Cost rises, Seres' profits under short-term pressure.

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After AITO pushed its car sales into a higher price range, Seres also proved that high-end new energy vehicles can bring both sales and profits.

But in the first half of this year, it inevitably came under pressure.

On July 12, Seres released its 2026 half-year performance forecast, estimating a net profit attributable to shareholders loss of 1.5 to 1.8 billion yuan. In the same period last year, the net profit attributable to shareholders was 2.941 billion yuan.

The reasons given by Seres were not complicated: the prices of raw materials such as storage chips, industrial metals, and lithium carbonate increased, leading to higher production costs; based on prudence and to further solidify overall asset quality, and in combination with expected returns on assets, some existing assets with limited adaptability due to technological iteration or model changes need to have their book value adjusted. The core subsidiary AITO Auto is expected to lose 1.9 to 2.15 billion yuan in the second quarter.

The cost pressure had long been foreshadowed.

On June 12, Seres chairman Zhang Xinghai said at the China Auto Chongqing Forum that the average cost per AITO car increased by 15,000 to 20,000 yuan, "the pressure is still very great." He said the price of storage chips rose from about 20 yuan per unit to nearly 100 yuan, and lithium carbonate went from 80,000 yuan/ton last year to 180,000 yuan/ton.

Materials are rising, but car prices are hard to increase.

In the institutional exchange record disclosed by Seres on July 9, it also mentioned that intensified industry competition and raw material price fluctuations bring cost increases, and there is short term pressure. But the company's response is not to shrink investment. The company expects that R&D investment in 2026 will still exceed 10 billion yuan, primarily invested in blockbuster products, platform construction, and innovative businesses.

This makes Seres' profit pressure not only a matter of raw material price rises.

AITO is moving from relying on a few high-priced models like M9 and M8 to a more complete product line. New products require investment in R&D, production lines, and channels; old products leave behind parts, equipment, and supporting assets that need to be re-evaluated. Asset adjustments compress current profit, but they are also signals that model changes are truly beginning.

The sales end is not without support. Production and sales express reports show Seres sold 178,800 new energy vehicles in the first half of the year, a year-on-year increase of 3.87%; among them, Seres Auto sold 160,800 vehicles, up 5.60% year-on-year. In terms of deliveries, AITO delivered about 168,200 vehicles in the first half, a 10.2% year-on-year increase.

New cars are also gradually taking over. The all-new AITO M9 delivered over 10,000 units within three weeks; M6 delivered more than 30,000 units in 54 days since launch. The new M6 pure electric version starts at 229,800 yuan, expanding towards a higher price range; the M9 Ultimate Extended Edition is about to be delivered, and the revised M8 is also progressing.

On July 4, in its June production and sales review, Kaiyuan Securities pointed out that the old M8 and revised M7 have recently come under sales pressure, and intensified competition among high-end SUVs as well as weakening domestic demand caused them to lower profit forecasts for Seres; however, the report still considers M6 and the new M9 as the most important incremental sources in the second half.

This is the next question Seres needs to answer: M9 needs to hold the pricing and brand of high-end models, M6 needs to open up larger sales space—can both together dilute the impact of raw material price increases, R&D investment, and channel costs?

Seres emphasized in the announcement that cash reserves are sufficient and asset-liability structure is sound, which can continue to support R&D and product investment. Funding is not the most pressing issue right now.

The key is, after new cars begin delivery, whether AITO can turn its expanded product line back into profit.

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