Seres Group (601127) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 57.49 billion, down 7.87% year-over-year due to product mix changes and a transition period for key models.

• Net loss attributable to shareholders was RMB -1.72 billion, a sharp decline from a profit of RMB 2.94 billion in H1 2025.

• Gross margin fell to 23.3%, down 5.6 percentage points year-over-year, impacted by higher costs and inventory write-downs.

• New energy vehicle sales reached 178,800 units, up 3.87% year-over-year, with flagship model M9 achieving strong initial deliveries.

Financial highlights

• Operating cash flow was negative RMB 12.38 billion, a 185.73% decrease year-over-year, mainly due to lower collections and maturing bank acceptances.

• Total assets at June 30, 2026 were RMB 128.35 billion, down 10.81% from year-end 2025.

• Net assets attributable to shareholders were RMB 37.47 billion, down 8.42% from year-end 2025.

• Basic and diluted EPS were both -0.99, compared to 1.87 in H1 2025.

• Adjusted net profit (excluding share-based payments) was RMB -2.18 billion, down 169.49% year-over-year.

Outlook and guidance

• Management expects continued industry headwinds from raw material and component price increases, with ongoing pressure on profitability.

• Focus remains on high-end intelligent EVs, technology innovation, and maintaining robust cash reserves to support R&D and future growth.