co., Ltd. Dongfeng Motor Group Co., Ltd. holds 18.79% as the second-largest shareholder. As of the end of the reporting period, the company had 251,128 shareholders in total, with no changes in the controlling shareholder or actual controller.
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