Fuel cell company makes STAR Market debut

Beijing SinoHytec Co Ltd began trading on the Shanghai Stock Exchange STAR Market on Monday at a public offering price of 76.65 yuan (US$11) per share. 

The share price of the first Chinese hydrogen fuel cell engine company to list on the board surged 144.12 percent and SinoHytec closed at 187.12 yuan, with an intraday high of 261.11 yuan. 

Fuel-cell vehicles use a fuel cell instead of a battery. Automotive fuel cells generate electricity to power a motor, generally using oxygen and compressed hydrogen.

China is actively promoting the development of the hydrogen fuel cell industry. The Ministry of Industry and Information Technology said that hydrogen cars are an important technological route which will coexist with the development of electric vehicles.

Compared with traditional gasoline vehicles, fuel-cell vehicles are said to have short refueling times, a long cruising range and are pollution-free.

In April this year, four ministries and commissions issued a notice to promote the development of new-energy vehicles. It said that China will strive to establish a hydrogen and fuel cell vehicle industry chain in around four years. The country will make breakthroughs in key core technologies and form a good industry layout and coordinated development, it said.

SinoHytec cautioned investors about the risks of the hydrogen fuel cell sector in an announcement. It said that the penetration rate of fuel-cell vehicles is currently relatively low in China. The sector is in the early stages of industrialization, with the high cost of fuel cell stations and the immaturity of key technologies.

In 2019, sales of fuel-cell vehicles in the Chinese market totalled 2,737 units, a relatively small figure compared with the 1.2 million new-energy vehicles sold across the country.

Founded in 2012, SinoHytec is a high-tech enterprise focusing on research and development as well as manufacturing of hydrogen fuel cell engines and related products such as fuel cell stacks, hydrogen systems and test platforms.

The company's products are mainly used in commercial vehicles such as passenger cars and logistics vehicles. Its fuel cell products are used in vehicles from automakers such as Zhengzhou Yutong Group Co, Shanghai Shenlong Bus Co and Foton Motor.

The Shanghai Stock Exchange STAR Market, which was launched in July last year, is seen as a foundation for deepened reforms in China's A-share market, as well as an attractive market for high-profile Chinese tech companies to list at home.