SERES(SH:601127) 3 6 Ke·2026-01-19 08:22Core Viewpoint - The partnership between Seres and Huawei has transformed Seres from a struggling manufacturer to a leading luxury electric vehicle brand in China, with significant financial implications for both companies [1][5][12]. Group 1: Financial Transactions - Seres has disclosed that it will pay Huawei a total of 750 billion yuan in procurement fees over the years 2022, 2023, and 2024, with the total expected to exceed 1 trillion yuan by mid-2025 [1]. - On average, Huawei receives approximately 140,000 yuan for each vehicle sold by Seres, reflecting the comprehensive nature of Huawei's supply chain offerings [3]. - In 2024, Seres is projected to achieve a net profit of 5.946 billion yuan, with estimates for 2025 suggesting profits could reach between 8.3 billion and 10 billion yuan [8]. Group 2: Supplier Relationships - Huawei is identified as the primary supplier for Seres, providing critical components such as electric drive systems, smart cockpit systems, and advanced driver assistance systems, among others [3][4]. - The procurement from Huawei constitutes a significant portion of Seres' total procurement expenses, highlighting the dependency on Huawei's technology and services [4]. Group 3: Brand Development and Market Position - The AITO brand, under which Seres operates, has become the best-selling luxury brand in China, surpassing traditional competitors like BMW, Audi, and Mercedes-Benz [4][6]. - Seres' success is attributed not only to Huawei's technology but also to the management systems and manufacturing expertise that Huawei has imparted to Seres [5][6]. Group 4: Strategic Investments - Seres has invested an additional 11.5 billion yuan to acquire a 10% stake in Yingwang Technology, further solidifying its partnership with Huawei and gaining access to additional revenue streams [10]. - This strategic investment positions Seres alongside other major automotive players, enhancing its competitive standing in the industry [12].