Chinese automaker SERES debuts on main board of HKEX

Shanghai (Gasgoo)- On November 5, Seres Group Co., Ltd. ("SERES") officially debuted on the main board of the HKEX (Hong Kong Exchanges and Clearing Limited), marking a key milestone in the Chinese vehicle maker's global financing journey.

The company issued a total of 108.619 million shares globally, including 10.8619 million H-shares for public offering in Hong Kong—oversubscribed by 132 times—and 97.7571 million H-shares for international placement, which saw 8.6 times oversubscription.

The offering raised a total of HK$14.283 billion (approximately RMB 13.098 billion), with net proceeds amounting to HK$14.016 billion (about RMB 12.853 billion) after deducting listing expenses.

Photo credit: SERES

SERES said it plans to allocate roughly 70% of the proceeds toward research and development, focusing on in-house innovations in smart cockpit and driver-assistance technologies, powertrain systems, and next-generation vehicle technologies.

The company's prospectus highlighted a sharp rebound in 2024, with revenue, vehicle sales, and profitability all showing significant growth.

Financial data from the prospectus show that SERES generated revenue of RMB 34.056 billion in 2022, RMB 35.789 billion in 2023, and RMB 145.113 billion in 2024. The company swung from net losses of RMB 3.832 billion and RMB 2.45 billion in the previous two years to a net profit of RMB 5.946 billion in 2024, representing a 305.47% year-on-year revenue surge and a full return to profitability.

For the first half of 2025, SERES reported revenue of RMB 62.359 billion, down 4.1% year on year, while net profit attributable to shareholders surged 81.25% year on year to RMB 2.941 billion.

The company attributed the slight revenue decline to fluctuations in NEV sales, noting that the launch of the new AITO M8 in April 2025 prompted some potential buyers to delay purchases in anticipation of the updated model. Profit growth, however, was driven by an improved product mix favoring higher-margin models.

In terms of vehicle sales, SERES sold around 267,200 units in 2022, 252,300 units in 2023, and 497,000 units in 2024.

During the first half of 2025, the company sold about 198,600 vehicles, including 172,100 NEVs—down from 200,900 units a year earlier. SERES again cited the AITO M8's April launch as a factor influencing customer purchase timing.

SERES' gross margin jumped sharply from 8% in 2022 and 7.2% in 2023 to 23.8% in 2024—a 16.6 percentage-point leap reflecting the shift toward premium models and greater manufacturing efficiency.

In the first half of 2025, overall gross margin improved further to 26.5%. The automotive segment posted a 26% gross margin, with NEV sales alone reaching 26.5%, up 3.7 percentage points year over year. The company credited the improvement to a stronger product mix and higher sales of luxury models.

R&D spending rose modestly to RMB 2.9295 billion in the first half of 2025, up 3.61% from RMB 2.8274 billion a year earlier, underscoring SERES' commitment to sustained technology innovation.

SERES' turnaround in 2024 was closely tied to the success of its AITO-branded vehicles, co-developed with Huawei. The importance of this partnership was underscored in the company's prospectus, which devoted entire sections to "Cooperation with Huawei" and "Strategic Importance of the Huawei Partnership."

In the first half of 2025, AITO models accounted for about 76.5% of SERES' total vehicle sales.

Revenue from AITO vehicle sales surged from RMB 20.519 billion in 2022 and RMB 24.308 billion in 2023 to RMB 131.907 billion in 2024, contributing 60.3%, 67.9%, and 90.9% of SERES' total annual revenue, respectively.

In the first half of 2025, AITO-branded vehicles generated RMB 56.282 billion in revenue—roughly 90.3% of SERES' total income—cementing the brand's role as the group's primary growth engine.