Gasgoo Munich- SERES Group Co., Ltd. released its 2026 semi-annual report on August 19. First-half revenue came in at 57.49 billion yuan. The company swung to a net loss of 1.72 billion yuan attributable to shareholders, compared with a profit of 2.94 billion yuan a year earlier. Excluding non-recurring items, the net loss deepened to 2.38 billion yuan from a prior profit of 2.47 billion yuan.Image Source: SERES GroupSERES attributed the downturn to a product transition for its flagship models in the second quarter, which prevented full utilization of capacity and sales scale effects. The company also pointed to temporary price hikes for core components like batteries and chips, alongside asset impairment provisions.Estimates show a standalone net loss of roughly 2.47 billion yuan in the second quarter. During the period, SERES booked impairment losses of 1.86 billion yuan, which is expected to shave about 1.75 billion yuan off net profit attributable to shareholders.Profitability may be under pressure, but SERES is flashing positive signals on sales and R&D. New-energy vehicle sales climbed 3.87% year-on-year in the first half to 178,800 units, with AITO brand deliveries jumping 10.2%. The flagship AITO M9 held the top spot in the 500,000-yuan segment for two straight months, pushing total deliveries past the 300,000 mark. The new-generation M9 and the AITO M6 also hit the market during the period. According to Brand Finance's 2026 Global Auto Brand Value 100, AITO broke into the top ten global luxury brands with a valuation of $3.45 billion.R&D spending surged 34.8% to 7.01 billion yuan in the first half. By the end of the reporting period, cash reserves topped 73.15 billion yuan — representing 57% of total assets — while interest-bearing debt made up just 3.2%. The company acknowledged near-term headwinds but insisted its operational resilience remains intact, noting that growth momentum should pick up in the second half as new models roll out.