Chongqing - Seres and Changan Automobile have released their financial results for 2025 H1. The reports show that Seres posted a sharp increase in net profit driven by higher sales of premium models, while Changan recorded steady growth in new energy vehicle (NEV) sales and stronger core profitability.

Robots are in operation in the final assembly workshop of Seres' super factory. (Photo/Wang Jiaxi)

According to the report, Seres' net profit attributable to shareholders reached 2.941 billion yuan (USD 411.89 million), up 81.03% year on year. The company attributed the surge in profits to continuous product launches in the first half and an average transaction price exceeding 400,000 yuan per vehicle, which expanded profit margins.

Seres’ flagship brand Aito continued to upgrade its lineup, with the Aito M9 2025 edition and Aito M8—both priced above 400,000 yuan—launched earlier this year and well received by the market. Data shows that the Aito M9 delivered more than 62,000 units and the Aito M8 over 35,000 units, making them sales leaders in China’s 500,000-yuan and 400,000-yuan segments, respectively.

Seres sold 198,600 vehicles in 2025 H1, with the M9 and M8 accounting for 97,000 units, or 48.8% of total sales. The higher share of premium models lifted the company’s gross margin from 24.06% to 28.93%. At the same time, Seres’ R&D spending rose to 5.198 billion yuan, up 154.9% year on year, further strengthening profitability.

The Aito brand, co-developed by Seres and Huawei and headquartered in Chongqing’s Liangjiang New Area, delivered more than 147,000 vehicles in the first half. Thanks to Aito’s strong sales, Seres has risen from a little-known player to one of the fastest-climbing companies in the 2025 Fortune China 500.

Despite the sharp rise in net profit, Seres' overall revenue declined slightly. Revenue for 2025 H1 came in at 62.402 billion yuan, down 4.06% year on year. The company cited lower overall sales as the main reason. Aito sales fell 18.9% year on year to 147,000 units, while Seres’ total vehicle sales dropped 15.8%.

Workers inspect new energy vehicles in the final assembly workshop of Changan Automobile's factory in Liangjiang New Area. (Photo/Wang Jiaxi)

This was Changan's first earnings report since its parent company was restructured as an independent central state-owned enterprise (SOE). Changan sold 1.355 million vehicles, an eight-year high. NEVs accounted for 452,000 units, up 49.1% year on year and representing 33.4% of total sales—nearly matching the company’s full-year 2023 NEV volume within just six months.

Changan has now established three self-owned NEV brands: Avatr, Deepal, and Changan Qiyuan. According to the report, these three accounted for 33.3% of Changan’s total product portfolio.

Changan’s core profitability also improved. Net profit attributable to shareholders, excluding non-recurring gains and losses, reached 1.477 billion yuan, up 26.36% year on year. The non-recurring items include subsidies, asset disposal gains, or investment income, and excluding them gives a clearer picture of core business performance. Its vehicle gross margin rose to 14.58%, up 0.78 percentage points.

Alongside higher sales and profits, Changan continued to invest in innovation. R&D spending reached 3.284 billion yuan in the first half, up 12.76% year on year.

However, Changan’s operating cash flow turned sharply negative, falling from an inflow of 3.435 billion yuan a year earlier to a deficit of 8.607 billion yuan, a drop of 350.57%. Operating cash flow measures cash inflows and outflows from daily business activities, and the deficit indicates that Changan’s operations did not generate sufficient cash during the period.

In response, Changan said it has strictly implemented China’s new regulation requiring large companies to settle payments with small and medium-sized suppliers within 60 days. The measure aims to improve cash circulation among SMEs and support healthy industry development. Effective June 1, several automakers, including BYD, have already followed the rule.

Traditionally, automakers extended payment cycles to suppliers, slowing cash outflows and maintaining robust cash positions. With the new rule, Changan must pay suppliers within 60 days, leading to a surge in concentrated procurement payments. Since sales collections did not accelerate at the same pace, the company’s operating cash flow swung into a short-term deficit.