SINOHYTEC (02402) shares surged 8.78% in intraday trading, continuing its upward momentum from the previous day. The stock's impressive rally comes on the heels of the company's latest financial report and positive industry developments in the fuel cell vehicle sector.

Despite reporting a decline in total operating revenue and a wider net loss for the first three quarters of 2025, investors were encouraged by SINOHYTEC's improved cash flow position. The company's net operating cash flow turned positive at RMB4.61 million, a significant turnaround from the negative RMB221 million reported in the same period last year. This improvement was attributed to strengthened accounts receivable collection and optimized supply chain and workforce management.

Adding to the positive sentiment, Guojin Securities highlighted favorable policy developments for the fuel cell vehicle industry. Multiple provinces have introduced toll exemption policies for hydrogen-powered highways, signaling a potential breakthrough for fuel cell vehicle applications. With 2025 marking a crucial year for China's hydrogen energy plan, analysts 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, further fueling investor optimism and driving the stock's significant price increase.