Luxury new energy vehicle maker SERES breaks through 100 billion yuan in revenue, profitability and future layout under high R&D investment

Luxury NEV Manufacturer Seres Group's Revenue Surpasses 100 Billion Yuan, Profitability and Future Strategy Under High R&D Investment

Recently, the 2025 annual performance of luxury new energy vehicle manufacturer Seres Group (9927.HK) has attracted intense market attention. Group revenue of 164.89 billion yuan, a proposed cash dividend of 1.9 billion yuan, and R&D investment of approximately 12.5 billion yuan... Behind these figures lies not only a leap in scale but also a concentrated realization of high-quality growth.

In the automotive industry, all short-term profit savings may come at the cost of sacrificing long-term competitiveness. Seres has chosen a path of trading present investment for future barriers—driving structural optimization with premiumization and building differentiated barriers with technological investment.

With the successful implementation of Seres' series of premiumization strategies, the "gold content" of its profit growth is significantly increasing. In 2025, the group's premium brand Aito achieved continuous growth, with annual cumulative deliveries exceeding 420,000 vehicles, making it the best-selling Chinese luxury car brand in the domestic market. Among them, the Aito M9 secured the sales champion position in the 500,000-yuan luxury vehicle segment for two consecutive years in 2024 and 2025, the Aito M8 remained at the top of the 400,000-yuan segment, and the new Aito M7 model captured the sales champion title in the 300,000-yuan segment immediately after its launch in September. The three flagship models each took the lead in their respective price bands, directly boosting the company's overall average vehicle selling price and gross margin. Meanwhile, the Aito M6, positioned as a "New Smart SUV," officially began pre-sales on March 23rd. The market widely views this as an important step in extending the Aito product matrix into a broader mainstream range, expected to continue the brand's ability to create hot-selling models across multiple price bands and inject new momentum for subsequent growth.

Premiumization brings not only a leap in sales and profits but also gives Seres the confidence to continuously increase its R&D efforts. In 2025, the R&D team expanded from 6,201 to 9,019 people, a year-on-year increase of 45.4%, while R&D investment grew 77.4% year-on-year to 12.51 billion yuan. This high-intensity investment, through the mass production and implementation of core technological achievements like the Magic Cube Technology Platform 2.0, Super Range Extender, and Intelligent Safety System, translates into differentiated product competitiveness, supporting premium pricing and brand premium. From technological breakthroughs to product leadership, then driving profit improvement, and ultimately feeding back into R&D investment, Seres has successfully established this positive cycle.

As Peter Lynch said, true ten-bagger stocks often come from companies whose product competitiveness you can feel around you. When Aito's penetration rate in the premium market continues to rise, it is itself a strong investment signal.

Look at the 11.5 billion yuan transaction to acquire 10% of Yinwang's equity—23 billion paid last October, 5.75 billion at the beginning of this year, and the final 3.45 billion received in September, while Huawei had already transferred the equity as early as March. This trust structure of "delivering the chips first, receiving payment later" is extremely rare in the business world. It's less of an equity investment and more of a ticket to the smart car era. Seres chooses to deeply bind with top-tier partners, allowing the moat to deepen with continued cooperation. This is not dependence; it's a strategic positioning to lock the ecosystem entry with equity.

More noteworthy is the qualitative change in the financial structure. H-share listing raised approximately 14 billion HKD, Longsheng New Energy transitioned from lease to ownership, equity attributable to owners of the parent surged to 40.9 billion yuan, the asset-liability ratio dropped to 70.91%, and cash reserves soared to 48.36 billion yuan. Operating cash flow is a solid backing for net profit. Benjamin Graham pointed out long ago in *The Intelligent Investor*: In the short run, the market is a voting machine, but in the long run, it is a weighing machine. Seres' balance sheet is continuously adding weight to its long-term value.

Supported by deep brand binding, heavy technology bets, and ample ammunition, Seres' growth logic is clear and robust. Full ownership of the Aito trademark; comprehensive upgrade of the Magic Cube Technology Platform 2.0, with active smart driving assistance users accounting for 95.4% in 2025; the plan to build 5,000 supercharging stations within three years further paves the way for scale expansion. Every investment Seres makes aims to strengthen brand sovereignty, the technological foundation, and operational efficiency, rather than meaningless sprawl.

Returning to valuation, Seres' stock price has undergone a phased adjustment since 2026, and its valuation has fallen back to a reasonable range. From the continuous realization of the premiumization strategy, to the virtuous cycle of technological investment, and the fundamental improvement of the financial structure, Seres has successfully transformed from a traditional manufacturer into a technology-driven enterprise. Revenue of 164.89 billion yuan is not the end, but a new starting point for value release.

Use Lynch's eyes to find champions around you, Buffett's ruler to measure the depth of the moat, and Templeton's patience to wait for the cycle's reward. Under multiple catalysts of improving performance, delivery scale-up, and industry trends, Seres is currently in a value range worth watching.