(Yicai Global) Dec. 29 -- Shares in Beijing SinoHytec advanced by as much as 4.1 percent this morning after the Chinese hydrogen fuel cell technology developer said two truck-making subsidiaries of electric bus manufacturer Yutong Group have ordered 500 of its fuel cell engines.

SinoHytec’s share price [SHA:688339] ended the day down 0.2 percent at CNY74.95 (USD10.76). Earlier in the day it hit CNY78.22.

SinoHytec will supply 500 fuel cell engines as well as supporting devices to the two units of Zhengzhou, central Henan province-based Yutong, which make light and heavy-duty trucks, over the next 12 months, the Beijing-based firm said yesterday.

The value of the contract cannot be determined at present because the specifications of the engines and auxiliary machinery have not yet been decided and therefore the corresponding price will only be set before the actual purchase, it added. No further details were given.

The contract is expected to have a significant impact on the application of SinoHytec’s fuel cell engines in the industry. As of the end of September, only 709 hydrogen-powered vehicles were equipped with SinoHytec’s engines, according to the firm’s website.

The deal will have a positive impact on SinoHytec’s future performance, improve competitiveness and boost brand awareness, said the company, which kicked off a secondary offering on the Hong Kong stock exchange today that could see it rake in as much as a HKD1.3 billion (USD166.8 million).

The new share sale in Hong Kong will last until Jan. 5 next year. SinoHytec is issuing 17.6 million shares at a price ranging between HKD60 (USD7.70) and HKD76. The stock will start to be publicly traded on the Hong Kong bourse from Jan. 12.

Editor: Kim Taylor