(Hong Kong, 12 March 2025) - China Risun Group Limited (“China Risun”, or the “Group”, stock code: 1907.HK), a leading global integrated coke, coking chemicals and refined chemicals producer and supplier and relevant operation management services provider in China is pleased to announce that it has signed a Cooperation Intention Agreement with Beijing SinoHytec Co., Ltd (“Beijing SinoHytec”), to jointly promote hydrogen energy business development.
Following the signing of the Cooperation Intention Agreement with Beijing SinoHytec on February 26, 2025, China Risun announced supplementary information on March 12, 2025. China Risun intends to dispose its entire equity interest in Dingzhou Risun Hydrogen Energy Co., Ltd (the “Project Company”) at a consideration of RMB18.53 per share, and Beijing SinoHytec intends to acquire the Project Company by issuing A shares at a total consideration of approximately RMB550 million. [Upon completion of the transaction, China Risun will become the first largest shareholder of Beijing SinoHytec.][The transaction is subject to the signing of a formal agreement and the fulfillment of relevant conditions.]
China Risun has started to lay its foundation in the hydrogen industry since 2020. It utilizes coke oven gas, a by-product of the coke production process, to produce hydrogen, which has a cost advantage. The Group is expanding the scale of its hydrogen production capacity, and has initially established an industry chain system for hydrogen production, storage, transportation, hydrogen refuelling, and hydrogen application. The Group has been partnering with a number of high-quality enterprises and extending its influence in the Beijing-Tianjin-Hebei region. Relying on its abundant industrial by-product hydrogen resources, locational advantages, and high-purity hydrogen preparation process, combined with mature pressure swing adsorption technology, the Project Company is capable of realizing high purity hydrogen production on a large scale, at a low cost, and with high quality and ultra-low carbon emissions. In addition to producing hydrogen from industrial byproduct gases, the Project Company is also qualified to transport hazardous chemicals by road and has completed and put into operation three integrated energy stations in Dingzhou, Xingtai and Baoding. At the same time, it has initiated research and development on technologies such as hydrogen liquefaction processes, hydrogen conversion, PEM electrolyzer design, hydrogen evolution catalysts, liquid hydrogen projects, hydrogen transportation pipelines, and blending hydrogen with natural gas. The Project Company independently completed the design and prototype manufacturing of small-scale PEM electrolyzer products in 2024, demonstrating its capability in green hydrogen equipment design and manufacturing.
Beijing SinoHytec is a leading provider of fuel cell systems, focusing on the design, development and manufacture of fuel cell systems and stacks (a key component of the system) mainly for commercial vehicles in China. Through the integration with Beijing SinoHytec, the Project Company will be able to further strengthen its large-scale hydrogen production capabilities, and plans to industrialize liquid hydrogen technology, thereby establishing substantial liquid hydrogen production capacity.
Following the asset swap and integration, and China Risun becoming the first largest shareholder of Beijing SinoHytec, it is expected that the cooperation will bring significant synergies and strategic advantages to both parties. Leveraging on its early deployment and continuous research and development work in high purity hydrogen and liquid hydrogen preparation, electrolysis tanks, green hydrogen demonstration projects, hydrogen pipelines and hydrogen doping of natural gas, China Risun will be able to further strengthen its overall research and development capability in the hydrogen energy industry chain, and further enhance its integrated capability in the area of “Electricity - Hydrogen - Ammonia” and “Ammonia”. Furthermore, it will be able to leverage on Beijing SinoHytec’s technological strengths and market resources in the fuel cell system sector to accelerate the commercialization of its hydrogen energy applications, promote a comprehensive upgrading of the hydrogen energy industry chain, and further consolidate China Risun’s leading position as a hydrogen energy supplier in the Beijing-Tianjin-Hebei region., This will lay a solid foundation for the Group to expand into the nationwide market in the future.
