SINOHYTEC (02402) saw its stock price soar by 8.78% in intraday trading, continuing its upward momentum from the previous day. The surge comes on the heels of the company's latest financial report, which revealed a significant improvement in cash flow despite challenges in revenue and profitability.

According to the financial results, SINOHYTEC's net operating cash flow turned positive at RMB4.61 million for the first three quarters of 2025, a notable turnaround from the negative RMB221 million reported in the same period last year. This improvement was attributed to enhanced accounts receivable collection and optimized supply chain and workforce management. However, the company still faced headwinds, with total operating revenue declining 67.31% year-on-year to RMB104 million, and net losses attributable to shareholders increasing to RMB311 million.

The stock's rally is further fueled by positive industry developments and future expectations. Guojin Securities highlighted that several provinces have introduced toll exemption policies for hydrogen-powered highways, signaling a potential breakthrough for fuel cell vehicle applications. With 2025 marking the final year of China's demonstration city cluster policy and a milestone in its long-term hydrogen energy plan, investors anticipate accelerated fuel cell vehicle production and additional supportive policies. As a leading fuel cell component manufacturer, SINOHYTEC is well-positioned to benefit from these industry tailwinds, driving investor optimism and contributing to the stock's significant uptick.