SinoHytec posts net loss of 104 million yuan in 2026 interim report
SinoHytec released its 2026 interim report, showing total operating revenue of 73.94 million yuan, net profit attributable to the parent company of minus 104 million yuan, and net cash flow from operating activities of minus 12.73 million yuan. The company's latest asset-liability ratio was 41.08 percent, up 1.25 percentage points from the previous quarter and up 3.22 percentage points from the same period last year. Gross margin was 21.73 percent, return on equity was minus 5.55 percent, and diluted earnings per share was minus 0.43 yuan. Total asset turnover was 0.02 times, and inventory turnover was 0.64 times. The number of shareholders was 16,200, and the top ten shareholders held 46.82 percent of total share capital.
2402.HK▲
SinoHytec expects first-half loss to narrow by 35% to 45% year on year
SinoHytec announced that for the six months ending June 30, 2026, the company's loss is expected to narrow by about 35% to 45% compared with the same period in 2025. The narrower loss was mainly due to deeper supply chain coordination management and faster inventory turnover, which lowered cost of sales, as well as continued cost reduction and efficiency improvement that reduced operating expenses such as selling, administrative and research and development expenses year on year. In addition, during the reporting period, the reversal of bad debt provisions made in prior years increased year on year, turning the net impairment loss on financial assets from a net loss into a net gain. At the same time, because the shareholding in some associates decreased, the share of losses of associates accounted for under the equity method narrowed year on year. In the first quarter of 2026, SinoHytec recorded revenue of 16.67 million yuan and a net loss attributable to the parent company of 51.04 million yuan.
2402.HK▼
Yihuatong and Foshan Feichi sue each other over unpaid debts, sparking dispute over 194 million yuan in government subsidies
A subsidiary of Yihuatong and Foshan Feichi have sued each other over payment disputes for hydrogen fuel cell assembly purchases, bringing to light a disagreement over the allocation of 194 million yuan in government subsidies. Yihuatong's subsidiary Qianchen Company sued Foshan Feichi demanding payment of 162 million yuan for goods. Subsequently, Foshan Feichi took Qianchen Company, Yihuatong, Hanyi Company, and another firm to court, claiming that Hanyi Company had already received the 194 million yuan in subsidies but had not distributed them, leaving its accounts receivable unrecoverable. Yihuatong responded that under the agreement, Qianchen Company was merely the representative of the consortium collecting the subsidies on behalf of others, and the funds belong to Xiaoshizi Company, meaning Qianchen Company has no obligation to pay Foshan Feichi. This mutual litigation reflects the cash flow pressures facing the hydrogen energy industry in its early commercialization stage. Yihuatong's 2025 revenue fell nearly 30 percent year-on-year, and the gross margin of its fuel cell systems dropped to negative 19.82 percent. Industry insiders believe development has fallen short of expectations, and critical issues such as the construction of hydrogen refueling stations remain unresolved.
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Yihuatong Subsidiary Sues Feichi Auto for 162 Million Yuan in Unpaid Goods
Yihuatong's wholly-owned subsidiary Tangshan Qianchen New Energy Development has sued Foshan Feichi Automobile Technology over a sales contract dispute, demanding payment of 162 million yuan for goods plus 100,000 yuan in liquidated damages. Starting from September 28, 2022, Qianchen New Energy signed three purchase and sale contracts to sell fuel cell powertrains to Feichi Auto, and has fully performed its contractual obligations, but Feichi Auto still owes 162 million yuan, constituting a breach of contract. In the first quarter of 2026, Yihuatong achieved revenue of 16.67 million yuan, with a net loss attributable to the parent company of 51.04 million yuan.
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Yihuatong Responds to Annual Report Inquiry: Multiple Factors in Early Commercialization of Hydrogen Fuel Cell Industry Lead to Industry-Wide Heavy Losses
In its announcement responding to the annual report inquiry, Yihuatong acknowledged that the hydrogen fuel cell industry is still in the early stages of commercialization. Immature key technologies, lagging hydrogen refueling infrastructure, low-price competition within the industry, and slow subsidy payments have combined to cause heavy losses across the entire sector. The company's 2025 revenue fell nearly 30 percent year-on-year to 259 million yuan, while net loss attributable to shareholders widened to 671 million yuan. The gross margin of its fuel cell system business turned negative, recording minus 19.82 percent. Yihuatong cited peer data, noting that Shanghai Refire Group accumulated losses of 1.869 billion yuan over the past three years, and SinoHytec accumulated losses of 1.295 billion yuan over the same period, indicating that mainstream fuel cell system companies are generally in a state of sustained heavy losses. The company stated that due to long downstream subsidy disbursement cycles and high accounts receivable, the book balance of accounts receivable reached 1.085 billion yuan at the end of 2025. Yihuatong proactively abandoned some orders with long payment cycles and made concentrated provisions for credit impairment losses of 252 million yuan and asset impairment losses of 160 million yuan.
China