Core Viewpoint - The acquisition of Yihuatong by Xuyang Group represents a significant shift in the hydrogen energy sector, highlighting the challenges and potential collapse of the hydrogen energy bubble, while also signaling a return to rationality in the industry [1][2]. Group 1: Company Performance - Yihuatong reported a revenue of 367 million yuan for 2024, a year-on-year decline of 54.21%, and a net loss of 453 million yuan, marking its fourth consecutive year of losses since its listing on the STAR Market [1][8]. - The company's financial indicators have seen substantial declines, with operating profit, total profit, and net profit attributable to shareholders dropping by 70.85%, 63.16%, and 86.35% respectively compared to the previous year [10]. - Despite a revenue increase from 629 million yuan in 2021 to 801 million yuan in 2023, the losses also grew from 146 million yuan to 243 million yuan, indicating a trend of increasing losses outpacing revenue growth [8][10]. Group 2: Industry Challenges - The hydrogen fuel cell industry is experiencing a downturn, with production and sales of hydrogen fuel cell vehicles in 2024 showing a decline of 10.4% and 12.6% year-on-year, breaking the previous growth trend since 2021 [3][4]. - The industry is facing significant financial pressures, with many companies reporting salary cuts, layoffs, and even bankruptcy, primarily due to difficulties in collecting receivables and a lack of new orders [4][9]. - The reliance on government subsidies and orders has exposed the fragility of the industry, as the market remains underdeveloped and the commercial viability of hydrogen fuel cells is still in its early stages [12]. Group 3: Acquisition Details - Xuyang Group will acquire Yihuatong's controlling stake by exchanging 100% equity of its hydrogen company and 550 million yuan in cash, which is seen as a lifeline for Yihuatong [1][4]. - The acquisition price reflects a significant discount, with shares priced at 18.53 yuan, approximately 23.52% lower than the last trading price of 24.23 yuan [8]. - This merger is viewed as a vertical integration strategy, allowing Yihuatong to cover hydrogen production and refueling, while Xuyang Group enters the fuel cell terminal market, creating a closed-loop ecosystem [4][5].