Beijing SinoHytec Co., Ltd. (688339)

Equity Research Report | Industry: Hydrogen Fuel Cell Systems | Report Date: September 13, 2026 | As of 2026-09-11 close (multi-source consensus: SSE official website, stcn, Baidu Stock, Cailianshe, Jiufang Data; certain technical indicators as of 2026-09-09 intraday 13:04, benchmark price RMB 18.28)

This report is automatically compiled and generated by AI based on public information, for reference only, and does not constitute investment advice.

1. Core Summary

Beijing SinoHytec operates in the fuel cell system integration segment. Its system market position and technology reserves still have a certain foundation, but its operating scale and profitability are under notable pressure: 2025 revenue was RMB 258.5 million, down 29.49% year-on-year, with a net loss attributable to shareholders of RMB 671.2 million; 2026 H1 revenue was RMB 73.9428 million, up only 2.80% year-on-year, with a net loss attributable to shareholders of RMB 104.2 million, a year-on-year loss reduction of 36.24%, while the non-GAAP net loss attributable to shareholders still reached RMB 99.9557 million. The company's core business has not yet achieved profitable scale; 2025 hydrogen fuel cell industry revenue was RMB 162.1 million with a gross margin of -11.91%.

The company's core advantages lie in fuel cell system integration, domestic fuel cell stack mass production capability, and a relatively large number of vehicle announcements featuring its systems. In 2025, there were 181 vehicle announcements featuring the company's systems, and the company has positioned itself in fuel cell stacks through Shenli Technology and acquired metal plate stack technology through Huafeng Fuel Cell. At the same time, the company is attempting to expand into energy storage, PEM water electrolysis hydrogen production, and distributed power generation. In 2026 H1, the energy storage subsidiary delivered energy storage system equipment to customers, marking the beginning of substantive implementation of business diversification.

Performance improvement is currently more reflected in loss reduction and alleviation of cash flow pressure rather than the establishment of a profit model. In 2026 H1, net cash flow from operating activities was RMB -12.73 million, a year-on-year improvement of 63.15%; however, the company's cumulative net operating cash flow outflow from 2020 to 2025 was approximately RMB 1.266 billion, and approximately RMB 94 million of 2025 revenue came from a wind power project application service that the company explicitly identified as non-sustainable, with core business revenue of approximately RMB 162 million. Downstream customer concentration remains high: in 2025, the top five customers accounted for 77.29% of revenue, with the largest customer accounting for 36.49%.

As of September 11, 2026, the company's share price was RMB 17.20, in a low range after a prolonged decline, down approximately 32%–36% year-to-date and down 44.42% over the past six months. In the short term, RMB 17.6–17.9 is the moving average resistance cluster, RMB 16.9–17.2 is near-term support, and RMB 15.5–16.4 is the strong support area; however, the 100-day and 250-day moving averages remain near RMB 20.28 and RMB 25.80, and the technical picture overall remains weak bottom-range consolidation with direction yet to be confirmed.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Fuel cell systems (engine systems) and related technology development and technical services
• Component sales
• Energy gas sales
• Energy storage business (newly added in 2025, subsidiary; delivered energy storage system equipment to customers in 2026 H1)
• PEM water electrolysis hydrogen production products (first PEM water electrolysis system with independent intellectual property rights demonstrated in Yining, Xinjiang)
• Distributed power generation (100kW generator set, delivered to Australian customer in 2025 for Brisbane distributed power generation project)

2.3 Upstream and Downstream Position in the Value Chain and Cost-Profit Structure

SinoHytec is positioned in the midstream fuel cell system integration segment of the hydrogen fuel cell value chain, procuring fuel cell stacks and related components, air compressors, DC/DC and other core components from upstream, and selling directly to domestic commercial vehicle manufacturers (buses, logistics vehicles, heavy trucks, etc.) downstream. The company describes itself as "focused on fuel cell system R&D and industrialization," has domestic fuel cell stack mass production capability, and has vertically extended upstream into the fuel cell stack segment through subsidiary Shenli Technology and through Huafeng Fuel Cell (a joint venture with Toyota) to acquire metal plate stack technology. However, the most upstream core materials (proton exchange membranes, carbon paper, catalysts) remain highly dependent on imports, and the company is a price taker at the most upstream level; downstream, it is affected by the long settlement cycle of national fuel cell vehicle demonstration application subsidies, belonging to a subsidy-driven buyer-dominated landscape.

• Actual input categories (company's own description): fuel cell stacks and related components, air compressors, DC/DC converters, and membrane electrode assemblies and other key components. The company has domestic fuel cell stack mass production capability and has positioned itself in fuel cell stacks through subsidiary Shenli Technology and acquired metal plate stack technology through Huafeng Fuel Cell (Toyota joint venture).
• Procurement procedure: component approval—supplier development and management—order procurement.
• Supplier concentration (annual report disclosure basis): 2021 top five suppliers procurement amount RMB 298.2612 million, accounting for 55.19% of total annual procurement, with the largest supplier (Supplier A/stack) accounting for 34.36%; 2024 top five RMB 190.89 million, accounting for 66.35%, with the largest (Supplier F) accounting for 41.36%; 2025 top five RMB 33.9127 million, accounting for 54.84%, with the largest (Supplier M) accounting for 24.04%, and related-party procurement accounting for 7.61%. Sources: Chagu.com/Tongdaxin F10 business analysis, Sina Finance inquiry letter reply report.
• 2025 top five supplier details: Supplier M RMB 14.8673 million (24.04%), Supplier B RMB 9.4374 million (15.26%), Supplier F RMB 4.7044 million (7.61%), Supplier N RMB 3.4062 million (5.51%), Shenzhen Furui Electric RMB 1.4973 million (2.42%). The company's explanation for the high proportion of the top two suppliers in 2025: "the overall procurement base narrowed significantly in 2025, and customer-customized exclusive supporting requirements drove specialized procurement of certain materials." The company also claims that "all core components have alternative suppliers" and "there is no significant dependence"—but in 2021 and 2024, the largest supplier accounted for as much as 34.36% and 41.36%, respectively. Procurement concentration is a real risk point, and the company's statement is somewhat optimistic; readers should judge for themselves.
• Cost structure (industry basis, not SinoHytec's own cost breakdown): According to the prospectus of SinoHytec (Guohong Hydrogen Energy) and industry reports by Guojin Securities/Shenwan Hongyuan, fuel cell stacks account for approximately 58% of fuel cell system costs; within the stack, membrane electrode assemblies account for approximately 70%, bipolar plates approximately 14%; within the membrane electrode assembly, proton exchange membranes account for approximately 40%, catalysts approximately 14%, and gas diffusion layers approximately 14%. At a system unit price of RMB 4,000/kW, stack cost is approximately RMB 2,320/kW. The above ratios come from the prospectus of a stack peer (Guohong Hydrogen Energy) and brokerage industry reports, not SinoHytec's own cost breakdown, and can only serve as an industry cost structure reference.
• Domestic substitution and "bottleneck" segments (substantive constraints on upstream bargaining power): In proton exchange membranes, US-based Gore holds over 80% global share with its reinforced membrane technology; domestically, Guohydrogen Technology (controlled by State Power Investment Corporation) has built the first fully independently controllable production line (annual capacity of 300,000 m²), and Kerun New Materials and Dongyue Future Hydrogen Energy have achieved mass production; in carbon paper/carbon cloth, approximately 90% of global capacity is monopolized by Japan's Toray and Germany's SGL, and some domestic high-performance products still require imports; approximately 90% of catalysts are import-dependent (Ping An Securities Research Institute). Other reports indicate that domestic proton exchange membrane durability is approximately 8,000 hours, while products from Japan's AGC and US-based DuPont have exceeded 20,000 hours.
• Conclusion: SinoHytec has a high domestic content ratio in the "system integration" segment (self-reported system domestic content ratio of 100%), but remains a price taker for the most upstream core materials (membranes, carbon paper, catalysts), and import dependence is an industry-wide bottleneck that cannot be resolved through its own bargaining in the short term. Its relative advantage comes from vertical extension into the upstream stack segment through Shenli Technology (stacks) and Huafeng Fuel Cell (Toyota joint venture metal plate stacks).
• Main sales targets: domestic commercial vehicle manufacturers, using a direct sales model, with the process being preliminary intention—prototype technical matching and certification—announcement catalogue—volume sales. Application vehicle types include buses, logistics vehicles, heavy trucks, and have been expanded to sanitation vehicles, tractors, cold-chain logistics vehicles, etc.
• Long-term partner OEMs: Yutong Bus, BAIC Foton, Zhongtong Bus, Suzhou Jinlong, Shenlong Bus, Foton Daimler, FAW Jiefang, Sany Heavy Industry, Meijin Energy, etc.
• Customer concentration (by year): 2016 top five accounted for 94.67%; 2017 96.42%; 2018 87.67%; 2021 revenue RMB 629.3688 million, top five totaling RMB 529.6844 million, accounting for 84.16%, with the largest customer accounting for 54.01% (Customer A, Winter Olympics order); 2022 top five accounted for 88.81%, largest 31.68%; 2023 revenue RMB 800.7019 million, top five RMB 672.0658 million, accounting for 83.93%, largest 39.39%; 2024 revenue RMB 366.6714 million, top five RMB 304.3174 million, accounting for 82.99%, largest 32.72%; 2025 revenue RMB 258.5373 million, top five RMB 199.8238 million, accounting for 77.29%, largest 36.49%. Sources: 2025 annual report inquiry letter reply, 2022 annual report, 2021 inquiry letter reply.
• 2025 top five customer details: ① CGN Guigang Gangnan Wind Power Co., Ltd. RMB 94.3396 million (36.49%, new); ② Customer N RMB 47.1681 million (18.24%, retained); ③ Customer I RMB 23.4709 million (9.08%, retained); ④ Shanxi Pengfei Group Co., Ltd. RMB 21.2389 million (8.22%, new); ⑤ Shanghai Shunhua New Energy System Co., Ltd. RMB 13.6062 million (5.26%, new).
• 2024 top five customer details: Customer N RMB 119.9772 million (32.72%), Beijing Foton Daimler Automotive RMB 94.3441 million (25.73%), Customer A RMB 40.9401 million (11.17%), Customer I RMB 34.4306 million (9.39%), Huafeng Fuel Cell RMB 14.6254 million (3.99%).
• 2022 top five customer details: Customer A 31.68%, Customer I 23.10%, Meijin Energy 20.55%, FAW Jiefang 10.85%, Customer L 2.62%.
• Key warning: 36.49% of 2025 revenue from the largest customer (CGN Guigang Gangnan Wind Power) came from "integrated industrial services" incidental business—a Guangxi new energy wind power project application service jointly conducted with CGN, with a single transaction recognized in 2025 Q4 of RMB 94.3396 million, accounting for 60.85% of quarterly revenue. The company explicitly stated it is "not sustainable" and "belongs to non-recurring revenue," and excluded it when analyzing core business profitability. That is: of the RMB 259 million revenue in the 2025 annual report, approximately RMB 94 million was non-core one-time service revenue, with core business revenue of only RMB 162 million.
• Industry structural bargaining dynamics (subsidy payment cycle transmission model, not the automotive parts "annual price reduction" model): Downstream end customers and OEM procurement funds are highly dependent on national fuel cell vehicle demonstration application subsidies, which are settled hierarchically from the Ministry of Finance → OEMs → upstream system suppliers, with long settlement cycles, "directly leading to high industry accounts receivable and enormous working capital pressure," which is also the core reason for the company's proactive order contraction in 2025. The company's exact words: "Affected by demonstration policy adjustments and continuously intensifying market competition, downstream OEM procurement pace slowed, and the company proactively abandoned some orders with long collection cycles and low gross margins to ensure cash flow safety." This is a typical "downstream is a subsidy-driven price-taking buyer, upstream is a system integrator squeezed from both ends" landscape, different from the automotive parts Tier-1 facing OEM "annual price reduction" mechanism (here it is dominated by payment terms + subsidy acceptance pace, rather than annual price reduction clauses).
• Early evidence (prospectus/annual report basis): 2016–2018 accounts receivable balances were RMB 102 million, RMB 295 million, and RMB 436 million, respectively; as a proportion of revenue for the same period, 74.38%, 146.56%, and 118.32%, respectively; as a proportion of total assets at period end, 27.29%, 33.38%, and 36.2%. The 2018 annual report explained this as "payment cycles for high-credit-rating customers are limited by new energy vehicle subsidy operating mileage requirements." (Source: Sina Finance) The research memo also mentions impairment provisions in 2025 Q4, but that portion of the memo is incomplete, and specific amounts and ratios could not be obtained; verification against the latest annual report and inquiry letter reply is recommended.
• Customer concentration (source years: 2016–2025, data sources being 2025 annual report inquiry letter reply, 2022 annual report, 2021 inquiry letter reply): top five customer proportion 2016 94.67%, 2017 96.42%, 2018 87.67%, 2021 84.16%, 2022 88.81%, 2023 83.93%, 2024 82.99%, 2025 77.29%; 2025 largest customer proportion 36.49%, but that customer's revenue came from non-core one-time wind power project application services, which the company explicitly stated is not sustainable. Supplier concentration (source years: 2021, 2024, 2025, sources being Chagu.com/Tongdaxin F10 business analysis and Sina Finance inquiry letter reply reports): top five supplier procurement proportion 2021 55.19%, 2024 66.35%, 2025 54.84%; largest supplier proportion 2021 34.36%, 2024 41.36%, 2025 24.04%. The above concentration data all come from the company's annual report and inquiry letter reply disclosure basis, but some year data come from a single source and could not be cross-verified; reference should be made to the latest annual report.

SinoHytec is positioned in the midstream system integration segment of the smile curve: upstream core materials (proton exchange membranes, carbon paper, catalysts) are approximately 90% import-dependent, constrained by overseas leaders such as Gore/Toray/SGL, and the company is a price taker at the most upstream level; downstream, it faces subsidy-driven OEM customers with lengthy payment cycles, and customer concentration has long remained high at 77%–95%. Although the top five customer proportion from 2021–2025 has declined, it remains persistently high, and the 2025 largest customer revenue was in fact non-sustainable one-time service revenue. The company has vertically extended upstream into the stack segment through subsidiary Shenli Technology (stacks) and Huafeng Fuel Cell (Toyota joint venture metal plate stacks), with self-reported system domestic content ratio of 100%, but overall it remains a midstream integrator "squeezed from both ends." Future gross margin improvement drivers are mainly: product structure improvement from power range upgrade to 240kW–300kW high power, further domestic substitution and cost reduction of stacks and key components, revenue structure diversification from the energy storage second curve (substantively delivered in 2026 H1), and cash flow recovery after proactive contraction of low-margin long-payment-cycle orders. The research memo did not provide specific gross/net margin data; the above judgment is qualitative description, and specific financial indicators should be verified against the latest annual report.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest disclosed document is the 2026 interim report (as of 2026-06-30, disclosed 2026-08-28/29), market snapshots concentrated in August–September 2026, and the judgment of "current" is approximately early September 2026. 2026H1 non-GAAP net profit attributable to shareholders was RMB -99.9557 million (year-on-year loss reduction of 42.64%), basic/diluted EPS RMB -0.4332, net cash flow from operating activities RMB -12.73 million (year-on-year +63.1%), total assets at period end RMB 3,472.8518 million (approximately RMB 3.473 billion, -5.57% from prior year end), undistributed profit approximately RMB -1.72 billion. 2025A fuel cell system sales volume 545 units, total sales power 56,370kW (sales volume year-on-year -26.55%), cash collection ratio 142.5% (+41.01pct), EPS (calculated on latest share capital) RMB -2.79. 2024A non-GAAP net profit attributable to shareholders RMB -543 million, gross margin 12.47%, asset-liability ratio 40.50%, ROE -17.82%, diluted EPS RMB -1.97. 2023A EPS RMB -1.0111. Core business structure (East Money, as of 2025-12-31): hydrogen fuel cell industry revenue RMB 162.1 million (62.68% of total, gross margin -11.91%); other (supplementary) RMB 96.48 million (37.32% of total, gross margin 98.26%). Data are retrieved snapshots, not real-time; each value has been labeled with an "as of" date where possible.

Revenue has declined sharply for two consecutive years from the 2023 peak of RMB 800 million to RMB 259 million in 2025, with losses expanding significantly in 2025 (primarily due to large credit impairment/bad debt provisions). In 2026H1, revenue stopped falling and edged up (+2.80%), with losses narrowing in tandem (loss reduction of 36.24%), but the core fuel cell system business is still in the early commercialization stage, has not achieved profitable scale, and the fuel cell system standalone gross margin is negative (2025 hydrogen fuel cell industry gross margin -11.91%), and the company's stock abbreviation is "SinoHytec-U," indicating it has not yet achieved profitability.

3.2 Profit Forecast

Profit forecasts come from the East Money profit forecast page; only 1 domestic brokerage covers the stock, Changjiang Securities, report date 2026-05-14, analysts Xu Ke/Si Hongli/Jia Shaobo/Li Bowen/Sheng Yi, rating "Overweight." Same-period forecasts: operating profit 2026E RMB -659.0 million, 2027E RMB -667.0 million, 2028E RMB -613.0 million; ROE 2026E -48.10%, 2027E -95.20%, 2028E -693.90%. The main text of the research report is incomplete in the memo (the original text is truncated at "the research report main text writes"). Institutional profit forecast coverage is extremely limited with very large divergence (this judgment comes from the memo, but the table only includes data from 1 firm, Changjiang Securities).

3.3 Valuation Levels and Institutional Ratings

The research memo did not provide target price, valuation multiples (PE/PB/PS, etc.) or market capitalization valuation data. In the institutional rating records, there is only one firm, Changjiang Securities, with an "Overweight" rating (2026-05-14), and other valuation information is missing. Referable negative valuation-related facts: the stock abbreviation shows "SinoHytec-U," indicating the company has not yet achieved profitability; the East Money sector tag includes "below-issue-price stock" (current price far below issue price); operating profit forecasts remain persistently negative, ROE forecasts are substantially negative (2026E -48.10%, 2027E -95.20%, 2028E -693.90%), core fuel cell system gross margin is negative (2025 -11.91%), and the company is still in the early commercialization stage, has not achieved profitable scale, and traditional earnings-based valuation metrics have limited applicability.

4. Recent News and Announcements

4.1 Company Identity Verification

Beijing SinoHytec Co., Ltd., A-share code 688339 (SSE STAR Market, listed 2020-08-10), H-share code 02402 (HKEX Main Board). A-share abbreviation "SinoHytec"/"SinoHytec-U," both referring to the same entity, with the "-U" suffix indicating the company has not yet achieved profitability. Main business is fuel cell systems and related technology development/services, with extension into hydrogen/energy storage businesses. Sources: company 2026 interim report summary and etnet company information.

4.2 2025 Annual Results Pre-announcement

Disclosed 2026-01-31, pre-announcing 2025 net profit of RMB -720 million to RMB -550 million, year-on-year change of -57.74% to -20.5%. Source: East Money individual stock calendar.

4.3 2025 Annual Results Express Report

Announcement No. 2026-003, disclosed 2026-02-28. Total operating revenue RMB 262.1257 million, year-on-year -28.51%; net profit attributable to shareholders RMB -628.2939 million, year-on-year -37.65%; non-GAAP net profit attributable to shareholders RMB -685.8804 million; basic EPS RMB -2.71; total assets at period end RMB 3,741.4289 million (-21.71% from period beginning), equity attributable to shareholders RMB 2,012.0866 million (-21.43%). Source: SSE announcement reprint.

4.4 2025 Annual Report and 2026 Q1 Report

2025 annual report disclosed 2026-04-30: net profit attributable to shareholders RMB -671.2 million, year-on-year -47.05%, basic EPS RMB -3.06. 2026 Q1 report disclosed on the same day: net profit attributable to shareholders RMB -51.04 million, year-on-year +45.12% (loss reduction), EPS RMB -0.21. Source: East Money individual stock calendar.

4.5 2026 Interim Report

Disclosed on the evening of 2026-08-28, published in newspapers 08-29. Revenue RMB 73.9428 million, year-on-year +2.80%; net profit attributable to shareholders RMB -104.2029 million (prior year same period RMB -163.4278 million, year-on-year loss reduction of RMB 59.2249 million, loss reduction of 36.24%); non-GAAP net profit attributable to shareholders RMB -99.9557 million; net cash flow from operating activities RMB -12.7347 million (prior year same period RMB -34.5537 million, year-on-year +63.15%); basic EPS RMB -0.43; weighted ROE -5.41%; comprehensive gross margin 21.73% (year-on-year +47.16pct); total assets at period end RMB 3,472.8518 million, net assets attributable to shareholders RMB 1,876.2833 million; undistributed profit RMB -1,719.6922 million (not yet profitable). Q2 single-quarter revenue RMB 57.269 million, net profit attributable to shareholders RMB -53.1595 million. Sources: company 2026 interim report summary, China Securities Journal, National Business Daily.

4.6 Explanation of Differences in 2025 Net Loss Attributable to Shareholders

There are multiple bases for the 2025 net loss attributable to shareholders—H-share results announcement approximately RMB -618.5 million, A-share results express report RMB -628.3 million, A-share annual report/inquiry letter reply RMB -671.2 million (including relatively large asset/credit impairment and associate investment losses). The differences among the three arise from A-share vs. H-share (IFRS) disclosure bases and final audit adjustments between the "express report vs. annual report"; the A-share periodic report figures should be taken as authoritative, and the basis must be noted when citing.

4.7 Regulatory Inquiry Letter Reply Announcement

The company published the "Reply Announcement on the Information Disclosure Regulatory Inquiry Letter Regarding the 2025 Annual Report." Core content: as of end-2025, undistributed profit RMB -1,615.4892 million, cumulative losses of RMB 1.722 billion over six years from 2020–2025; cumulative net operating cash flow outflow of approximately RMB 1.266 billion from 2020–2025; 2025 R&D investment ratio still reached 23.91%; the company stated that the 2025 market share contraction was a strategic adjustment "under working capital pressure, proactively abandoning high-collection-risk orders and prioritizing cash flow security," not a substantive weakening of competitiveness. Source: Sina Finance announcement page.

4.8 Litigation Announcement (2026-020)

2026-07-22 Announcement No. 2026-020 "Announcement on Involvement in Litigation": accepted by the Foshan Intermediate People's Court of Guangdong Province, plaintiff Foshan Feichi Automobile Technology Co., Ltd., defendants include Tangshan Hanyi Hydrogen Energy Technology Co., Ltd., the company's wholly-owned subsidiary Tangshan Qianchen New Energy Development Co., Ltd. (Defendant 2), Beijing Yuyi Enterprise Management Co., Ltd. and SinoHytec (Defendant 4, bearing joint and several liability), with initial litigation amount of RMB 194.04 million and interest of RMB 727,650.

4.9 Litigation Progress Announcement

2026-09-02/03 litigation progress announcement: the plaintiff changed its claims, with the amount involved for Tangshan Hanyi rising to RMB 359.2701 million and interest; Qianchen Company and SinoHytec are claimed to pay national subsidy fund-related amounts of RMB 201.5993 million and interest (interest calculated from the fourth day after each national subsidy receipt at the one-year LPR plus 50%). The court has filed the case but has not yet held a hearing, and the final impact is uncertain. Sources: China Fund News, Shanghai Securities News. The amount involved is the plaintiff's unilateral claim, not a judgment result; SinoHytec bears joint and several liability for the subsidiary's debt, and the actual impact awaits judgment.

4.10 Acquisition of Xuyang Hydrogen Energy (Terminated Major Asset Restructuring)

2025-03-12 announcement of proposed issuance of shares to purchase 100% equity of Dingzhou Xuyang Hydrogen Energy and raise supporting funds of ≤ RMB 550 million, issue price RMB 18.53/share; after completion, Xuyang Group would become the controlling shareholder (holding <30% but controlling the board). On 2025-09-05, the board approved termination of the transaction, with the reason being "the parties to the transaction were unable to reach agreement on the final plan." Sources: Cailianshe/Jiufang, China Business Journal, AAStocks.

4.11 Huafeng Fuel Cell (Toyota Joint Venture) Equity Adjustment

2025-10-10 disclosure of proposed transfer to Toyota at zero consideration of the equity corresponding to the unpaid capital increase, after which SinoHytec's shareholding would decrease from 50% to 35%, Toyota's would increase from 50% to 65%, and Huafeng would change from joint control to Toyota-led. There is also a 2025-10-10 calendar record of the company and Toyota proposing a pro-rata capital increase totaling JPY 1.9 billion (company proposing to increase capital by JPY 950 million, registered capital increasing from JPY 4.5 billion to JPY 6.4 billion). Sources: East Money individual stock calendar, Sohu. Note: The two pieces of Huafeng information appear on the same date and in opposite directions (transfer reducing shareholding ratio vs. pro-rata capital increase), possibly arrangements at different stages/batches, and a single source cannot fully cross-verify; reference should be made to the original official SSE announcements.

4.12 H-Share Placement Fundraising

2025-12-16 placement agreement published, to place 8.88 million new H shares at HKD 22.68 per share (approximately 14.99% discount to the December 15 H-share closing price), with total fundraising of approximately HKD 201 million and net proceeds of approximately HKD 198 million (HKD 197.72 million); 90% for repayment of bank loans (involving 53 bank loans, principal of approximately HKD 531 million, maturing from December 2025 to September 2026), 10% for general working capital. Placement completed 2025-12-23, total share capital increased from 231,652,081 shares to 240,532,081 shares. Sources: Stockstar, Sohu.

4.13 General Mandate for H-Share Issuance

At the 2025 annual general meeting on 2026-06-30, the "Resolution on Granting the Board a General Mandate to Issue H Shares" was not approved by the H-share class shareholders' meeting and ultimately did not pass; on 2026-08-28, the board (Fourth Session Fifteenth Meeting) again reviewed and approved the same "grant the board a general mandate to issue H shares not exceeding 20% of issued shares" resolution and scheduled the 2026 First Extraordinary General Meeting and A-share/H-share class shareholders' meetings for 2026-09-17 to review it. Sources: Stockstar, CFI, East Money. Note: The same authorization topic was rejected in June and restarted in August, a governance/refinancing signal requiring attention.

4.14 Related-Party Transactions and Auditor Resolutions Passed

The Third Extraordinary General Meeting on 2025-12-23 passed three resolutions: "Estimated 2026 Daily Related-Party Transactions," "Revision of Annual Caps for Continuing Connected Transactions," and "Change of Company Auditor and Disclosure of Financial Statements in the H-Share Market under International Financial Reporting Standards." Source: Sina Finance announcement.

4.15 Organizational Structure Adjustment

2025-12-04 published "Announcement on Adjustment of Organizational Structure" and 6 other announcements, and on the same day disclosed multiple 2025 daily related-party transactions (such as RMB 24.9747 million in total with Huafeng Fuel Cell, etc.). Source: East Money individual stock calendar.

4.16 Shareholder Reduction

2026-05-07 "Announcement on Results of Shareholder Reduction," shareholder Zhou Zhuqing reduced 52,000 shares from 2026-02-02 to 2026-04-30; previously on 2025-08-02 announcement, Zhou Zhuqing reduced 70,000 shares from 2025-07-22 to 07-31. Source: East Money individual stock calendar.

4.17 Equity Pledge

As of 2025-11-28, total pledge ratio decreased to 0.84% (1.65 million shares, 1 pledge); previously as of 2025-11-21 it was 1.53% (3 million shares, 1 pledge). Source: East Money individual stock calendar. Note: Pledge ratio is low and has recently declined, not a risk point, but the data is aggregated by a market data site and should be verified against announcements.

4.18 Changes in Directors, Supervisors, Senior Management and Core Technical Personnel

2025-09-05: Core technical personnel Yang Shaojun's labor relationship was mutually terminated due to personal reasons (joined in 2016, responsible for process R&D/production testing). 2025-12-03: The Fourth Board of Directors Seventh Meeting appointed Lu Chun, Mou Xiaojie, and Zeng Yuancheng as deputy general managers; 2025-12-23 announcement that deputy general manager Yu Min and core technical personnel Fang Chuan (R&D director) resigned due to personal reasons (Yu Min held 0.21%, Fang Chuan held 0.02% of shares), with the company stating it would not affect core technology and going concern. Sources: Tonghuashun, Stockstar, Sohu. Note: Substantial reduction of core technical personnel/R&D team during 2025 (R&D personnel decreased from 300 to 128, further to 61 in 2026H1, from inquiry letter reply and interim report), combined with the departure of multiple core technical personnel, is an important personnel/R&D continuity signal.

4.19 Industrial Policy: Comprehensive Hydrogen Application Pilot

2026-03-16, the Ministry of Industry and Information Technology, Ministry of Finance, and National Development and Reform Commission jointly issued the "Notice on Carrying Out Comprehensive Hydrogen Application Pilot Work," selecting 5 city clusters for pilot through "open competition," with the goal of reducing the average terminal hydrogen price to below RMB 25/kg by 2030 (striving for RMB 15/kg in advantageous regions), and doubling the national fuel cell vehicle fleet to 100,000 units compared to 2025. Source: Jiufang Zhitou research report.

4.20 Fuel Cell Vehicle Demonstration City Cluster Expansion

In 2025, Hami in Xinjiang, Luliang in Shanxi, Jiyuan in Henan, Puyang in Henan, Cangzhou in Hebei, and Dalian in Liaoning joined the fuel cell vehicle demonstration city clusters. Source: Tonghuashun F10.

4.21 Orders and Cooperation Developments

2025-08-08 signed a strategic cooperation agreement with Pengfei Group, with an initial signed procurement of 100 hydrogen fuel cell heavy trucks and 250 hydrogen fuel cell logistics vehicles; in 2025, the 240kW system was exported to Australia with domestic hydrogen heavy trucks/Proton Motors; 2025-07-30 the latest generation 300kW fuel cell engine's first unit rolled off the line in Baise, Guangxi; 2025-12 delivered a 100kW fuel cell generator set to an Australian customer. Sources: Sohu, Shanghai Securities News.

4.22 New Business: Energy Storage Subsidiary

2025-12-11 established wholly-owned subsidiary Beijing SinoHytec Energy Storage Technology Co., Ltd. (first entry into energy storage); in 2026H1 the energy storage subsidiary delivered energy storage system equipment to customers, and the energy storage business entered substantive implementation. Sources: Sohu, company 2026 interim report.

4.23 Capital Flows (2025-12-23)

On 2025-12-23 (placement completion, personnel change announcement date), SinoHytec closed at RMB 27.50, down 2.48%, with main force funds net outflow of RMB 5.1665 million (retail net inflow RMB 4.5629 million). Source: Stockstar Daily Must-Read. Note: This is a single-source daily capital flow summary for reference on sentiment only.

4.24 Key Uncertainties and Information Limitations to Highlight

1) Date benchmark: The latest announcement available in this memo is as of 2026-09-08 (H-share monthly return of securities movements), with the latest report as of 2026-09-07; the 2026-09-17 extraordinary general meeting shown in the stock calendar is a "to be held" matter. The "current year-month" at retrieval time is approximately September 2026, and whether there are new announcements subsequently requires further verification. 2) Basis differences: The 2025 net loss attributable to shareholders has three figures of RMB -618.5 million/-628.3 million/-671.2 million, from the H-share results announcement, A-share results express report, and A-share annual report (audit adjustments), respectively; when citing, the basis and "whether audited" must be noted. 3) Single-source items: The two pieces of Huafeng Fuel Cell information—"transfer reducing shareholding ratio to 35%" and "pro-rata capital increase to JPY 6.4 billion registered capital"—are opposite in direction on the same date (2025-10-10), only seen in market calendars and self-media, without cross-verification against original SSE announcements, posing confusion risk. 4) The litigation amount is the plaintiff's unilateral claim and the case has not yet been heard, so it does not constitute a confirmed liability of the company. 5) Most market/calendar-type data (main force funds, pledge ratio) come from aggregator pages such as East Money and Stockstar, not original company announcements, and may have lags or conversion differences. 6) Self-media content without itemized cross-verification (Sohu, Jiufang Zhitou) serves only as clues, and core figures should be checked back against original SSE/HKEX disclosures.

5. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

SinoHytec-U (688339.SH) is a hydrogen fuel cell enterprise dual-listed on the STAR Market A+H, in the SW industry classification of Power Equipment—Batteries—Fuel Cells, with main business in fuel cell systems (57.88% of 2026H1). As of the 2026-09-11 close, it was at RMB 17.20, down 2.38%, with a cumulative decline of 2.16% this week (9.7-9.11), turnover of approximately RMB 45 million, and tradable turnover rate of 1.35%. The share price is in a low range after a prolonged decline: approximately +11% from the 52-week low of RMB 15.49, approximately -52% from the 52-week high of RMB 36.11, approximately -32%~-36% year-to-date, and -44.42% over the past 6 months. In terms of moving average structure, the 17.6~17.9 zone (self-calculated MA5 17.84, 10-day SMA 17.663, 50-day SMA 17.610) constitutes a short-term resistance cluster, and the current price is already below it; the 100/250-day lines (20.28/25.80) still significantly suppress, a short-term repair structure within a bottom area. In terms of indicators, on 09/09 RSI was neutral-to-strong and MACD was positive after a golden cross, but East Money Qian Gu Qian Ping on 09/11 shows no obvious signals for MACD/RSI/BOLL, with direction yet to be chosen; specific Bollinger Band track values could not be obtained, and key positions have instead been derived from recent actual highs/lows, moving averages, and the 52-week range. The company continues to incur losses, PE is negative, and valuation metrics are not meaningful. Overall, the current technical picture shows weak bottom-range consolidation with bullish/bearish direction unclear, medium-to-long-term moving average suppression has not yet reversed, and the short term is mainly a range game between moving average resistance and the 52-week low.

5.3 Short-Term Trend Outlook (Next Week, Scenario Analysis, for Reference Only)

⚠️ Risk Warning: The following content is purely a subjective technical scenario analysis based on verified data, with weights being subjective heuristic judgments rather than statistical probabilities. It does not constitute any investment advice. Do not buy or sell based on it.

① Key Technical Positions

② Next Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively higher weight, approximately 60% (subjective heuristic judgment, not statistical probability)): The share price oscillates within the RMB 16.9~17.9 range, suppressed above by the 17.6~17.9 moving average resistance cluster and supported below by the 16.89 intraday low. Trigger conditions: no new industry- or company-level catalysts, turnover maintained near the recent RMB 45 million magnitude (no significant expansion), and no significant directional driver in the broader market or fuel cell sector. Under this scenario, MACD/RSI/BOLL will most likely continue the no-obvious-signal state of 09-11.
• Weaker downward (medium weight (subjective heuristic judgment, not statistical probability)): If the first support of RMB 16.9 (09/11 low 16.89) is broken without expanded turnover providing support, the price may further probe the RMB 15.5~16.4 strong support zone (52-week low 15.49). Trigger conditions: overall weakness in the fuel cell/hydrogen energy sector, or broader market correction; no volume-expanded bullish candle to halt the decline. Note: If the 52-week low of 15.49 is broken, 52-week range data cannot provide a lower reference level.
• Rebound strengthening (relatively low weight (subjective heuristic judgment, not statistical probability)): If turnover expands significantly and the price effectively stabilizes above the RMB 17.6~17.9 moving average resistance cluster, it may test the RMB 18.3~19.8 zone upward (corresponding to the upper bound of the 2-month fluctuation range of 19.780). Trigger conditions: clear catalysts in the fuel cell/hydrogen energy sector, company-level news support, and single-day turnover significantly expanding relative to the recent RMB 45 million magnitude. Further upside remains suppressed by the 100-day line at RMB 20.28 and the 250-day line at RMB 25.80.

③ Capital and Liquidity Background

As of 2026-09-11, the stock's tradable turnover rate was 1.35% (tradable basis), with daily turnover of RMB 45.4379 million (approximately RMB 45 million), tradable market cap of RMB 3.368 billion and tradable A shares of 196 million, making it a small-cap stock with relatively thin liquidity and limited order book depth, potentially facing relatively wider bid-ask spreads and slippage in trading. In terms of main force funds, the East Money basis (main force = super-large orders + large orders) shows net outflow of RMB 3.194 million on 2026-09-10 (-7.54%, including large orders -3.194 million, medium orders +232,800, small orders +2.9612 million), and net inflow of RMB 2.3048 million on 2026-09-09 (+3.01%); Stockstar data states that this week (9.7-9.11) main force funds had a total net outflow of RMB 861,200. The research memo does not fully provide main force fund details and margin trading data after 2026-09-11, and there is missing data. In terms of shareholder structure: the research memo did not provide top ten shareholder concentration or institutional holdings data such as public funds/social security/QFII, making it impossible to judge the degree of institutional participation; this field has missing data, and even if available, there is typically a disclosure lag of more than one quarter, so the structure may have changed. Based on comprehensive liquidity data, the stock's short-term capital flow shows small-scale in-and-out movements with no obvious signs of sustained main force involvement.

Volume confirmation signal: The stock's recent single-day turnover is at approximately the RMB 45 million magnitude. If subsequent single-day turnover continues to expand to above RMB 80 million (approximately 1.7~1.8x the recent normal level), it can be regarded as a volume confirmation signal of capital involvement.

④ Points to Watch (Observation Ideas Only, Not Trading Instructions)

• Key position one: Short-term resistance cluster at RMB 17.6~17.9 (self-calculated MA5 17.84, 10-day SMA 17.663, 50-day SMA 17.610); whether it can break above with volume determines whether rebound space can open up (observation idea, not trading instruction).
• Key position two: First support at RMB 16.9~17.2 (09/11 low 16.89 and close 17.20), and strong support at RMB 15.5~16.4 (the zone containing the 52-week low of 15.49); after breaking strong support, 52-week range data does not provide a lower reference level (observation idea, not trading instruction).
• Volume signal: Use whether single-day turnover continues to expand to above RMB 80 million (approximately 1.7~1.8x the recent RMB 45 million magnitude) as a confirmation observation point for capital involvement (observation idea, not trading instruction).
• Technical indicator status: East Money Qian Gu Qian Ping on 09-11 shows no obvious signals for MACD/RSI/BOLL, with direction yet to be chosen; specific Bollinger Band track values are missing and require ongoing tracking (observation idea, not trading instruction).

The above scenario analysis is based on 2026-09-11 closing data and historical prices and technical indicator calculations (some moving average, RSI, and MACD data as of 2026-09-09 intraday; specific Bollinger Band values missing). Short-term share prices will also be affected by multiple factors including news, capital flows, and the broader market environment. Technical indicators themselves have lag and limitations, do not constitute a guarantee of actual future trends, and do not constitute buy or sell recommendations. Please make independent judgments based on the latest market information and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The hydrogen fuel cell system industry is in a transition stage from demonstration application to commercialization. Downstream demand is highly dependent on national fuel cell vehicle demonstration application subsidies, which are settled hierarchically from the Ministry of Finance to OEMs and then to system suppliers. Long settlement cycles have led to high industry accounts receivable and significant working capital pressure. In terms of the competitive landscape of the system segment, according to a Shenwan Hongyuan industry report, the fuel cell system CR5 exceeds half, with SinoHytec leading; in the stack segment, according to a Guojin Securities report, SinoHytec (Guohong Hydrogen Energy) ranks first, with the top five manufacturers' market share highly concentrated. Upstream core material domestic content ratio is low: approximately 90% of catalysts are imported, US-based Gore holds over 80% global share in proton exchange membranes, and approximately 90% of global carbon paper/carbon cloth capacity is monopolized by Japan's Toray and Germany's SGL. Membrane electrode assembly CR3 reaches 69% (Ping An Securities Research Institute).

6.2 Competitive Landscape

• Fuel cell system segment: According to a Shenwan Hongyuan industry report, system CR5 exceeds half, with SinoHytec leading. Source: Three Craftsmen Report excerpt.
• Stack segment: According to a Guojin Securities report, Guohong Hydrogen Energy leads, with the top five manufacturers' market share highly concentrated. Source: Three Craftsmen Report excerpt.
• Membrane electrode assembly segment: CR3 is 69% (Ping An Securities Research Institute). Source: Three Craftsmen Report excerpt.
• Catalyst segment: Approximately 90% import-dependent (Ping An Securities Research Institute).
• Proton exchange membrane segment: US-based Gore holds over 80% global share with its reinforced membrane technology; domestically, Guohydrogen Technology (controlled by State Power Investment Corporation) has built the first fully independently controllable production line (annual capacity of 300,000 m²), and Kerun New Materials and Dongyue Future Hydrogen Energy have achieved mass production.
• Carbon paper/carbon cloth segment: Approximately 90% of global capacity is monopolized by Japan's Toray and Germany's SGL, and some domestic high-performance products still require imports.
• Industry structural bargaining dynamics: Downstream end customers and OEM procurement funds are highly dependent on national fuel cell vehicle demonstration application subsidies, which are settled hierarchically from the Ministry of Finance → OEMs → upstream system suppliers, with long settlement cycles, leading to high industry accounts receivable and significant working capital pressure. The company proactively abandoned some orders with long collection cycles and low gross margins in 2025 to ensure cash flow safety.

6.3 Main Competitors

SinoHytec holds a leading position in the fuel cell system integration segment (Shenwan Hongyuan basis: system CR5 exceeds half, SinoHytec leads), with 181 vehicle announcements featuring its systems in 2025, ranking among the top in the industry by number of announcements. Compared with upstream stack leader Guohong Hydrogen Energy, SinoHytec has positioned itself in stacks through subsidiary Shenli Technology and acquired Toyota metal plate stack technology through Huafeng Fuel Cell, but the stack segment is still not its absolute advantage segment. Compared with upstream core material enterprises (Guohydrogen Technology, Kerun New Materials, Dongyue Future Hydrogen Energy, etc.), SinoHytec is a price taker for core materials (approximately 90% of catalysts imported, Gore over 80% share in proton exchange membranes, Toray and SGL approximately 90% capacity in carbon paper/carbon cloth). Overall, SinoHytec is in a midstream system integration position "squeezed from both ends": high upstream core material import dependence and weak bargaining power, high downstream customer concentration (2025 top five customers 77.29%), long subsidy payment cycles, and 2025 largest customer revenue was in fact non-sustainable one-time service revenue. The research memo did not provide directly comparable gross/net margin data between SinoHytec and peer companies; the above comparison is qualitative description, and specific financial indicators should be verified against the latest annual report.

7. Risk Warnings

• Core business profitability risk: 2025 hydrogen fuel cell industry revenue was RMB 162.1 million, accounting for 62.68% of revenue, with a gross margin of -11.91%; 2026 H1 non-GAAP net loss attributable to shareholders was still RMB 99.9557 million. If system selling prices, procurement costs, and order structure do not improve, the company may continue to rely on external financing or non-core business to improve performance.
• Revenue quality and sustainability risk: The 2025 largest customer, CGN Guigang Gangnan Wind Power Co., Ltd., contributed RMB 94.3396 million, accounting for 36.49% of annual revenue, mainly from one-time wind power project application services in 2025 Q4, which the company has explicitly stated is not sustainable; excluding this revenue, 2025 core business revenue was approximately RMB 162 million, and subsequent revenue faces notable decline pressure.
• Customer concentration and subsidy payment cycle risk: 2025 top five customers accounted for 77.29% of revenue, with the largest customer accounting for 36.49%; downstream OEM procurement funds depend on fuel cell vehicle demonstration application subsidies, and the settlement cycles among the Ministry of Finance, OEMs, and system suppliers are relatively long, which may continue to cause accounts receivable accumulation, impairment provisions, and operating cash flow pressure.
• Continued losses and financing risk: The company's cumulative losses from 2020–2025 were approximately RMB 1.722 billion, cumulative net operating cash flow outflow was approximately RMB 1.266 billion, and 2026 H1 undistributed profit was approximately RMB -1.72 billion; the 2025 H-share placement raised approximately HKD 198 million, 90% of which was used to repay bank loans. If losses and cash flow consumption continue, the company may face refinancing needs and share dilution pressure.
• Supply chain concentration and import dependence risk: 2025 top five suppliers accounted for 54.84% of procurement, with the largest supplier accounting for 24.04%, while the most upstream core materials such as proton exchange membranes, carbon paper/carbon cloth, and catalysts still have high overseas concentration or relatively high import dependence, and the company has limited bargaining power in these segments and may be constrained by supply, price, and technological durability.
• Litigation and national subsidy fund risk: The September 2026 litigation progress announcement shows that the plaintiff claims Tangshan Qianchen New Energy Development Co., Ltd. and SinoHytec should pay approximately RMB 201.5993 million in national subsidy fund-related amounts and interest, with SinoHytec bearing joint and several liability for the subsidiary's debt; the case has not yet been heard, and whether a liability will ultimately be recognized and its amount are uncertain.
• R&D and organizational continuity risk: The company's R&D personnel decreased from 300 to 128, and further to 61 in 2026 H1; multiple core technical personnel and executives resigned for personal reasons during 2025. If personnel reduction affects the R&D progress of high-power engines, stacks, and new businesses, it may weaken product iteration and customer delivery capabilities.
• Customer and order fluctuation risk: 2025 fuel cell system sales volume was 545 units, total sales power 56,370kW, with year-on-year declines of 26.55% and corresponding pressure, and the company also proactively abandoned some orders with long collection cycles and low gross margins; if demonstration policy adjusts or OEM procurement pace continues to slow, revenue scale and market share may fluctuate further.
• Technical and liquidity risk: As of September 11, 2026, the company's share price was RMB 17.20, tradable turnover rate 1.35%, turnover approximately RMB 45.4379 million, tradable market cap approximately RMB 3.368 billion; the share price remains suppressed by the 100-day and 250-day moving averages. If it breaks below the stage support near RMB 16.9 and RMB 15.49, further price volatility may occur, and thin trading depth may amplify bid-ask spreads and price impact.

8. Conclusion and Outlook

SinoHytec's medium-to-long-term growth logic mainly depends on the transition of hydrogen fuel cells from demonstration application to commercialization, and the company's ability to deliver on high-power systems, stack domestic substitution, and new businesses. In 2025, the 240kW system was exported to Australia with hydrogen heavy trucks, the latest generation 300kW fuel cell engine rolled off the line, the energy storage business has achieved customer delivery, and at the policy level, it is proposed to double the fuel cell vehicle fleet by 2030 compared to 2025. If product power upgrades, core component cost reduction, and businesses such as energy storage can generate sustained revenue, it is expected to improve the revenue structure and core business gross margin.

However, at this stage, the company is still in the early commercialization stage of "revenue under pressure, negative core business gross margin, and continued losses." Under the market consensus forecast basis, net profit attributable to shareholders for 2026–2028 is still forecast at losses of RMB 641 million, RMB 650 million, and RMB 597 million, respectively, and traditional earnings-based valuation metrics lack reference significance. Subsequent judgment should focus on whether fuel cell system sales volume and gross margin can continue to improve, whether energy storage revenue can achieve scale, whether operating cash flow can turn positive, and whether the company can reduce the impact of subsidy payment cycles, customer concentration, and asset impairment on performance.

The company will also need to address uncertainties including litigation, financing, governance, and R&D organizational changes in the future. In the September 2026 litigation progress, the plaintiff claims the company and its subsidiary should bear approximately RMB 201.6 million in national subsidy fund-related amounts and interest; the case has not yet been heard and the amount is the plaintiff's unilateral claim; the company plans to review the H-share general mandate issuance matter again in September 2026, after a similar resolution previously failed to pass the H-share class shareholders' meeting. The above matters, together with continued losses and negative accumulated undistributed profit, constitute key observation points at the operational and capital operation levels.

Data Sources

• SinoHytec (688339) 2026 Interim Management Discussion and Analysis - SinoHytec (688339) 2026 Interim Management Discussion and Analysis
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