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.
Beijing SinoHytec Co. Ltd. AIndustry-wide low-price competition and slow subsidy payments lead to heavy losses; SinoHytec cited as having accumulated losses of 1.295 billion yuan over three years.