Ruipu Lanjun's first annual profit since establishment: Energy storage becomes the primary driver, high debt shadow still looms

Ask AI · How does the energy storage business drive Rypur Lanjun to achieve its first annual profit?

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Recently, Rypur Lanjun (00666.HK) released its 2025 annual report. The financial results show that in 2025, Rypur Lanjun achieved revenue of RMB 24.33B, a year-on-year increase of 36.7%, and net profit of RMB 681 million, turning from loss to profit year-on-year, which is also its first annual profit since its establishment.

According to the annual report, in 2025, Rypur Lanjun’s gross profit reached RMB 2.72B, up 269.24% year-on-year; its gross margin increased from 4.1% in 2024 to 11.2%. Notably, Rypur Lanjun was still loss-making in the first half of 2025, with a loss of RMB 63 million, while it generated net profit of RMB 744 million in the second half of 2025, becoming the turning point to profitability.

In 2025, Rypur Lanjun’s total volume of lithium battery products reached 82.7GWh, up 89.2% year-on-year, and its designed annual production capacity was raised to 90GWh.

By business segment, energy storage batteries have become Rypur Lanjun’s first growth engine. In 2025, Rypur Lanjun’s energy storage battery business revenue reached RMB 13.56B, up 86.8% year-on-year, and the revenue contribution ratio was 55.7%. The energy storage business not only surpassed the power battery segment in scale for the first time, but its gross margin also rose from 5.4% in 2024 to 10.8%, with a significant improvement in profitability.

According to statistics from Shanghai Metals Market, in 2025 Rypur Lanjun ranked among the top five globally in shipments of energy storage cells, and its residential energy storage cell shipments ranked first globally. Since the second quarter of 2025, Rypur Lanjun’s energy storage cell capacity utilization rate has been maintained at above 90% continuously; in July it even reached full production, when monthly order volume temporarily hit 2 to 3 times capacity.

In the power battery business, in 2025, Rypur Lanjun’s power battery revenue was RMB 9.69B, up 35.6% year-on-year. In 2025, in China, Rypur Lanjun ranked seventh in the loading volume of lithium iron phosphate power batteries, and the loading volume of new-energy heavy truck batteries ranked second in China.

In 2025, Rypur Lanjun proactively gave up low-gross-margin, high-risk orders, and took the lead in establishing a pricing mechanism that links battery prices with raw material costs. On the capacity management front, cell capacity utilization was increased to around 95%; residential energy storage and overseas markets became priority directions for allocation, while low-gross-margin businesses were actively compressed.

In addition, because overseas markets have higher prices and better receivables collection quality, the share of overseas orders in Rypur Lanjun’s energy storage business has been increasing. With a series of overseas signings—including an 8.3GWh order signed at the Italy exhibition, a global memorandum of understanding signed with the Spanish power electronics company Ingeteam, India advancing a 1GWh project, and cooperation exceeding 1GWh in Japan—Rypur Lanjun’s globalization has been moving from “market expansion” toward “deep localization.” Rypur Lanjun has already established subsidiaries in the United States, Germany, Southeast Asia, Australia, Japan, and more; an Indonesia battery manufacturing base is also under construction, with the first phase planned for an annual output of 8GWh of power and energy storage batteries and systems.

At the technology level, the “Wen Ding®” battery technology independently developed by Rypur Lanjun continues to iterate. From the mature 314Ah products to the new-generation high-capacity cells of 392Ah and 588Ah, and then to the Powtrix® 6.25MWh energy storage system, the tiered product matrix provides differentiated competitive strength for different markets. By the end of 2025, Rypur Lanjun had been granted 3419 patents, and its technical reserves provide support for securing high-value overseas orders.

Regarding the debt ratio, as of the end of 2025, Rypur Lanjun’s assets-liabilities ratio further rose to 74.5%. Total interest-bearing bank loans and other borrowings were approximately RMB 3.44B, of which short-term interest-bearing liabilities due within one year totaled as much as RMB 8.53B. The financial expenses caused by high debt erode a substantial portion of profit; when financing conditions change, Rypur Lanjun will face elevated repayment risk.

On accounts receivable, as of the end of 2025, Rypur Lanjun’s accounts receivable and notes receivable were RMB 3.32B, and inventories were RMB 3.322 billion. The days of accounts receivable turnover was approximately 100.6 days, meaning the period for sales revenue to be converted into cash is relatively long, which squeezes working capital. Against a backdrop of intensifying industry competition and increasing uncertainty in customer collections, bad debt risk cannot be ignored.

From the perspective of the industry’s current situation, the competitive landscape remains fierce. In the first half of 2025, Rypur Lanjun’s gross margin was still among the lowest tier among lithium battery companies with revenue exceeding 10 billion. Although its overall gross margin has improved from 4.1% to 11.2%, there is still a substantial gap compared with the industry leader CATL’s 25% overall gross margin in the first half of 2025. Moreover, in 2025 the lithium battery industry as a whole is in a “cyclical rebound” channel. With raw material prices falling and energy storage demand exploding, favorable external conditions are provided for all players. How much of Rypur Lanjun’s first-time profitability comes from improvements in its internal capabilities, and how much comes from industry tailwinds, still needs to be further verified in 2026 performance.