SERES(SH:601127) Xin Lang Cai Jing·2025-10-28 01:32Core Viewpoint - The company Seres, previously known as Xiaokang, has transformed into a significant player in the new energy vehicle sector after becoming closely associated with Huawei, achieving profitability within a year after substantial losses [1][2]. Company Overview - Seres is set to launch its IPO in Hong Kong from October 27 to October 31, with a maximum offering price of HKD 131.50, which is lower than market expectations [2][3]. - The company has a robust backing with 23 cornerstone investors committing approximately USD 826 million (around HKD 642 million), accounting for about half of the total shares offered [9]. Financial Performance - Seres has invested nearly CNY 30 billion in R&D, aligning with national policies promoting high-end manufacturing and technology-driven growth [4]. - The company has shown a significant revenue increase of 305% year-on-year for 2024, although it experienced a slight decline in revenue in the first half of the year [6][10]. - The gross margin has improved dramatically from 7.2% to 26.5%, indicating strong profitability potential in the high-end vehicle market [6]. Market Position and Competition - The competitive landscape in the new energy vehicle sector is intense, with major players like BYD, Li Auto, and NIO posing significant challenges [5][6]. - Seres' sales have been inconsistent, and the company faces pressure to maintain growth, especially with the upcoming M8 model launch [7]. Future Prospects - The company is exploring opportunities beyond vehicles, including partnerships in robotics with ByteDance, although this segment currently has no revenue [8]. - The long-term outlook for Seres is optimistic, contingent on the overall growth of the new energy vehicle and embodied intelligence industries in China over the next five years [10].