Rept Battero Energy (666) H2 2024 earnings summary

Executive summary

• FY2023 revenue fell 6.1% YoY to RMB13,748.9m; net loss widened to RMB1,943.3m from RMB450.8m, as lower selling prices and delayed raw-material cost reductions compressed margins.

• Lithium battery sales volume grew 17.3% to 19.48GWh; year-end designed annual capacity reached 62GWh. Hong Kong listing in December raised net proceeds of approximately HK$2,013.1m.

Financial highlights

• Revenue RMB13,748.9m, down 6.1% YoY; cost of sales declined 0.8% to RMB13,455.6m, slower than the revenue decline.

• Gross profit dropped 73.0% to RMB293.3m; gross margin contracted to 2.1% from 7.4%.

• Loss before tax was RMB1,940.9m; net loss was RMB1,943.3m versus RMB450.8m in 2022. Parent-attributable loss reached RMB1,471.8m.

• Other income and gains rose 58.2% to RMB265.6m, including higher government grants and interest income; finance costs increased 36.0% to RMB256.9m.

Outlook and guidance

• Maintain a dual-focus strategy in EV and ESS batteries; prioritize product innovation, higher energy density, cycle life, safety, fast charging and cost-effectiveness.

• Expand high-tech, efficient production capacity and pursue planned facilities in Southeast Asia, Europe and South America to strengthen global reach and diversify geopolitical exposure.

• The Jiashan R&D center was under construction and expected to begin operations in H2 2024; Twin Star batteries were expected to be ready for mass production before June 2025.

• Upstream projects funded by Yongqing Technology and associates were expected to reach mass production in Q4 2024, after trial production began in Q4 2023.