Sokon Group forecasts net loss of billions in 2021 due to large investments in SERES

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Beijing (Gasgoo) – Chongqing Sokon Industry Group Stock Co., Ltd. (Sokon Group), the parent company of the automotive brand SERES, recently published its annual performance forecast for 2021 with a published estimated annual loss.

AITO M5; photo: AITO

The company expects losses to increase in 2021 from the previous year. According to the report, in 2021, the net loss of Sokon Group owned by shareholders will range from 1.95 billion yuan to 1.55 billion yuan ($ 308.32 million to $ 245.07 million). The net loss after one-time deductions is estimated at 2.91 billion to 2.51 billion yuan (from 460.11 million to 396.86 million dollars).

In 2020, Sokon Group recorded a net shareholder loss of 1.73 billion yuan ($ 273.54 million) and a net loss after one-time deductions of 2.31 billion yuan ($ 365.24 million).

In particular, the Sokon Group said that in 2021, its new power vehicle business SERES suffered a net loss of 1.4 billion yuan ($ 221.36 million), despite sales growth. The company explained that the unsatisfactory results were caused by the massive investment needed to build the brand, including sales, fixed assets, amortization of intangible assets, research and development costs, labor and sales channels.

It should be noted that on January 27, Sokon Group announced that it plans to raise 7.13 billion yuan ($ 1.125 billion) through private placement. Moreover, for the money the group intends to develop six new models of electric cars, three intelligent high-class electric cars and three practical models of electric cars. The project will cost the company about 4.75 billion yuan ($ 479.43 million), with 4.31 billion yuan ($ 680 million) from this round of private placement.

Currently, the group has only one high-end EV model on the market, the AITO M5, jointly developed by SERES and HUAWEI.

Sokon Group forecasts net loss of billions in 2021 due to large investments in SERES

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