Seres Group posts 68.14% YoY surge in H1 2022 revenue

Beijing (Gasgoo)- Huawei's auto partner, Seres Group, logged a semiannual revenue of 12.416 billion yuan ($1.812 billion) in the first six months of 2022, up 68.14% year over year, according to the automaker's financial statement released on August 19th.

SF5; photo credit: SERES

Among them, the group's new energy vehicle business logged revenue of 7.701 billion yuan ($1.123 billion), representing 380.8% soar year-on-year. In the Jan.-Jun. period, the new energy vehicle ("NEV") business accounted for 62.03% of the company's revenue, for the first time surpassing that of its oil-fueled vehicle sector.

The group explained that its gross profit margin rose from a year ago, due to its product portfolio adjustments. With a blooming sales volume, Seres Group's NEV business scored a higher gross profit margin than that of the group's fuel-burning vehicles in the past six months of the year.

At the same time, due to the large initial investment in new energy vehicles' sales expenses, administrative expenses, and R&D expenses, the company's net loss widened over the same period last year to 1.727 billion yuan ($251.955 million).

Additionally, in the first half of 2022, Seres Group's R&D investment was up 123.17% year on year to 1.393 billion yuan ($202.897 million), accounting for 11.22% of its same-period revenue. Zhang Xinghai, the founder of Seres Group, said that the company has invested nearly 10 billion yuan in R&D in the past six years.