Core Points - The Hang Seng Index rose by 1.45% and the Hang Seng Tech Index increased by 2.66% during the midday close [1] - Semiconductor products and equipment, as well as metals and mining sectors, showed significant gains, while passenger airlines and construction products sectors experienced notable declines [1] Individual Stocks Performance - Zijin Mining International surged by 12.02%, followed by SMIC with a 9.3% increase, and Kuaishou-W rising by 6.56% [1] - Other notable gainers include Huahong Semiconductor up by 5.44%, Hengrui Medicine up by 5.29%, and Xinda Biopharmaceuticals up by 4.77% [1] - Conversely, Beike-W fell by 6.21% and Yihua Tong dropped by 6.42% [1] - MIRXES-B saw a significant increase of 13.52%, while Tianqi Lithium rose by 13.04% [1]

Core Viewpoint - Yihuatong (688339.SH) has not yet ventured into solid-state hydrogen storage technology, focusing primarily on gaseous hydrogen products [1] Company Summary - The company has stated that its main products are compatible with gaseous hydrogen [1] - Currently, Yihuatong has not developed any fuel cell system products related to solid-state hydrogen storage technology [1]

Group 1 - The company Yihuatong (688339.SH) has stated that it has not yet ventured into solid-state hydrogen storage technology [1] - The company's main products are primarily aligned with gaseous hydrogen, and it has not developed fuel cell system products related to solid-state hydrogen storage technology [1]

Group 1 - The Shanghai Composite Index closed at 3832.90 points, below the five-day moving average, with a change of 0.13% [1] - The total trading volume of A-shares reached 1,293.742 billion yuan [1] - A total of 985 A-shares have prices that broke through the five-day moving average, with notable stocks including Changhua Chemical, Guanzhong Ecology, and Kaiwang Technology, which have deviation rates of 13.62%, 13.44%, and 10.09% respectively [1] Group 2 - The top three stocks with the highest deviation rates from the five-day moving average are: - Changhua Chemical (20.01% increase, 13.62% deviation) - Guanzhong Ecology (20.00% increase, 13.44% deviation) - Kaiwang Technology (14.25% increase, 10.09% deviation) [2] - Other notable stocks with significant increases include: - Liwang Co. (12.43% increase, 8.69% deviation) - Heshun Electric (10.22% increase, 8.27% deviation) - Ailuo Energy (12.16% increase, 8.00% deviation) [2] - The trading volume and price changes of these stocks indicate strong market interest and potential investment opportunities [2][3]

Core Viewpoint - Yihuatong (02402) is experiencing a significant stock price increase due to the initiation of a large-scale hydrogen integration project in Zhangjiakou, which aims to reduce green hydrogen production costs and promote fuel cell vehicle applications [1] Company Summary - Yihuatong's indirect subsidiary, Hebei Guochuang Hydrogen Energy Technology Co., Ltd., is leading the EPC total contracting for the hydrogen production part of the Zhangjiakou wind-hydrogen integration project [1] - The project includes a hydrogen production system with a capacity of 16,000 Nm³/h, a hydrogen storage system of 8,000 Nm³, and a 40 MW fuel cell power generation system [1] Industry Summary - The hydrogen energy industry is entering a rapid development phase, with significant cost reductions in fuel cell systems in recent years [1] - National and local policy incentives are helping to bring the purchase costs of fuel cell vehicles closer to market promotion thresholds [1] - High costs of hydrogen supply, particularly green hydrogen, remain a critical bottleneck for the large-scale development of the industry [1] - The demonstration project aims to address these challenges, with initial estimates suggesting that the cost of green hydrogen production could drop to below 18 yuan/kg, supporting the large-scale promotion of fuel cell vehicles and establishing a sustainable economic development model for China's hydrogen industry [1]

Core Viewpoint - The stock of Yihua Tong (02402.HK) in Hong Kong has seen a significant increase, rising over 7% on September 29, reaching a price of 29.64 HKD with a trading volume of 71.58 million HKD [1] Company Summary - Yihua Tong's stock price increased by 7.63% [1] - The current trading price is 29.64 HKD [1] - The total trading volume reported is 71.58 million HKD [1]

Group 1 - Yihuatong (02402) shares increased by over 7%, currently up 7.63% at HKD 29.64, with a trading volume of HKD 71.58 million [1] - The Zhangjiakou Wind-Hydrogen Integration Source Network Load Storage Comprehensive Demonstration Project (Phase I) has initiated the EPC general contracting bidding for its hydrogen production section [1] - The project, located in Zhangbei County, Zhangjiakou City, includes a hydrogen production system with a capacity of 16,000 Nm³/h, a hydrogen storage system of 8,000 Nm³, and a 40 MW hydrogen fuel cell power generation system [1] Group 2 - This project is the first large-scale wind-hydrogen integration project in Hebei Province, led by Hebei Guochuang Hydrogen Energy Technology Co., Ltd., a company indirectly held by Yihuatong [1] - The aim is to reduce green hydrogen production costs through off-grid renewable energy hydrogen production, promoting the large-scale application of fuel cell vehicles [1] - The cost of fuel cell systems has significantly decreased in recent years, supported by national and local policy incentives, bringing the purchase cost of fuel cell vehicles closer to market promotion thresholds [1] Group 3 - However, the high price of hydrogen supply, especially green hydrogen, remains a key bottleneck for the large-scale development of the industry [1] - The demonstration project aims to address this challenge, with preliminary estimates suggesting that the cost of green hydrogen production could drop to below RMB 18/kg upon reaching full production [1] - This reduction in production cost will provide strong support for the large-scale promotion of fuel cell vehicles and establish a sustainable, replicable economic development model for China's hydrogen energy industry [1]

Summary of YiHuaTong Conference Call Company Overview - YiHuaTong focuses on the research and manufacturing of fuel cell systems and core components, primarily for commercial vehicles, achieving multiple innovations in technology aimed at reducing costs and improving reliability, durability, and maintainability [2][3][4] Management and Ownership - The management team has extensive experience in the automotive industry, with key personnel previously employed at well-known companies like XinYuan Power [2][4] - Major shareholders include Zhang Guoqiang (15.73%), Hong Kong Central Clearing Limited (15.43%), and strategic investor Dongxu Optoelectronics [6] Financial Performance - YiHuaTong's financial performance has been volatile, with a reported revenue of 70 million yuan in 2025, a 53.2% year-over-year decline [7] - The net profit loss for 2024 was 460 million yuan, nearly doubling from the previous year, with a loss of 160 million yuan in the first half of 2025 [7][10] Cost Reduction Achievements - The price of the fuel cell system per kilowatt has significantly decreased from approximately 20,000 yuan in 2019 to between 3,000 and 4,000 yuan currently, attributed to the localization of various components [8] Market Dynamics - The hydrogen vehicle market experienced rapid growth from 2021 to 2023 due to government policies, but sales plateaued in 2024, with a 45.6% year-over-year decline in commercial vehicle sales in the first eight months of 2025 [9][10] - The structure of the commercial vehicle market has shifted dramatically, with the proportion of trucks rising from 44.2% in 2021 to 94.1% in 2025 [11][12] Competitive Position - YiHuaTong held a 19.4% market share in fuel cell vehicle sales in 2024, ranking first in the industry, but this dropped to 10.4% in the first half of 2025 due to a focus on cash flow over order fulfillment [4][19] Research and Development Advantages - The company has a comprehensive product system for fuel cells, covering various applications and power ranges, and has established a vertically integrated R&D system [13][16] - YiHuaTong has surpassed many industry peers in patent metrics and has contributed to the formulation of national standards [16] Strategic Partnerships - Collaborations with companies like Toyota and Shanghai Shenli have enhanced YiHuaTong's competitive edge in core technology and market position [14] Future Outlook - Despite challenges such as cash flow pressure and declining gross margins, YiHuaTong is expected to improve cash flow with policy adjustments and has a strong technological foundation for future growth [15][21] - The company plans to develop next-generation integrated R&D platforms and expand into hydrogen production applications [23] Industry Trends - The hydrogen industry is projected to face challenges in meeting national targets for fuel cell vehicle ownership, with a current estimate of 30,000 to 40,000 vehicles by 2025 [21][22] - Future government policies and market dynamics will be crucial for the industry's growth and cost reduction [20][22]

中期報告 2025 INTERIM REPORT INTERIM REPORT 2025 中期報告 2025 目 錄 | 第一節 | 釋義 | 4 | | --- | --- | --- | | 第二節 | 公司簡介和主要財務指標 | 8 | | 第三節 | 管理層討論與分析 | 12 | | 第四節 | 公司治理、環境和社會 | 58 | | 第五節 | 重要事項 | 61 | | 第六節 | 股份變動及股東情況 | 70 | | 第七節 | 債券相關情況 | 76 | | 第八節 | 財務報告 | 77 | 1. 業績大幅下滑或虧損的風險 報 告 期 內，公 司 歸 屬 於 上 市 公 司 股 東 的 淨 虧 損 為 人 民 幣16,342.78 萬 元，虧 損 金 額 同 比 增 加 人 民 幣 2,193.85萬 元。本 期 業 績 虧 損 主 要 原 因 為：（1）燃 料 電 池 行 業 市 場 需 求 整 體 下 降，行 業 規 模 同 比 縮 減； （2）基 於 當前流動資金狀況考量，公司採取了審慎的營銷擴張策略，導致報告期間產品銷售量減少。 公司全面推行精細化管理降低單位產品成本，力圖介入上游 ...

Financial Performance - The company reported a net loss attributable to shareholders of RMB 163.43 million, an increase of RMB 21.94 million compared to the previous year[4]. - The company's operating revenue for the first half of 2025 was ¥71,929,258.41, representing a decrease of 53.25% compared to the same period last year[25]. - The total profit for the reporting period was -¥200,946,473.53, indicating a continued loss[25]. - The net profit attributable to shareholders was -¥163,427,812.69, reflecting a worsening financial position compared to the previous year[25]. - The net cash flow from operating activities was -¥34,553,748.71, showing a significant improvement from -¥183,120,171.18 in the previous year[25]. - The total assets at the end of the reporting period were ¥4,254,071,963.23, a decrease of 10.98% from the previous year[25]. - The net assets attributable to shareholders decreased by 6.38% to ¥2,397,692,764.75[25]. - The company reported a basic earnings per share of -0.71 CNY for the first half of the year, compared to -0.61 CNY in the same period last year, indicating a decline[26]. - The weighted average return on equity decreased to -6.59%, down 1.83 percentage points from the previous year[26]. Market Conditions - The decline in performance is primarily due to a decrease in market demand for fuel cell products and a cautious marketing expansion strategy, leading to reduced sales volume[4]. - Future industry development may not meet expectations, leading to sustained market demand decline and intensified competition[4]. - The company has adopted a prudent marketing strategy considering its current liquidity situation, which has impacted sales performance[4]. - The company is experiencing high customer concentration risk, which may affect its independent sustainability if major customers face business challenges[88]. - The company anticipates a decline in gross margin due to increased competition and the rapid decrease in fuel cell costs and prices[89]. Research and Development - The company continues to focus on the development of hydrogen fuel cell technology, which is a key area of its business strategy[16]. - The research and development expenditure accounted for 35.41% of operating revenue, down from 50.45% in the same period last year[26]. - The company has established deep cooperation with major commercial vehicle manufacturers, including Yutong and BAIC Foton, for fuel cell systems[33]. - The company has undertaken several national high-tech research and development projects in the fuel cell field[33]. - The company has established a strong position in the fuel cell system R&D and commercialization, with independent core intellectual property rights and mass production capabilities[44]. - The company has accumulated 325 invention patents and 119 software copyrights, showcasing strong technical and R&D advantages[52]. - The company has made significant progress in the development of high-performance membrane electrodes, with an investment of $187.41 million and a cumulative investment of $823.69 million[70]. Financial Management - There is a risk of continued negative operating cash flow due to high accounts receivable and inventory, which may lead to insufficient working capital[5]. - The company is focusing on enhancing R&D capabilities, improving supply chain management, and increasing brand awareness to mitigate operational risks[85]. - The company has implemented strict risk control systems for investment, financing, and cash management[149]. - The company has confirmed no significant contractual breaches regarding outstanding debts and has not faced any unusual difficulties in obtaining bank loans[155]. - The company has established a compensation policy system based on legality, competitiveness, incentivization, and fairness to attract and retain talent[158]. Corporate Governance - The board of directors has confirmed the authenticity and completeness of the interim report[6]. - The report has not been audited, and the company emphasizes the importance of investment risk awareness for investors[8]. - The company emphasizes high standards of corporate governance to protect shareholder interests and enhance corporate value[127]. - The audit committee, consisting of three independent non-executive directors, regularly reviews and recommends improvements to the financial reporting processes and internal controls[125]. - The company maintains a separation of responsibilities between the chairman and the CEO to ensure effective strategic planning[127]. Shareholder Information - The company has no treasury shares as of the end of the reporting period[129]. - The largest shareholder, Zhang Guoqiang, holds 36,444,469 shares, accounting for 15.73% of the total shares[197]. - The number of ordinary shareholders as of the end of the reporting period is 14,356[194]. - The top ten unrestricted shareholders include Zhang Guoqiang with 36,444,469 shares and HKSCC Nominees Limited with 35,859,552 shares[199]. - The company has not disclosed any significant changes in the scope of consolidation beyond the newly included subsidiaries[124]. Operational Challenges - The company is in the early stages of R&D and industrialization, with limited debt financing capabilities, posing a risk if funding channels are not expanded[5]. - The company faces risks of significant performance decline due to decreased market demand in the fuel cell industry and a cautious marketing expansion strategy[86]. - The company acknowledges the potential for seasonal fluctuations in performance due to the cyclical nature of the fuel cell vehicle market[92]. - The company is at risk of negative operating cash flow due to high accounts receivable and inventory levels, which may lead to insufficient operating capital[95]. Investment and Capital Expenditure - The company has invested a total of $2.527 billion in the development of fuel cell stack series products, with a current investment of $578.22 million and cumulative investment of $1.713 billion[73]. - The company aims to achieve a significant reduction in production costs and operational costs through the development of a high-power, long-lifetime fuel cell engine system[69]. - The company has completed the architecture design for the megawatt fuel cell combined heat and power system, which includes key components such as high-efficiency injectors and supercritical humidification systems[72]. - The company has made commitments related to shareholding intentions and reduction intentions as of August 10, 2020, with a lock-up period of 24 months[170]. Social Responsibility - The company has actively participated in social responsibility initiatives, including donations to local schools to support talent cultivation and rural revitalization[168].