Beijing Sifang Automation Co Ltd

Sifang Co. released its 2026 interim report on August 26. During the reporting period, it achieved operating revenue of 4.482 billion yuan, up 11.49 percent year on year; net profit attributable to the parent company was 514 million yuan, up 8.00 percent; and non-GAAP net profit was 500 million yuan, up 8.65 percent. The company plans to distribute a cash dividend of 4.8 yuan per 10 shares before tax, totaling about 400 million yuan. The profit growth was mainly driven by accelerating construction of China's new power system and overseas market expansion. Revenue from the power electronics segment was 438 million yuan, a sharp increase of 28.36 percent, with gross margin up 12.15 percentage points to 31.74 percent. Revenue from secondary equipment was 3.401 billion yuan, up 8.76 percent, with gross margin up 2.05 percentage points to 36.66 percent. However, net cash flow from operating activities was negative 382 million yuan, a significantly wider net outflow than the same period last year, mainly due to increased procurement payments. The company has also laid out new businesses such as solid-state transformers and won the bid for the Ningxia Zhongwei computing power cloud base project, laying a foundation for future growth.

The National Energy Administration recently released the China Hydrogen Development Report 2026, disclosing that China's completed and operational renewable energy-based hydrogen production capacity exceeded 250,000 tonnes per year in 2025, more than doubling from the previous year, while national hydrogen production capacity surpassed 51 million tonnes per year. Data disclosed in the same week showed that investment in China's hydrogen sector grew by more than 160 percent year on year in the first half of 2026, leading among energy sub-sectors. Commentary noted that the 15th Five-Year Plan outline identifies hydrogen energy and fusion energy as one of six future industries, and the 15th Five-Year Plan for building a new energy system proposes reaching 2 million tonnes per year of renewable hydrogen production by 2030, about seven times the current target. Institutional research reports believe that during the 15th Five-Year Plan period, green hydrogen demand will reach 2.4 million to 4.3 million tonnes per year, and policy, cost, demand and capital are resonating together for the first time, pushing the hydrogen industry into large-scale application, with the entire industry chain's output value expected to exceed 1 trillion yuan. Related A-share concept stocks include Houpu Clean Energy and Sifang Automation.