Luxury new energy vehicle company Silex's revenue exceeds 100 billion yuan: profits and future strategy driven by high R&D investment

In recent times, the 2025 performance of luxury new-energy vehicle maker Seres (9927.HK) has sparked intense market attention. A group revenue of RMB 164.89 billion, a proposed cash dividend of RMB 1.9 billion, and approximately RMB 12.5 billion in R&D investment—behind these figures is not only a leap in scale, but also a concentrated realization of high-quality growth.

In the auto industry, any short-term profit saving may come at the cost of sacrificing long-term competitiveness. Seres has chosen a path of exchanging current investment for future barriers—using premiumization to drive structural optimization, and using technological investment to build differentiated barriers.

With the successful rollout of Seres’ series of premiumization strategies, the “gold content” of its profit growth is rising significantly. In 2025, its high-end brand AITO achieved sustained growth, with total annual deliveries exceeding 420,000 units, becoming the Chinese luxury auto brand with the highest sales in the domestic market. Among them, the AITO M9 has ranked first in sales of 500,000-yuan-plus luxury vehicles for two consecutive years in 2024 and 2025; the AITO M8 has held the top spot in the 400,000-yuan-plus segment; and after its new model was launched in September, the AITO M7 immediately won the sales championship in the 300,000-yuan-plus segment. The three flagship models have taken first place in their respective price bands, directly lifting the company’s overall ASP and gross margin. At the same time, the AITO M6, positioned as a “new-generation intelligent SUV,” officially opened for small-lot orders on March 23. The market generally views it as an important step in extending AITO’s product matrix into a broader mainstream range, with expectations to continue the brand’s capability to build hot-selling models across multiple price tiers and to inject fresh momentum into future growth.

What premiumization brings is not only a leap in sales and profits, but also gives Seres the confidence to keep ramping up R&D. In 2025, the R&D team expanded from 6,201 people to 9,019, a year-over-year increase of 45.4%. R&D investment grew 77.4% year over year to RMB 12.51 billion. Through mass-production implementation of core technological achievements such as the Cube Technology Platform 2.0, super-range extended hybrid, and an intelligent safety system, high-intensity investment is transformed into differentiated competitive strength for products—supporting premium pricing and brand premium. From technological breakthroughs to product leadership, and then driving improvements in profitability, ultimately feeding back into R&D investment—Seres has already successfully run this virtuous cycle.

As Peter Lynch said, true ten-baggers often come from companies whose product competitiveness you can feel right around you. When AITO’s penetration in the premium market continues to increase, that in itself is a strong investment signal.

Now look at the transaction to acquire 10% equity interest in Huawei Vision (Vision—Yingwang?) for RMB 11.5 billion—last October paid RMB 2.3 billion, early this year paid RMB 5.75 billion, and in September the final installment of RMB 3.45 billion was received, while Huawei had already transferred the equity in March. This “handover the chips first, then settle the final payment” trust structure is extremely rare in the business world. Rather than describing it as equity investment, it is more like a ticket for the era of smart automobiles. Seres has chosen to deeply tie itself with the top-tier partner, allowing the moat to keep deepening as cooperation continues. This is not dependency—it is a strategic positioning that locks down ecosystem entry points with equity.

Even more worth savoring is the qualitative change in the financial structure. With an H-share IPO fundraise of about HKD 14 billion, Longsheng New Energy shifted from lease to hold, with attributable equity interests surging to RMB 40.9 billion, the asset-liability ratio falling to 70.91%, and cash reserves skyrocketing to RMB 48.36 billion. Operating cash flow is a solid backing for net profit. In The Intelligent Investor, Benjamin Graham has already pointed out: the stock price in the short term is a voting machine, while in the long term it is a weighing machine. Seres’ balance sheet is continuously adding weight for its long-term value.

Supported by brand entrenchment, heavy emphasis on technology, and ample ammunition, Seres’ growth logic is clear and steady. It fully owns the AITO trademarks; the Cube Technology Platform 2.0 has been comprehensively upgraded; in 2025, the active user share of intelligent assisted driving reached as high as 95.4%; and the plan to build 5,000 supercharging stations within three years will further pave the way for scale expansion. Every dollar of investment by Seres is aimed at strengthening brand sovereignty, the technological foundation, and operating efficiency—not at needless sprawl.

Back at the valuation level, since 2026, Seres’ share price has undergone phase-based adjustments, and the valuation has returned to a reasonable range. From the sustained delivery of its premiumization strategy, to the virtuous cycle created by increased technological investment, to fundamental improvements in the financial structure, Seres has successfully transitioned from a traditional manufacturer into a technology-driven enterprise. Revenue of RMB 164.89 billion is not an endpoint, but a new starting point for the release of value.

Using Lynch’s perspective to look for champions nearby, using Buffett’s yardstick to measure the depth of the moat, and using Templeton’s patience to wait for the payoffs of the cycle. With multiple catalysts—improving performance, delivery ramp-ups, and industry trend tailwinds—Seres today is in a value range that is worth paying attention to.

Contact: Hong Kong Economic Times Advertising Department, Listed Companies Division │ annteam@hket.com