Seres Group (601127) H1 2024 earnings summary

Executive summary

• Revenue reached RMB 65.04 billion for H1 2024, up 489.58% year-over-year, driven by surging new energy vehicle (NEV) sales.

• Net profit attributable to shareholders was RMB 1.62 billion, reversing a loss of RMB 1.34 billion in H1 2023.

• NEV sales volume grew 348.55% year-over-year to 200,900 units, with flagship models AITO M9, new M7 Ultra, and new M5 leading growth.

• Operating cash flow turned positive at RMB 16.36 billion, reflecting strong sales collections.

• Gross margin and operating quality improved due to product mix upgrade, cost control, and technology innovation.

Financial highlights

• Operating income: RMB 65.04 billion, up 489.58% year-over-year.

• Net profit attributable to shareholders: RMB 1.62 billion, compared to a loss of RMB 1.34 billion in H1 2023.

• Basic and diluted EPS: RMB 1.08, up from -0.90 year-over-year.

• Operating cash flow: RMB 16.36 billion, up from -RMB 3.05 billion year-over-year.

• Net assets attributable to shareholders: RMB 13.24 billion, up 16.09% from year-end 2023.

Outlook and guidance

• Company expects continued NEV market expansion, with focus on high-end, intelligent, and green vehicles.

• Ongoing investment in R&D, digitalization, and supply chain integration to sustain growth and competitiveness.

• Management highlights risks from macroeconomic uncertainty, policy changes, and intensified competition.