Far from profit-Chinese fuel cell manufacturers reported huge losses in 2023
Sino-Synergy Hydrogen Energy Technology (Jiaxing) Co., Ltd. (Sino-Synergy 09663 HK) reported earnings results for the full year ended December 31, 2023 on March 27th. For the full year, the company reported sales was CNY 700.62 million compared to CNY 748.48 million a year ago. Net loss widens to CNY 404.45 million compared to CNY 273.42 million in 2022.
Sino-Synergy is a technology-based hydrogen fuel cell company in the PRC focusing on research, development, production and sales of hydrogen fuel cell stacks and hydrogen fuel cell systems.
The company successfully implemented its IPO on Hongkong market in Dec 2023 and raised HK$1.456 billion. According to its IPO documents, Sino-Synergy occupied the largest market share at 24.4% in terms of shipments of hydrogen fuel cell stacks and the second largest market share at 21.8% in terms of shipments of hydrogen fuel cell systems in the PRC for 2022.
Another major pure-play hydrogen fuel cell innovator and manufacturer in China, Beijing SinoHytec Co., Ltd. (SinoHytec 02402 HK, 688339 SH), also released its 2023 full year result on March 31th. The company reported a revenue of CNY 801 million representing 8.48% increase yoy, while the net loss increased to CNY 300 million from CNY 195 million in 2022. The company first debut on Shanghai Exchange in 2020 and then in January 2023 it completed IPO in Hongkong market. Totally, SinoHytec has raised more than CNY 2.2 billion capital in Great China equity markets. However, net losses enlarged rapidly from CNY 22 million in year 2020 to 162 million and 166 million in year of 2021 and 2022 respectively.
Both of the two companies don’t expect any net profit at least for year of 2025 in their annual results conference and analysts meeting.
The reasons behind the deteriorated operating results may be complicated, Sino-Synergy attributed to these major factors and I will also give my analyses below.