Huawei EV partner Seres estimates net loss of 1.5b yuan for first half

Seres (9927), Huawei's electric vehicle partner, estimates a net loss of 1.5 billion yuan (HK$1.74 billion) to 1.8 billion yuan for the first half of the year, compared to a net profit of 2.94 billion yuan a year ago. 

In particular, its arm Seres Auto, or AITO Auto, is estimated to record a net loss of 1.05 billion yuan to 1.3 billion yuan in the period.

The EV maker attributed the loss to rising production costs affected by factors like the price increase of major raw materials, including memory chips, industrial metals, and lithium carbonate.

Based on the principle of prudence and to further strengthen the overall asset quality, taking into account the expected future returns of the assets, the carrying amount of certain existing assets with limited adaptability resulting from technological iterations and vehicle model upgrades has been adjusted, it added.

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