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SinoHytec has decided to cancel its plan to fully acquire Risun Hydrogen Energy, a manufacturer of new energy products, as part of its restructuring strategy. Instead, the company will adopt a more cautious approach to development by focusing on cutting research and development expenses, streamlining its organizational structure, and strengthening cash flow.
During an investor briefing yesterday, a company representative mentioned that SinoHytec will also explore various application scenarios and work on lowering fuel cell costs to boost profitability.
The Beijing-based company announced on September 5 that it is ending the acquisition of a 100% stake in Risun Hydrogen after the two parties couldn’t reach an agreement on the final terms.
As part of its tighter development policies, SinoHytec plans to carefully manage R&D expenditures while prioritizing core projects, considering that hydrogen fuel cell systems are still in the early stages of industrialization. The company intends to simplify its staffing structure, reorganize internally, and improve operational efficiency to reduce daily operating costs. It also aims to accelerate cash flow recovery to ease financial pressures and keep expenses in check.
In the first half of the year ending June 30, SinoHytec’s R&D costs dropped by more than 66%, down to approximately CNY 17.2 million (around USD 2.4 million) from the previous year. The research team was scaled back from 300 to 128 members.
Despite these adjustments, the company remains optimistic about the long-term prospects of the industry. A company spokesperson noted that ongoing national industrial policy support is expected to enhance infrastructure, which will contribute to faster growth in hydrogen production and a reduction in hydrogen-related costs. The firm will continue to focus on vehicle fuel cell systems and stationary power generation, while exploring diverse application scenarios.
On March 12, SinoHytec announced its plan to acquire Risun Hydrogen Energy from China Risun Group through a share issuance and supplementary funding. This move aims to strengthen its position in the hydrogen energy supply chain, support its fuel cell business, cover the entire hydrogen supply process, and promote sustainable operations.
As of 2:50 p.m. in Shanghai today, shares of SinoHytec, China’s first hydrogen energy company listed on the stock exchange, declined 1.8%, trading at CNY 24.41 (roughly USD 3.42). The stock had soared to nearly CNY 350 (about USD 49.09) less than a year after its August 2020 listing but has since accumulated a net loss exceeding CNY 1.2 billion (around USD 168 million).
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