China Xuyang Group (01907): Innovation Empowers Growth Resilience, Comprehensive Efforts to Expand Development Space

Zhitong Finance App learned that in 2025, in the face of an uncertain objective environment, China's Xuyang Group (01907) is innovation-driven and service-led, making collaborative efforts in business development, technology upgrading, deep market cultivation and internal management. From a stable position as the core main business in coking, to putting the new chemical material amino alcohol into production and implementation, to high-purity hydrogen sales reaching new record highs and continuing to expand overseas business layout, breaking through multiple barriers, overcoming multiple challenges, and gaining new progress and growth. Since its establishment in 1995, Xuyang has moved from Hebei to the whole country, from domestic to overseas, established a national layout, and strived to expand from coking and chemicals to the fields of new energy and new materials. It has laid out 9 major production parks around the world, with 8 national high-tech enterprises, 6 national green factories, 1 provincial green factory, 2 municipal green factories, 407 patented technologies, 542 proprietary technologies, and 405 master's degree talents.

Build a global supply and marketing network and build global competitiveness

With Xuyang Indonesia's 3.2 million tons/year coking project put into operation in July 2023, it has successively established long-term strategic partnerships with large international steel companies in Southeast Asia, South America, India, Europe, etc., and played a prominent role as a “bridgehead” for Xuyang's overseas business development. In May 2025, Xuyang Weishan New Energy (Indonesia) Co., Ltd. successfully obtained the “RISUN” trademark certificate covering various product categories in the fields of chemistry, agriculture, food, medicine and industrial manufacturing, providing legal protection for Xuyang's diversified business development and marketing of new products in the Indonesian market. Xuyang also collaborated with several other leading companies in the industry as founding members to actively promote the establishment of the Indonesian National Coking Industry Association, thus strengthening the overall coordination of the industry, forming a smoother docking mechanism with the Indonesian government and relevant departments and more unified coordination and guidance for various coking enterprises. It is conducive to setting the direction of the industry, consolidating industry forces, organizing the industry order, optimizing the industry environment, protecting industry rights and interests, and ensuring better and faster development of the industry and industry enterprises. It is more in line with Indonesia's economic and social requirements to achieve mutual benefit and win-win situation for all parties to jointly maintain and promote the Indonesian coking industry healthy and stable development.

Furthermore, the Brazilian office of Xuyang Group was formally established in Belo Horizonte on August 19, 2025, making it the first office established by Xuyang in the Americas. The office will not only serve the local market in Brazil, but will also cover all of Latin America, marking a new step in the internationalization process of Xuyang's business. Up to now, Xuyang Group has established 11 overseas subsidiaries and offices in Hong Kong, Indonesia, Singapore, Japan, etc., covering 41 countries and regions. On July 8, 2025, Xuyang Group was also successfully selected for the “China Brand Internationalization Benchmark 100” list. This series of achievements not only highlights Xuyang's growing influence in the global market, but also lays strong support for future sustainable development.

Adhere to the development of a park-based layout and establish a solid industrial carrying capacity

After starting a business, Xuyang gradually proposed the idea of vertically integrated development, and established a park-based development model in 2003. The park-based layout of the industry is a concrete implementation of Xuyang's vertical integration development model.

The 1.0 version of Xuyang Park focuses on coking, and the 2.0 version adds the chemical industry. It has now reached version 3.0, which is a multi-industry layout based on one or two industries. They not only develop independently, survive separately, but also link, support, complement, and collaborate with each other, forming a coupling effect and showing unique advantages.

Xuyang has production parks in strategic regions such as China's provinces (autonomous regions) and Indonesia. Those with an annual revenue of more than 10 billion yuan are striving for 20 to 30 billion yuan, those with an annual revenue of more than 5 billion yuan are striving for 10 billion yuan, and standardizing comprehensive supporting management centers, R&D centers, data centers, command and dispatch centers, and administrative service centers. The Xuyang Park is built according to the integrated, large-scale, intensive, ecological and intelligent “five modernizations” model to form a “seven unified” management model of unified planning and development, unified infrastructure, unified operation and management, unified energy management, unified logistics and transportation, unified safety and environmental protection, and unified R&D and innovation. It is an important carrier for the Xuyang industry.

Xuyang's vertically integrated park development model is both innovative and in line with industrial reality, and is a reflection of Xuyang's comprehensive competitiveness.

Increase innovation breakthroughs to achieve the efficiency of the only domestic amino alcohol industrialization device independently developed by Xuyang

Amino alcohol is a high-performance additive, the full name of “2-amino-2-methyl-1-propanol”. It is widely used in many fields such as electronics, new energy, cosmetics, high-end coatings, metal precision cutting, pharmaceutical pesticide intermediates, carbon capture, etc., but the synthesis process is complicated and the reaction conditions are harsh. Xuyang's amino alcohol research and development team, with many PhDs as the backbone, went through small tests, pilot testing, process development, and industrialization. It took ten years to overcome a series of core key technologies, formed the Xuyang amino alcohol industrialization technology system protected by 15 patents, pioneered a new green, safe and environmentally friendly amino alcohol synthesis process, and built and put into operation a 5,000 tons/year amino alcohol industrialization device in July 2025 to break foreign technology monopolies and fill the gap in the domestic industry. The product purity reached grade 3N, showing that the metal impurities reached PPb grade. Excellent market competitive advantage. For example, in the field of new energy batteries, Xuyang amino alcohol significantly improves electrochemical stability and safety performance with excellent chemical purity and stable electrochemical performance; in the biomedical field, Xuyang amino alcohol ensures excellent biocompatibility and safety of use by completely removing potentially allergenic components and adverse reactions, and has become a high-quality raw material solution for high-end pharmaceutical preparations and effective skin care products; etc.

This is another major breakthrough of the Xuyang Group in the field of new high-end fine chemical materials. It has strongly promoted the development of China's fine chemical industry, and Xuyang has become the second enterprise in the world to industrially produce amino alcohols. Up to now, Xuyang amino alcohol has been sold all over the country and many countries such as the United States, Japan, South Korea, India, the Netherlands, Italy, etc., and has passed EU REACH certification, and is deeply integrated into cutting-edge industrial chains such as high-end coatings, carbon capture solvents, and electronic materials. It has been widely recognized and highly praised by domestic and foreign customers, and the repurchase rate continues to rise. In the future, Xuyang Group will also expand production in an orderly manner according to the global market space, further innovate and enrich the amino alcohol series products, build multiple product lines using amino alcohol as a platform, and build another advantageous industrial chain where Xuyang leads the global circuit.

Reached a record high in high-purity hydrogen sales and reached the highest certification standard for clean hydrogen in the world

Judging from the accurate annual data so far, Xuyang's high-purity hydrogen sales volume for the full year of 2025 is expected to reach a record high. While further consolidating the foundation of Xuyang's hydrogen energy industry, it has consolidated its position as the second-largest supplier of high-purity hydrogen in the country and the largest high-purity hydrogen supplier in Beijing-Tianjin-Hebei.

Xuyang Group began substantial construction and layout of the hydrogen energy industry in 2020. So far, it has achieved excellent results in manufacturing, storage, transportation, research, and use. It already has 5 high-purity hydrogen production lines with a total production capacity of 34 tons/day, 5 hydrogen fueling stations with a total filling capacity of 7 tons/day, obtained hydrogen transportation qualifications for hazardous chemicals and its own hydrogen transport fleet, and joined upstream and downstream enterprises to build hydrogen energy heavy truck application scenarios in the Beijing-Tianjin-Hebei region, and develop innovation and promote green hydrogen preparation technology such as PEM electrolyzers and AEM electrolyzers. Aerospace 101 will build the country's first 5-ton/day liquid hydrogen unit (expected to be ready in Production will begin in the first half of 2026). Furthermore, for three consecutive years, Xuyang Hydrogen Energy has passed the “Low Carbon Hydrogen, Clean Hydrogen and Renewable Hydrogen Standard and Evaluation” certification on the national hydrogen energy and fuel cell vehicle demonstration evaluation platform, and achieved a carbon emission intensity of 0.49 kg/kGH₂ far lower than the 4.4 kgCO₂ e/kGH₂ upper limit required by the European Union, indicating that the carbon emissions of Xuyang hydrogen products throughout the life cycle have reached the best global standard.

100% dividend, received attention and recognition from the capital market

Although the company promised a dividend of no less than 30% of net profit at the beginning of the listing, at this special milestone in 2025, Xuyang gave back 100% of last year's net profit to investors, and continued to repurchase and increase its holdings. Directors and executives increased their holdings by 6.894 million shares, and the majority shareholders increased their holdings by 654.81 million shares. Listed companies have repurchased a total of 227.03 million shares, 84 times that of the initial listing. We also continue to communicate with domestic and foreign investment institutions and brokerage analysts, organize anti-roadshows, and deepen the capital market's understanding and understanding of the company. It is worth mentioning that Xuyang received research coverage from 9 brokerage agencies this year, giving “buy” and “increase” ratings. Among them, Phillip Securities and Global Fusheng were overseas brokerage firms, and the group was first covered by a “buy” rating in the second half of 2025. At the same time, with its well-developed corporate strength and outstanding performance in the capital market, the Group has successively won the “Sustainability Information Disclosure Excellence Award”, “2025 Hong Kong International Forum Best ESG Digital Innovation Application Award” and “2025 China Listed Company Yinghua Award” and other awards and honors in various fields including investor relations, information disclosure, ESG practices and corporate governance, and has been ranked among the Fortune 500 listed companies in China for the 7th time in a row.

Facing the future, Xuyang Group has formulated a new five-year development plan (2026-2030) and a ten-year development plan (2026-2035), using longer-term goals to guide Xuyang's development. Through fully demonstrated long-term planning and strategic guidance, the group can maintain strength even in the face of more complex situations, and make every effort to build a world-renowned “industry+service” group with more restraint, maturity and stability, and a clear direction. Following this path, China's Xuyang Group will continue to adhere to the corporate tenet of “creating wealth, perfect life”, commit to the corporate vision of “the world's leading energy and chemical company - innovation leads the future”, firmly implement “the national strategy is Xuyang's greatest strategy, and the needs of the times are the way forward for Xuyang”, lay down burdens, forget past achievements, lose mature experiences, break the established traditions, and return everything to zero. Go to war lightly, keep up with the times, keep up with society, keep up with the country, and work hard, create a better tomorrow and create the next more Thirty glorious years.