REPT BATTERO Energy Co (0666.HK) Q4 2024 Earnings Report

Revenue and profitability:
- Revenue (Q4 2024): HKD 11,064,279,472; QoQ change +34.41%; YoY change -7.25% (notes: four-quarters data imply volatility in quarterly comparables; reported YoY figure appears inconsistent with raw quarterly revenue figures).
- Gross Profit: HKD 503,965,138; Gross Margin: 4.56%.
- Operating Income: HKD -538,137,837; Operating Margin: -4.86%.
- EBITDA: HKD 214,407,890; EBITDA Margin: 1.94%.
- Net Income: HKD -781,191,308; Net Margin: -7.06%; EPS: -0.34.
- Interest Expense: HKD 184,897,723; Depreciation & Amortization: HKD 786,876,814.

Cash flow and capital allocation:
- Net cash provided by operating activities: HKD 2,247,764,956.
- Capital expenditures: HKD -2,322,517,326.
- Free cash flow: HKD -74,752,370.
- Cash and cash equivalents (period end): HKD 4,285,731,000; Cash and short-term investments: HKD 4,401,593,000; Total cash at end of period: HKD 9,312,697,461.
- Net debt: HKD 5,741,463,000; Debt total: HKD 10,027,194,000.

Balance sheet and liquidity:
- Total assets: HKD 38,539,480,000; Total liabilities: HKD 28,217,284,000; Total stockholders’ equity: HKD 10,271,968,000.
- Current ratio: 1.008; Quick ratio: 0.880; Cash ratio: 0.224.
- Long-term debt: HKD 6,824,887,000; Short-term debt: HKD 3,202,307,000.
- Leverage metrics: Debt-to-capitalization 0.494; Debt-to-equity 0.976; Asset turnover 0.287; Inventory turnover 4.28; Receivables turnover 1.483; Payables turnover 0.876.

Valuation indicators (as of QQ4 2024 data):
- Price-to-book: 2.35; Price-to-sales: 2.18; Price-to-earnings (negative due to losses): negative; Price-to-free-cash-flow: not meaningful (negative FCF); EV/EBITDA not provided in data.

Notes on data consistency:
- There are inconsistencies between the quarterly revenue figures and the provided YoY revenue metric in ratiosInfo. Specifically, Q4 2024 revenue of HKD 11.06B compared with Q4 2023 revenue of HKD 7.73B suggests a positive YoY growth, while the ratiosInfo section lists a negative YoY for revenue. This discrepancy should be resolved with the company’s IR presentation for precise reconciliation.

Earnings call transcript not provided in the data set. Consequently, there are no management quotes or thematic insights to reference from QQ4 2024 call in this report. The synthesis below is grounded in the earnings release metrics and sector context.

Contextual expectations (if an earnings call were available):
- Strategy: Likely emphasis on scaling EV battery and ESS product platforms, cost-structure optimization, and leveraging R&D investments to sustain technology leadership.
- Operations: Potential discussion of capacity utilization, supplier onboarding, and ramp of new production lines to support growing demand in China and international markets.
- Market conditions: Commentary on EV adoption pace, competition in pouch and cylindrical cells, and raw material pricing dynamics affecting margins.

Given the QQ4 2024 results, the investment case for REPT BATTERO hinges on execution rather than near-term profitability. The firm demonstrates strong cash generation from operations and a solid liquidity cushion, but must convert top-line growth into sustained earnings power. Key milestones to watch include: (1) margin stabilization and gross margin expansion toward mid-single digits or higher through cost discipline and favorable mix; (2) a reduction in the cash burn rate by bringing capex and working capital under control; (3) improvements in free cash flow driven by operating leverage as volumes scale; (4) clarity on any strategic partnerships or contract wins that could catalyze higher utilization of manufacturing assets. In relative terms, the company trades at a modest price-to-book ratio (~2.35) but carries a negative earnings backdrop, limiting upside unless profitability improves. Given industry dynamics, a cautious to moderate risk stance is advised until there is clear evidence of margin expansion and sustainable cash flow improvements. Investors should monitor quarterly guidance, capex cadence, gross margin trajectory, and changes in leverage.