瑞浦兰钧(00666) - 2025 - 中期财报

Corporate Information Board of Directors and Committees 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] - 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] Company Basic Information 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][3][4] - Stock Code: 06662[1][4][10] - Registered Office and Head Office in China: No. 205 Binhai 6th Road, Wenzhou Bay New Area, Longwan District, Wenzhou City, Zhejiang Province, China[10] - Principal Place of Business in Hong Kong: 40th Floor, Dah Sing Financial Centre, 248 Queen's Road East, Wan Chai, Hong Kong[10] Financial Highlights Interim Financial Performance 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][13] Management Discussion and Analysis Industry Overview 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] - Global power battery installations totaled 401.3 GWh in the first five months of 2025, growing by 38.5% year-on-year[14] - 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] - Global energy storage cell shipments exceeded 250 GWh in H1 2025, representing approximately 100% year-on-year growth[18] - 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] Business Review 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] - 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][22] 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] - 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] - 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] - 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] - 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] Technological R&D Achievements 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] - 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] - 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] - 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] - For pure electric batteries, promoted 4C-6C ultra-fast charging cell development, increasing LFP power battery energy density to 195-200 Wh/kg[31] - Developed high energy density cells (≥310 Wh/kg) for low-altitude aircraft and signed a strategic cooperation agreement with Yufeng Future[31] - 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] - 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] Future Outlook 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] - 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] - 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] - 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] - 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] - Developing lithium manganese iron phosphate batteries to achieve higher energy density, lower costs, and better low-temperature performance, while also offering enhanced safety[39] - 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] Operating Results and Analysis 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] 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] 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] - R&D expenses decreased by 11.8%, mainly due to refined management of R&D expenditures, focusing on high-value projects[54] - Net impairment losses on financial and contract assets decreased by 54.3%, primarily due to reduced impairment provisions for trade receivables[55] - Finance costs decreased by 9.4%, mainly due to a reduction in interest rates for certain borrowings[57] Liquidity and Funding Sources 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] 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] - Capital expenditure during the reporting period was approximately RMB 1,060.7 million, primarily for the purchase of property, plant and equipment[69] - 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] - 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] Other Information and Corporate Governance Corporate Governance and Compliance 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][77] - 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] Interests of Directors, Supervisors and Chief Executive 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 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 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] - The company has a Remuneration and Appraisal Committee responsible for reviewing remuneration policies and the remuneration structure for directors and senior management members[93] - The company has adopted the 2021 and 2022 Share Incentive Schemes and the H Share Incentive Scheme to incentivize employees[93] - The Group recruits employees through referrals, headhunters, recruitment websites, and campus recruitment, providing new hire training and continuous technical training[94] Use of Proceeds from Global Offering 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] 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] Interim Dividend 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] Audit Committee and Share Option Scheme 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] - The company has not adopted a share option scheme[101] Changes in Biographical Details of Directors and Supervisors 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] - 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] - Mr. YU Xinhua retired as a non-executive director at the annual general meeting[102] - 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][103] Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Statement of Profit or Loss 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] - Loss for the period was RMB 62,704 thousand, of which loss attributable to owners of the parent was RMB 65,320 thousand[106] Statement of Other Comprehensive Income 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] - 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] - Basic and diluted loss per share attributable to ordinary equity holders of the parent was RMB (0.03)[107] Interim Condensed Consolidated Statement of Financial Position 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] - 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] Liabilities and Equity 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] - 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] - Net assets amounted to RMB 10,322,538 thousand, with equity attributable to owners of the parent being RMB 10,269,694 thousand[110] Interim Condensed Consolidated Statement of Changes in Equity Changes in Equity 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] - Share incentive scheme expenses amounted to RMB 63,630 thousand, increasing the share incentive reserve[112] - As of June 30, 2025, total equity amounted to RMB 10,322,538 thousand[112] Interim Condensed Consolidated Statement of Cash Flows Cash Flow Analysis 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] - Net cash flows used in investing activities were RMB 935,152 thousand, primarily for the purchase of property, plant and equipment items[116] - 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] - 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] Notes to the Interim Condensed Consolidated Financial Statements Corporate Information and Basis of Preparation 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][118] - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on December 18, 2023[119] - 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] Changes in Accounting Policies and Disclosures 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] - 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][123] Operating Segment Information 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] - The Group has only one operating segment, and no further analysis of a single segment is presented[124] Revenue, Other Income and Gains 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 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] - The company, REPT Qingchuang, and Jiashan Lanjun, as high-tech enterprises, enjoy a 15% preferential corporate income tax rate[129][130] - Total tax expense for the period was RMB 38 thousand[131] Loss Per Share Attributable to Ordinary Equity Holders of the Parent and Dividends 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][135] - The weighted average number of ordinary shares outstanding during the period was 2,276,874,000 shares[135] - The Directors do not recommend the declaration of any interim dividend for the six months ended June 30, 2025[135] Property, Plant and Equipment 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] - For the six months ended June 30, 2025, the Group purchased assets at a cost of RMB 1,607,201 thousand[136] Trade and Bills Receivables 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] - 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][138] - As of June 30, 2025, bills receivables of RMB 667,880 thousand were pledged to secure bank borrowings[138] 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 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 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] 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] Related Party Transactions 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][144][145][146] 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][150] - 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] Fair Value and Fair Value Hierarchy of Financial Instruments 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] - The fair value of listed equity investments is derived from market quotations (Level 1)[153] - The fair value of unlisted equity investments designated at fair value through other comprehensive income is estimated using market valuation techniques (Level 3)[153] 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] Restatement and Post-Reporting Period Events 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] - 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] Definitions Glossary of Terms 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][163][165][167]