1. Report Industry Investment Rating - No relevant content provided 2. Core View of the Report - The report is about the institutional research on Sinopec Machinery. The company attaches great importance to the collection of accounts receivable and has increased the cash received from selling goods and providing services. It will continue to enhance its operating performance, focus on high - end, intelligent, green and service - oriented development, and strive to reward shareholders with excellent performance. In 2025 H1, the company achieved good results in orders, new orders in the international market, and new orders in the hydrogen energy equipment business [23][25][26] 3. Summary According to the Catalog 3.1 Research Basic Situation - Research object: Sinopec Machinery - Industry: Special equipment - Reception time: August 26, 2025 - Reception personnel: Chairman Wang Junqiao, Independent Director Guo Wei, Financial Controller Wei Gang, Secretary of the Board Wang Wuhong [16] 3.2 Detailed Research Institutions - The reception object is all investors who participated in the company's 2025 semi - annual performance briefing online, and the reception object type is "other" [19] 3.3 Research Institution Proportion - No relevant content provided 3.4 Main Content Data - **Accounts receivable**: The company has formulated a special action plan for improving accounts receivable management (2025 - 2027), established a special action working group, and formed a multi - department collaborative working mechanism. In the first half of 2025, the cash received from selling goods and providing services increased by 530 million yuan year - on - year [23][24] - **Corporate responsibility**: As a state - owned enterprise, the company is responsible to the country, society and shareholders. It will continue to enhance its operating performance, focus on high - end, intelligent, green and service - oriented development, and strive to reward shareholders with excellent performance [25] - **Order situation in H1 2025**: The company achieved orders of 4.94 billion yuan, a year - on - year increase of 14%. Among them, oil drilling and production equipment was 1.8 billion yuan, drilling tools were 550 million yuan, steel pipes were 900 million yuan, and gathering and transportation equipment was 350 million yuan [26] - **Hydrogen energy equipment business**: In H1 2025, the new orders of the hydrogen energy equipment business reached 75 million yuan, a year - on - year increase of 21%. The company is involved in national and local hydrogen energy projects, has won multiple orders, and has the ability to mass - produce hydrogen - transporting steel pipes [29] - **International market**: In H1 2025, the new orders in the international market reached 1.21 billion yuan, a year - on - year increase of 15%. The company's drilling and production equipment has obtained batch orders in the Asian and African markets, and high - end equipment has been applied in the African market [28][29] - **Production line transformation**: The company has introduced robot welding production lines, digital processing production lines and advanced MES manufacturing systems to enhance production manufacturing capabilities [30] - **Accounts receivable increase reason**: The increase in accounts receivable in H1 is mainly due to the increase in accounts receivable within one year, which is a normal business activity. The company has a strict credit management policy [30] - **Incentive target and market value management**: The company will strive to achieve the annual operating target, and whether the equity incentive target can be achieved depends on the operating conditions of benchmarking enterprises. In terms of market value management, the company will improve information disclosure quality and strengthen investor relations management on the basis of improving operating performance [31] - **Q3 performance**: Specific performance needs to be concerned about the subsequent disclosure of the 2025 Q3 report [32] - **Daye cave hydrogen storage project**: The company has won the bid, and the contract is being signed [33]

Core Viewpoint - The company held a semi-annual performance briefing for 2025, emphasizing its commitment to improving accounts receivable management and enhancing operational performance to benefit shareholders [1][2][3]. Accounts Receivable Management and Cash Flow - The company has implemented a specialized action plan for accounts receivable management from 2025 to 2027, focusing on reducing existing receivables, improving quality, and controlling new receivables [2]. - Cash received from sales and services increased by 530 million yuan year-on-year in the first half of 2025 [2]. Corporate Responsibility and Commitment to Shareholders - As a state-owned enterprise, the company emphasizes its responsibility towards national energy security and shareholder interests, aiming to enhance operational performance through advanced technology and integrated solutions [3]. - The company is committed to high-end, intelligent, green, and service-oriented development, particularly in drilling tools and equipment [3]. Orders and Business Development - In the first half of 2025, the company achieved an order volume of 4.94 billion yuan, a 14% increase year-on-year [4]. - Specific segments include 1.8 billion yuan for oil drilling equipment, 550 million yuan for drilling tools, 900 million yuan for steel pipes, and 350 million yuan for gathering equipment [4]. - The hydrogen energy equipment segment saw new orders of 75 million yuan, a 21% increase, reflecting the company's active participation in the hydrogen energy industry [4]. - International orders reached 1.21 billion yuan, marking a 15% increase, with significant orders from markets in Asia and Africa [4]. Other Key Points - The company is enhancing production capabilities by introducing robotic welding lines for manufacturing processes [5]. - The increase in accounts receivable is attributed to varying settlement cycles for different products, alongside strict credit management policies [5]. - The company aims to achieve its annual operational targets and is considering stock incentive goals based on peer comparisons [5]. - The company has won a bid for the Daye cavern hydrogen storage project, with the contract currently in the signing process [5].

Core Viewpoint - The fuel cell vehicle market in China is struggling with low sales and high competition, leading to significant financial losses for many companies in the sector [2][4][8]. Industry Overview - In 2024, the sales of fuel cell vehicles in China were only 7,075 units, far below the millions of electric vehicles sold annually, indicating a weak market demand [2][18]. - By mid-2025, the total number of fuel cell vehicles in China reached 30,212, but this still fell short of the target of 50,000 set by the national hydrogen energy development plan [3][18]. - The market is characterized by a high number of suppliers (96 in 2024), but over 80% of them sold fewer than 100 units, leading to intense competition and financial strain across the industry [7][8]. Financial Performance - Leading companies like Yihuatong and Reshape Energy reported significant revenue declines and increased losses in 2024, with Yihuatong's revenue dropping by 54.21% and net profit falling by 87.68% [10][12]. - Reshape Energy's revenue for the first half of 2025 was approximately 107 million RMB, a decrease of about 9.9% compared to the same period in 2024, with a negative gross profit indicating unsustainable operations [14][18]. Market Dynamics - The fuel cell vehicle market is highly fragmented, with sales concentrated in a few cities and lacking large-scale, stable orders, which hampers production efficiency and cost reduction [19][20]. - The industry faces a "chicken or egg" dilemma, where the lack of hydrogen refueling infrastructure (only about 500 stations by the end of 2024) limits vehicle sales, while low sales further discourage infrastructure investment [23][24]. Policy and Future Outlook - 2025 marks the end of the current fuel cell vehicle subsidy policies, shifting the focus from government-driven incentives to market-driven growth, which introduces uncertainty for companies reliant on subsidies [15][32]. - Companies are urged to innovate and diversify their business models, moving beyond just vehicle sales to include hydrogen production and broader applications in various sectors [35][36][37]. Strategic Responses - Leading firms are exploring vertical integration by acquiring upstream hydrogen production capabilities and expanding into non-automotive applications to mitigate risks associated with the automotive market [36][40]. - The shift towards a comprehensive hydrogen energy solution provider model is seen as a necessary strategy for long-term sustainability and growth in the industry [38][43].

Group 1 - The hydrogen energy industry in China is gaining significant attention as a strategic emerging industry and a key development direction for the future, becoming a hot competition area for regional development [2] - The Jiaxing Port Area has proactively entered the new energy sector since 2018, aiming to establish a "1+2" industrial structure based on green chemical new materials and supported by aerospace and hydrogen energy industries [2] - Jiaxing Port Area is positioned as a demonstration zone for hydrogen energy, leveraging its abundant industrial by-product hydrogen resources and diverse application scenarios to accelerate the full-chain layout of hydrogen energy [2] Group 2 - By May 2025, the port area plans to operate 300 hydrogen-powered heavy trucks, aiming to create the world's largest hydrogen energy port transportation cluster, with current operations of 100 trucks achieving a range of 450 kilometers on a 15-minute refueling [2] - The port area has initiated the development of hydrogen fuel-powered container ships, equipped with two sets of 240 kW hydrogen fuel cell systems, with a range of approximately 380 kilometers [3] - The traditional operational model of the port is undergoing innovation, transitioning to a "bulk to container" operation to reduce environmental impact, while also expanding clean energy application scenarios for greener operations [3]

Core Viewpoint - The hydrogen energy industry in China is gaining significant attention as a strategic emerging industry, with the Jiaxing Port Area positioned as a key player in this sector, aiming to become a globally influential "Oriental Hydrogen Port" [1][2]. Group 1: Industry Development - The Jiaxing Port Area has proactively entered the new energy sector since 2018, focusing on building a "1+2" industrial structure based on green chemical new materials and supported by aerospace and hydrogen energy industries [1]. - The port area is leveraging its abundant industrial by-product hydrogen resources and diverse application scenarios to accelerate the full-chain layout of hydrogen energy [1]. Group 2: Infrastructure and Logistics - By 2025, the Jiaxing Port Area plans to operate 300 hydrogen-powered heavy trucks, aiming to create the world's largest hydrogen energy port transportation cluster [1]. - Currently, 100 hydrogen-powered heavy trucks are in operation, achieving a range of 450 kilometers with a 15-minute refueling time, which reduces operational costs by 15% compared to fuel vehicles [1]. Group 3: Environmental Initiatives - The port area has initiated the development of hydrogen fuel-powered container ships, which are equipped with two sets of 240 kW hydrogen fuel cell systems, with a range of approximately 380 kilometers [2]. - The traditional operation model at the port is being transformed to promote environmental sustainability, including a shift from bulk cargo to containerized operations to reduce environmental impact [2].

Group 1 - The China Zhongxiang Hydrogen Energy Equipment Industry Chain Investment Promotion Conference was held on August 19, with a total project signing amount of 8.57 billion yuan, covering the entire hydrogen energy chain of "production, storage, transportation, and utilization" [1][2] - The event was themed "Win-Win Hydrogen Era Empowering New Ecology," guided by the Hubei Provincial Department of Commerce and the Jingmen Municipal People's Government [1] - Key projects signed include a 2 billion yuan hydrogen industry fund project, a 1 billion yuan Donghong Urban Lifeline Intelligent Industrial Park project, and a 180 million yuan Shanghai Nengfu Electric Hydrogen Storage Module and Integration project [1] Group 2 - Zhongxiang has gathered over 20 hydrogen industry chain enterprises, with advantages in 36,000 kW hydropower and 300,000 kW wind and solar green electricity [2] - The city aims to attract upstream and downstream leading enterprises, establish a provincial hydrogen equipment manufacturing technology research institute, and plan a hydrogen equipment manufacturing demonstration park [2] - The goal is to achieve a total output value of 10 billion yuan for the entire hydrogen industry chain by 2028 [2]

Group 1 - The 2025 Global Hydrogen Investment Summit will be held in London on September 2-3, gathering over 800 senior executives from more than 55 countries, focusing on capital release, hydrogen trade, and AI optimization in hydrogen production [1] - Recent policies in the hydrogen sector have been intensifying, with Beijing's proposal for a hydrogen infrastructure network and Chongqing's plan for 60 new hydrogen stations, aiming for a total supply capacity of 25,000 tons per year [2][3] - The Chinese government has introduced multiple hydrogen industry policies this year, promoting high-quality development through technology breakthroughs, demonstration applications, and financial support [2][3] Group 2 - The National Energy Administration has included six hydrogen technology equipment in its list of major technological equipment, highlighting advancements in hydrogen production and storage systems [3] - The hydrogen industry is seeing a significant increase in production capacity, with over 5 million tons per year expected by the end of 2024, reflecting a year-on-year growth of approximately 1.6% [5][6] - The market for solid oxide fuel cells (SOFC) is projected to reach $7 billion in the next three years, driven by demand from data centers, emphasizing the importance of companies involved in SOFC technology [8] Group 3 - The hydrogen energy sector has experienced a surge in stock prices, with companies like Sichuan Jinding and Kangputon seeing significant gains following favorable policies for hydrogen vehicles in Shandong [9] - The hydrogen industry chain includes various companies across upstream, midstream, and downstream sectors, with a focus on green hydrogen production, storage, and transportation [11]

Core Insights - The hydrogen heavy-duty trucks delivered by Tianjin Yuancheng New Energy Commercial Vehicle Co., Ltd. to Tianjin Rongcheng New Energy Technology Group Co., Ltd. represent a significant advancement in hydrogen energy technology and collaboration within the industry [1] Group 1: Delivery and Specifications - A total of 59 hydrogen heavy-duty trucks equipped with a 200kW fuel cell system were delivered, showcasing the latest technology from various industry partners [1] - The trucks are built on the Geely Yuancheng commercial vehicle chassis and feature advanced components such as Bosch's high-pressure fan cooling system and Tianhai's hydrogen supply system [1] - The trucks have a single refueling range of up to 600 kilometers, making them suitable for winter transportation needs in northern regions [1] Group 2: Industry Collaboration and Innovation - The delivery highlights the ongoing progress in hydrogen core equipment within the Tianjin Port Free Trade Zone and the strong collaborative momentum in the Tianjin Binhai New Area [1] - The collaboration involves multiple industry players, including Geely Yuancheng, Bosch Hydrogen Power, Tianhai, and Mengguli, demonstrating a successful integration of advanced equipment and operational capabilities [1] - Future plans include continuing to drive technological upgrades and commercial applications of hydrogen fuel cell commercial vehicles, focusing on scenario-based solutions [1] Group 3: Operational Achievements - Rongcheng New Energy has deployed a total of 860 hydrogen fuel cell vehicles and established 12 hydrogen refueling stations [2] - The company has consumed 4,247 tons of hydrogen, transported 51.4 million tons of goods, and accumulated a driving distance of 45.63 million kilometers [2]

Core Viewpoint - The article discusses the current state and future prospects of the hydrogen refueling station industry in China, highlighting key players, market statistics, and recent developments in the sector [3][6][10]. Industry Overview - As of June 30, 2025, China has built a total of 560 hydrogen refueling stations, with 29 new stations completed in the first half of 2025, showing stability compared to the same period in 2024 [3]. - The top five equipment integrators in the hydrogen station market maintain a combined market share of 52%, with traditional leaders like Haidilisen, Guofu Hydrogen Energy, and Houpu firmly established [3][6]. Company Highlights Haidilisen - Founded in 2001, Haidilisen specializes in high-pressure fluid equipment and has been a pioneer in hydrogen safety equipment and refueling station manufacturing [6]. - Key developments include the successful operation of a high-pressure hydrogen refueling station in Foshan, capable of refueling 100 hydrogen vehicles daily, and the delivery of liquid-driven compressors to international markets, including Australia and the UK [6][7]. Guofu Hydrogen Energy - Established in 2016, Guofu Hydrogen Energy is a leading provider of hydrogen production, storage, transportation, and utilization equipment, with a market share exceeding 35% [7][9]. - Recent projects include supplying equipment for a green hydrogen demonstration project in Malaysia and establishing a joint venture in Singapore to build a hydrogen refueling station [9]. Houpu - Houpu focuses on clean energy equipment manufacturing and has a strong presence in the hydrogen energy sector, participating in over 70 hydrogen station projects across China [10]. - The company has introduced advanced hydrogen compression technology and has been involved in significant projects, including the first carbon-neutral hydrogen station in China [8][10]. Youjiete - Youjiete is a high-tech enterprise engaged in hydrogen refueling systems and has been involved in various projects, including a successful collaboration with a hydrogen refueling station in Beijing [11][13]. - The company has been recognized for its innovative solutions in the hydrogen energy sector [11]. Naide Energy Equipment - Naide Energy provides comprehensive solutions for hydrogen production and refueling, recently winning contracts for integrated hydrogen production and refueling systems [12][16]. - The company has established itself as a key player in the hydrogen equipment market, focusing on high safety standards and efficient deployment [12][16].

Group 1 - SAIC-GM and Momenta have signed a strategic cooperation agreement to deepen collaboration in the field of assisted driving, with Buick's high-end electric sub-brand "Zhijing" set to feature the Momenta R6 flywheel model based on reinforcement learning [1] - This partnership marks a significant step for traditional automakers in the smart driving sector, enhancing SAIC-GM's technological competitiveness in the high-end electric vehicle market [1] - The collaboration is expected to boost investor confidence in the technological implementation within the smart driving sector [1] Group 2 - BYD's public relations manager emphasized the company's commitment to avoiding unnecessary online disputes and focusing on its own development, promoting a healthy competitive environment in the automotive industry [2] - This approach is likely to enhance BYD's image among consumers and investors, setting a positive example for the industry [2] - The emphasis on healthy competition is expected to positively impact the overall automotive market and strengthen confidence in BYD and the automotive sector [2] Group 3 - Dongfeng Group plans to transfer 50% of its stake in Dongfeng Honda Engine Co., which has recently turned a profit of 37.085 million yuan in the first half of the year [3] - The sale aims to optimize and adjust the company's fuel vehicle asset structure, facilitating a faster transition to new energy [3] - This move reflects a strategic shift among traditional automakers and may accelerate the integration process within the fuel vehicle supply chain [3] Group 4 - Yihuatong and Pengfei Group have signed a strategic cooperation agreement to develop hydrogen fuel cell technology and its large-scale application, aiming to establish Luliang as a national manufacturing base for hydrogen energy heavy trucks [4] - The initial agreement includes the procurement of 100 hydrogen fuel cell heavy trucks and 250 hydrogen fuel cell logistics vehicles [4] - This collaboration is expected to accelerate the market penetration of hydrogen commercial vehicles and enhance the competitiveness of related companies, attracting investor interest in the hydrogen and clean energy sectors [4]