Woofun AI reports that Seres stock hit a fresh 60-day low on June 25, marking a catastrophic decline for the once-celebrated new energy vehicle manufacturer. The company, which previously boasted a market capitalization exceeding 300 billion yuan, witnessed its A-share price collapse by more than 60% within just over eight months, wiping out over 180 billion yuan in market value. The situation in the Hong Kong market proved equally dire, with the stock trading below its issue price shortly after listing last November and shedding over 100 billion Hong Kong dollars in valuation. This precipitous fall raises a critical question regarding a firm that reported annual revenue of 165 billion yuan and achieved profitability for two consecutive years. On September 30, 2025, the A-share price peaked at a historical high of 173.55 yuan, only to enter a steady descent that saw it drop to approximately 66 yuan by mid-June 2026. During the first 10 trading days of this decline, net capital outflows totaled 1.87 billion yuan. Even more concerning is the failure of corporate intervention to stem the tide; at the end of March, Seres announced a buyback plan for A-shares worth between 1 billion and 2 billion yuan to reduce registered capital. By mid-June, the company had already repurchased shares exceeding 320 million yuan, yet the stock price continued its downward trajectory, signaling deep investor anxiety that financial engineering alone cannot resolve structural issues.

The deeper driver behind this turmoil is a convergence of three distinct threats pressing on Seres simultaneously. The first major threat involves a divergence between growing revenue and shrinking profitability. In 2025, Seres achieved a record revenue of 165.054 billion yuan, representing a year-on-year increase of 13.69%.

However, the net profit attributable to the parent company rose by a meager 0.18% to only 5.957 billion yuan. After deducting non-recurring items, the adjusted net profit actually fell by 7.84% to 5.136 billion yuan. The situation deteriorated significantly in the first quarter of 2026, where revenue surged by 34.46% to 25.746 billion yuan, yet net profit attributable to the parent company climbed by a negligible 0.89% to 754 million yuan. More alarmingly, after removing non-recurring gains, net profit plummeted by 73.87% to a mere 103 million yuan. This data reveals that while revenue grew by over 30%, the actual cash earned from car sales dropped by more than 70%. The primary culprits appear to be escalating selling expenses and research and development costs. In 2025, selling expenses reached 24.194 billion yuan, a 26.12% year-on-year increase, while R&D costs jumped 42.41% to 7.954 billion yuan. In the first quarter alone, R&D costs soared by 70.68% to 1.794 billion yuan. The company attributed the sharp drop in adjusted net profit to "increased R&D investment," but the cash flow implications are severe. Net cash flow from operating activities turned negative to -20.95 billion yuan in the first quarter, a stark reversal from the 28.91 billion yuan recorded at the end of 2025, indicating that the speed of receiving payments from customers could not match the velocity of supplier payments.

Notably, the second threat stems from the deceleration of the Aion brand, which serves as the lifeblood of Seres. In 2025, Aion accounted for over 82% of Seres's total sales volume. While deliveries surged by over 300% to 386,300 units in 2024, the momentum stalled in 2025 with a sharp drop to 426,000 units, a year-on-year decrease of 10.1%. The figures for 2026 are even more troubling, with deliveries recording 40,012 units in January, 10,003 in February, 20,234 in March, and 30,003 in April. Although May saw a rebound to 30,187 units, this remains far below Yu Chengdong's target of an average of over 40,000 units per month. The product lineup is also facing headwinds across multiple segments. The M5 is losing ground in the 220,000 to 250,000 yuan price bracket, while the M9's monthly delivery volume collapsed from 13,000 units in 2024 to just 3,794 units in the first four months of 2026. The M7 faces intense competition from rivals, and M8 sales have also declined. The only bright spot was the M6, which delivered over 20,000 units in its first month, but a single model cannot sustain the entire company's performance metrics.

Woofun AI data shows that this delivery slowdown directly correlates with the erosion of market share in key high-end segments.

A more critical variable is the third threat: the erosion of Huawei's premium effect, which has historically been Seres's core competitive advantage. The success of Aion was largely predicated on the unrivaled status of Huawei's intelligent driving technology, making it the primary choice for high-end intelligent vehicles.

However, the landscape shifted in 2026 as Yu Chengdong admitted that over 40 new SUV models in the 9 series have emerged since the M9's launch, including the Li Auto L9 Livis, NIO ES9, and KIA EV9X. The total market capacity for these 9 series SUVs is estimated at only 100,000 to 150,000 units.

Furthermore, Huawei's intelligent driving technology is no longer exclusive to Seres. With the launch of HarmonyOS Smart Driving's "five series" of products—Aion, Zhijie, Xiangjie, Zunjie, and Shangjie—Huawei's resources are now distributed across five different brands, diluting Aion's unique position. As intelligent driving becomes an industry standard, the sustainability of Seres's high-premium models is under scrutiny. In a report dated June 11, Citibank significantly lowered its 2026 sales forecast for Seres to 468,000 units, reflecting a growing trust crisis in the capital market.

Despite these challenges, Seres retains a solid foundation that suggests the current slump may be a valuation adjustment rather than a fundamental collapse. The company maintains the highest gross profit margin in the A-share automotive sector. In 2025, the gross profit margin for Seres's new energy vehicles stood at 28.76%, and in the first quarter of 2026, it remained at 26.24%, making it the only listed automotive company with a margin exceeding 25%. This figure significantly outperforms competitors such as Xpeng at 20.58%, NIO at 19.03%, and BYD at 17.78%. The high-end brand continues to demonstrate significant premium power, evidenced by the new generation M9 receiving over 20,000 pre-orders within 24 hours of launch and cumulative pre-orders for all models exceeding 70,000 units. The Aion M9 series has already delivered over 290,000 units. Brand value is also rising, with Aion ranking first among Chinese luxury car brands and securing a spot in the global top 10 luxury car brands in Brand Finance's 2026 list, valued at $3.448 billion. Globalization efforts are accelerating with the launch of globally available models including the AITO 9, 8, 7, and 5, and overseas deliveries are expected to begin in 2026 following in-depth localization in the Middle East.

Additionally, the company is investing heavily in robotics research and development, with R&D personnel reaching 9,019, or 41.1% of the total workforce, focusing on the M6, new M9, Magic Cube technology platform, and AI transformation.

The broader context reveals that Seres is not alone in this struggle; the entire sector is undergoing a painful price adjustment. On June 22, the Hong Kong automotive sector suffered heavy losses, with Geely dropping nearly 6%, Great Wall Motors falling 5%, and BYD and NIO declining by over 4%. Leading new entrants like Li Auto, Xpeng, NIO, and Leapmotor all saw their stock prices drop by more than 20% this year, while Xiaomi Group fell by 34% and Seres by 44%. The market is currently reevaluating the "Huawei halo," shifting from a valuation based on exclusive benefits to one based on true operational value. While the relationship between Seres and Huawei has expanded from a "one-to-one" to a "one-to-many" partnership, Aion remains the core of the ecosystem, accounting for over 70% of HarmonyOS Smart Driving's 46,000 units delivered in May. It is highly unlikely that Huawei would abandon such a valuable partner. The sharp drop in stock price from 173 yuan to 66 yuan reflects a temporary emotional overreaction in a bearish market. For Seres, the real test begins now as the market strips away the premium associated with exclusivity to assess its intrinsic worth. Those that survive this rigorous reevaluation will emerge stronger, provided they can navigate the transition from a hype-driven valuation to one grounded in sustainable profitability and global expansion. This marks a pivotal moment where the distinction between a temporary correction and a structural decline will be determined by execution in the coming quarters.