(Yicai) Jan. 25 -- Chinese carmaker Seres Group expects its net loss to have narrowed up to 45 percent last year, thanks to the increased sales volume of the electric vehicle models co-developed with Chinese telecoms giant Huawei Technologies.

Net loss was likely between CNY2.1 billion and CNY2.7 billion (USD295.3 million and USD279.7 million) in the 12 months ended Dec. 31, compared with a CNY3.8 billion loss the previous year, the Chongqing-based company announced yesterday.

Seres attributed the loss to heavy investment in research and development, high costs, and sluggish sales in the first three quarters of the year. However, the carmaker mentioned that the loss greatly shrank thanks to strong sales of the revamped Aito M7 released in September and the Aito M9, which hit the market in December.

The Aito M7 and M9 are expected to help Seres further strengthen its profitability in the future, the company added.

Seres also predicted its business revenue to have risen 4.1 percent to 7 percent to between CNY35.5 billion and CNY36.5 billion (USD5 billion and USD5.1 billion) last year from the year before.

Huawei has three approaches when partnering with carmakers: vertical parts supplier, intelligent systems provider through Huawei Inside, and full-set solutions provider via the Huawei Smart Selection business model. Seres Group cooperates with Huawei under the Huawei Smart Selection model, which has been the most successful among the three.

Seres is the automaker that partners with Huawei in the most extensive and deepest way and with the largest production capacity, the firm added, noting that Huawei's business strategy adjustments will not influence their long-term partnership, impact Huawei's part and component supply to Seres, or affect existing and potential users of Aito.

Last November, Shenzhen-based Huawei announced it would establish a new unit engaged in the research, development, design, production, sales, and services of smart auto system and component solutions, and welcome automakers to participate.

Editor: Futura Costaglione