Core Viewpoint - The stock of Ruipu Lanjun (00666) has seen a significant increase of over 9%, attributed to recent announcements regarding renewable energy subsidies and strong performance in the energy storage battery sector [1] Company Performance - Ruipu Lanjun reported a revenue of 9.491 billion RMB for the first half of the year, representing a year-on-year growth of 24.9% [1] - The company's gross profit reached 829 million RMB, showing a substantial increase of 177.8% compared to the previous year, indicating a significant improvement in profitability [1] - Total sales volume of lithium battery products reached 32.4 GWh, marking a year-on-year increase of 100.2% [1] - Specifically, energy storage battery shipments amounted to 18.87 GWh, up 119.3% year-on-year, while power battery shipments were 13.53 GWh, reflecting a growth of 78.5% [1] Industry Trends - Multiple renewable energy operators have recently received renewable energy subsidy funds, indicating an acceleration in subsidy disbursement [1] - The market-driven approach is encouraging wind and solar operators to voluntarily invest in high-quality energy storage solutions, with demand for large-scale storage increasing despite the cancellation of mandatory configurations [1] - Leading energy storage battery companies are nearing full production capacity, with some beginning to raise prices, suggesting a positive shift in market dynamics [1]

消息面上，据太阳能、金开新能公告，近期多家新能源发电运营商集中收到可再生能源补贴资金。据机 构了解、8月底运营商密集收到一批补贴发放通知、可再生能源发电补贴下发明确加速。据悉，市场化 交易驱动风光运营商积极自愿配置高品质储能，136号文"取消强配"后大储需求不降反增且格局有望改 善，近期头部储能电池企业已接近满产、部分开始提价。 值得注意的是，瑞浦兰钧此前发布中期业绩，上半年瑞浦兰钧实现收入94.91亿元人民币，同比增长 24.9%；毛利达8.29亿元，同比大增177.8%，盈利改善趋势显著。产品销售表现方面，上半年，公司锂 电池产品总销量达32.4GWh，同比大增100.2%。其中，储能电池出货18.87GWh，同比大增119.3%；动 力电池出货13.53GWh，同比增长78.5%。 智通财经APP获悉，瑞浦兰钧(00666)早盘涨超9%，截至发稿，涨9.08%，报12.98港元，成交额6237.86 万港元。 ...

Market Overview - The market initially showed excitement during the military parade but closed down by 0.60% [1] - The parade showcased significant military assets, including various types of missiles and advanced weaponry, enhancing national security and deterrence capabilities [1] - Despite the positive sentiment from the parade, the stock market struggled, with military-related stocks like China Shipbuilding Defense (00317) dropping nearly 9% [2] Gold and Pharmaceuticals - The World Gold Council is seeking to introduce a digital form of gold, potentially transforming the $900 billion physical gold market [3] - Gold prices reached historical highs, with spot gold rising 1.64% to $3532.405 per ounce and COMEX gold futures up 1.51% to $3599.5 per ounce [3] - Pharmaceutical stocks also saw gains, with companies like Heng Rui Pharmaceutical (01276) and SiHuan Pharmaceutical (00460) rising over 8% [3] Robotics Sector - Yushutech announced plans to submit an IPO application by late 2025, with significant revenue growth reported by MicroPort Robotics (02252) [4] - MicroPort's revenue for the first half of the year reached 1.76 billion RMB, a 77% increase year-on-year, driven by overseas market expansion [4] - The robotics sector is seeing increased investment, with Shou Cheng Holdings (00697) investing further in humanoid robotics [5] Solid-State Battery Market - China's solid-state battery shipments are projected to reach 7 GWh in 2024, with expectations of 18 GWh by 2027 and 30 GWh by 2028 [6] - The market is seeing advancements in semi-solid state batteries, which are now entering mainstream pricing [6] Solar Glass and Power Generation - Xinyi Solar (00968) reported a 17.5% increase in solar glass sales volume, despite a 6.5% decline in revenue for the first half of 2025 [7] - The company's solar power generation business achieved revenue of 1.438 billion RMB, a slight increase of 0.7% year-on-year, with a gross margin of 63.5% [8] - The solar glass sector is adjusting to supply-demand imbalances, leading to a new round of production cuts [8]

Core Viewpoint - 瑞浦兰钧 has signed a strategic cooperation agreement with Japan's 阪和兴业株式会社 and another Japanese partner to enter the Japanese energy storage market, planning to deliver over 1 GWh of energy storage systems in the next two years [1] Financial Performance - In the first half of the year, 瑞浦兰钧 achieved revenue of 9.491 billion RMB, representing a year-on-year increase of 24.9% [1] - The gross profit reached 829 million RMB, a significant year-on-year increase of 177.8%, indicating a notable improvement in profitability [1] Product Sales - The total sales volume of lithium battery products in the first half reached 32.4 GWh, marking a year-on-year increase of 100.2% [1] - Energy storage battery shipments amounted to 18.87 GWh, reflecting a year-on-year increase of 119.3% [1] - Power battery shipments were 13.53 GWh, showing a year-on-year growth of 78.5% [1]

Core Viewpoint - Rui Pu Lan Jun (00666) has signed a strategic cooperation agreement with Japan's Sanko Seiyaku Co., Ltd. and another Japanese partner to enter the Japanese energy storage market, aiming to deliver over 1 GWh of energy storage systems in the next two years [1] Financial Performance - In the first half of the year, Rui Pu Lan Jun achieved revenue of 9.491 billion RMB, representing a year-on-year increase of 24.9% [1] - The gross profit reached 829 million RMB, a significant year-on-year increase of 177.8%, indicating a notable improvement in profitability [1] Product Sales - The total sales volume of lithium battery products in the first half of the year reached 32.4 GWh, marking a year-on-year increase of 100.2% [1] - Energy storage battery shipments amounted to 18.87 GWh, reflecting a year-on-year increase of 119.3% [1] - Power battery shipments were 13.53 GWh, showing a year-on-year growth of 78.5% [1]

Corporate Information [Board of Directors and Committees](index=3&type=page&id=Board%20of%20Directors%20and%20Committees) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, supported by several committees to ensure robust corporate governance - Board members include executive directors such as Dr. CAO Hui (Chairman) and Mr. FENG, Ting (President), non-executive directors like Mr. WANG Haijun, and independent non-executive directors such as Ms. HUANG Siying[8](index=8&type=chunk) - The company has an Audit Committee (Chair: Ms. HUANG Siying), Nomination Committee (Chair: Dr. CAO Hui), Remuneration and Appraisal Committee (Chair: Dr. WANG Zhenbo), Independent Directors Committee (Chair: Dr. REN Shenggang), and Environmental, Social and Governance Committee (Chair: Dr. CAO Hui)[8](index=8&type=chunk) [Company Basic Information](index=3&type=page&id=Company%20Basic%20Information) REPT BATTERO Energy Co., Ltd. is a joint stock company incorporated in China with stock code 06662, headquartered in Wenzhou, Zhejiang, China, and a principal place of business in Hong Kong - Company Name: REPT BATTERO Energy Co., Ltd.[1](index=1&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) - Stock Code: **06662**[1](index=1&type=chunk)[4](index=4&type=chunk)[10](index=10&type=chunk) - Registered Office and Head Office in China: No. 205 Binhai 6th Road, Wenzhou Bay New Area, Longwan District, Wenzhou City, Zhejiang Province, China[10](index=10&type=chunk) - Principal Place of Business in Hong Kong: 40th Floor, Dah Sing Financial Centre, 248 Queen's Road East, Wan Chai, Hong Kong[10](index=10&type=chunk) Financial Highlights [Interim Financial Performance](index=5&type=page&id=Interim%20Financial%20Performance) For the six months ended June 30, 2025, the Group's revenue increased by **24.9%** to **RMB 9,491.1 million**, gross profit surged by **177.8%** to **RMB 829.4 million**, and loss for the period narrowed by **90.5%** to **RMB 62.7 million** Financial Highlights for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 9,491,110 | 7,596,665 | 24.9% | | Gross Profit | 829,354 | 298,495 | 177.8% | | Loss for the Period | (62,704) | (658,212) | (90.5)% | | Loss Per Share Attributable to Ordinary Equity Holders of the Parent (RMB) | (0.03) | (0.19) | (84.2)% | - The comparative consolidated financial information for 2024 has been restated to reflect a voluntary change in accounting policy and presentation for government grants[12](index=12&type=chunk)[13](index=13&type=chunk) Management Discussion and Analysis [Industry Overview](index=6&type=page&id=Industry%20Overview) In H1 2025, both global new energy vehicle and energy storage markets showed strong growth, with NEV sales and power battery installations rising, particularly in China, and global energy storage cell shipments doubling - Global new energy vehicle sales reached approximately **9.1 million units** in H1 2025, a **28% year-on-year increase**[14](index=14&type=chunk) - Global power battery installations totaled **401.3 GWh** in the first five months of 2025, growing by **38.5% year-on-year**[14](index=14&type=chunk) - In H1 2025, China's new energy vehicle production and sales increased by **41.4%** and **40.3%** respectively, with a penetration rate of **44.3%**[15](index=15&type=chunk) - Global energy storage cell shipments exceeded **250 GWh** in H1 2025, representing approximately **100% year-on-year growth**[18](index=18&type=chunk) - China's new energy storage installed capacity reached **94.91 GW/222 GWh** in H1 2025, with new capacity and energy increasing by approximately **35%** and **33%** year-on-year, respectively[18](index=18&type=chunk) [Business Review](index=7&type=page&id=Business%20Review) The Group primarily designs, develops, produces, and sells power and energy storage lithium-ion batteries, driven by technological innovation to provide NEV power and smart energy storage solutions. During the reporting period, total assets and net assets remained stable, revenue grew by **24.9%**, total lithium battery product sales increased by **100.2%**, with energy storage battery shipments ranking among the **top five globally** and user energy storage cell shipments **first globally** - Core business covers the design, R&D, production, and sales of power and energy storage lithium-ion battery cells, modules, battery packs, and system applications[20](index=20&type=chunk) - Key products include LFP and ternary material cells, power battery packs, battery management systems (for power batteries), and energy storage cells, standardized battery containers, battery clusters, and residential energy storage systems (for energy storage batteries)[21](index=21&type=chunk)[22](index=22&type=chunk) H1 2025 Performance Highlights | Metric | Amount/Quantity | Y-o-Y Change | | :--- | :--- | :--- | | Total Assets | RMB 38,892.5 million | 0.9% | | Net Assets | RMB 10,322.5 million | Basically flat | | Revenue | RMB 9,491.1 million | 24.9% | | Total Lithium Battery Product Sales Volume | 32.4 GWh | 100.2% | | Energy Storage Battery Shipments | 18.87 GWh | 119.3% | | Power Battery Shipments | 13.53 GWh | 78.5% | - Ranked among the **top five globally** in energy storage cell shipments and **first globally** in user energy storage cell shipments[23](index=23&type=chunk) - Ranked **seventh** among domestic LFP power battery companies in installed capacity, **eighth** in plug-in hybrid passenger vehicle installed capacity, and **sixth** in new energy commercial vehicle installed capacity[23](index=23&type=chunk) - In the new energy heavy truck sector, battery market share reached **7.5%**, and battery swap heavy truck battery market share was **18%**, growing by **809% year-on-year**, both ranking **second nationally**[26](index=26&type=chunk) - Passenger vehicle business maintains cooperation with leading domestic and international automakers, securing nominations for over ten mainstream PHEV and EREV models, with the **54Ah cell** becoming an industry benchmark[25](index=25&type=chunk) - Energy storage business is driven by large cell technology, with **Wentop® 392Ah cells** and **PowtrixTM 6.26MWh energy storage systems** achieving breakthroughs in both performance and safety, successfully entering overseas markets and signing procurement agreements for over **20 GWh** of energy storage cells[27](index=27&type=chunk) [Technological R&D Achievements](index=9&type=page&id=Technological%20R%26D%20Achievements) The Group continues to invest in R&D, developing multiple key technologies and achieving significant progress in power batteries, energy storage batteries, and system integration, including high-capacity cells, fast-charging hybrid cells, ultra-fast charging pure electric cells, low-altitude aircraft batteries, and various high-performance battery systems - Awarded **2,977 patents**, including **244 invention patents**, **2,667 utility model patents**, and **66 design patents**[28](index=28&type=chunk) - Developed **314/320Ah series energy storage cells**, utilizing "Wentop" technology to increase space utilization by **4%** and reduce AC internal resistance by over **10%**, achieving high energy density, efficiency, long cycle life, and safety[30](index=30&type=chunk) - Developed **392Ah and 587Ah cell products** to match next-generation **6.25MWh+ systems**, increasing mass energy density to **190 Wh/kg** and achieving a cycle life of over **10,000 times**[30](index=30&type=chunk) - Hybrid batteries completed fast-charging upgrades, launching multiple models to meet various range requirements, and preparing for mass production of the first Wentop power battery[31](index=31&type=chunk) - For pure electric batteries, promoted **4C-6C ultra-fast charging cell development**, increasing LFP power battery energy density to **195-200 Wh/kg**[31](index=31&type=chunk) - Developed high energy density cells (≥**310 Wh/kg**) for low-altitude aircraft and signed a strategic cooperation agreement with Yufeng Future[31](index=31&type=chunk) - In the passenger vehicle sector, the first CTP project with an aluminum alloy casing for export to a European OEM is expected to enter mass production in Q3 2025, introducing the GREEN CTP system for individual cell replacement, and a **4C fast-charging system** achieving **10%-80% charge in less than 10 minutes** in actual tests[34](index=34&type=chunk) - In energy storage, the **5MWh energy storage system** successfully passed large-scale fire and extreme environment tests, with expected shipments to reach **3 times** last year's volume[34](index=34&type=chunk) [Future Outlook](index=12&type=page&id=Future%20Outlook) The Group will continue to focus on technological and product innovation, particularly "Wentop" technology and semi-solid/solid-state battery R&D, to enhance cell integration efficiency, reduce costs, and achieve long range and high safety. Leveraging Tsingshan Group's industrial chain synergy, it will also actively pursue global expansion, establishing production facilities in Southeast Asia, Europe, and South America to meet global market demand - R&D focus includes: developing high-capacity **500~600Ah+ series next-generation energy storage cells** using "Wentop" technology, achieving a power breakthrough for **6MWh+ energy storage products**, and introducing BMS active balancing technology[35](index=35&type=chunk) - Plans to enhance the fast-charging capability of semi-solid-state cells and actively deploy next-generation high specific energy cells such as multi-electron reaction system cells and low-altitude flight batteries[35](index=35&type=chunk) - In-depth research into all-solid-state electrolyte materials, solid electrolyte reaction interface performance, and solid-state battery production processes, aiming to achieve a balance of long range, safety, and energy density in passenger vehicles[35](index=35&type=chunk) - Leveraging Tsingshan Group's industrial chain synergy to ensure the supply of critical raw materials and provide energy storage batteries and electric heavy truck power battery products to Tsingshan Group and its associates[37](index=37&type=chunk) - Committed to building a global industrial layout, with subsidiaries established in the US, Germany, and Southeast Asia, and plans to establish production facilities in Southeast Asia, Europe, and South America, with the first phase of the Indonesia battery manufacturing base planned for an annual capacity of **8 GWh**[38](index=38&type=chunk) - Developing lithium manganese iron phosphate batteries to achieve higher energy density, lower costs, and better low-temperature performance, while also offering enhanced safety[39](index=39&type=chunk) - Plans to continue R&D on recycling technologies, such as power battery residual energy testing and second-life solutions, to improve cost-effectiveness, safety, stability, and cycle life[39](index=39&type=chunk) [Operating Results and Analysis](index=14&type=page&id=Operating%20Results%20and%20Analysis) The Group's H1 2025 revenue grew by **24.9%**, primarily due to steady increases in power and energy storage battery product sales. Gross profit surged by **177.8%**, with gross margin rising to **8.7%**, reflecting economies of scale. Loss for the period narrowed significantly by **90.5%**, mainly due to the implementation of "cost reduction and efficiency improvement" strategies, refined R&D expense management, and reduced impairment losses Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Extract) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 9,491,110 | 7,596,665 | 24.9% | | Cost of Sales | (8,661,756) | (7,298,170) | 18.7% | | Gross Profit | 829,354 | 298,495 | 177.8% | | Other Income and Gains | 182,177 | 248,894 | (26.8)% | | Selling and Distribution Expenses | (273,218) | (224,285) | 21.8% | | Administrative Expenses | (238,036) | (297,852) | (20.1)% | | Research and Development Expenses | (355,863) | (403,599) | (11.8)% | | Net Impairment Losses on Financial and Contract Assets | (47,358) | (103,649) | (54.3)% | | Finance Costs | (154,348) | (170,413) | (9.4)% | | Loss Before Tax | (62,666) | (658,180) | (90.5)% | | Loss for the Period | (62,704) | (658,212) | (90.5)% | - Revenue growth primarily driven by the steady increase in sales volume of power and energy storage battery products[44](index=44&type=chunk) Revenue Breakdown by Product Application | Product Category | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Power Battery Products | 4,026,602 | 2,858,421 | 40.9% | | Energy Storage Battery Products | 5,082,620 | 3,207,787 | 58.4% | | Other Businesses | 381,888 | 1,530,457 | (75.0)% | | **Total** | **9,491,110** | **7,596,665** | **24.9%** | - Revenue from other businesses decreased by **75.0%**, mainly due to the uncertainty of tariff policies, leading overseas customers to postpone battery component orders[46](index=46&type=chunk) Gross Profit and Gross Margin Breakdown by Product Application | Product Category | 2025 Gross Profit (RMB thousands) | 2025 Gross Margin | 2024 Gross Profit (RMB thousands) | 2024 Gross Margin | Y-o-Y Change (Gross Profit) | | :--- | :--- | :--- | :--- | :--- | :--- | | Power and Energy Storage Battery Products | 777,704 | 8.5% | 158,824 | 2.6% | 389.7% | | Other Businesses | 51,650 | 13.5% | 139,671 | 9.1% | (63.0)% | | **Total** | **829,354** | **8.7%** | **298,495** | **3.9%** | **177.8%** | - Administrative expenses decreased by **20.1%**, primarily due to the successful implementation of the "cost reduction and efficiency improvement" strategy[53](index=53&type=chunk) - R&D expenses decreased by **11.8%**, mainly due to refined management of R&D expenditures, focusing on high-value projects[54](index=54&type=chunk) - Net impairment losses on financial and contract assets decreased by **54.3%**, primarily due to reduced impairment provisions for trade receivables[55](index=55&type=chunk) - Finance costs decreased by **9.4%**, mainly due to a reduction in interest rates for certain borrowings[57](index=57&type=chunk) [Liquidity and Funding Sources](index=19&type=page&id=Liquidity%20and%20Funding%20Sources) The Group primarily funds its operations through bank financing, equity capital, operating cash flows, and proceeds from the global offering. As of the reporting period end, cash and cash equivalents were **RMB 4,211.9 million**, interest-bearing bank and other borrowings were approximately **RMB 10,006.3 million**, and the gearing ratio was **73.5%** - The Group primarily funds its operations through bank financing, raised equity capital, cash generated from operating activities, and net proceeds from the global offering[61](index=61&type=chunk) Overview of Liquidity and Funding Sources | Metric | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 4,211.9 | 4,285.7 | | Interest-bearing Bank and Other Borrowings | 10,006.3 | 9,999.7 | | Net Assets | 10,322.5 | 10,322.5 | | Gearing Ratio | 73.5% | 73.2% | Net Cash Flows | Activity Type | H1 2025 (RMB millions) | H1 2024 (RMB millions) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 980.8 | 1,258.9 | | Net Cash Flows Used in Investing Activities | 935.2 | 1,242.1 | | Net Cash Flows Used in Financing Activities | 132.3 | 32.8 | - The Group is exposed to interest rate risk (primarily related to floating-rate bank borrowings) and foreign exchange risk, which are hedged through measures such as forward foreign exchange contracts[68](index=68&type=chunk) - Capital expenditure during the reporting period was approximately **RMB 1,060.7 million**, primarily for the purchase of property, plant and equipment[69](index=69&type=chunk) - As of the end of the reporting period, capital commitments amounted to **RMB 4,325.7 million**, related to contracted but unpaid plant construction projects[70](index=70&type=chunk) - Total pledged assets at the end of the reporting period were approximately **RMB 7,447.7 million**, an increase of **RMB 4,254.5 million** from the end of last year[72](index=72&type=chunk) Other Information and Corporate Governance [Corporate Governance and Compliance](index=22&type=page&id=Corporate%20Governance%20and%20Compliance) The company is committed to maintaining sound corporate governance, adopting and complying with the Corporate Governance Code in Appendix C1 of the Listing Rules throughout the reporting period, and ensuring all directors and supervisors adhere to the standard code for securities transactions - The company has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules and has complied with the applicable code provisions throughout the reporting period[76](index=76&type=chunk)[77](index=77&type=chunk) - The company has established a "Management System for Directors, Supervisors, Senior Management, and Employees Holding and Trading Company Shares," and all directors and supervisors confirmed compliance with this code and standard code[78](index=78&type=chunk) [Interests of Directors, Supervisors and Chief Executive](index=22&type=page&id=Interests%20of%20Directors%2C%20Supervisors%20and%20Chief%20Executive) As of the reporting period end, certain directors, supervisors, and the chief executive held interests or short positions in the company's shares and its associated corporations, primarily through controlled corporate interests or spouse interests Interests of Directors, Supervisors and Chief Executive in the Company's Shares | Name | Nature of Interest/Capacity | Class of Shares | Number of Shares Held | Approximate % of H Shares Held | Approximate % of Total Issued Share Capital Held | | :--- | :--- | :--- | :--- | :--- | :--- | | Dr. CAO Hui | Controlled Corporation Interest | H Shares | 360,000,000 | 41.17% | 15.81% | | Mr. FENG, Ting | Controlled Corporation Interest | H Shares | 24,000,000 | 2.74% | 1.05% | | Ms. XIANG Yangyang | Spouse's Interest | H Shares | 24,000,000 | 2.74% | 1.05% | Interests of Directors, Supervisors and Chief Executive in Associated Corporations | Name | Name of Associated Corporation | Nature of Interest/Capacity | Amount of Registered Capital Held | Approximate % of Interest as at Reporting Period End | | :--- | :--- | :--- | :--- | :--- | | Dr. CAO Hui | Yongqing Technology | Beneficial Owner | RMB 5,800,000 | 1% | | Dr. WU Yanjun | Qingtuo Group Co., Ltd. | Beneficial Owner | RMB 4,400,000 | 0.5% | | Mr. HU Xiaodong | Yongqing Technology | Beneficial Owner | RMB 8,700,000 | 1.5% | | Mr. WANG Haijun | Zhejiang Yongtuo New Material Technology Co., Ltd. | Beneficial Owner | RMB 1,600,000 | 2% | | Mr. FENG, Ting | Shanghai Lanjun | Controlled Corporation Interest | RMB 200,000,000 | 20% | | Ms. XIANG Yangyang | Shanghai Lanjun | Spouse's Interest | RMB 200,000,000 | 20% | [Major Shareholders' Interests](index=25&type=page&id=Major%20Shareholders%27%20Interests) As of the reporting period end, the company's major shareholders, including Wenzhou Jingli, Yongqing Technology, Ruitu Energy, Shanghai Fuqin, Tsingshan Group, Shanghai Dingxin, and Mr. Xiang, held significant interests in the company's shares through direct or controlled corporate interests Major Shareholders' Interests in the Company's Shares | Name | Nature of Interest/Capacity | Class of Shares | Number of Shares Held | Approximate % of Relevant Class of Shares Held | Approximate % of Total Issued Share Capital Held | | :--- | :--- | :--- | :--- | :--- | :--- | | Wenzhou Jingli | Beneficial Owner | H Shares | 264,000,000 | 30.19% | 11.59% | | Yongqing Technology | Beneficial Owner/Controlled Corporation Interest | Domestic Unlisted Shares/H Shares | 1,089,419,482/264,000,000 | 77.68%/30.19% | 47.85%/11.59% | | Tsingshan Group | Controlled Corporation Interest | Domestic Unlisted Shares/H Shares | 1,089,419,482/264,000,000 | 77.68%/30.19% | 47.85%/11.59% | | Mr. Xiang | Controlled Corporation Interest | Domestic Unlisted Shares/H Shares | 1,089,419,482/264,000,000 | 77.68%/30.19% | 47.85%/11.59% | | Wenzhou Ruili | Beneficial Owner | H Shares | 96,000,000 | 10.98% | 4.22% | | Jiaxing SAIC Qirui Equity Investment Partnership (Limited Partnership) | Beneficial Owner | Domestic Unlisted Shares | 187,828,067 | 13.39% | 8.25% | [Employees and Remuneration](index=28&type=page&id=Employees%20and%20Remuneration) As of the reporting period end, the Group had **11,673 full-time employees** with staff costs of **RMB 1,040.2 million**. The company has a Remuneration and Appraisal Committee, incentivizes employees through share incentive schemes, and provides training to enhance skills - As of the end of the reporting period, the Group had **11,673 full-time employees**, with staff costs of **RMB 1,040.2 million**[93](index=93&type=chunk) - The company has a Remuneration and Appraisal Committee responsible for reviewing remuneration policies and the remuneration structure for directors and senior management members[93](index=93&type=chunk) - The company has adopted the **2021 and 2022 Share Incentive Schemes** and the **H Share Incentive Scheme** to incentivize employees[93](index=93&type=chunk) - The Group recruits employees through referrals, headhunters, recruitment websites, and campus recruitment, providing new hire training and continuous technical training[94](index=94&type=chunk) [Use of Proceeds from Global Offering](index=29&type=page&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company raised net proceeds of approximately **HKD 2,013.1 million** from its global offering in December 2023. As of the reporting period end, approximately **HKD 992.1 million** has been used, primarily for capacity expansion and technological R&D. The expected timetable for the remaining net proceeds for capacity expansion has been adjusted to December 31, 2026 - Net proceeds from the global offering were approximately **HKD 2,013.1 million**[97](index=97&type=chunk) Use of Proceeds from Global Offering | Item | Approximate % of Total Net Proceeds | Net Proceeds from Global Offering (HKD millions) | Net Proceeds Unutilized as at June 30, 2025 (HKD millions) | Expected Timetable for Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | For expanding our production capacity | 80.0% | 1,610.5 | 907.7 | December 31, 2026 | | For core technology R&D in advanced lithium-ion batteries, advanced materials, and optimized production processes | 10.0% | 201.3 | 113.3 | December 31, 2025 | | For working capital and general corporate purposes | 10.0% | 201.3 | — | December 31, 2024 | | **Total** | **100.0%** | **2,013.1** | **1,021.0** | | - The expected timetable for the remaining net proceeds for capacity expansion has been adjusted from December 31, 2024, to **December 31, 2026**[98](index=98&type=chunk) [Interim Dividend](index=29&type=page&id=Interim%20Dividend) The Board resolved not to recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board resolved not to recommend the payment of any interim dividend for the six months ended June 30, 2025[99](index=99&type=chunk) [Audit Committee and Share Option Scheme](index=30&type=page&id=Audit%20Committee%20and%20Share%20Option%20Scheme) The Audit Committee reviewed the Group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, confirming compliance with accounting principles and disclosure requirements. The company has not adopted a share option scheme - The Audit Committee, comprising three independent non-executive directors and chaired by Ms. HUANG Siying, reviewed the interim condensed consolidated financial statements and confirmed their compliance[100](index=100&type=chunk) - The company has not adopted a share option scheme[101](index=101&type=chunk) [Changes in Biographical Details of Directors and Supervisors](index=30&type=page&id=Changes%20in%20Biographical%20Details%20of%20Directors%20and%20Supervisors) Since the 2024 annual report date, several directors and supervisors were re-elected or elected at the annual general meeting for a three-year term. Mr. YU Xinhua retired as a non-executive director - Dr. CAO Hui, Mr. HU Xiaodong, Dr. WU Yanjun, and Ms. HUANG Jiehua were re-elected as executive directors; Mr. FENG, Ting was elected as an executive director[102](index=102&type=chunk) - Mr. WANG Haijun, Ms. XIANG Yangyang, and Mr. WEI Yong were re-elected as non-executive directors; Ms. HUANG Siying, Dr. WANG Zhenbo, Dr. REN Shenggang, and Dr. Simon Chen were re-elected as independent non-executive directors[102](index=102&type=chunk) - Mr. YU Xinhua retired as a non-executive director at the annual general meeting[102](index=102&type=chunk) - Mr. QU Enci and Mr. FANG Yihui were re-elected as shareholder representative supervisors, and Ms. JIN Shanyan was re-elected as an employee representative supervisor, all for a three-year term[102](index=102&type=chunk)[103](index=103&type=chunk) Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Statement of Profit or Loss](index=31&type=page&id=Statement%20of%20Profit%20or%20Loss) This section presents the condensed consolidated statement of profit or loss for the six months ended June 30, 2025, showing key financial data such as revenue, cost of sales, gross profit, various expenses, and loss for the period, compared to the same period last year - Revenue was **RMB 9,491,110 thousand**, cost of sales was **RMB 8,661,756 thousand**, and gross profit was **RMB 829,354 thousand**[106](index=106&type=chunk) - Loss for the period was **RMB 62,704 thousand**, of which loss attributable to owners of the parent was **RMB 65,320 thousand**[106](index=106&type=chunk) [Statement of Other Comprehensive Income](index=32&type=page&id=Statement%20of%20Other%20Comprehensive%20Income) This section presents other comprehensive income for the six months ended June 30, 2025, primarily including exchange differences on translation of overseas operations, resulting in a total comprehensive loss of **RMB 63,288 thousand** for the period - Exchange differences on translation of overseas operations amounted to **RMB (584) thousand**[107](index=107&type=chunk) - Total comprehensive loss for the period was **RMB (63,288) thousand**, of which loss attributable to owners of the parent was **RMB (65,904) thousand**[107](index=107&type=chunk) - Basic and diluted loss per share attributable to ordinary equity holders of the parent was **RMB (0.03)**[107](index=107&type=chunk) Interim Condensed Consolidated Statement of Financial Position [Assets](index=33&type=page&id=Assets) As of June 30, 2025, the Group's total non-current assets were **RMB 19,247,433 thousand**, and total current assets were **RMB 19,645,058 thousand**, primarily comprising property, plant and equipment, inventories, trade receivables, and cash equivalents - Total non-current assets amounted to **RMB 19,247,433 thousand**, primarily including property, plant and equipment (**RMB 15,942,210 thousand**) and time deposits (**RMB 1,751,526 thousand**)[109](index=109&type=chunk) - Total current assets amounted to **RMB 19,645,058 thousand**, primarily including inventories (**RMB 3,581,971 thousand**), trade and bills receivables (**RMB 5,947,437 thousand**), and cash and cash equivalents (**RMB 4,211,859 thousand**)[109](index=109&type=chunk) [Liabilities and Equity](index=33&type=page&id=Liabilities%20and%20Equity) As of June 30, 2025, the Group's total current liabilities were **RMB 19,948,444 thousand**, and total non-current liabilities were **RMB 8,621,509 thousand**. Net assets amounted to **RMB 10,322,538 thousand**, with equity attributable to owners of the parent being **RMB 10,269,694 thousand** - Total current liabilities amounted to **RMB 19,948,444 thousand**, primarily including trade and bills payables (**RMB 12,297,616 thousand**) and interest-bearing bank and other borrowings (**RMB 3,464,913 thousand**)[109](index=109&type=chunk) - Total non-current liabilities amounted to **RMB 8,621,509 thousand**, primarily including interest-bearing bank and other borrowings (**RMB 6,541,396 thousand**) and deferred government grants (**RMB 1,319,621 thousand**)[110](index=110&type=chunk) - Net assets amounted to **RMB 10,322,538 thousand**, with equity attributable to owners of the parent being **RMB 10,269,694 thousand**[110](index=110&type=chunk) Interim Condensed Consolidated Statement of Changes in Equity [Changes in Equity](index=35&type=page&id=Changes%20in%20Equity) This section presents the consolidated changes in equity for the six months ended June 30, 2025, showing the impact of loss for the period, exchange differences, and share incentive scheme expenses on share capital, reserves, and accumulated losses, with total equity amounting to **RMB 10,322,538 thousand** - As of June 30, 2025, loss for the period resulted in an increase of **RMB 65,320 thousand** in accumulated losses attributable to owners of the parent[112](index=112&type=chunk) - Share incentive scheme expenses amounted to **RMB 63,630 thousand**, increasing the share incentive reserve[112](index=112&type=chunk) - As of June 30, 2025, total equity amounted to **RMB 10,322,538 thousand**[112](index=112&type=chunk) Interim Condensed Consolidated Statement of Cash Flows [Cash Flow Analysis](index=36&type=page&id=Cash%20Flow%20Analysis) This section provides the consolidated cash flow statement for the six months ended June 30, 2025, showing net cash flows from operating activities of **RMB 980,792 thousand**, net cash flows used in investing activities of **RMB 935,152 thousand**, and net cash flows used in financing activities of **RMB 132,344 thousand**, resulting in a net decrease of **RMB 86,704 thousand** in cash and cash equivalents - Net cash flows from operating activities were **RMB 980,792 thousand**, a decrease from **RMB 1,258,936 thousand** in the same period last year[114](index=114&type=chunk) - Net cash flows used in investing activities were **RMB 935,152 thousand**, primarily for the purchase of property, plant and equipment items[116](index=116&type=chunk) - Net cash flows used in financing activities were **RMB 132,344 thousand**, mainly due to the net effect of new bank loans and repayment of bank loans[116](index=116&type=chunk) - Cash and cash equivalents at the end of the period amounted to **RMB 4,211,859 thousand**, a decrease of **RMB 86,704 thousand** from the beginning of the period[116](index=116&type=chunk) Notes to the Interim Condensed Consolidated Financial Statements [Corporate Information and Basis of Preparation](index=38&type=page&id=Corporate%20Information%20and%20Basis%20of%20Preparation) REPT BATTERO Energy Co., Ltd. was established in China in October 2017, primarily engaged in R&D, manufacturing, and sales of lithium-ion battery products, and listed on the HKEX in December 2023. The interim condensed consolidated financial information is prepared in accordance with IAS 34 on a going concern basis - The company was established in China on **October 25, 2017**, primarily engaged in the R&D, manufacturing, and sales of lithium-ion battery products[117](index=117&type=chunk)[118](index=118&type=chunk) - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on **December 18, 2023**[119](index=119&type=chunk) - The interim condensed consolidated financial information is prepared in accordance with **International Accounting Standard 34** on a going concern basis, considering long-term time deposits and available bank financing[120](index=120&type=chunk) [Changes in Accounting Policies and Disclosures](index=38&type=page&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) The accounting policies used for the interim condensed consolidated financial information are consistent with the annual consolidated financial statements, with the initial adoption of revised IFRS having no impact due to the Group's convertible transaction currency - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the annual consolidated financial statements for the year ended **December 31, 2024**[121](index=121&type=chunk) - The Group first adopted the revised **International Accounting Standard 21 "Lack of Exchangeability"**, but as the currencies used for the Group's transactions are convertible, these amendments had no impact on the interim condensed consolidated financial information[122](index=122&type=chunk)[123](index=123&type=chunk) [Operating Segment Information](index=39&type=page&id=Operating%20Segment%20Information) For management purposes, the Group is organized as a single business unit encompassing power battery products, energy storage battery products, waste, battery components, and R&D services sales, thus presenting only one operating segment - The Group is organized into a single business unit, including power battery products, energy storage battery products, waste, battery components, and R&D services sales[124](index=124&type=chunk) - The Group has only one operating segment, and no further analysis of a single segment is presented[124](index=124&type=chunk) [Revenue, Other Income and Gains](index=39&type=page&id=Revenue%2C%20Other%20Income%20and%20Gains) The Group's total revenue for H1 2025 was **RMB 9,491,110 thousand**, primarily from customer contracts. Other income and gains were **RMB 182,177 thousand**, a decrease from the prior year, mainly due to lower bank interest income and VAT additional deductions Revenue Analysis | Source of Revenue | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue from contracts with customers | 9,485,653 | 7,592,003 | | Revenue from other sources | 5,457 | 4,662 | | **Total** | **9,491,110** | **7,596,665** | Classification of Revenue from Contracts with Customers | Product Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of power battery products | 4,026,602 | 2,858,421 | | Sales of energy storage battery products | 5,082,620 | 3,207,787 | | Sales of battery components | 83,486 | 1,297,342 | | Sales of waste materials | 225,261 | 193,182 | | R&D services | 15,708 | 15,717 | | OEM processing services | 21,009 | – | | Others | 30,967 | 19,554 | | **Total** | **9,485,653** | **7,592,003** | Analysis of Other Income and Gains | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest income | 90,065 | 120,753 | | VAT additional deductions | 46,846 | 86,651 | | Net foreign exchange gains | 14,950 | 29,400 | | Fair value changes | 22,652 | 2,468 | | Others | 7,664 | 9,622 | | **Total** | **182,177** | **248,894** | [Loss Before Tax and Income Tax](index=41&type=page&id=Loss%20Before%20Tax%20and%20Income%20Tax) The Group's loss before tax for the six months ended June 30, 2025, was **RMB 62,666 thousand**. Income tax expense was **RMB 38 thousand**, primarily due to the company and entities like REPT Qingchuang enjoying a **15% preferential corporate income tax rate** as high-tech enterprises - Loss before tax was **RMB 62,666 thousand**[128](index=128&type=chunk) - The company, REPT Qingchuang, and Jiashan Lanjun, as high-tech enterprises, enjoy a **15% preferential corporate income tax rate**[129](index=129&type=chunk)[130](index=130&type=chunk) - Total tax expense for the period was **RMB 38 thousand**[131](index=131&type=chunk) [Loss Per Share Attributable to Ordinary Equity Holders of the Parent and Dividends](index=43&type=page&id=Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent%20and%20Dividends) For the six months ended June 30, 2025, basic and diluted loss per share attributable to ordinary equity holders of the parent was **RMB 0.03**. The Board does not recommend any interim dividend - Basic and diluted loss per share attributable to ordinary equity holders of the parent was **RMB (0.03)**[132](index=132&type=chunk)[135](index=135&type=chunk) - The weighted average number of ordinary shares outstanding during the period was **2,276,874,000 shares**[135](index=135&type=chunk) - The Directors do not recommend the declaration of any interim dividend for the six months ended June 30, 2025[135](index=135&type=chunk) [Property, Plant and Equipment](index=43&type=page&id=Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, approximately **RMB 7,447,702 thousand** of the Group's property, plant and equipment was pledged as collateral for bank borrowings. Asset purchases during the period amounted to **RMB 1,607,201 thousand** - As of June 30, 2025, property, plant and equipment with a net book value of approximately **RMB 7,447,702 thousand** were pledged as collateral for certain interest-bearing bank and other borrowings of the Group[136](index=136&type=chunk) - For the six months ended June 30, 2025, the Group purchased assets at a cost of **RMB 1,607,201 thousand**[136](index=136&type=chunk) [Trade and Bills Receivables](index=43&type=page&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, the net book value of trade and bills receivables was **RMB 5,947,437 thousand**, primarily denominated in RMB. Credit terms are generally one to three months, and all bills receivables are bank acceptance bills within six months, with some pledged Trade and Bills Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 4,581,179 | 4,170,843 | | Bills receivables | 1,904,361 | 1,799,759 | | Impairment | (538,103) | (479,734) | | **Net book value** | **5,947,437** | **5,490,868** | - Trade and bills receivables are primarily denominated in RMB (**RMB 5,776,102 thousand**)[137](index=137&type=chunk) - Credit terms generally range from one to three months, and all bills receivables are bank acceptance bills with an aging of less than six months[137](index=137&type=chunk)[138](index=138&type=chunk) - As of June 30, 2025, bills receivables of **RMB 667,880 thousand** were pledged to secure bank borrowings[138](index=138&type=chunk) Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 2,770,112 | 3,293,981 | | 3 to 6 months | 967,630 | 295,495 | | 6 to 12 months | 262,204 | 44,276 | | 1 to 2 years | 43,130 | 57,357 | | **Total** | **4,043,076** | **3,691,109** | [Trade and Bills Payables](index=45&type=page&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables amounted to **RMB 12,297,616 thousand**, with the vast majority (**RMB 12,259,448 thousand**) due within one year Aging Analysis of Trade and Bills Payables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 12,259,448 | 12,047,542 | | 1 to 2 years | 38,168 | 11,038 | | **Total** | **12,297,616** | **12,058,580** | [Share Capital](index=45&type=page&id=Share%20Capital) As of June 30, 2025, the company's issued and fully paid ordinary share capital was **RMB 2,276,874 thousand**, consistent with December 31, 2024 - As of June 30, 2025, the issued and fully paid ordinary share capital was **RMB 2,276,874 thousand**[141](index=141&type=chunk) [Commitments](index=46&type=page&id=Commitments) As of June 30, 2025, the Group's contractual commitments primarily related to the purchase of property, plant and equipment, totaling **RMB 4,325,693 thousand** - As of June 30, 2025, the Group's contractual commitments amounted to **RMB 4,325,693 thousand**, primarily for the purchase of property, plant and equipment items[142](index=142&type=chunk) [Related Party Transactions](index=46&type=page&id=Related%20Party%20Transactions) The Group engages in significant transactions with multiple related parties, including sales to, and purchases of products/services from, related parties, as well as rental expenses, rental income, loans received, and interest expenses. Transaction prices are typically mutually agreed upon, considering prevailing market prices - The Group's related parties include controlling shareholder Yongqing Technology, Tsingshan Group, companies controlled or associated with Mr. XIANG Guangda, and companies controlled by SAIC Group, among others[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) Sales of Products to Related Parties | Related Party | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | SAIC-GM-Wuling | 864,576 | 775,226 | | Huangneng | 496,184 | 5,590 | | Nanjing Automobile Group | 234,549 | 35,035 | | Maitian Energy | 139,695 | 175,341 | | SAIC Power Zhengzhou | 105,988 | – | | Shanghai Qingruituo | 76,376 | – | | Huafu | 64,673 | 59,447 | | Qingtuo Nickel Industry | 56,603 | – | | **Total** | **2,063,770** | **1,844,994** | Purchases of Products/Services from Related Parties | Related Party | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Fuan Guolong Nanomaterials | 141,692 | 13,891 | | Maitian Energy | 94,175 | – | | Wenzhou Xinke | 17,437 | 6,194 | | Tsingshan Intelligent Manufacturing | 13,075 | – | | REPT Special Steel | 1,239 | 1,525 | | Liuzhou Saike | 455 | – | | Saike REPT | 412 | – | | Tsingshan Education | 43 | 165 | | **Total** | **268,528** | **57,245** | - Total rental expenses paid to related parties amounted to **RMB 2,103 thousand**, and total rental income from related parties amounted to **RMB 2,772 thousand**[149](index=149&type=chunk)[150](index=150&type=chunk) - Total key management personnel remuneration amounted to **RMB 20,280 thousand**, including salaries, allowances, performance bonuses, contributions to retirement benefit schemes, and share incentive expenses[151](index=151&type=chunk) [Fair Value and Fair Value Hierarchy of Financial Instruments](index=52&type=page&id=Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) The Group's fair value measurement of financial instruments is primarily categorized into three levels. Management assesses that the fair value of most short-term financial instruments approximates their carrying amounts. Listed equity investments are based on market quotations, while unlisted equity investments and wealth management products use valuation techniques to estimate fair value - Management believes that the fair values of short-term financial instruments such as cash and cash equivalents, trade and bills receivables approximate their carrying amounts[152](index=152&type=chunk) - The fair value of listed equity investments is derived from market quotations (Level 1)[153](index=153&type=chunk) - The fair value of unlisted equity investments designated at fair value through other comprehensive income is estimated using market valuation techniques (Level 3)[153](index=153&type=chunk) Assets Measured at Fair Value (June 30, 2025) | Item | Level 1 (RMB thousands) | Level 2 (RMB thousands) | Level 3 (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Bills receivables | – | 167,237 | – | 167,237 | | Financial assets at fair value through profit or loss | 97,626 | 107,044 | 50,000 | 254,670 | | Equity investments designated at fair value through other comprehensive income | – | – | 10,540 | 10,540 | | **Total** | **97,626** | **274,281** | **60,540** | **432,447** | - For the six months ended June 30, 2025, there were no transfers between Level 1 and Level 2 fair value measurements, nor any transfers into or out of Level 3[157](index=157&type=chunk) [Restatement and Post-Reporting Period Events](index=55&type=page&id=Restatement%20and%20Post-Reporting%20Period%20Events) The 2024 comparative consolidated financial information has been restated to reflect changes in government grant accounting policy, with no material impact on loss for the period. As of the date of this interim report, no significant post-reporting period events have occurred for the Group - The 2024 comparative consolidated financial information has been restated to reflect a voluntary change in accounting policy and presentation for government grants, but it had no material impact on the loss for the six months ended **June 30, 2024**[158](index=158&type=chunk) - As of the date of this interim report, no significant post-reporting period events have occurred for the Group after the end of the reporting period[159](index=159&type=chunk) Definitions [Glossary of Terms](index=55&type=page&id=Glossary%20of%20Terms) This section provides definitions for key terms used in the interim report to ensure readers have a clear understanding of the report's content - This section includes definitions for terms such as Articles of Association, associates, Audit Committee, China, the Company, controlling shareholder, Directors, Domestic Unlisted Shares, Global Offering, the Group, H Shares, HKEX, Listing Rules, Model Code, Mr. Xiang, Nomination Committee, Prospectus, Remuneration and Appraisal Committee, RMB, Reporting Period, Ruitu Energy, SFO, Shanghai Dingxin, Shares, Shareholders, subsidiaries, Supervisors, Tsingshan Group, US, Wenzhou Jingli, Wenzhou Ruili, Yongqing Technology, and Zhejiang Tsingshan[161](index=161&type=chunk)[163](index=163&type=chunk)[165](index=165&type=chunk)[167](index=167&type=chunk)

Core Viewpoint - The article highlights the significant turnaround of Ruipu Lanjun, a lithium battery manufacturer, which reported a 24.9% revenue growth and a substantial reduction in losses after six years of continuous deficits, indicating a potential path to profitability [1][8]. Company Overview - Ruipu Lanjun, established in 2017 and listed on the Hong Kong Stock Exchange in December 2023, is a latecomer in the lithium battery industry, previously labeled as the "loss king" due to its prolonged financial struggles [1][5]. - The company is the only lithium-ion battery producer under its parent company, Tsingshan Holding Group, which is the world's largest nickel and stainless steel producer [2][3][5]. Financial Performance - In the first half of the year, Ruipu Lanjun achieved a significant reduction in losses to 0.65 billion yuan, a 90.4% decrease year-on-year, while its gross margin improved from 2.6% to 8.5% [1][11]. - The company reported cumulative losses exceeding 4 billion yuan from 2019 to 2024, with two years of negative gross margins [5][11]. Market Position and Strategy - Ruipu Lanjun has focused on expanding its production capacity, with plans to reach a total capacity of 62 GWh by the end of 2023 and over 150 GWh by 2025 [7][8]. - The company has seen a 100.2% increase in lithium battery sales, with energy storage batteries becoming its primary revenue source, accounting for 53.6% of total revenue [8][9]. Innovations and Product Development - The company has made significant strides in the energy storage sector, launching innovative products that have gained substantial market share, particularly in household storage solutions [8][9]. - Ruipu Lanjun's energy storage battery shipments reached 18.87 GWh, a 119.3% increase year-on-year, positioning it among the top five global suppliers [9]. Leadership and Management Changes - The recent appointment of Feng Ting as president has led to strategic reforms aimed at cost reduction and efficiency improvements, focusing on optimizing production lines and enhancing customer relationships [10][12]. - Feng Ting's leadership emphasizes a customer-centric approach and technological innovation to maintain competitive differentiation in the market [10][12]. Challenges and Risks - Despite improvements, Ruipu Lanjun's gross margin remains below industry leaders, and its high debt levels pose financial risks, with a debt-to-asset ratio of 73.5% [11][12]. - The company continues to rely on its parent company for financial support, indicating potential vulnerabilities in its capital structure [11][12].

Group 1 - The commercial vehicle battery market is emerging as a new growth area for battery manufacturers, with significant increases in battery installation rates, particularly in the battery-swapping heavy truck market, where the penetration rate has reached around 20% [1] - In the first half of the year, the company reported a more than 90% reduction in losses, attributed to a substantial increase in battery shipments, with 50% of shipments concentrated in the energy storage sector and rapid growth in commercial vehicle battery products [1] - The overall power battery installation volume for the company reached 6.59 GWh, with a market share of 7.5% in the new energy heavy truck battery sector and an 809% year-on-year growth in the battery-swapping heavy truck market, ranking second nationally in both segments [1] Group 2 - The penetration rate of charging heavy trucks has increased from less than 1% to 20%-30% monthly, with the ratio of charging to battery-swapping trucks shifting from 80%-90% battery-swapping to 70% charging and 30% battery-swapping [2] - The company highlighted that although the purchase cost of new energy heavy trucks is 200,000 yuan higher than traditional fuel trucks, the operational cost difference is significant, with fuel costs reaching over 100,000 yuan annually compared to only a few thousand yuan for electricity [2] - The current mainstream battery capacity for new energy commercial vehicles is between 400-600 kWh, balancing cargo weight and battery weight, with long-distance logistics favoring battery-swapping due to time constraints [2] Group 3 - The gross margin of the power battery sector remains a focus for capital markets, with the company indicating potential for improvement in gross margins due to its product structure, where battery cells account for over 80% of the product mix [3] - The company plans to increase pack shipments, optimize customer structure, and enhance internal cost control to improve gross margins, as the cost structure of battery cells is relatively simpler compared to packs [3] - The company is focusing on high-quality projects in response to competitive pressures in the passenger vehicle battery market, having secured over 10 new model project designations from major automakers, with plans for mass production in the coming months [3]

Core Viewpoint - The performance of the energy storage business among six companies, including RuiPu LanJun, KeLiYuan, and others, shows mixed results, but overall resilience in performance is noted despite some companies facing pressure [2]. Group 1: Company Performance - RuiPu LanJun reduced losses by 90%, with energy storage battery shipments doubling year-on-year to 18.87 GWh, generating revenue of 5.08 billion yuan from energy storage batteries, a 58.4% increase [10]. - KeLiYuan achieved a total revenue of 18.21 billion yuan, a 23.21% increase, with energy storage revenue of 1.15 billion yuan, up 4% [6]. - KeLu Electronics turned a profit with a net profit increase of 579.14%, achieving revenue of 25.73 billion yuan, a 34.66% increase, and energy storage revenue of 12.82 billion yuan, up 177.15% [7]. - NanDu Power's revenue from communication and data center storage reached 1.89 billion yuan, a 34.09% increase, while overall revenue fell by 31.67% [9]. - HeWang Electric reported a total revenue of 1.88 billion yuan, a 36.39% increase, with a net profit increase of 56.79% [11]. - ShengHong's revenue was 1.36 billion yuan, down 4.79%, with a net profit of 158 million yuan, down 12.91% [4]. Group 2: Market Trends and Innovations - ShengHong recognized the growth potential in commercial energy storage, citing a continuous increase in electricity consumption in China's secondary and tertiary industries [4]. - KeLiYuan is actively expanding its energy storage project investments, with over 10 GWh of projects in reserve [6]. - KeLu Electronics is focusing on strategic clients in the domestic market and expanding into overseas markets, including the Americas and Europe [8]. - NanDu Power is innovating with new products, including large-capacity lithium iron phosphate storage cells and liquid cooling storage systems [9]. - HeWang Electric offers a range of energy storage solutions, including centralized storage inverters and customized energy storage systems [11].

Core Viewpoint - The company has shown significant improvement in its financial performance for the first half of 2025, with a notable shift towards its energy storage business, which has become the largest revenue source, indicating a successful strategic pivot in response to global market opportunities [1][3][10]. Group 1: Financial Performance - The company achieved a revenue of 9.491 billion yuan, representing a year-on-year growth of 24.9%, aligning with market expectations [2][3]. - The gross profit margin increased significantly from 3.9% to 8.7%, a rise of 4.8 percentage points, with gross profit reaching 829 million yuan, up 177.8% year-on-year [2][6]. - The net loss narrowed dramatically from 440 million yuan in the same period last year to approximately 63 million yuan, reflecting a reduction in losses by 90.4% [3][6]. Group 2: Business Segmentation - The energy storage battery revenue reached 5.083 billion yuan, accounting for 53.6% of total revenue, surpassing the revenue from power batteries for the first time [3][4]. - Total lithium battery sales reached 32.4 GWh, doubling year-on-year, with energy storage battery shipments at 18.87 GWh, up 119.3%, and power battery shipments at 13.53 GWh, up 78.5% [4][10]. Group 3: Market Position - The company ranked among the top five globally in energy storage cell shipments and held the number one position in user energy storage cell shipments [5][10]. - In the power battery sector, the company ranked seventh in domestic lithium iron phosphate power battery installations and sixth in new energy commercial vehicle installations [5][10]. Group 4: Technological Innovation - The company has invested in technology, launching the "WenDing®" battery technology with a 392Ah energy storage cell, achieving a volumetric energy density of 415 Wh/L and a cycle life exceeding 12,000 times [7][8]. - The Powtrix™ 6.26MWh energy storage system, which has an energy efficiency exceeding 95%, has entered large-scale production [8]. Group 5: Global Expansion Strategy - The company plans to establish production bases in Southeast Asia, Europe, and South America, with an initial investment in an Indonesian battery manufacturing facility aimed at an annual capacity of 8 GWh [9]. - This strategy leverages the parent company’s resources and aims to enhance local customer engagement and mitigate geopolitical risks [9]. Group 6: Future Outlook - With the ongoing global energy transition and increasing demand for energy storage, the company is well-positioned to consolidate its market position and achieve overall profitability in the second half of 2025 [10].