HAIWEI ELEC (09609) has issued a statement concerning its investment in Sungrow Hydrogen Technology Co., Ltd. ("Sungrow Hydrogen"), providing an update on the matter. On 17 April 2026, the company entered into a share purchase agreement with Sungrow Hydrogen, all of its then-existing shareholders, and two additional independent investors.
Under the agreement, the company agreed to subscribe for 1.154 million newly issued shares of Sungrow Hydrogen for a total consideration of RMB 20 million, representing approximately 0.2825% of its enlarged share capital (the "Investment"). The consideration for the Investment was determined through fair negotiations among the relevant parties, taking into account, among other factors, Sungrow Hydrogen's business development and prospects, the outlook for the industry in which it operates, its financial position, and valuations associated with previous financing rounds and the round in which the company participated.
The Investment was completed on 28 April 2026 in accordance with the terms of the share purchase agreement. Sungrow Hydrogen is a professional hydrogen equipment manufacturer established in China in 2021. It is a subsidiary of Sungrow Power Supply Co., Ltd. ("Sungrow Power Supply"), a leading enterprise in the global new energy industry whose shares are listed on the Shenzhen Stock Exchange (stock code: 300274).
Sungrow Hydrogen focuses on water electrolysis hydrogen production technology. Its main products include alkaline electrolyzers, PEM electrolyzers, PWM hydrogen production power supplies, gas-liquid separation equipment, hydrogen purification equipment, and intelligent hydrogen management systems. As a hydrogen equipment manufacturer, Sungrow Hydrogen's operations fall within the downstream application segment served by the group's capacitor film products.
Consequently, it is anticipated that the Investment will foster closer collaboration between the group and Sungrow Hydrogen along the industrial value chain, support the expansion of the group's capacitor film sales, and strengthen the long-term strategic relationship between the two parties. As a subsidiary of Sungrow Power Supply, Sungrow Hydrogen benefits from Sungrow Power Supply's research and development capabilities and industry resources, which are expected to support the continued growth of its business and create further opportunities for cooperation with the group.
Given the long-term development prospects of the green hydrogen industry, the Investment also provides the group with the opportunity to benefit from potential value appreciation arising from Sungrow Hydrogen's future business growth. After considering the above factors, the board believes that the terms of the Investment were agreed on normal commercial terms following fair negotiations, and that the consideration for the Investment is fair and reasonable and in the overall interests of the company and its shareholders.
On 10 August 2026, Sungrow Hydrogen completed a new financing round in which the company did not participate. Following the completion of that round, Sungrow Hydrogen's implied post-investment valuation increased by approximately 2.0% to approximately RMB 7,223 million compared to the time of the Investment, while the company's equity interest in Sungrow Hydrogen was slightly diluted to approximately 0.2769%.