Rept Battero Energy (666) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 15.2% YoY to RMB7,596.7m; lithium battery sales volume grew 108% to 16.18GWh, while loss for the period narrowed 28.4% to RMB658.2m.

• EV shipments surged, but ESS revenue and gross margin declined amid lower selling prices and intensified competition; overall gross margin fell to 3.6% from 4.1%.

• Ranked third globally in ESS battery-cell shipments and second in small-storage cell shipments; the Wenzhou Facility was profitable at 30 June 2024.

Financial highlights

• Revenue was RMB7,596.7m, up 15.2% YoY; gross profit increased 1.9% to RMB272.4m, while cost of sales rose 15.8% to RMB7,324.3m.

• Loss for the period narrowed 28.4% to RMB658.2m; loss attributable to owners was RMB443.0m, versus RMB710.2m.

• Other income and gains rose to RMB280.6m from RMB86.0m, including RMB120.8m interest income and RMB86.7m additional VAT deduction.

• Battery components revenue increased 55.8% to RMB1,297.3m; other-business gross profit rose to RMB139.7m from RMB19.2m, with margin at 9.2% versus 1.9%.

Outlook and guidance

• Plans include expanding WenDing battery capacity, developing 500–600Ah+ ESS cells and 6–7MWh storage containers, and broadening global production presence.

• The Jiashan R&D building was under construction and expected to begin operation in H2 2024; R&D priorities include semi-solid, all-solid-state, lithium manganese-iron phosphate and recycling technologies.

• U.S. and Southeast Asian subsidiaries were established in H1 2024; the Southeast Asian subsidiary was preparing for potential manufacturing facilities, with production sites planned in Southeast Asia, Europe and South America.