Seres Group (601127) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of ¥145.18 billion in 2024, up 305.04% year-over-year, driven by surging new energy vehicle (NEV) sales and improved product mix.

• Net profit attributable to shareholders reached ¥5.95 billion, marking a turnaround to profitability and positioning the company among the few profitable global NEV manufacturers.

• NEV sales volume reached 426,885 units, up 182.84% year-over-year, with flagship models leading their segments in China.

• Gross margin for the automotive segment improved by 16.18 percentage points to 25.69% year-over-year.

• Cash flow from operating activities increased 251.93% to ¥22.52 billion, reflecting strong sales and collections.

Financial highlights

• Revenue: ¥145.18 billion, up 305.04% year-over-year.

• Net profit attributable to shareholders: ¥5.95 billion, compared to a loss of ¥2.45 billion last year.

• Basic and diluted EPS: ¥3.94, up from -¥1.63 last year.

• Gross margin (automotive): 25.69%, up 16.18 percentage points year-over-year.

• Operating cash flow: ¥22.52 billion, up 251.93% year-over-year.

• Total assets: ¥94.36 billion, up 84.14% from prior year.

Outlook and guidance

• High-end NEV market expected to expand further in 2025, with domestic brands gaining share through innovation and product upgrades.

• Company targets continued high-end positioning, product matrix expansion, and further R&D investment, with a focus on AI, smart manufacturing, and digitalization.

• Risks include market demand fluctuations, intensified competition, policy changes, rapid technology iteration, and global economic uncertainties.