Chinese EV maker Seres targets $1.7bn in Hong Kong listing

Core Viewpoint - Seres Group, a Chinese new energy vehicle maker, is seeking to raise HK$13.18 billion ($1.7 billion) through a secondary listing in Hong Kong, with trading expected to begin on November 5 [1][2]. Company Overview - Seres Group is a technology-focused enterprise involved in the research, development, manufacturing, sales, and services of new energy vehicles and key components, tracing its origins back to 1986 in springs and shock absorbers [2][3]. - The company entered vehicle manufacturing in 2003 through a joint venture with Dongfeng Motor and shifted to the NEV segment in 2016 [3]. Financial Performance - In 2024, Seres reported a significant revenue increase to 145.1 billion yuan ($20.37 billion) from 35.8 billion yuan [5]. - The company transitioned from a net loss of 2.4 billion yuan in 2023 to a net profit of 5.9 billion yuan for the full year 2024, with continued momentum into 2025, achieving a net profit of 2.9 billion yuan for the six months ended June 30, 2025 [6]. Use of Proceeds - Approximately 70% of the proceeds from the listing will be allocated to advancing the research and development pipeline, supporting product innovation, technology upgrades, and long-term competitiveness [4]. - About 20% will be directed towards expanding and diversifying the go-to-market footprint, including new marketing channels, overseas sales initiatives, and charging network services [4]. - The remaining 10% will be reserved for working capital and general corporate purposes [4]. Strategic Partnerships - Seres is building an open ecosystem through long-term supplier partnerships, including collaborations with Huawei and Contemporary Amperex Technology, with Huawei providing intelligent cockpit and driving-assistance systems [3][4].