Seres Automobile Gets an Additional Capital Increase of 5 billion yuan: Making large - scale acquisitions on one hand and striving to raise funds on the other.

On June 25, Seres Group (601127.SH) announced that the group agreed to allow its holding subsidiary, Seres Automobile Co., Ltd. (hereinafter referred to as "Seres Automobile"), to introduce strategic investors and jointly conduct a cash capital increase of Seres Automobile, with a total capital increase amount of 5 billion yuan. Multiple financial and industrial investment institutions participated in this capital increase.

△ Wenjie M7. Photo source: Photographed by a reporter from Time Weekly

Seres Group stated that this capital increase is beneficial for enhancing the capital strength of Seres Automobile, facilitating strategic in - depth layout, reducing the asset - liability ratio, and promoting its sustainable and high - quality development. After the completion of this capital increase, Seres Automobile has completed three capital increases within 10 months, with a cumulative amount exceeding 10 billion yuan.

This capital increase coincides with the period when Seres Group is promoting its listing on the Hong Kong stock market. It submitted a listing application to the Main Board of the Hong Kong Stock Exchange on April 28 this year, with China International Capital Corporation and China Galaxy International as joint sponsors. However, on May 30, the China Securities Regulatory Commission announced the public notice of supplementary material requirements for overseas issuance and listing filings, requiring Seres Group to explain matters such as the operation of the insurance agency business of its subsidiary companies.

A reporter from Time Weekly inquired about the progress of Seres Group's listing on the Hong Kong stock market, but the other party did not respond.

Accumulated capital increase of over 10 billion yuan within 10 months

Seres Automobile is a holding subsidiary of Seres Group and the main company for the group's passenger car business. Since the second half of 2024, the company has received multiple capital increases.

First, in September 2024, the registered capital of Seres Automobile increased from 4.96 billion yuan to 9.96 billion yuan. The newly added registered capital of 5 billion yuan was fully subscribed by Seres Group. Seres Group still held 100% of the equity in Seres Automobile.

In December 2024, the registered capital of Seres Automobile increased to approximately 10.08 billion yuan. The increased part was subscribed in monetary form by the China Development Manufacturing Transformation and Upgrading Fund (Limited Partnership). After the completion of the aforementioned capital increase, Seres Group's shareholding decreased to 98.7709%, and the China Development Manufacturing Fund held 1.2291% of the equity in Seres Automobile.

The total capital increase this time is 5 billion yuan, and most of the investors are financial and industrial investment institutions. The investment entities and amounts are as follows:

Industrial and Commercial Bank of China Financial Asset Investment Co., Ltd. invested 1 billion yuan;

Bank of Communications Financial Asset Investment Co., Ltd. invested 1 billion yuan;

Agricultural Bank of China Financial Asset Investment Co., Ltd. invested 500 million yuan;

Shenzhen Xinmaisui Investment Management Co., Ltd. invested 500 million yuan;

Jianyin Investment Co., Ltd. invested 200 million yuan;

Beijing CMIT Digital New Economy Industry Fund Partnership (Limited Partnership) invested 600 million yuan;

Shanghai CMIT Digital Transformation Industry Private Equity Fund Partnership (Limited Partnership) invested 200 million yuan;

Baowu Green Carbon Private Investment Fund (Shanghai) Partnership (Limited Partnership) invested 500 million yuan;

Beijing Guangyao Zhixin Huijing Equity Investment Fund Partnership (Limited Partnership) invested 500 million yuan;

So far, within the past 10 months, Seres Automobile has received a capital increase of over 10 billion yuan.

△ Screenshot source: Announcement of Seres Group

Seres Group also stated that the purpose of this capital increase is to improve the strength of Seres Automobile and is expected to reduce the latter's asset - liability ratio. Calculated based on the financial data of Seres Automobile disclosed by Seres Group, the latter's asset - liability ratio was as high as 98.7% in 2024, which is at a relatively high level in the industry.

"During the period when investors hold the equity of Seres Automobile, Seres Automobile shall make every effort to ensure that the asset - liability ratio in the audited consolidated financial statements of any fiscal year does not exceed 98%." Seres Group said.

Large - scale acquisitions and financing go hand in hand

Before introducing strategic investors this time, Seres Automobile spent a large amount of money.

On January 7, Seres Group announced that Seres Automobile planned to purchase 10% of the equity of Shenzhen Yinwang Intelligent Technology Co., Ltd. held by Huawei Technologies Co., Ltd. in cash, with a transaction amount of 11.5 billion yuan. The first transfer payment of 2.3 billion yuan has been paid, and the subsequent transactions are still in progress.

This transaction is one of the largest - scale transactions in the automotive industry since this year.

The parent company, Seres Group, has also been very active in the capital market. In March, Seres Group announced that it would purchase 100% of the equity of Longsheng New Energy from Chongqing Industrial Mother Fund, Liangjiang Investment Group, and Liangjiang Industrial Group by issuing shares, with a price of 8.16 billion yuan. Longsheng New Energy became its wholly - owned subsidiary.

After multiple huge expenditures, Seres Group started the path of fundraising. In addition to the external capital increase of its holding subsidiary, Seres Automobile, the group also plans to list on the Hong Kong stock market.

In April this year, Seres Group submitted a listing application to the Hong Kong Stock Exchange, and the specific amount of funds to be raised is unknown. Seres Group stated that 70% of the funds to be raised through this Hong Kong IPO are intended for R & D, 20% for marketing channels, overseas sales, and charging networks, and 10% for working capital.

However, due to insufficient information in some materials, the China Securities Regulatory Commission required Seres to explain matters such as the operation of the insurance agency business of its subsidiary companies, including insurance business agency qualifications and solvency. Time Weekly inquired about this and the progress of the Hong Kong listing from Seres Group, but did not receive an explanation as of the time of publication.

Driven by the hot sales of the Wenjie brand of cars jointly developed with Huawei, Seres Group has become one of the most - watched listed automotive companies in recent years. In 2024, Seres Group's annual revenue reached 145.18 billion yuan, a year - on - year surge of 305%; the net profit was 5.95 billion yuan, achieving a turnaround from losses, and it became the fourth profitable new - energy vehicle manufacturer after Tesla, BYD, and Li Auto.

With frequent capital actions, where will Seres go next?

This article is from the WeChat public account "Time Weekly" (ID: timeweekly), author: Wu Kai. Republished by 36Kr with authorization.