REPT BATTERO Energy Co Ltd delivered a revenue rebound in QQ2 2025, with revenue of HKD 10,194,884,822, up 31.9% year over year, signaling stronger demand for lithium‑ion battery products in EV, ESS, and related applications. Gross profit rose to HKD 890,851,386, producing a gross margin of 8.74%, indicating a meaningful margin recovery from prior periods despite a challenging pricing environment. On an EBITDA basis, the company posted HKD 950,804,047 with an EBITDA margin of 9.33%, suggesting improving operating leverage even as the company continues to incur a near-term operating loss (HKD -41,113,127) driven largely by depreciation and amortization (HKD 847,570,622). Net income remained negative at HKD -70,163,540, translating to a negative EPS of -0.0308. The quarter shows a classic growth‑to‑loss dynamic common in capital‑intensive battery players: strong top-line growth and growing EBITDA-driven profitability counterbalanced by substantial non-cash costs and interest, along with intensifying capital expenditure.
Liquidity and balance sheet metrics point to near‑term leverage and working-capital sensitivity. The current ratio stands at 0.985 and the quick ratio at 0.805, with cash ratio at 0.211, underscoring modest near-term liquidity despite positive operating cash flow per share (HKD 0.135). Free cash flow per share is negative (-0.863), highlighting ongoing capital investments and depreciation headwinds. Leverage remains meaningful, with debt ratio at 0.258 and debt/equity near 0.98; long-term debt to capitalization at 38.9% and total debt to capitalization at 49.4%. The company does not declare a dividend. Valuation metrics reflect a negative earnings stance (P/E is not meaningful) but a relatively firm price-to-book (2.35x) and price-to-sales (2.36x), with EV/EBITDA at 31.45x, indicating investors are pricing in growth potential despite near-term profitability challenges. The absence of a disclosed earnings transcript in the provided data limits management‑commentary quotes, though the quantitative setup suggests an evolution toward higher utilization of fixed assets and capacity gains over time.