Seres Q1 profit stalls at 0.9% despite 35% revenue surge

Rachel Tang

·Apr 29 2026, 17:01

Share to

Share to

Copy link

Key Takeaways:

SERES reported Q1 revenue of RMB 25.746 billion, a 34.5 percent increase year-over-year, driven by strong new energy vehicle sales.
Net profit grew by only 0.9 percent to RMB 754 million, showing that the surge in revenue did not translate to profit growth.
The disparity suggests the company faces significant margin compression from rising costs or aggressive pricing in the competitive EV market.

Chinese new energy vehicle maker SERES Group Co. (09927.HK) announced first-quarter revenue surged 34.5 percent, even as net profit remained nearly flat.

The automaker's revenue for the first quarter of 2026 reached RMB 25.746 billion, a sharp increase from the previous year, according to China Accounting Standards. However, net profit attributable to shareholders was just RMB 754 million, representing a minimal 0.9 percent year-over-year gain. Earnings per share stood at RMB 0.43.

The dramatic split between top-line growth and profitability highlights the intense margin pressure facing SERES. While rapidly expanding sales of its electric vehicles, the company is struggling to convert that market share into meaningful profit, a challenge shared by competitors like Nio and Xpeng in China's crowded EV arena.

The results signal that SERES's growth-focused strategy is weighing heavily on its financial performance. Investors will be closely watching the company's second-quarter report for any improvement in vehicle margins and cost control measures.

This article is for informational purposes only and does not constitute investment advice.