Seres Forecasts Massive H1 Loss as Soaring Material Costs Outpace Aito Sales Growth

[Company Financial Report] Seres forecasts that its attributable net profit for the first half of 2026 will record a loss of RMB 1.5 billion to RMB 1.8 billion, swinging from profit to loss year-over-year.

Core Developments: Aito Sales Remain Steady Amid Collapsing Profits

Aito delivered 160,800 vehicles in the first half, up 5.6% year-over-year, yet its attributable net profit is expected to post a loss of RMB 1.05 billion to RMB 1.3 billion. The second quarter alone saw a staggering loss of RMB 19 billion to RMB 21.5 billion, primarily driven by soaring raw material prices and asset impairment charges.

Key Metrics: Soaring Costs Erode Gross Margins

The unit price of storage chips surged to nearly RMB 100 (from RMB 20), while lithium carbonate rose to RMB 180,000 per ton (from RMB 80,000), increasing per-vehicle costs by RMB 15,000–20,000. Of the RMB 754 million net profit reported in Q1, RMB 628 million came from government subsidies, leaving only RMB 103 million after excluding non-recurring gains.

Strategic Foundation: High Subsidy Model Fails to Withstand Cyclical Pressures

Despite the Aito M9 surpassing 10,000 units sold in a single month, the entire industry remains under pressure—JAC Motors and GAC Group also reported significant losses during the same period, highlighting that the profitability model for smart electric vehicles remains fragile.