SERES(SH:601127) Sou Hu Cai Jing·2025-10-27 10:26Core Viewpoint - The company Seres Group is set to launch its IPO on the Hong Kong Stock Exchange, aiming to raise approximately HKD 12.93 billion, with an expected market capitalization of around HKD 215 billion post-listing [1][3]. Company Development - Seres Group's IPO could surpass Chery, potentially becoming the largest car company IPO in Hong Kong this year and a significant case in the Asian tech sector by 2025 [3]. - The company has evolved from a small spring manufacturing factory in Chongqing to a leading player in the Hong Kong market, marking a 40-year journey of industrial upgrading [3]. - Founded in 1986 by Zhang Xinghai, the company initially focused on spring manufacturing, capturing 90% of the national market due to superior technology and cost control [3]. Transition to Electric Vehicles - In 2016, the company pivoted towards electric vehicles, recognizing the emerging trend in new energy vehicles, although the transition faced challenges [5]. - The launch of the SF5 electric sedan in 2019 did not meet market expectations, resulting in a significant loss of HKD 1.729 billion in 2020 [5][7]. - A turning point occurred in 2021 when Seres partnered with Huawei, which was seeking new growth avenues amid challenges in its smartphone business [7][11]. Strategic Partnership with Huawei - The collaboration with Huawei evolved from a technology licensing agreement to a deeper "capital + technology" partnership, culminating in Seres acquiring a 10% stake in Huawei's subsidiary, gaining access to 6,838 patents [12][14]. - This partnership allowed Seres to differentiate itself from other automakers that were hesitant to fully integrate with Huawei's technology [7][12]. Future Plans and Market Position - The IPO proceeds will be allocated primarily to research and development (70%) and expanding overseas markets and charging networks (20%) [13]. - The founder, Zhang Xinghai, is expected to see his net worth rise significantly post-IPO, positioning him among the top 200 wealthiest individuals in mainland China [14]. - Seres' success is also contributing to the transformation of the Chongqing automotive industry, establishing a new direction in the smart connected electric vehicle sector [16]. Conclusion - The IPO marks the beginning of a new journey for Seres, as it aims to redefine mobility in the smart automotive era, inspiring traditional manufacturers to embrace transformation [17].