SERES(SH:601127) Cai Jing Wang·2025-10-29 23:09Core Viewpoint - Seres Group Co., Ltd. has officially launched its IPO in Hong Kong, aiming to become the largest car IPO in Hong Kong by 2025 if successful [1][5]. Group 1: IPO Details - The IPO will last until October 31, with shares expected to be listed on November 5 under the stock code "9927" [1]. - The base offering size is 100.2 million H-shares, with 10.02 million shares available for public sale in Hong Kong and approximately 90.18 million shares for international placement [3]. - The estimated net proceeds from the IPO, assuming the maximum offer price of HKD 131.50 per share and no exercise of the over-allotment option, is approximately HKD 12.9249 billion [3]. Group 2: Use of Proceeds - About 70% of the funds raised will be allocated to research and development [3]. - Approximately 20% will be used for diversifying new marketing channels, overseas sales, and charging network services to enhance global brand recognition [3]. - The remaining 10% will be utilized for working capital and general corporate purposes [3]. Group 3: Business Overview - Seres has transitioned from a parts manufacturer established in 1986 to a full vehicle manufacturer through a joint venture with Dongfeng Motor in 2003, and later shifted to new energy vehicles in 2016 [6]. - The company has launched four models under the "Wenjie" brand: M5, M7, M8, and M9, with a projected total delivery of 387,100 units in 2024, representing a 268% year-on-year increase [7][11]. Group 4: Financial Performance - For the first half of 2023, Seres reported revenue of CNY 62.359 billion, with a gross profit of CNY 16.531 billion and a gross margin of 26.5% [9]. - Revenue figures for the years 2022 to 2025 (first half) are CNY 340.56 billion, CNY 357.89 billion, CNY 1,451.14 billion, and CNY 623.59 billion, respectively [9][10]. - The gross profit for the same periods was CNY 27.28 billion, CNY 25.71 billion, CNY 345.51 billion, and CNY 165.31 billion, with gross margins of 8%, 7.2%, 23.8%, and 26.5% respectively [9][10]. Group 5: Strategic Partnerships - The partnership with Huawei has significantly enhanced Seres' brand image and market performance, with Huawei taking a leading role in product design, positioning, and channel sales [11]. - However, this deep reliance on Huawei poses potential risks, as any disruption in this partnership could adversely affect the company's operations and financial performance [12][13]. Group 6: Competitive Landscape - As Huawei expands its partnerships with other automakers, the unique advantages of the Wenjie brand may diminish, leading to increased competition within the Huawei ecosystem [15]. - Seres has also engaged in strategic investments, including a CNY 5 billion capital increase and a 10% stake acquisition in Huawei's subsidiary, which reflects its active approach in both business and capital markets [15].