Yihua Tong Places New H Shares, Raises Nearly HK$200 Million to Optimize Financial Structure and Boost Hydrogen Energy Business Development

On December 16, Beijing SinoHytec Co., Ltd. (hereinafter referred to as "SinoHytec", stock code: 688339) announced a placement of new H shares under a general mandate, with the proceeds to be used for repaying bank loans and supplementing working capital. This move will optimize the company's financial structure, alleviate debt repayment pressure, and inject financial momentum into the development of its core hydrogen energy business.

The announcement indicated that SinoHytec entered into a placement agreement with a placement agent, whereby the agent will, on a best-efforts basis, procure no fewer than six placees to subscribe for up to 8.88 million new H shares at a placement price of HK$22.68 per share. This price represents a discount of approximately 14.99% to the H share closing price on December 15 (HK$26.68 per share) and a discount of approximately 16.25% to the average closing price over the previous five consecutive trading days (HK$27.08 per share).

The placement shares are to be allotted and issued pursuant to the company's general mandate, which authorizes the directors to allot up to 46,330,400 new H shares, representing 20% of the total number of issued shares as at the date of the extraordinary general meeting held on December 15, 2025. As of the announcement date, the company had not utilized this mandate to allot any H shares, and this placement does not require further shareholder approval.

The total gross proceeds from the placement are estimated to be approximately HK$201.4 million. After deducting related expenses, the net proceeds are approximately HK$197.72 million, corresponding to a net issue price of approximately HK$22.27 per placement share.

The use of proceeds is clearly allocated in a 9:1 ratio: 90% will be used to repay bank loans with a total principal of approximately HK$531 million; these loans comprise 53 separate facilities, with amounts ranging from HK$59,000 to HK$128 million, and maturity dates concentrated between December 2025 and September 2026; 10% will be used to supplement the Group's general working capital, covering rent, employee expenses, professional fees, and other administrative expenses.

SinoHytec is a high-tech enterprise focused on the R&D, production, and industrialisation of hydrogen fuel cell engine systems and core parts. It possesses independent core intellectual property rights and has achieved mass production of fuel cell systems. Its business focuses on the hydrogen energy transportation sector, promoting the commercial application of its technology in scenarios such as commercial vehicles and passenger vehicles. This fundraising will effectively reduce financial costs and provide solid financial support for technological R&D and market expansion.

SinoHytec stated that the placement price and terms were determined through fair negotiation and are in the interests of the company and all shareholders. The company will apply to the Stock Exchange for the listing and trading of the placement shares and will complete the filing with the China Securities Regulatory Commission as required.