(Yicai Global) Nov. 24 -- Sino-Synergy Hydrogen Energy Technology Jiaxing, a Chinese manufacturer of hydrogen fuel cells, has applied for an initial public offering in Hong Kong.

The IPO’s proceeds will be used to expand Sino-Synergy’s battery capacity, the Jiaxing-based company said in a prospectus filed on Nov. 22.

Founded in 2015, Sino-Synergy mainly researches, develops, makes, and sells hydrogen fuel cells and system control equipment used in buses, heavy-load trucks, logistics vehicles, forklifts, trains, and ships.

Last year, it was China’s biggest hydrogen fuel cell stack supplier, with a 24 percent market share, as well as the country’s largest vendor of hydrogen fuel cell systems equipped with a self-produced hydrogen fuel cell stack, with a 21 percent market share.

Sino-Synergy had shipped over 450-megawatt hydrogen fuel cell stacks as of Nov. 14, with its delivery capacity of hydrogen fuel cell systems more than doubling to 25.1 MW in the third quarter from a year earlier, the firm noted.

The firm has been in the red for a long time. It reported net losses of CNY151 million (USD21.1 million) for the first half of this year and CNY703 million for last year, with revenues of CNY190 million and CNY457 million, respectively. Sino-Synergy received over CNY3 billion (USD420 million) of investment in the first three quarters of 2022.

The utilization rate of hydrogen fuel cell stack was nearly 49 percent, and that of hydrogen fuel cell systems was only 20 percent in the first half, as hydrogen fuel cells had not realized commercial application.

The price of hydrogen fuel cell stacks fell to CNY2,400 (USD336) per kilowatt in 2021 from CNY10,500 (USD1,470) per KW in 2017, and is expected to decline further because of technical breakthroughs and large-scale production.

Editor: Martin Kadiev