EV battery maker Rept makes HK stock market debut with market cap above CALB

Rept's latest market capitalization of HK$42.4 billion overtook CALB as the highest lithium battery maker listed in Hong Kong. Rept Battero Energy Co Ltd, a power battery maker backed by Chinese stainless steel and nickel giant Tsingshan Industry, has become the latest local battery maker to list in Hong Kong. Rept was listed on the main board of the Hong Kong Stock Exchange today under the ticker 0666 at an issue price of HK$18.3 ($2.35). At press time, Rept was up 1.86 percent to HK$18.64, giving it a market capitalization of HK$42.4 billion, overtaking CALB as the highest listed lithium battery maker in Hong Kong. CALB, which was listed in Hong Kong in October 2022, currently has a market capitalization of HK$31.7 billion. Rept offered 116 million shares in its Hong Kong initial public offering (IPO), raising net proceeds of HK$2.013 billion. The company was founded in October 2017 and started mass production and delivery of lithium-ion batteries in April 2019. In 2022 and the first half of 2023, Rept's share of the global lithium battery energy storage market was 8.8 percent and 5.7 percent, ranking third and fourth, respectively, according to its prospectus. In China's power battery market, Rept had a 1.7 percent and 1.2 percent market share by installed base, ranking 10th in the two periods. Rept reported a loss of RMB 710 million on revenue of RMB 6.5 billion in the first half of the year. It posted losses for 2020-2022, totaling RMB 1.1 billion. The main reasons for the continued losses are low utilization due to capacity expansion, fluctuating raw material prices, product mix and pricing strategy, and market conditions in the electric vehicle industry earlier this year, Rept said. Rept expects to continue to lose money this year, but believes it will be profitable and generate operating cash inflows by 2025, according to its prospectus. Rept's power battery customers include SAIC-GM-Wuling, Leapmotor, a Netherlands-based automotive company, a Germany-based luxury car company and a US-based electric vehicle manufacturer. The company, which has production facilities in Wenzhou and Jiashan, Zhejiang province, had an annual production capacity of 35.2 GWh as of June 30. It plans to increase capacity to 69 GWh by the end of this year, expanding to more than 150 GWh by the end of 2025. Rept will expand the capacity at its Jiashan plant to 77 GWh and its Wenzhou plant to 50 GWh by the end of 2025, and will establish new production facilities in Foshan, Liuzhou and Chongqing. The company plans to set up a battery module and pack production plant in Europe in the near future, and a cell production plant in the future. It also intends to set up cell and pack production plants in Southeast Asia and South America. ($1=HK$7.7996)