Sinopec Capital held a workshop on hydrogen strategy and investment logic.

On the workshop, Mr. Huang Wensheng, Chairman of Sinopec Capital, underlined that Sinopec Group is poised to build the largest hydrogen company in China in its 14th Five-Year Program. As well positioned to focus on New Energy, New Materials and New Economy in Sinopec’s industrial structure, Sinopec Capital is committed to catalyze the capital investment in the three new areas aforementioned, so as to serve as the new engine to shore up Sinopec’s transformation and upgrading.

Through illustrative lecture and interactive discussion, Mr. Huang Wensheng shared his observation on hydrogen industry and investment logic. First, he presented his views on Smiling Curve. Given the different valuations in different development phases across hydrogen value chain, he emphasized that analysis shall be tailored to different development phases and from different angles. Second, he applied the valuation model of hydrogen value chain and made comparative analysis on investment valuation across different phases of the value chain, including hydrogen production, storage, transportation, fuel cell, HRS and OEM, so as to navigate the investment direction and target. Thrid, he briefed on the investment methodology deriving from the investment logic of Sinopec Capital. As the Chinese ancient saying goes, it is more helpful to teach people how to fish than to just give them fish. Mr. Huang introduced CANSLIM, the seven-criteria investment system created by William J. O'Neil. Last but not least, he encouraged all the employees to strive for entrepreneurship, innovation, and value creation through continuous improvement and capacity building.
On the workshop, the attendees of the company brushed up on the relevant statements from Xi Jinping’s Thought of Ecological Civilization and the key messages on peaking carbon and carbon neutrailizaiton from Xi Jinping's statement at the general debate of the 75th session of the UN General Assembly. Colleagues from Industry Investment Management Department made a presentation on hydrogen value chain and provided proposals for the investment logic and strategy.