Asiayang Group (01907) is planning an asset + cash transaction, and may take control of SINOHYTEC (688339.SH,02402) to expand its hydrogen industry chain layout.

On the evening of March 12th, CHINA RISUN GP (01907) and SINOHYTEC (688339.SH, 02402) both issued announcements, disclosing the progress of Xuyang Group's planned acquisition of SINOHYTEC A shares through its subsidiary, Dingzhou Xuyang Hydrogen Energy Co., Ltd. (hereinafter referred to as "Dingzhou Xuyang Hydrogen Energy"). The latest announcement shows that Xuyang Group and SINOHYTEC signed a "Framework Agreement for Issuing Shares to Purchase Assets and Raise Matching Funds" on March 12th. According to the framework agreement, Xuyang Group plans to exchange all the equity of Dingzhou Xuyang Hydrogen Energy for SINOHYTEC A shares, at a price of 18.53 yuan (RMB) per share. Additionally, Xuyang Group plans to invest no more than 550 million yuan to subscribe for SINOHYTEC A shares, also at the above price. Upon completion of the transaction, Xuyang Group will become the controlling shareholder of SINOHYTEC, and the actual controller of Xuyang Group will also become the actual controller of SINOHYTEC. In the view of GMTEight, Xuyang Group's control of SINOHYTEC will undoubtedly be the largest transaction in the hydrogen energy industry in recent years, and it will also be a long-awaited positive signal for the entire market. After the transaction is completed, the hydrogen energy industry landscape is expected to be reshaped: in the future, as the controlling shareholder of SINOHYTEC, Xuyang Group can fully leverage its industrial and operational advantages, lead the deep integration of resources between the two parties, promote complementary strengths along the entire hydrogen energy industry chain, and even build a billion-dollar ecological closed loop through business expansion. In the 2024 Chinese government work report, hydrogen energy was mentioned for the first time as an emerging energy source, and the report called for accelerating the development of frontier industries such as hydrogen energy. With the policy setting the tone, for market participants, mergers and acquisitions are naturally one of the best ways to break through the scale bottleneck, integrate industry chain resources, and achieve the benefits of "1+1>2". Looking at the basic business foundations of both parties in the transaction, Xuyang Group has long considered hydrogen energy business as a key development strategy and has become the largest high-purity hydrogen supplier in the Beijing-Tianjin-Hebei region. The company has also made extensive industrial layout and in-depth technology research and development in fields such as liquid hydrogen, green hydrogen, and green ammonia, gradually building and perfecting the entire industry chain layout of hydrogen "production-storage-transportation-use-research". On the other hand, SINOHYTEC is a leading enterprise in hydrogen fuel cell systems, with strong innovative research and development advantages in fuel cell systems and stacks. For the secondary market, the potential investment value of Xuyang Group and SINOHYTEC will be reevaluated, and they are bound to attract more attention from retail investors and investment institutions.