REPT BATTERO (00666) 2025 Mid-term Performance Analysis: Growth Driven by Dual-wheel Storage, Profit Turning Point Appears.

On August 11th, REPT BATTERO (00666) released the interim performance announcement for the period ending June 30, 2025. The financial report shows that the company's core indicators have significantly improved, not only continuing the sales growth momentum since 2024, but also achieving a strong breakthrough in profitability, injecting a strong impetus for the company's long-term stable development. The sales volume of lithium batteries has grown rapidly, and profitability has significantly improved In the first half of 2025, REPT BATTERO achieved revenue of 9.491 billion yuan, a year-on-year increase of 24.9%; gross profit reached 829 million yuan, a year-on-year increase of 177.8%, showing a significant improvement in profitability. In terms of product sales performance, in the first half of the year, the total sales volume of the company's lithium battery products reached 32.4GWh, a year-on-year increase of 100.2%. Among them, energy storage battery shipments reached 18.87GWh, a year-on-year increase of 119.3%; power battery shipments reached 13.53GWh, a year-on-year increase of 78.5%. The company's "power + energy storage" dual-wheel drive strategy continues to show results, continuously strengthening its competitiveness in the lithium battery segment. According to statistics from Shanghai Nonferrous Network (SMM), in the first half of the year, REPT BATTERO ranked among the top five in global energy storage cell shipments, with the highest energy storage cell shipments among users globally; according to statistics from the China Automotive Power Battery Industry Innovation Alliance, the company ranked seventh in the domestic market for lithium iron phosphate power battery companies, eighth in plug-in hybrid passenger car installations, and sixth in new energy commercial vehicle installations. Data from the High-Tech Industry Research Institute shows that in the first half of the year, the company ranked second in domestic heavy-duty truck and battery installations. The market share of new energy heavy-duty truck batteries is 7.5%, and the market share of exchangeable heavy-duty truck batteries is 9%, both ranking second in the country. With the rapid growth in product sales, REPT BATTERO's production capacity utilization continues to improve, and the gross profit margin has increased from 3.9% in the same period last year to 8.7%. Among them, the gross profit of power and energy storage battery products increased by 389.7% year-on-year, and the gross profit margin increased from 2.6% to 8.5%. At the same time, the company optimized its cost structure through the "reduce costs and increase efficiency" strategy, with administrative expenses decreasing by 20.1% year-on-year, further increasing profit margins. The strong sales growth strongly confirms the market recognition of REPT BATTERO's lithium battery products and provides solid support for its investment value, driving the capital market to form a positive outlook on the company's development prospects. It is noted that, influenced by the positive performance, REPT BATTERO's stock price recently rose to 14.1 Hong Kong dollars, a maximum increase of 60% from the year's low of 8.83 Hong Kong dollars. At the same time, Southbound funds have continued to increase their holdings of REPT BATTERO stocks recently. As of August 11 (Exchange settlement T+2), the number of shares held reached 14.2348 million, exceeding 1.6% ownership, demonstrating investors' recognition of the company's growth logic. Technology iteration strengthens core competitiveness According to observations, REPT BATTERO's performance breakthrough in the first half of the year was due to the resonance of industry dividends and the improvement of its own competitiveness. In the first half of 2025, the global new energy vehicle and energy storage market continued to be prosperous. According to data from Rho Motion, global sales of new energy vehicles reached 9.1 million units, an increase of 28% year-on-year; data from the China Association of Automobile Manufacturers shows that the production and sales of new energy vehicles in China both exceeded 6.9 million units, with a penetration rate of 44.3%, driving a surge in demand for power batteries. According to data from Gao Gong Chan Research Lithium Battery Research Institute, in the first half of the year, domestic power battery shipments reached 477 GWh, a year-on-year increase of 49%. The explosive growth was even more pronounced in the energy storage sector, with data from Shanghai Nonferrous Network (SMM) showing that global energy storage cell shipments exceeded 250 GWh in the first half of the year, a year-on-year increase of about 100%; China's new energy storage installation scale reached 94.91 GW/222 GWh, with a year-on-year increase in capacity and energy of about 35% and 33%, providing broad space for battery companies. Against this background, REPT BATTERO has continued to strengthen its product competitiveness through continuous technological iteration. In the first half of the year, the company invested 356 million yuan in research and development, focusing on high energy density, long life, and high safety products. As of the end of June, the company has been granted a total of 2,977 patents, including 9 authorized patents related to solid-state and semi-solid-state batteries. In the field of power batteries, the company's top-of-the-line 54Ah cells have become the benchmark in the hybrid car market. In the first half of the year, the company continued to develop 4C-6C fast charging cells, completed the summer standard for fast charging cells in cooperation with customers, and further increased the energy density of lithium iron phosphate power batteries to 195-200Wh/kg. In the field of energy storage, the company's top-of-the-line 392Ah cells and matching PowtrixTM 6.26MWh system passed extreme safety tests, with a cycle life of over 10,000 times, supporting rapid growth in energy storage shipments. Currently, REPT BATTERO plans to advance the research and development of high-capacity 500-600Ah energy storage cells, improve system integration efficiency, and reduce costs; accelerate the application of solid-state and semi-solid-state battery technologies in areas such as low-altitude aircraft, and has already reached a cooperation agreement with Yufeng Future for eVTOL energy solutions; and layout manganese iron lithium batteries, with high voltage, low cost advantages, further enhancing energy density and low-temperature performance. Expanding Globalization, Opening up New Growth Space With solid product quality, leading technological advantages, and efficient marketing strategies, REPT BATTERO continues to expand its "circle of friends" in the global market, establishing deep cooperation relationships with many high-quality companies at home and abroad. While consolidating its market share domestically, it actively expands its overseas footprint, gradually opening up the ceiling for company growth through its globalization strategy. It was learned that in the first half of the year, REPT BATTERO deepened cooperation with domestic leading car companies and European well-known car companies, adding more than ten plug-in and extended-range mainstream car models; the energy storage business cooperated with leading integrators and entered overseas markets, signing over 20GWh procurement agreements. In the field of commercial vehicles, 50 new vehicle models were announced and multiple projects were awarded. The domestic market share of new energy heavy-duty truck batteries is 7.5%, and the market share of exchangeable heavy-duty truck batteries is 18%, a year-on-year increase of 809%, becoming a dark horse in the segmented market. At the global capacity layout level, the first phase of REPT BATTERO's Indonesian battery manufacturing base (8GWh) is progressing, focusing on the production of power and energy storage batteries, leveraging local nickel resources to reduce raw material costs. The company also plans to establish new factories in Southeast Asia, Europe, and South America to diversify geopolitical risks and meet overseas market demand. Furthermore, the company is also focusing on strengthening industrial chain synergy. As a core asset of the Qingshan Group's new energy sector, REPT BATTERO will continue to benefit from upstream raw material supply chain support and supply electric heavy-duty truck power batteries to the Qingshan Group from 2024 to 2026, while also exploring comprehensive solutions for photovoltaics, green electric transportation, forming a "resource-manufacturing-application" closed loop. In summary, in the first half of 2025, REPT BATTERO's performance with "quantity and profit" rising, has verified the effectiveness of its "power + energy storage" dual-wheel drive strategy. Against the backdrop of a high industry boom, the company, leveraging technological iteration, economies of scale, and global layout, has shifted from scale expansion to profit realization. With the release of subsequent production capacity, the landing of high-end products, and breakthroughs in overseas markets, its long-term competitiveness is expected to further improve, steadily advancing the reevaluation process in the lithium battery industry.