Ruipu Lanjun Reports Significant Revenue Growth and Reduced Losses in H1 2023

On July 21, Ruipu Lanjun released its performance forecast indicating that the company's revenue for the first half of this year is expected to be between 9.3 billion and 9.8 billion yuan, marking an approximate increase of 22.4% to 29.0% compared to 7.597 billion yuan in the same period last year. The net loss attributable to the company's shareholders is projected to be between 100 million and 50 million yuan, a significant reduction of 84.8% to 92.4% compared to a net loss of 658 million yuan in the same period last year. Notably, Ruipu Lanjun has been continuously improving its operational performance in recent years, with a full-year net loss in 2024 expected to narrow by 30.4% to 1.353 billion yuan, and revenue expected to grow by 29.44% to 17.796 billion yuan, with gross profit increasing by 110.52% to 737 million yuan. This performance forecast indicates a further improvement in the company's profitability and a substantial reduction in losses. The improvement in losses is attributed to increased product shipments and optimized customer structure. Ruipu Lanjun stated that the continuous increase in shipments of power and energy storage battery products has driven revenue growth; resource integration and cost-reduction measures have significantly enhanced gross profit; and effective cost control strategies have managed expenses during the reporting period. From an industry perspective, data released by the China Association of Automobile Manufacturers on July 10 shows that, for the first half of 2025, the production and sales of automobiles in China both exceeded 15 million units for the first time, achieving double-digit year-on-year growth, indicating a continued release of vitality in the automotive industry. Specifically, in the first half of this year, China’s automobile production and sales reached 15.621 million and 15.653 million units, respectively. Among them, the production and sales of new energy vehicles reached 6.968 million and 6.937 million units, representing year-on-year increases of 41.4% and 40.3%, respectively, with new energy vehicle sales accounting for 44.3% of total automobile sales. Meanwhile, the demand for power battery market remains high. According to data from the China Automotive Power Battery Industry Innovation Alliance, the cumulative production, sales, and installation of power batteries and other batteries in China for the first half of the year reached 697.3 GWh, 485.5 GWh, and 299.6 GWh, respectively, reflecting year-on-year growth of 60.4%, 51.6%, and 47.3%. Ruipu Lanjun is situated within this growth environment, with continuous increases in shipments of power and energy storage battery products driving sustained revenue growth. According to data from the China Automotive Power Battery Industry Innovation Alliance, Ruipu Lanjun ranked 11th among domestic power battery enterprises in terms of installation volume in 2023, moving up to 8th place in 2024. In the first half of this year, Ruipu Lanjun's power battery installation volume was 6.59 GWh, maintaining its 8th position, with its market share increasing by 0.35 percentage points year-on-year. In the commercial vehicle sector, Ruipu Lanjun ranked sixth in the domestic new energy commercial vehicle installation volume for the first half of this year, with an installation volume of 3.29 GWh and a market share of 5.95%, up 3.27 percentage points from the previous year, making it the fastest-growing brand among the top fifteen in market share. Moreover, the optimization of the customer structure is a key factor in Ruipu Lanjun's revenue growth and narrowed losses. Reports have noted that Ruipu Lanjun's power battery customers were primarily second and third-tier automakers like SAIC-GM-Wuling in the past. Over the past year, the company has signed contracts with automakers such as Renault and expanded cooperation with leading companies like Geely Galaxy, XCMG Group, and SANY Group, boosting its product sales. Previously reliant on second and third-tier automaker clients, which limited bargaining power and market share expansion, establishing collaborations with international automakers like Renault and more mainstream ones like Geely Galaxy has not only increased order volumes but also enhanced brand influence in the market. This market expansion and customer structure optimization allow Ruipu Lanjun to tap into more income sources in various segments, reducing reliance on a single customer or market, thereby providing solid support for revenue growth. Looking ahead, international market expansion is a priority for Ruipu Lanjun. In March 2024, Ruipu Lanjun announced plans to establish its first overseas battery factory in Indonesia. In September 2024, its U.S. subsidiary officially opened in Irvine, California. Earlier this year, Ruipu Lanjun announced that its board had decided to invest in a battery factory in Indonesia through its wholly-owned subsidiary PT REPT BATTERO INDONESIA. The first phase of this factory is expected to have an annual production capacity of 8 GWh for power and energy storage batteries. Public information indicates that PT VKTR Teknologi Mobilitas Tbk (VKTR), invested and built by the Bakrie & Brothers Group, is Indonesia's first commercial vehicle manufacturing plant, focusing on the production and sales of electric buses and light and heavy trucks, with full-process manufacturing capabilities including chassis assembly, battery assembly, body welding, painting, final assembly, and vehicle testing. In June of this year, Ruipu Lanjun confirmed that it had officially signed a strategic cooperation memorandum with the Bakrie & Brothers Group for commercial vehicle battery systems, aiming to jointly promote the application and popularization of green energy in the Indonesian market, with a goal of delivering over 3,000 electric buses and trucks' power batteries by 2025. Overall, driven by high growth in the industry, Ruipu Lanjun has achieved revenue growth and significantly reduced losses through continuous improvement in product shipments, optimized customer structure, and effective cost-reduction strategies. With the acceleration of its overseas market layout—construction and production of the Indonesian factory, deep cooperation with local companies, and expansion of international customer collaborations—Ruipu Lanjun is expected to further unlock growth potential and continue its efforts in the power and energy storage battery sectors, steadily moving towards profitability. In the future, amid the ongoing expansion of the new energy industry, it will be interesting to see if it can seize global market opportunities and strengthen its industry position.