Seres bought 9.84 billion yuan from Huawei's Yinwang as it swung to a first-half loss

Seres Group, the Chinese manufacturer that builds the AITO vehicles developed with Huawei, disclosed its 2026 interim report on August 20. Revenue fell 7.87 percent to 57.493 billion yuan and the company recorded a net loss attributable to shareholders of 1.717 billion yuan, against a profit of 2.941 billion yuan a year earlier. Total profit was negative 2.353 billion yuan, and net operating cash flow was negative 12.376 billion yuan.

The related-party transactions table showed that Seres purchased 9.84 billion yuan of goods and services from Yinwang Intelligent Technology, the automotive electronics business Huawei carved out into a separate company, during the first half. That figure was 98.2 percent of all goods and services Seres bought from related parties in the period, and ran against a full-year forecast of 26.0 billion yuan for the same counterparty.

The disclosure covers purchases of goods and receipt of services together. It does not separate compute hardware, sensors and drive units from the driving stack and cockpit software licensed alongside them, so it records total procurement from Huawei’s automotive unit rather than a software bill.

Seres attributed the revenue decline to a change in sales mix and to its lead models passing through a product transition in the second quarter, with capacity and scale effects not fully realized. It attributed the loss additionally to periodic price increases in core components including batteries and chips, and to asset impairment provisions. Research and development expense rose 27.44 percent to 3.734 billion yuan.