REPT BATTERO Energy Co (0666.HK) Q2 2024 Earnings Report

REPT BATTERO Energy reported materially higher revenue in QQ2 2024, with revenue of HKD 8.2319 billion, up 69.7% year-over-year and 6.5% quarter-over-quarter. The company posted positive EBITDA of HKD 241.1 million, but ongoing losses at the operating and net levels persisted, with operating income of HKD -732.5 million and net income of HKD -480.0 million. Gross margin stood at 3.59%, reflecting materials and scale-up costs tied to capacity expansion and ramping production. Despite the profitability headwinds, the company generated strong operating cash flow of HKD 2.276 billion and delivered free cash flow of HKD 487.2 million, underpinning a solid liquidity position (cash and equivalents of HKD 11.251 billion) and a net cash balance (net debt negative HKD 0.607 billion). The balance sheet remains resilient with total assets of HKD 41.566 billion and total stockholders’ equity of HKD 11.758 billion. Leverage metrics show moderate debt (long-term debt HKD 7.036 billion) and a debt-to-capitalization ratio of ~0.475, suggesting the company has room to fund capacity expansion and R&D going forward. The QQ2 2024 results reflect a transition: strong top-line growth underpinned by ongoing capex and R&D investment, but profitability remains challenged as the business scales. Investors should monitor margin recovery potential, working capital dynamics, capex cadence, and raw material cost trajectories as the company seeks to translate revenue momentum into sustained earnings power.