Seres Q1 Revenue Rises 34.5% as Core Profit Slumps on R&D Spending

On April 29, Seres Group released its financial results for the first quarter of 2026. The company reported revenue of RMB 25.75 billion ($3.76 billion), up 34.5% year-on-year.

In terms of overall profitability, net profit attributable to shareholders of the listed company reached RMB 754 million ($110 million), up 0.89% year-on-year.

However, on a core operating basis, net profit excluding non-recurring items fell sharply.

Net profit attributable to shareholders excluding non-recurring gains and losses stood at RMB 103 million ($15 million), down 73.87% year-on-year.

The company attributed the sharp decline primarily to continued increases in R&D investment.

R&D expenses reached RMB 1.794 billion ($262 million) during the quarter, up 70.7% year-on-year, significantly outpacing revenue growth.

More resources have been directed toward intelligent driving, smart cockpit systems, and new energy powertrain technologies, directly compressing short-term profit margins.

The report also disclosed that net cash flow from operating activities was negative RMB 20.95 billion ($3.06 billion), mainly due to slower cash collection from NEV sales relative to payments made to the supply chain.

In terms of sales performance, Seres recorded NEV sales of 78,500 units in the first quarter, up 43.9% year-on-year, outperforming the broader industry, which saw a 20.3% decline over the same period.

Structurally, the AITO series remained the core growth driver. Over the past year, AITO has built a product portfolio covering multiple price segments, becoming the primary contributor to Seres’ revenue expansion.

During the quarter, the new-generation AITO M9 entered pre-sales, while the AITO M6 was launched on April 22 and has already begun large-scale deliveries, with a starting price of RMB 269,800 ($39,400), further strengthening its presence in the mid-to-high-end segment.

In addition, Seres plans to introduce annual updates for the AITO M7 and M8 this year to further support sales growth.

Previously, executives including Yu Chengdong and Zhang Xinghai outlined sales targets for the AITO brand.

Following cumulative sales surpassing 1 million units, the brand aims to sell another 1 million units within two years, targeting total cumulative sales of 2 million units.