HK Stock Market Move | SINOHYTEC (02402) opened nearly 15% higher. The company plans to issue A shares to acquire 100% equity of Xuyang in Dingzhou.

SINOHYTEC (02402) opened nearly 15% higher, as of the time of writing, it has risen by 14.89% to HK$24.3 with a trading volume of HK$990,200. On the news front, SINOHYTEC announced that it has entered into a non-legally binding cooperation agreement with Xuyang Group. SINOHYTEC intends to acquire 100% equity of Dingzhou Xuyang and raise funds through the issuance of its A-shares to Xuyang Group. The intention agreement only outlines the preliminary intentions of the parties to the proposed transaction. The proposed transaction is still in the early planning stage. Public information shows that Xuyang Hydrogen is a company set up by Xuyang Group to support the development of the Xuyang hydrogen energy industry. Its goal is to build a platform for Xuyang hydrogen energy operation, starting with high-purity hydrogen production and hydrogenation station demonstration projects. It is reported that SINOHYTEC's layout in the hydrogen energy industry is mainly focused on hydrogen fuel cell engine field and has a certain leading position. As of the end of June 2024, a total of 1069 fuel cell vehicle announcements have been made nationwide, with 157 vehicles equipped with SINOHYTEC fuel cell systems.