(Yicai Global) June 6 -- Shares in SinoHytec surged as much as 6.4 percent today after the Chinese hydrogen fuel cell maker said it will set up a hydrogen technology company to expand upstream into generating hydrogen gas.

SinoHytec’s share price in Shanghai [SHA:688339] closed up 4.7 percent at CNY81.62 (USD11.46). Earlier in the day it hit CNY82.95. In Hong Kong, the stock [HKG:2402] finished flat at HKD48.80 (USD6.20).

The subsidiary will focus on developing the technology to generate hydrogen gas from renewable energies, the Beijing-based firm said today on its WeChat account. SinoHytec also unveiled a proton exchange membrane water-electrolytic hydrogen machine at the ceremony to celebrate the unit's setup.

SinoHytec is spending CNY8.1 million (USD1.1 million) to build a factory that produces hydrogen through the electrolysis of water as well as a solar power plant, hydrogen refueling stations and storage facilities in Yining, northwestern Xinjiang Uyghur Autonomous Region, it said.

The hydrogen plant will have a yearly output of 20,000 tons and the PV power station an annual capacity of one million kilowatts. The plan is to build 20 hydrogen refueling stations in the region, enough to recharge 3,000 hydrogen-fuel heavy-duty trucks a day, it said.

SinoHytec’s net loss widened 2.8 percent last year from 2021 to CNY166 million (USD23.3 million) while revenue jumped 17.3 percent to CNY738 million, according to its latest financial report.

Editor: Kim Taylor