SERES Group expects net loss to narrow YoY in H1 2023

Beijing (Gasgoo)- SERES Group, the Chinese automaker and car-making partner of Huawei, released its performance forecast for the first half of 2023 on July 15, revealing an expected year-over-year improvement of 20% to 28% in its net profit attributable to shareholders. 

SF5; photo credit: SERES

SERES aims to maintain stability and steady growth in its new energy vehicle business, with an expanding and enriching product lineup, faster iterations and deliveries, as well as a comprehensive revitalization of its service system.

According to the forecast, SERES expects a net loss of 1.25 billion yuan to 1.39 billion yuan for the first half of 2023, compared to the net loss of 1.73 billion yuan incurred during the same period last year. Adjusted net loss is projected to range from 1.8 billion yuan to 1.93 billion yuan, compared to the adjusted net loss of 1.714 billion yuan in the same span of 2022. 

SERES attributed the loss to customer hesitation caused by promotional activities in the automotive industry during the first quarter, as well as customers' anticipation of the new release of the M5 intelligent driving version in the second quarter, which had an impact on the sales of existing models. 

Furthermore, the company's continued high investment in R&D of core technologies for new energy vehicles, along with the ongoing recruitment of research and technical talent, resulted in increased R&D expenses compared to a year ago.

In the first half of 2023, SERES Group sold a total of 92,200 vehicles, marking a year-on-year decrease of 26.66%. Among them, sales of SERES' new energy vehicles reached 44,800 units, down 1.80% from the previous year, while sales of SERES Auto (including the jointly developed AITO Wenjie series with Huawei and other SERES models) reached 25,800 units, representing a year-on-year jump of 19.37%