Product image of SERES' electric vehicle AITO 9 (Photo/SERES)
Chongqing - On June 24, SERES Group Co., Ltd. announced that its subsidiary, SERES Automobile (SERES), has secured a new round of strategic investment totaling RMB 5 billion from nine major domestic financial institutions and industrial funds.
This marks the third round of capital injection into SERES since late 2024, bringing the total strategic funding raised to over RMB 10 billion. Investors include ICBC Financial Asset Investment, Bank of Communications Financial Asset Investment, Agricultural Bank of China Financial Asset Investment, China Mobile Digital Economy Fund, and Baowu Green Carbon Fund.
These investments contributed to a rise in SERES Auto's registered capital, which now stands at RMB 106.37 billion. The SERES Group's stake has decreased from 98.77% to 93.63%, but it remains the controlling shareholder.
SERES announced that the capital increase will enhance its financial strength, support strategic expansion, reduce debt ratio, and promote sustainable, high-quality growth, aligning with its long-term plans and shareholder interests.
According to the group's disclosure, total assets in 2024 reached RMB 75.5 billion, with net assets at RMB 963 million. Its asset-liability ratio as of Q1 2025 stood at 76.83%, higher than the industry average. The company also reported a net operating cash outflow of RMB 7.6 billion during the same quarter, indicating liquidity pressure across its supply chain.
Capacity expansion is another key motivation. In February, SERES acquired 100% equity in Longsheng New Energy for RMB 8.16 billion. The plant had been operating under a long-term lease, and its utilization rate reached 98.93% during the first nine months of 2024. Currently, SERES operates three major plants with a combined annual capacity of 600,000 vehicles and has set a goal of reaching one million annual unit sales under the AITO brand within three years.
The latest capital injection also supports SERES' strategic autonomy. While its collaboration with Huawei has been a high-profile success, the company is actively diversifying its investor base. New backers such as China Mobile's digital economy fund are expected to contribute to intelligent connectivity initiatives, while Baowu Green Carbon Fund may assist in materials and carbon-neutral collaborations.
Before completing the capital increase in late April, SERES submitted its Hong Kong IPO prospectus, aiming for an A+H share structure. Backed by state-owned investors and Huawei’s tech support, the move is expected to boost market confidence and enhance its valuation.
Despite these developments, SERES continues to face headwinds in a competitive market. Between January and May 2025, cumulative vehicle sales declined 22.92% year-on-year to 108,800 units. Its R&D investment also dropped in 2024, falling to 3.2% of revenue, below the industry average of 5–8%.