Core Viewpoint - The article discusses the rapid progress of Seres in its Hong Kong IPO process, highlighting its potential to become the first "A+H" listed new energy vehicle company, driven primarily by its AITO brand, which has become a significant revenue contributor [4][5][8]. Group 1: IPO and Market Position - Seres has accelerated its Hong Kong listing process, with the board approving the global offering shortly after passing the Hong Kong Stock Exchange hearing [4]. - If successful, Seres is expected to surpass Chery Automobile, which currently holds a market capitalization of HKD 176.2 billion, making it the largest car IPO in Hong Kong this year [5]. - As of October 17, 2023, Seres has a market capitalization exceeding RMB 250 billion in the A-share market [5]. Group 2: AITO Brand Performance - The AITO brand has become the main performance driver for Seres, with sales projected to grow from 78,000 units in 2022 to 389,000 units by 2024 [8]. - In the first half of 2023, AITO's sales reached 152,000 units, solidifying its market presence [8]. - AITO has successfully covered the SUV market from RMB 200,000 to RMB 600,000, with four models launched: M5, M7, M8, and M9 [9]. Group 3: Revenue Structure - AITO's revenue contribution is expected to rise dramatically, with projections indicating it will account for over 90% of Seres' total revenue by 2024, up from 60% in 2022 [10][12]. - Other brands under Seres are being strategically reduced, with the Blue Electric brand showing weak sales of only 11,000 units in the first half of 2023 [11]. Group 4: Strategic Partnerships and Risks - Seres has a deep partnership with Huawei, which has significantly influenced its product development and market positioning [16][17]. - The company's reliance on Huawei is substantial, with procurement payments to Huawei expected to reach RMB 42 billion in 2024, constituting about 30% of total revenue [21][22]. - This dependency poses risks, as any disruption in the relationship could adversely affect Seres' business and financial performance [18][22]. Group 5: Future Growth and Diversification - Seres is diversifying its business model beyond vehicle sales, including a recent acquisition of Longsheng New Energy for RMB 8.164 billion to enhance its production capabilities [25]. - The company is also expanding its charging network, with over 12,000 charging stations established nationwide, contributing to a second growth curve [25]. - A partnership with ByteDance's Volcano Engine aims to integrate AI technologies into its offerings, enhancing its market differentiation [26]. Group 6: Valuation and Market Outlook - Analysts suggest that Seres' valuation could reach a PE ratio of 31 times by 2025, significantly higher than traditional automotive parts companies [26]. - The company's ability to maintain its sales momentum for the AITO brand will be crucial for its overall valuation and growth prospects [27].

Core Insights - Huawei is making significant moves in the embodied intelligence sector, recently launching the Huawei Cloud Embodied Intelligence Industry Joint Innovation Center in Shenzhen, which has attracted nine well-known companies, including six listed firms, to establish subsidiaries in this field [1][10] - The Huawei Developer Conference 2025 introduced the CloudRobo embodied intelligence platform, aiming to transform all connected entities into embodied intelligent robots, marking a strategic shift in the AI landscape [3][4] - The Chinese government has recognized "embodied intelligence" as a key component of future industries, indicating its importance in national strategic planning [3][4] Industry Trends - The market for embodied intelligence is projected to grow significantly, with expectations to exceed 1 trillion yuan by 2026, driven by advancements in large model technologies [5][10] - Major companies like NVIDIA and Tesla are also investing in "large model + embodied intelligence" robotics, viewing intelligent robots as a second growth curve for their businesses [5][10] Huawei's Strategy - Huawei's approach mirrors its strategy in the automotive sector, focusing on providing a technological foundation and ecosystem collaboration rather than manufacturing end products [6][8] - The company aims to replicate the success of its automotive partnerships, such as with Seres, which transformed from a loss-making entity to one of China's top three car manufacturers with a market value exceeding 200 billion yuan [6][10] Regional Development - Shenzhen's Bao'an district is positioning itself as China's first "embodied intelligence port," fostering the growth of potential "unicorn" companies in this field [11][15] - The Huawei Cloud Embodied Intelligence Industry Joint Innovation Center is strategically located near significant tech hubs, enhancing collaboration and innovation within the industry [10][11] Collaborative Efforts - Huawei is engaging in partnerships with various companies to develop comprehensive solutions across different applications, including smart sorting, energy management, and intelligent healthcare [13][15] - The center has successfully attracted a diverse range of companies, from manufacturers to component developers, indicating a robust ecosystem for embodied intelligence [10][13]