On the afternoon of June 25th, Seres, an electric car company controlled by Huawei, plummeted straight down, ultimately closing at the limit down. By the end of the trading day, Seres’ market value had evaporated by 14.4 billion yuan.
A-shares’ three major indexes experienced volatile adjustments on June 25th. The Shanghai Composite Index fell by 0.44%, the Shenzhen Component Index dropped by 0.83%, and the ChiNext Index decreased by 1.82% at the close.
According to reports from Daily Economic News and Red Star News, on the afternoon of the 25th, the automotive sector saw an initial rise followed by a fall, with Seres taking a sharp dive and eventually closing at the limit down.
Trading data indicated that Seres opened slightly higher by 0.27% on the day. After the opening bell, the company’s stock price showed a trembling trend, and in the afternoon, Seres’ stock price steadily declined.
At the close of the market, Seres was priced at 85.71 yuan per share, a decrease of 10%, with a total market value of 129.4 billion yuan. Seres saw 14.4 billion yuan of its market value evaporate in a single day.
Data from East Money showed that Seres had a trading volume of 9.51 billion yuan on that day, with a net outflow of over 1.4 billion yuan in large transactions.
According to Xinhua Financial News, in response to the rare limit down of the company’s stock price, an insider from Seres commented, “It’s just the normal market fluctuations and performance.”
Furthermore, the automotive sector as a whole continued to decline on this day. At closing, ST Shuguang fell by 4.94%, Jianghuai Automobile dropped by 3.32%, Chang’an Automobile by 0.97%, and Dongfeng Automobile by 0.94%.
Background information reveals that Seres, formerly known as Phoenix Electric Spring Factory, primarily dealt with motorcycle parts before venturing into the automotive industry. In 2021, Seres collaborated with Huawei to jointly launch the first Huawei Smart Selection car model. It is widely believed in the industry that Seres’ products and brand image are entirely controlled by Huawei.
As per financial reports, Seres incurred net losses of 1.729 billion yuan, 1.824 billion yuan, 3.832 billion yuan, and 2.45 billion yuan, respectively, for the years between 2020 and 2023, totaling losses of 9.835 billion yuan over the four-year period.