On October 28, Hemei Group announced on an interactive platform that its hydrogen-electric shared bikes have been officially deployed in Xiaoyi (Shanxi), Henan, Inner Mongolia, and Anhui. These bikes, powered by a hybrid system of hydrogen fuel cells and lithium batteries, boast a single-charge range of 120 kilometers and a hydrogen refueling time of under one minute, making them more suitable for high-frequency sharing scenarios compared to traditional e-bikes.

Just days earlier, Hemei Group released a remarkable Q3 report: net profit surged 706.30% year-on-year, with revenue reaching 456 million yuan, up 190.21%. Once struggling with losses as a fashion retailer, the company is now undergoing a dramatic transformation through its hydrogen energy strategy.

**1. Dramatic Turnaround: From Millions in Losses to 60 Million Quarterly Profit** Hemei Group’s Q3 2025 report revealed total revenue of 456 million yuan for the first three quarters, a 190.21% increase year-on-year, while net profit attributable to shareholders rose 262.26% to 51.75 million yuan. The standout was Q3 alone, with net profit soaring 706.30% to 61.75 million yuan—marking its first profitable quarter since Q2 2023. Basic earnings per share for Q3 jumped 703.85% to 0.0471 yuan. This contrasts sharply with the same period in previous years, when the company reported losses of 61.68 million yuan (2022), 47.20 million yuan (2023), and 31.89 million yuan (2024). The surge was attributed to a significant increase in energy sales.

**2. Strategic Pivot: From Fashion Retail to Hydrogen Energy** Originally a Shenzhen-based fashion retailer specializing in international brands, Hemei faced mounting pressure as traditional retail declined. In January 2023, the company completed bankruptcy restructuring, with Zheng Zihao—son of Zheng Peng, chairman of Shanxi’s billion-dollar private enterprise CHINA PENGFEI—taking control. By early 2024, Hemei shifted focus to hydrogen energy, partnering with Pengfei Green Energy to establish Pengfei Hemei as its energy division.

The transformation accelerated: in 2024, Hemei acquired five LNG refueling stations and one LNG-hydrogen hybrid station while deploying 500 hydrogen-electric bikes. By H1 2025, energy sales and refueling generated 239 million yuan (75.15% of total revenue), a segment that had contributed nothing the prior year.

**3. Hydrogen Expansion: From Energy Stations to Green Hydrogen Production** Hemei’s hydrogen strategy spans multiple sectors. Its bike-sharing operations in four provinces earned 1.36 million yuan in 2024. The company is also rapidly expanding refueling infrastructure, including a 25-million-yuan integrated energy hub in Wuxiang. Upstream, it invested in two wind-solar hydrogen/methanol projects in Shanxi and Inner Mongolia. In September 2025, subsidiary Pengfei Hemei (Ningcheng) secured approval for a 3.135-billion-yuan wind-powered hydrogen project—a key part of Pengfei’s 11.2-billion-yuan Ningcheng hydrogen initiative.

**4. Backing from CHINA PENGFEI: A Billion-Dollar Advantage** Hemei’s transformation is bolstered by its ties to CHINA PENGFEI, a coal-founded Shanxi conglomerate that became the province’s first private enterprise to surpass 100 billion yuan in revenue. Designated as Shanxi’s hydrogen industry “chain leader” in 2023, Pengfei has been developing a comprehensive hydrogen ecosystem since 2019. Pengfei’s executives joined Hemei’s board, and the group pledged to transfer hydrogen assets to Hemei to avoid competition, enabling faster, lower-risk market entry.

**5. Future Plans: Doubling Down on Hydrogen** Hemei aims to deepen its hydrogen strategy in 2025 by: - Expanding integrated energy stations into “oil-gas-hydrogen-electric” networks. - Scaling green hydrogen/methanol projects in Shanxi and Inner Mongolia. - Broadening bike-sharing deployments to test small-scale hydrogen tech viability.

Analysts note that China’s inclusion of hydrogen in its inaugural *Energy Law* signals growth opportunities, though high costs remain a hurdle. With Pengfei’s support, Hemei’s hydrogen journey appears poised for further gains. As its bikes roll out across four provinces and new projects come online, the company’s profit surge may be just the beginning.