Chinese Automaker Seres Falls in Hong Kong Trading Debut

By Sherry Qin

Seres Group's shares fell sharply in their Hong Kong trading debut, following the Chinese automaker's lackluster third-quarter results and a broader selloff sparked by Wall Street's losses overnight.

Seres's shares declined 4% on early Wednesday from its listing price of 131.50 Hong Kong dollars. The Chongqing-based company, which is already listed in Shanghai, raised 14.28 billion Hong Kong dollars in gross proceeds, equivalent to US$1.84 billion, by issuing 108.6 million shares.

Seres, which started as an assembler of budget minivans, has transformed into an electric-vehicle maker, leveraging its partnership with tech giant Huawei Technologies for in-car software and assisted driving. Its luxury EV brand, Aito, is one of the most popular high-end EV brands in China.

Its 2024 revenue more than quadrupled to 145.1 billion yuan, equivalent to $20.37 billion. Seres also turned profitable last year, reporting net income of 5.9 billion yuan.

However, Citi recently downgraded Seres's Shanghai-listed stocks to neutral from buy, after its third-quarter profit came in below market consensus due to a decline in operational expenditure efficiency.

"Seres's golden age could be coming to an end from early 2026," as it is entering the low season for car sales in first-quarter with increased downside risks on margin trends and strong competition from its peers, Citi analysts said in a note.

Separately, chief executives of Wall Street banks warned of a market correction of more than 10% over the next two years at an investment summit in Hong Kong on Tuesday, sending U.S. stocks lower overnight.

Hong Kong stocks tracked Wall Street's losses, with the Hang Seng Index shedding 0.8% and the Hang Seng Tech Index dropping 1.6% in morning trading Wednesday.

Write to Sherry Qin at sherry.qin@wsj.com

CHONGQING, China, Nov. 2, 2025 /PRNewswire/ — On October 30, SERES released its financial results for the third quarter of 2025. According to the report, SERES generated revenue of 110.534 billion RMB and net profit attributable to shareholders of 5.312 billion RMB in the first three quarters, with a YoY growth of 31.56%.

AITO Product Line Continues to Expand; AITO M9 Sets Delivery Record for 500,000 RMB Segment

This year, AITO has accelerated product development and launched several new models. From the new AITO M5 Ultra to the AITO M9 2025 edition and the family-oriented AITO M8 and all-new AITO M7, the diversified lineup has been well received by the market and customers alike.

To date, total deliveries across all AITO models have surpassed 800,000 units. The AITO M9 alone has delivered over 250,000 units in just 21 months, setting a record for vehicles in the 500,000 RMB segment. The AITO M8 has exceeded 100,000 deliveries, maintaining its position as the top seller in the 400,000 RMB segment for four consecutive months. The all-new AITO M7 achieved over 20,000 deliveries within just 36 days of launch, quickly becoming a standout in the market.

According to the 2025 First Half New Energy Vehicle Brand Health Study by Landroads Consulting, AITO ranked first in the 2025 H1 Brand Development Confidence Index. The AITO M9 also topped the overall Net Promoter Score (NPS) list for new energy vehicle models, with a score of 85.2.

Driven by Innovation, Becoming Industry's First Luxury NEV Maker with "A+H" Listing

AITO's continued market success is a result of SERES' forward-thinking approach to technological innovation. The company is firmly committed to a software-defined vehicle strategy, investing heavily in core technologies like electrification and intelligent systems. Key innovations include the SERES MF Technology Platform, SERES Super Range Extender, and SERES Intelligent Safety--all of which boost product competitiveness.

Thanks to its refreshed product lineup, continuous innovation, and operational excellence, SERES received the "2024 Golden Bull Most Valuable Investment Award." In the latest ranking of China's Top 500 Enterprises, SERES jumped 270 places to 190th, becoming one of the fastest-growing companies on the list.

It is worth mentioning that SERES began its Hong Kong IPO on October 27 and plans to list on the Main Board of the Hong Kong Stock Exchange on November 5. After listing, SERES will become the first luxury NEV maker to be listed both in mainland China and Hong Kong ("A+H" listing), providing further momentum for future growth.

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SOURCE Seres Group Co.,Ltd.

Revenue for the first nine months rose 3.67% year-over-year to RMB 110.53 billion, with net profit up 31.56% to RMB 5.31 billion. Gross margin and profitability improved, driven by product innovation and capital expansion.

Original document: Seres Group Co. Ltd. Class A [601127] Interim report — Oct. 31 2025

By P.R. Venkat

Chinese automaker Seres Group aims to raise up to $1.70 billion in a Hong Kong stock offering, joining the ranks of companies looking to list in one of the world's most active equity fundraising markets.

The company, focused on new energy vehicles, is planning to sell 100.20 million shares at a maximum offer price of 131.50 Hong Kong dollars, equivalent to $16.92 per share, Seres said Monday.

Seres, which is already listed on the Shanghai Stock Exchange, expects to finalize the offer price by Nov. 3, with shares expected to start trading on the Hong Kong exchange from Nov. 5

Hong Kong's equities market has emerged as one of the most active for listings this year. Funds raised through initial public offerings and secondary offerings in the first nine months of 2025 totaled HK$182.9 billion, a sharp increase from the HK$55.6 billion raised in the same period last year, according to Hong Kong stock exchange data.

The EV company has already secured commitments from cornerstone investors who have agreed to subscribe to over 45% of the offer size.

Some of the cornerstone investors include state-owned Chongqing Industrial Parent Fund, Hong Kong-listed China MeiDong Auto, a unit of the U.K.-listed Schroders, and South Korea's Mirae Securities.

Securing cornerstone investors before a listing lets companies market their offerings more effectively to institutional and retail investors. That is especially important during periods of heightened market volatility.

Seres is a technology company focused on new energy vehicles, including research and development, manufacturing, sales, and services.

Its revenue in 2024 was 145.1 billion yuan, equivalent to $20.37 billion, a 306% increase from a year earlier. Additionally, Seres turned profitable in 2024, reporting net income of CNY5.9 billion.

CICC and China Galaxy International are acting as joint sponsors for Seres's Hong Kong offer.

Write to P.R. Venkat at venkat.pr@wsj.com

Net profit attributable to shareholders rose 81% year-over-year to ¥2.94 billion, with improved gross margin and strong high-end EV sales, despite a 4% drop in total revenue. Major equity acquisition and increased R&D spending boosted net assets and innovation capacity.

Original document: Seres Group Co. Ltd. Class A [601127] Interim report — Aug. 30 2025

Seres Group has an average rating of buy and mean price target of 103.70 yuan, according to analysts polled by FactSet.