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 annual performance of luxury new-energy vehicle company Seres (9927.HK) has sparked strong market interest. Group revenue of RMB 164.89 billion, proposed cash dividends of RMB 1.9 billion, R&D spending of roughly RMB 12.5 billion… behind these figures are not only leaps 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 trading current investment for future barriers—using premiumization to drive structural optimization, and using technology investments to build a differentiated competitive moat.

With a series of Seres premiumization strategies successfully rolled out, the “quality” of its profit growth is being significantly enhanced. In 2025, the Group’s premium brand AITO achieved sustained growth, with cumulative annual deliveries exceeding 420k vehicles, becoming the Chinese luxury auto brand with the highest sales volume in the domestic market. Among them, the AITO M9 ranked solidly as the sales champion in the 500k-RMB+ luxury segment for two consecutive years in 2024 and 2025, the AITO M8 maintained the top position in the 400k-RMB segment, and after the all-new AITO M7 was launched in September, it immediately captured the sales championship in the 300k-RMB segment. The three flagship models topped their respective price bands, directly driving the company’s overall average selling price and gross margin. At the same time, the AITO M6, positioned as a “new, trendsetting smart SUV,” officially opened small-quantity reservations on March 23. The market generally views it as an important step in extending AITO’s product matrix into a broader mainstream range. It is expected to continue the brand’s capability to build hot-selling models across multiple price tiers, injecting new momentum into future growth.

Premiumization brings not only surges in sales and profits, but also gives Seres the confidence to keep increasing R&D investment. In 2025, the R&D team expanded from 6,201 people to 9,019 people, a year-over-year increase of 45.4%; R&D spending rose 77.4% year over year to RMB 12.51 billion. High-intensity investment, through mass-production rollouts of core technological achievements such as the Cube Technology Platform 2.0, the Super Range Extender, and intelligent safety systems, has been translated into differentiated competitive strength in products—supporting premium pricing and brand premiums. From technological breakthroughs to product leadership, and then to improved profitability, ultimately feeding back into R&D investment—Seres has already successfully run this positive growth loop.

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

Next, take a look at the transaction involving the acquisition of 10% equity in Ilook—last October, RMB 2.3 billion was paid; early this year, RMB 5.75 billion; in September, the final installment of RMB 3.45 billion was received, while Huawei had already transferred the equity as early as March. This trust structure of “front-loading the chips, then settling the final payment” is extremely rare in the business world. Rather than calling it an equity investment, it’s more like a ticket for the smart vehicle era. Seres has chosen to tightly bind with the top-tier partner, making the moat deepen as the cooperation continues. This is not dependence—it is a strategic positioning that locks down ecological entry points using equity.

What’s even more worth savoring is the qualitative change in the financial structure. The H-share listing raised about HKD 14 billion. Longsheng New Energy shifted from lease to hold, and attributable equity surged to RMB 40.9 billion; the asset-liability ratio fell to 70.91%, and cash reserves jumped to RMB 48.36 billion. Operating cash flow is a solid backing for net profit. In The Intelligent Investor, Benjamin Graham pointed out long ago: the stock price is a voting machine in the short term, but a weighing machine in the long term. Seres’s balance sheet is steadily adding weight to its long-term value.

Supported by tightly bound branding, heavy emphasis on technology, and ample ammunition, Seres’s growth logic is clear and steady. It wholly owns the AITO trademark; Cube Technology Platform 2.0 has been comprehensively upgraded, and in 2025 the share of active users for intelligent assisted driving reached as high as 95.4%; and the plan to build 5,000 ultra-fast charging stations within three years also paves the way for volume expansion. Every RMB of investment by Seres points toward strengthening brand sovereignty, the technology foundation, and operating efficiency—rather than spreading resources idly.

Back to the valuation perspective: since 2026, Seres’s stock price has undergone periodic adjustments, and the valuation has fallen back into a reasonable range. From the continuous realization of premiumization strategies, to the positive feedback loop of technology investments, and then to fundamental improvements in the financial structure, Seres has successfully transformed from a traditional manufacturer into a technology-and-innovation company. Revenue of RMB 164.89 billion is not an endpoint, but a new starting point for value release.

Seek out the champions around you with Lynch’s lens, measure the depth of the moat with Buffett’s ruler, and wait for the cycle’s rewards with even Temperton’s patience. With multiple catalysts—improving performance, expanding deliveries, and broader industry trends—right now Seres is in a value range that is worth paying attention to.

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