Key Takeaways:
- SERES' new brand Saidou Tech raised registered capital 203% to RMB971 million
- CATL and XINGYU joined as new shareholders in the renamed entity
- The youth-oriented automobile brand is scheduled for official launch in June
Back
SERES' Saidou Tech raises RMB971M, adds CATL as strategic shareholder
SERES' new brand Saidou Tech raised registered capital 203% to RMB971 million and added CATL as a shareholder, filings show.
"The introduction of CATL and XINGYU as shareholders strengthens our supply chain and capital base," a company representative said, according to Chinese media reports citing Tianyancha data.
Chongqing Landian Technology Co. changed its name to Chongqing Saidou Technology Co. and boosted registered capital from RMB320 million to RMB971 million, a spike of about 203%. New investors include Ningbo Meishan Bonded Port Zone Wending Investment, an entity under CATL (03750.HK), and automotive parts maker XINGYU (601799.SH). Saidou Tech will serve as the legal operating entity for SERES' (09927.HK) new automobile brand, which targets younger buyers with sportier models and is scheduled for an official launch in June.
The capital injection comes as SERES, the EV maker backed by Huawei, deepens supply chain ties with CATL, the world's largest battery manufacturer. CATL's investment shows confidence in SERES' brand expansion strategy and reflects a broader trend of battery makers taking equity stakes in downstream automakers to secure demand. CATL has pursued similar vertical integration moves, including investments in automakers and battery swap ventures, as competition intensifies in China's EV market.
SERES shares rose 1.6% on the day of the filing, while CATL gained 1.2%, reflecting positive market reception to the partnership. The new brand represents SERES' push into the youth-oriented segment, a fast-growing category in China where domestic automakers including BYD and Nio have launched sub-brands targeting first-time car buyers. Saidou Tech's positioning as a sporty, youthful brand puts it in direct competition with BYD's Fangchengbao and Nio's Onvo sub-brands.
The RMB971 million capital base gives Saidou Tech financial flexibility for product development and marketing ahead of its June debut. CATL's involvement also ensures preferential access to battery supply and potentially lower costs, a critical advantage as EV price competition in China remains intense. SERES delivered about 42,000 vehicles in the first quarter, up from the prior year, driven by demand for its AITO-branded models co-developed with Huawei.
CATL's downstream investment strategy has accelerated over the past two years, with the battery giant taking stakes in automakers, forming battery swap joint ventures, and investing in charging infrastructure. The company's decision to back Saidou Tech shows its bet on SERES' brand expansion capabilities and the growth potential of China's youth-oriented EV segment, which has outpaced the broader market.
Investors will watch for further details on Saidou Tech's vehicle lineup, pricing strategy, and delivery targets in the coming months. The brand's success will be a key test of SERES' ability to expand beyond its existing partnership with Huawei and build a multi-brand EV portfolio.
This article is for informational purposes only and does not constitute investment advice.
