The hydrogen production business via water electrolysis has significantly ramped up, fulfilling growth expectations. GUOFUHEE (02582) has strongly entered a new growth phase.

The year 2026 marks the beginning of the comprehensive implementation of the "15th Five-Year Plan," with clearer policy expectations for the hydrogen energy industry and a gradually established systemic development framework. The industry is transitioning from demonstration and validation to large-scale applications; however, the pains of this transformation remain evident. Companies in related sectors are increasing their phased investments while facing short-term profit pressure, which is a challenge that most hydrogen energy companies must confront during this stage. GUOFUHEE (02582), immersed in this landscape, delivered a report card in the first half of the year that warrants careful analysis. During the reporting period, the company achieved total revenue of approximately 104 million yuan, maintaining a steady pace with the previous year's results. Given the dual backdrop of structural adjustments in the industry and its own strategic transformations, achieving this level of performance is no small feat. More noteworthy is the structural change behind the revenue data. In the first half of the year, GUOFUHEE's revenue from its water electrolysis hydrogen production business surged over 15 times year-on-year to approximately 60.77 million yuan, increasing its share of total revenue from 3.4% in the same period last year to 58.4%. This indicates a fundamental change in the company's revenue structure, with water electrolysis hydrogen production officially taking over as the main business. In GMTEight's view, the interim report from GUOFUHEE reveals not just short-term financial shifts of a leading company in the entire hydrogen energy value chain, but also highlights a qualitative change in the company's medium- and long-term growth logic. Looking at GUOFUHEE's new growth logic through the changes in its revenue structure As ordinary investors examining the financial reports of listed companies, we often focus closely on the most direct numbers: revenue and profit. However, at certain specific stages of development, these two indicators may not fully reflect a company's true state, especially during transitional phases of strategic transformation. Increased R&D investments, adjustments in product structures, and expansions in market layouts can all disturb short-term profits. At this time, some structural data hidden behind the profit and loss statement tend to reveal the true texture and direction of an enterprise. For GUOFUHEE's recently disclosed performance for the first half of 2026, the structural changes are more indicative than general metrics such as revenue and profit. The company's interim report shows that while overall revenue scales remained stable, GUOFUHEE's revenue from the water electrolysis hydrogen production business soared to 60.77 million yuan, nearing 60% of its total revenue, marking this business's entry into a substantial return phase. At the same time, the company's key implementation of its liquid hydrogen strategy has also achieved a phased breakthrough, with liquid hydrogen storage and transportation, as well as low-temperature equipment, moving from the technical development stage to commercialization. Positive progress has been made in the market application of equipment related to liquid hydrogen storage and refueling, and the domestically first set of 10 tons per day hydrogen liquefaction equipment is ready for large-scale production, with a liquid hydrogen cross-region transportation demonstration project proceeding in an orderly manner. Similarly, the revenue from GUOFUHEE's hydrogen refueling station equipment and related products has also seen significant growth, with this business achieving a year-on-year increase of 55.2% to 21.712 million yuan during the period. While focusing on high-value application scenarios such as liquid hydrogen and low-temperature equipment, GUOFUHEE has proactively streamlined its business in vehicle-mounted high-pressure hydrogen supply systems and related products. Thanks to continuous optimization of the product mix, GUOFUHEE's gross profit in the first half of the year surged 161.5% year-on-year to 2.48 million yuan, with the corresponding gross margin improving from 0.9% in the same period last year to 2.4%. The main driver behind this improvement is the strong profitability exhibited by the company's large-capacity water electrolysis hydrogen production equipment. In response to the rapidly growing new business of water electrolysis hydrogen production, GUOFUHEE has continuously increased its R&D investments, with R&D spending soaring by 46.6% year-on-year to 24.6 million yuan during the period. Due to the significant increase in R&D spending, as well as one-time or non-recurring items such as foreign exchange losses and tax factors, GUOFUHEE's net profit indicator remains under pressure during the period. However, considering that reinvesting in R&D is a necessary cost during the phase of innovative development and transformation, these investments will inevitably convert into stronger long-term growth momentum after the period of accumulation ends. From the perspective of financial stability, as of June 30, GUOFUHEE's asset-liability ratio has further decreased from 59.2% at the beginning of the year to 57.9%, with the capital structure continuing to optimize. This indicates that while increasing R&D investment and accelerating business transformation, the company has maintained good financial discipline and risk resistance. Overall, the profits under pressure reflect the company's strategic choice of exchanging short-term investments for long-term growth space, rather than a deterioration in operational quality. With a healthy backlog of orders, growth momentum is strong under favorable policies After a strategic build-up in the first half of the year, GUOFUHEE's multiple growth forces are accelerating their convergence, and I believe the company's performance in the second half is quite promising. Firstly, the benefits of policy support are being rapidly unleashed. The "15th Five-Year Plan" has positioned hydrogen energy as a "future industry" for forward-looking layout, clearly stating the need to improve the level of renewable energy hydrogen production equipment and accelerate breakthroughs in large-scale hydrogen storage and transportation technology. In March of this year, three ministries jointly issued a notice on launching hydrogen energy comprehensive application pilot projects, aiming for terminal hydrogen prices to fall below 25 yuan/kg by 2030 and for fuel cell vehicle ownership to strive to reach 100,000 units. According to predictions from institutions like the China Hydrogen Energy Alliance, by 2030, the proportion of green hydrogen in China is expected to exceed 30%, with the total industry chain output value potentially surpassing one trillion yuan. At the international level, the EU's Carbon Border Adjustment Mechanism (CBAM) has officially entered the collection phase, further reinforcing the urgency for green hydrogen alternatives. As one of the few integrated leaders capable of "producing, storing, transporting, and using," GUOFUHEE's positioning advantage is particularly prominent under the dual drive of domestic policies and international carbon constraints. In addition to the favorable external environment shaped by policy direction, GUOFUHEE's internal growth momentum is equally strong, with a robust backlog of orders providing solid support for subsequent performance growth. As of early May this year, the company's backlog had reached 560 million yuan, far exceeding the total revenue level for the year 2025, with an annual order target set at 1 billion yuan. In the domestic market, the Shandong Hi-speed 21.27 million yuan PEM hydrogen production demonstration project is the first "zero-carbon service area + PEM hydrogen production + energy storage" comprehensive demonstration in highway scenarios nationwide; the 1.5 billion yuan new energy coupling green electricity project of Jiujang Power is equipped entirely by GUOFUHEE; and the 320.5 million yuan project for five hydrogen refueling stations in Guangdong YunTao is steadily advancing. In the overseas market, the 5.1 million USD electrolysis cell assembly kit for Advait in India has entered the delivery stage, with the Indian assembly plant having rolled out its first 5 MW electrolysis cell in March, capable of delivering at least 300 MW of equipment annually; the 6.2 million USD 20 MW hydrogen production system in Morocco is also progressing smoothly. These orders cover various segments, including hydrogen production equipment and hydrogen refueling station construction, and are expected to gradually reflect in GUOFUHEE's reports. The breakthroughs in new business scenarios are also noteworthy. In the field of green electricity security for data centers, GUOFUHEE signed an agreement in May this year with Charoen Pokphand Group in Thailand and its joint venture Hydro Data to carry out a 3 MW pilot project in Rayong, which is part of a total capacity 100 MW integrated energy system for data centers. The North American 10 MW data center power generation demonstration project is also advancing steadily, and if the demonstration validation is successful, data center power supply is expected to become another important growth driver following water electrolysis hydrogen production. In summary, I believe the catalysts for GUOFUHEE's second-half performance are already clear. Based on the official transition of the water electrolysis hydrogen production business to become a new growth engine, alongside the release of policy dividends, the concentration of order deliveries, and the acceleration of new scenarios, these positive factors are expected to significantly drive the company's performance recovery in the second half. As the commercialization turning point of the hydrogen energy industry approaches, this company, equipped with full-chain capabilities, a global perspective, and robust order support, is poised for its long-term value to shift from "expectation" to "realization."