SINOHYDROTEC (02402) plans to issue shares to acquire 100% equity of Xuyang Hydrogen Energy and raise supporting funds. A shares will resume trading on March 13th.

SINOHYTEC (02402) announced that the company held the twenty-first meeting of the third board of directors and the seventeenth meeting of the third board of supervisors on March 12, 2025. The meetings approved the "Proposal for the Issuance of Shares by Beijing SINOHYTEC Technology Co., Ltd. to Acquire Assets, Raise Matching Funds, and Related Party Transactions" and related proposals. The company plans to acquire 100% equity of Dingzhou Xuyang Hydrogen Energy Co., Ltd. (hereinafter referred to as the "target company") through the issuance of shares and raise matching funds. After the completion of this transaction, Xuyang Hydrogen Energy will become a wholly-owned subsidiary of the company. After negotiations among the parties involved in the transaction, the issuance price of the shares involved in the purchase of assets through the issuance of shares was determined to be 18.53 yuan per share. The total amount of matching funds to be raised this time does not exceed 550 million yuan. Based on the issuance price of 18.53 yuan per share, the number of A-shares to be issued for matching funds is not more than approximately 29.68 million shares (including this number). It is reported that the target company's main business is the production and sales of high-purity hydrogen and synthetic ammonia, operation of comprehensive energy stations, as well as research and industrial application of green hydrogen preparation and liquid hydrogen storage and transportation systems. The company and the target company are in the upstream and downstream relationship of the hydrogen energy industry chain, and the target company can provide large-scale hydrogen supply with cost advantages. The synergistic effects are as follows: on one hand, it is expected to reduce the operating costs of hydrogen fuel cell vehicles in the hydrogen energy industry upstream by reducing the hydrogen price and expanding the scale of hydrogen use. On the other hand, the target company's liquid hydrogen storage and transportation technology is about to be implemented, which can effectively expand the transportation radius of hydrogen fuel cell vehicles. In addition to the existing layout of comprehensive energy stations and pipeline transportation construction planning, it will promote the development of the company's products in the end market and increase the company's product market share. In terms of technological accumulation, the target company has established a professional hydrogen research institute and equipped with an expert team, focusing on the macro-environment of the hydrogen energy industry, industry policies, and market analysis, as well as research and development of green hydrogen production, storage, and transportation technologies. It is committed to promoting technological innovation and product development in the entire industry chain of "production-storage-transportation-application-research" in the hydrogen energy field, providing strong technical support and reserves for the sustainable development of hydrogen energy. This cooperation will enhance the technological innovation capabilities of both parties in the full industry chain of hydrogen and create core competitive advantages. In addition, the company applied to the Shanghai Stock Exchange, and the A-shares of the company will resume trading on March 13, 2025, when the market opens.