SinoHytec, a hydrogen fuel cell engine manufacturer based in China, recently passed a listing hearing for the Hong Kong Stock Exchange, with Guotai Junan International and Zhifu Investment named as co-sponsors. With this move, SinoHytec will become the first firm in the hydrogen energy field to be publicly traded in Hong Kong.
SinoHytec, established in 2012, mainly designs, develops and manufactures fuel cell systems including core components fuel cell stacks for commercial vehicles such as buses and trucks. The company has established cooperative relations with Chinese vehicle manufacturers such as Foton Motor, Yutong Bus and Geely New Energy Commercial Vehicles Group. In addition, the buses co-developed by SinoHytec, Toyota and Foton Motor were designated as official service vehicles for the Beijing Winter Olympics.
SinoHytec has sold more than 2,900 fuel cell systems to more than 20 Chinese commercial vehicle manufacturers since it launched its first commercial product in 2016. In December 2021, the company released the first automotive fuel cell system with a rated power of 240kW in China. As of December 5, 2022, the company has provided power for more than 2,700 fuel cell vehicles on the road in China.
According to a report by China Insights Consultancy, in terms of the sales power of automotive fuel cell systems in 2021, SinoHytec ranked first in China, accounting for 27.8% of the market share.
SinoHytec was listed on the National Equities Exchange and Quotations in 2016 and accumulated financing of 790 million yuan ($113 million), then it was listed on the Shanghai Stock Exchange in August 2020, with a cumulative financing of 1.55 billion yuan. In August 2021, it raised another 2 billion yuan.
From 2019 to 2021 and the first half of 2022, the income of SinoHytec was 554 million yuan, 572 million yuan, 629 million yuan and 269 million yuan respectively, while profits were 45.899 million yuan, -9.762 million yuan, -185 million yuan and -81.555 million yuan. In the first three quarters of 2022, the company achieved operating income of 391 million yuan and net profit of -125 million yuan.
However, SinoHytec’s plan for an IPO in Hong Kong has not been smooth sailing. An application submitted in January 2022 expired at the end of July. It submitted another application on August 1, 2022, and finally passed the hearing.
The China Society of Automotive Engineers predicts that by 2035, the number of hydrogen fuel cell vehicles in China will exceed 1 million units. According to a report by China Insights Consultancy, it is expected that the annual sales volume of fuel cell systems will increase from about 2,200 sets in 2021 to about 52,900 sets in 2026, with a compound annual growth rate of 89.5%.
Companies in the hydrogen energy field have recently attracted considerable attention. On December 8, a signing ceremony for round-B financing totaling 4.5 billion yuan for State Power Investment’s Hydrogen Tech was held in Beijing, giving it a valuation of 13 billion yuan. The company also explicitly proposed plans to conduct an IPO in the future. Moreover, SAIC announced previously that its subsidiary Shanghai Jieqing Technology Co., Ltd. was accepted by the Shanghai Stock Exchange for a public listing.