Comeback from the dead! The old carmaker with the Huawei halo has won big this time.

According to the financial report for 2024, Seres New Energy Vehicle Company's revenue for the first quarter was 26.561 billion yuan, a year-on-year increase of 421.76%, with a net profit attributable to the parent company of 220 million yuan.

Seres New Energy Vehicle Company is a brand under the Seres Group. The company has been in a state of loss for several years since its establishment, but it has made a stunning turnaround after cooperating with Huawei, once increasing its market value from 20 billion yuan to 100 billion yuan.

It can be seen that Seres' ability to turn losses into profits is inseparable from Huawei's intelligent technology.

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Huawei is certainly indispensable, but Seres' ability to stand at the forefront of new energy vehicles relies more on its own efforts.

When it comes to Seres, it is inevitable to trace back to its previous life - Chongqing Ba County Phoenix Electrical Appliance Spring Factory.

In 1986, Chongqing Ba County Phoenix Electrical Appliance Spring Factory was established, mainly focusing on the production and sale of electrical springs and microcar seat springs.

Catching up with the trend of the great development of electrical appliances, the sales performance of Chongqing Ba County Phoenix Electrical Appliance Spring Factory has been soaring all the way, and its scale has also been continuously expanding.After a decade of vigorous development, this once-obscure small factory has sold springs priced at only 1 yuan to all parts of the country, and has taken on 90% of the domestic washing machine market share. With the increasing rise of the automotive industry, Fenghuang Electrical Appliance Spring Factory realized that compared to mere spring manufacturing, shock absorbers have a higher technological content. Therefore, the spring factory expanded its business into the automotive field, starting to produce automotive parts mainly focused on shock absorbers. In 1996, Fenghuang Electrical Appliance Spring Factory became a supplier for Chang'an Automobile and was officially named Yu'an Group, which is the predecessor of Seres Group Co., Ltd. Within just four years, Yu'an Group's sales performance has been on a continuous upward trajectory. At this point, the group was no longer content with just producing automotive parts but instead turned its attention to the production of entire vehicles. To proceed cautiously, the group decided to start with motorcycles. To this end, Yu'an Group went to great lengths to invite top Italian racing car design experts from around the world to collaborate with them in the joint production of the XGJ150-23 racing motorcycle. This racing motorcycle did not disappoint, winning gold and silver in international competitions on multiple occasions. With top-level technological support, Yu'an Group was full of confidence. As they were planning to delve deeper into the motorcycle field, an excellent opportunity presented itself. It turned out that Dongfeng Group, a joint venture company focused on producing mini vans, was preparing to choose a new joint venture partner due to severe losses for several consecutive years.This news is absolutely a once-in-a-lifetime opportunity for Yu'an Group, which is preparing to produce cars.

In 2003, Yu'an Group reached a consensus with Dongfeng Group and established Yu'an Vehicle Co., Ltd.

After two and a half years of in-depth research and practice, the Dongfeng Xiaokang mini van produced by Yu'an Vehicle Co., Ltd. was successfully launched.

Surprisingly, as soon as the Dongfeng van was introduced to the market, it quickly broke into the top 3 in the national mini van sales.

With the strong sales momentum, Dongfeng Xiaokang continuously upgraded its products and successively launched a series of products such as Xiaokang V27, Xiaokang K07, Xiaokang C37, and Xiaokang Fengguang.

These products have been widely recognized by the market.

The company also pays special attention to product promotion and invited Wang Baoqiang, who was very popular at that time, to be the product spokesperson.

Wang Baoqiang's growth from a grassroots star to a well-known actor has been bumpy, which is very much in line with the development history of Yu'an Group.

Since Wang Baoqiang became the spokesperson, the car sales of Yu'an Vehicle Co., Ltd. once surged, and the company quickly developed into a well-known enterprise in the automotive field.

2013 was a year of historical turning point for Yu'an Group.In this year, the company not only successfully went public but also successively launched products similar to MPVs (multi-purpose vehicles) such as the Fengguang 330, 360, and 370. Moreover, these Fengguang series models have been leading in sales within the industry.

What's more noteworthy is that after three years of development, the company once again created a phenomenon-level product in the Fengguang series—the Fengguang 580, including new versions like the new 580 and the 580 Red Star edition.

Once these phenomenon-level products of the Fengguang series were launched, their sales volume surged to over 20,000 units at one point, making them stand out among many car models.

However, the ever-changing market can always catch people off guard.

After experiencing a period of fervent sales, the sales situation of Dongfeng Motor began to show a sharp decline.

As the demand for sedans increased day by day, many companies rushed into the automotive production field.

The sudden market changes caused a huge impact on existing car companies, and Yu'an Vehicle Co., Ltd. was no exception.

The continuous decline in vehicle sales worried the entire company. If the sales volume could not be increased in a short period, the company would suffer significant losses.

When in a desperate situation, one thinks of change. In order to survive, Yu'an Vehicle Group was forced to begin a difficult transformation.This time, the company took an unconventional approach and decided to commit to the research and development and production of new energy vehicles, choosing a path of overseas enhancement.

In January 2016, the brand under Yu'an Vehicle Group Co., Ltd. - Seresis New Energy Automobile Company, was established in Silicon Valley, USA.

In order to ensure that new energy vehicles remain invincible in fierce competition, Seresis has invested 10 billion yuan in succession, striving to enhance the core technologies, product quality, and technical strength of new energy vehicles.

Over the years, Seresis has already held nearly 3,000 core technology patents, and has built a super electric drive intelligent technology platform with independent intellectual property rights and leading in the industry. It is one of the few domestic companies that independently master the core three-electric technologies.

In 2019, Seresis Company made every effort to create a medium-sized SUV - Seresis SF5. At the same time, it also gave this car a Chinese name - Golden Fruit EV, which is the predecessor of Huawei Smart Selection SF5.

Golden Fruit EV has core technology and has returned from overseas enhancement, so the company has high hopes for this car.

However, no one expected that after the new car was put into the market, the response was mediocre, and the monthly sales were even less than 300.

According to the revenue reports for 2019 and 2020, Seresis's revenue was 18.132 billion yuan and 14.302 billion yuan respectively.

The sales situation in 2020 was even more miserable, with only about 700 vehicles sold throughout the year, and the loss amount reached 2.308 billion yuan.

This result shocked the company, and the original plan to make a beautiful comeback was unexpected. Not only did it not recover the investment cost, but it also led to more and more losses for the company.When discussing the reasons for the losses, the person in charge stated:

Due to the high costs of raw materials, core technology, and R&D investment for high-end intelligent electric vehicles, coupled with the persistently sluggish sales, the overall performance has been greatly affected.

The dismal sales have led to a total loss of investment, and after all the efforts, Seres has ultimately engaged in a losing business.

At the critical juncture where change means survival and stagnation means death, Seres urgently needs a strong promoter to help it turn losses into profits and secure a place in the competition of new energy vehicles.

The savior that brought Seres back to life is Huawei.

At the end of 2021, Zhang Xinghai, the head of Seres Group, officially cooperated with Huawei with all the company's assets.

On April 15 of the same year, the Seres Huawei Smart Selection SF5 model was launched.

This is the first model created after the in-depth cooperation between Seres and Huawei.

The overall framework of the Smart Selection SF5 is not much different from the previous Golden Fruit EV, but the biggest difference is that Huawei, which has the world's leading inverter technology, has equipped the car with the Huawei HICar system, which is an extremely eye-catching presence.

Once launched, the Smart Selection SF5 was very popular, and by the end of October 2021, the sales volume of the SF5 had already exceeded 2,200 units.Although the sales figures may not be particularly impressive compared to other car manufacturers, considering the previous sales data, this model, priced above 200,000 yuan, has achieved a commendable sales volume.

Thus, after failing to gain a foothold in the United States, Seres, upon being labeled as a domestic brand, unexpectedly reaped a pleasant surprise.

What truly turned Seres around was the high-end new energy brand AITO Enovate, co-created with Huawei.

Compared to the Zhixuan SF5, the birth of Enovate has captured more attention.

This model features an extended-range hybrid power system, a 1.5T engine with a maximum power output of 92 kW, a battery capacity of 40 kW, and a combined driving range of 1000 km.

With the launch of the new M7 and M9 models from Enovate, the sales market experienced a surge in popularity.

In 2023, Seres achieved a total vehicle sales volume of 106,703 units, a year-on-year increase of 33.31%. The M9, starting at 470,000 yuan, broke through 80,000 units in just 136 days after its launch.

Seres was honored as the 2023 National Trend Innovation Model Pioneer Brand, thanks to these sales achievements.

By the end of 2023, Enovate had become a new energy brand with monthly sales exceeding 30,000 units. At the same time, the M9 also secured large orders exceeding 50,000 units.

Entering 2024, AITO Enovate delivered 85,842 units in the first quarter, successfully surpassing Li Auto to become the sales champion among new force brands.In the context of a general downturn in the automotive industry, it is no small feat for Seres to turn losses into profits. It must be said that Huawei's company has injected fresh blood into Seres, and it is precisely with Huawei's support that Seres has become a first-tier player in the new energy field.

Nowadays, Huawei's intelligent driving technology continues to improve. According to professionals, Huawei is striving to commercialize L3 level autonomous driving next year, with the goal of achieving L4 level autonomous driving by 2030.

Despite the promising prospects for Seres' future development, the company still faces challenges. At present, the problem of new energy vehicle manufacturers delivering vehicles is quite prominent. After customers make payments, it usually takes the company 1-2 months to deliver the new cars. If there are issues in the design, production scheduling, or supply chain of new energy vehicles, delivery may be delayed.

In this way, not only are consumers dissatisfied, but the company's credibility is also deeply affected. However, Seres is actively looking for solutions, hoping to resolve the issue of delayed delivery through the acquisition of super factories and the promotion of capacity expansion.

Whether Seres can seize this "windfall wealth" depends on whether its delivery capabilities can keep up in the later stages.From Chongqing Ba County Phoenix Electrical Appliance Spring Factory, to Yu'an Group Co., Ltd., and now to Seres Group Co., Ltd., Seres has undergone three significant transformations in total.

Since its establishment, Seres New Energy Company has also traversed an 8-year journey in car manufacturing.

After a deep collaboration with Huawei, and following three years of cross-industry integration, the production of three smart electric vehicles has finally secured a place for Seres in the fierce competition.

"Adapt when in difficulty," the union of Seres with Huawei is the most correct decision the company has made.

By hitching a ride on Huawei's "smart express," Seres has transformed from a lagging "veteran" to a "front-runner" in the new track.

The path to Seres's success also provides the best reference for companies facing tough times.

However, while seeking good partners is important, it is only by strengthening one's own capabilities that a company can remain invincible.

Whether it is an individual or a company, relying on others is not as reliable as self-reliance.