Hong Kong Stock Concept Tracking | Policy Support! Many places have successively exempted hydrogen-powered vehicles from toll charges on expressways, and the industry will enter a period of volume and speed increase (with concept stocks)

Currently, China's hydrogen energy industry has entered a critical period of accelerated development. Policy driving is an important traction for the rapid development of hydrogen fuel cell vehicles. According to incomplete statistics, as of now, regions such as Shaanxi, Shandong, Jilin, Sichuan, and Inner Mongolia ERDOS Resources have implemented measures to exempt hydrogen energy vehicles from toll fees on highways. In addition, many domestic and foreign companies have launched hydrogen fuel cell vehicles and put them into use. In the future, hydrogen energy vehicles are expected to become a new growth pole in the new energy vehicle and overall automotive industry. Recently, Jilin and Shaanxi have introduced policies to support the development of hydrogen energy vehicles. On August 13, the Jilin Provincial Department of Transportation website published a notice on the implementation of preferential policies for hydrogen vehicles traveling on highways in Jilin Province, which exempts hydrogen vehicles with installed ETC equipment from toll fees on highways in Jilin Province between point-to-point toll stations from September 1 of this year to August 31, 2026, with the corresponding toll fees being paid by the provincial finance. Shaanxi Province announced that from September 1 of this year, hydrogen vehicles equipped with ETC equipment will be fully exempt from toll fees on highways within the province, and this policy will last until September 1, 2027. It is evident that the policy of exempting hydrogen energy vehicles from toll fees on highways generally has a duration of two years or more, rather than being a short-term measure in various regions. Zhong Weiping, Secretary-General of the Commercial Vehicle Professional Committee of the China Automobile Dealers Association, stated that exempting hydrogen vehicles from toll fees on highways is an important attempt to transition from purchase subsidies to operating subsidies. Supporting the development of hydrogen fuel cell vehicles in the form of vehicle subsidies is also a further measure to implement the national comprehensive promotion of new energy development. In addition to free highway access, many other measures supporting the deployment of hydrogen energy vehicles on the road have been introduced. For example, the "Jiangsu Province Medium and Long-term Plan for Hydrogen Energy Industry Development (2024-2035)" mentions that by 2027, Jiangsu Province will have about 100 commercial hydrogen refueling stations and promote more than 4,000 hydrogen fuel cell vehicles. Chengdu City in Sichuan Province is also focusing on the field of hydrogen energy vehicles and aims to have a hydrogen fuel cell commercial vehicle industry with a scale exceeding 20 billion yuan and cultivate at least 5 leading companies ranking top five in the country in the vehicle chain or core components related areas by 2026. Under the positive impact of policies, the hydrogen fuel cell vehicle market performance has significantly improved. According to statistics from the China Association of Automobile Manufacturers, from January to July of this year, the sales of hydrogen fuel cell vehicles in China reached 3,422 units, a year-on-year increase of 25.5%, reaching a historical high for the same period. Various parties continue to promote the application of hydrogen energy in automobile products, with many domestic and foreign companies launching hydrogen fuel cell vehicles and putting them into use. After the launch of the Shentu hydrogen fuel cell light truck under the Hyundai Group, a large number of orders were received; and multiple hydrogen fuel cell light trucks were delivered in bulk in June this year for use as logistics vehicles. SAIC Motor Corporation started the Phoenix I fuel cell vehicle project in 2001, and Jiehong Technology, a subsidiary of SAIC, has successfully launched the Jiehong Qiyuan M4H fuel cell stack. Currently, SAIC Datong's MIFA hydrogen fuel cell vehicles hold a market share of up to 70% in the domestic fuel cell passenger vehicle market. In the field of commercial vehicles, SAIC Datong has put FCV90 hydrogen fuel cell vehicles into operation in Foshan, Guangdong in 2017 for use as commuting buses in the local development zone. During the 2022 Beijing Winter Olympics, Beiqi Foton provided 515 Ou Hui hydrogen fuel cell buses to provide service guarantees for the Beijing Yanqing and Zhangjiakou competition areas. Looking at the overall industry trend, Sinolink believes that the hydrogen and fuel cell industry will enter a period of accelerated growth in 2024, and the landing of fuel cell vehicles and green hydrogen projects will be significantly accelerated. Recently, Zhongjin's view is that if the exemption of highway toll fees is extended nationwide, it is expected to reduce the total cost of ownership (TCO) of hydrogen-powered heavy-duty trucks, promote the deployment of hydrogen-powered heavy-duty trucks, and accelerate the commercialization of the hydrogen energy industry. Related concept stocks: CIMC ENRIC (03899): Its subsidiary, CSC Hydrogen Technology Co., Ltd., has successfully delivered 200 sets of high-performance Type III vehicle hydrogen supply systems to Tianjin Rongcheng New Energy Technology Group Co., Ltd., which will be applied to 150kW high-power hydrogen-powered heavy trucks produced by Geely Yuancheng New Energy Commercial Vehicle Group Co., Ltd. and Dongfeng Liuzhou Automobile Co., Ltd. These vehicles will be put into operation in the interprovincial trunk logistics and bulk materials transport scenarios in the Beijing-Tianjin-Hebei and Bohai Rim areas, promoting the upgrade of China's green transportation. CRRC Corporation (01766): The company has laid out the hydrogen-related industry chain segments based on its industrial foundation, technological advantages, and market demands, and has carried out a series of collaborative research and development with related universities and research institutes. In the field of hydrogen fuel cells, its subsidiary has been developing high-power fuel cell systems and fuel cell stacks for rail transit since 2017, with rated power of 50-350kW fuel cell systems and 100/200kW fuel cell stack technologies, and has achieved installation verification. In the field of new energy hydrogen production, its subsidiary's high-power IGBT hydrogen production power supply system is in a leading position domestically and is conducting research on key technologies such as electrolysis-based hydrogen production systems and mobile on-site hydrogen production. SINOSYNERGY (09663): The company continues to increase research and development investment in various key projects such as hydrogen fuel cell stacks, systems, power generation systems, and electrolysis-based hydrogen production. JINGCHENG MAC (00187): On August 16, 2024, Beijing Tianhai (a wholly-owned subsidiary of the company) entered into a framework contract for the purchase and sale of products with Shanghai Shunhua. Beijing Tianhai Group and Shanghai Shunhua Group will purchase or sell hydrogen products from each other from time to time.