Seres forecasts H1 2026 net loss of ¥1.5–1.8 billion; AITO Auto turns from profit to loss

On July 13, the A-share automotive sector broadly weakened, and Seres Group Co., Ltd. (stock code: Seres, 601127.SH) hit its daily trading limit down. The day before, the company released its preliminary 2026 semi-annual financial results, forecasting a net loss attributable to shareholders of ¥1.5–1.8 billion for the first half — sharply down from a ¥2.941 billion profit in the same period last year. Excluding non-recurring items, the net loss is expected to reach ¥2.2–2.5 billion.

The announcement states that its controlled subsidiary AITO Co., Ltd. expects to post a net loss attributable to shareholders of ¥1.05–1.3 billion for H1 2026, and a non-GAAP net loss of ¥1.7–1.95 billion. Notably, AITO Auto's performance deteriorated sharply in Q2 alone — with a forecast net loss attributable to shareholders of ¥1.9–2.15 billion, marking a reversal from profit to loss.

Regarding the reasons for the earnings decline, Seres cited sustained price hikes in key raw materials — including memory chips, industrial metals, and lithium carbonate — which significantly raised vehicle production costs. Additionally, applying a prudent accounting principle and factoring in technological iteration and model refresh cycles, the company adjusted the book value of certain legacy assets with limited compatibility, further impacting current-period profits.

Despite earnings pressure, Seres emphasized that it maintains ample cash reserves and a sound balance sheet, ensuring ongoing operations and resilience against risks — sufficient to sustain R&D investment and strategic business advancement. The announcement did not disclose specific cash balances or debt ratios, nor did it provide clear guidance on second-half sales targets, new model launch timelines, or cost-control measures.