Huawei’s auto partner Sokon Group predicts widened net loss in H1 2022

Beijing (Gasgoo)- Chongqing Sokon Industry Group Stock Co., Ltd. (Sokon Group), the auto group owning the new energy vehicle brand SERES, expects a net loss in the first six months of 2022.

AITO M5; photo credit: AITO

According to the company’s financial preannouncement, its total revenue in the first half of the year should sum up to RMB12 billion-RMB12.6 billion ($1.78 billion-$1.87 billion), representing a 62.5%-70.63% hike over a year ago. 

At the same time, Sokon Group’s net loss attributable to shareholders is forecasted to stand at RMB1.6 billion-RMB1.76 billion ($237.2 million-$260.9 million). After non-recurring deductions, the automaker’s net loss is estimated at RMB1.61 billion-RMB1.75 billion ($238.66 million-$259.4 million).

In comparison, in the first half of 2021, Sokon Group’s net loss attributable to shareholders stood at RMB481.2 million ($71.33 million), while its net loss after non-recurring deductions amounted to RMB1.13 billion ($166.89 million). 

The group attributed the widened loss to the constant investment in SERES’ R&D of new energy vehicles and fixed asset investments. With more SERES vehicles going on sale, the cost of marketing and human labor also surged. 

With that being said, the company’s semi-annual gross margin of new energy vehicles also climbed up from a year ago.