Pure Hydrogen Advances Clean Transport Amid $14.7M Asset Impairment

Financial Highlights and Asset Revaluation

Pure Hydrogen Corporation Limited (ASX – PH2), soon to be renamed Pure One Corporation Limited, has released its full year results for FY2025, revealing a mixed financial picture. The company reported revenue growth to $4.55 million, a 75% increase from the previous year, reflecting growing traction in its clean technology offerings. However, this positive top-line development was overshadowed by a substantial non-cash impairment charge of $14.684 million, primarily related to its gas assets, with a smaller portion attributed to hydrogen assets.

This impairment follows an auditor recommendation for an independent valuation to ensure compliance with Australian accounting standards. While the charge significantly impacted reported profits, Pure Hydrogen emphasized that its balance sheet remains conservatively stated and free of debt, with $2.09 million in cash at year-end.

Expanding Clean Technology and Market Reach

Beyond the numbers, Pure Hydrogen is advancing a diversified portfolio focused on clean commercial transport solutions. The company designs and assembles proprietary hydrogen fuel cell and battery electric commercial vehicles, including heavy trucks, buses, and specialized equipment. Its technology is built from the ground up rather than retrofitting existing vehicles, aiming for efficiency and compliance with Australian Design Rules and international standards.

Internationally, Pure Hydrogen is making strategic inroads, notably through a landmark US$28 million agreement with Mexico’s GreenH2 LATAM to supply hydrogen equipment, including electrolysers and refuelling infrastructure. The company also targets expansion into North America and Europe, leveraging partnerships and distributor agreements to scale its footprint.

Gas Asset Spinout and Strategic Outlook

In a significant corporate development, Pure Hydrogen is progressing the spinout of its Australian gas assets under the Eastern Gas banner. The IPO process is being refined to balance equity dilution and align with forward work programs, with a priority offer planned for existing shareholders. This move aims to unlock value and sharpen the company’s focus on its clean technology growth trajectory.

Management remains optimistic about the underlying value of its gas and hydrogen assets, citing improved gas prices, government support, and technological advancements. The company’s clean transport solutions benefit from a growing order pipeline with blue-chip customers and government stimulus programs, positioning it well in the evolving zero-emission vehicle market.

Looking Ahead

Pure Hydrogen’s FY2025 results underscore the challenges and opportunities in transitioning to a clean energy future. While the impairment charge signals caution, the company’s strategic initiatives in technology development, international expansion, and asset restructuring suggest a proactive approach to capturing emerging market potential.