NEWS

At 2 a.m., a hospital in Hunan is quietly operating as usual. Its oxygen supply system runs around the clock. The equipment comes from Hunan ZOY Technology Co., Ltd., a company based in Changsha Economic and Technological Development Zone. In hospitals, oxygen supply is rarely noticed, yet it cannot stop for a moment. And this “invisible” sector is now on the verge of a trillionyuan industrial transformation.

Ten years ago, Huang Gang, who was then engaged in the air compressor business, made a judgment: oxygen generation would be the next business with high technical barriers. He decided to extend his business from compressed air into oxygen separation, creating a second growth curve. The team then entered the medical oxygen generation sector. Ten years later, ZOY Technology has achieved an expected annual output value of over RMB 120million, serving more than 1,600 hospitals, with its products exported to more than 60 countries and regions.

The company's biggest strength is not its size, but the fact that it has tested itself in places where others were reluctant to go. Its equipment has operated in tunnels along the SichuanTibet Railway at altitudes of around 4,000 meters, aboard the naval hospital ships SilkRoad Ark and AuspiciousArk, in the ruins of the Tingri County earthquake at temperatures below 10°C, and supporting critical oxygensupply lifelines in Wuhan during the COVID19 pandemic. These “extreme scenarios” have become some of ZOY's strongest credentials.

Today, this “little giant” enterprise is quietly gaining ground in China's medical oxygen generation sector. A new 8,000squaremeter workshop has been put into operation, strategic channel cooperation with UIHMedInfo (United Imaging Medical Information Technology) is expanding, and its integrated oxygen generation, solarPV power and hotwater solution has already been put into practical use. Orders are also accelerating. Policy support and market demand are creating a favorable combination of factors, and this company, which has spent ten years building its foundation, is now at a point worth watching.

01 From Air Compressors to Oxygen Generators: A Transformation Driven by Necessity

In 2007, Huang Gang founded Shungao Electromechanical in Changsha, focusing on air compressors and independently developed powder conveying systems. The company served major enterprises including SANY, Zoomlion, XCMG, CRCHI and Shantui Construction Machinery. One product alone generated annual revenue of around RMB 30 million, while total annual sales exceeded RMB 100 million.

But as the market matured, growth began to slow. Huang Gang needed a second growth curve. During his research, he identified an overlooked problem: China has more than one million medical and healthcare institutions, many of which still rely on cylinder oxygen and liquid oxygen. Cylinder oxygen requires frequent replacement, while liquid oxygen involves leakage and transportation risks. Primarylevel hospitals are particularly affected by limited oxygen access.

“An air compressor compresses air, while an oxygen generator separates oxygen. The principles are similar. It is like moving from producing mineral water to making soft drinks,” Huang Gang explained.

Hunan ZOY Technology Co., Ltd. was officially established in September 2015. But the “soft drink” was not easy to make. An air compressor only needs to compress air, while an oxygen generator must separate and purify oxygen. The technical difficulty is on a completely different level. The R&D team repeatedly tackled technical problems and abandoned several designs. Large amounts of capital were invested, yet the products still failed to meet the required standards, putting the company's cash flow under pressure at one point.

It was not until 2019 that ZOY's integrated oxygen generation system passed verification and entered the market. That year, sales were only RMB 1.65 million.

The real test came soon after. As orders increased, the company's heavy dependence on overseas suppliers for key components became a serious problem. Long lead times and limited supply meant that the more orders the company received, the more passive it became.

“Whether they supplied us and when they supplied us depended entirely on them,” Huang Gang recalled.

Huang Gang made a calculation: instead of being held back by supply cycles year after year, the company would be better off increasing R&D investment to achieve import substitution for core components. The team innovated the valve block, integrated complex piping and key components, and promoted domestic substitution of core components.

After the product iteration was completed, overseas suppliers began approaching ZOY instead. Payment terms were relaxed from advance payment to payment upon delivery. By then, however, ZOY had already completed the domestic substitution of all its core components. It took the company five years to move from dependence to greater control.

Today, ZOY's oxygen generation systems can continuously produce oxygen at concentrations above 93% and operate around the clock while significantly reducing energy consumption. Its highpurity oxygen generation systems can achieve oxygen purity of up to 99.5%, serving a wider range of applications.

02 “Extreme Scenarios” as Proof: The SichuanTibet Railway and Naval Hospital Ships

If technological breakthroughs are ZOY's “inner strength”, then a series of major national projects have become its strongest “calling card.”

The SichuanTibet Railway is one of ZOY's most significant projects. More than 80% of the railway is located at altitudes above 4,000 meters, where the oxygen content of the air is only around 60% of that at sea level. With bridges and tunnels accounting for 95.6% of the entire line, and hundreds of kilometers of deep tunnels, oxygen deficiency becomes an even greater challenge in enclosed working environments.

In 2021, ZOY entered the oxygen supply project for the SichuanTibet Railway. By the end of 2025, ZOY had delivered more than 100 sets of largescale professional oxygen supply equipment to 35 engineering bureaus along the Ya'an–Nyingchi section, including the largest 120 Nm³/h oxygen generation system on the entire line.

"On the full SichuanTibet Railway line, our system delivers topranked oxygen concentration and maximum oxygenflow output."

ZOY completed 80% of the oxygen supply projects along the line.

Naval hospital ships presented a different level of challenge. ZOY's oxygen generation systems have been deployed on the naval hospital ships SilkRoad Ark and AuspiciousArk, both of which operate as ClassA tertiary hospitals. Marine environments impose extremely high requirements for corrosion resistance, explosion protection, seismic resistance and weather resistance.

On January 7, 2025, a magnitude 6.8 earthquake struck Tingri County, Xigazê, Tibet. ZOY responded immediately, dispatching personnel from Changsha and its Tibet project base. A fullperformance container integrating oxygen generation, hotwater supply and oxygencylinder filling, worth more than RMB 1 million, was rapidly transported to Changsuo Township, one of the areas most severely affected by the disaster. The equipment was quickly positioned and commissioned, establishing an emergency oxygen generation station at an altitude of more than 4,000 meters and temperatures below 10°C.

ZOY's list of “extreme scenarios” continues to grow. Its oxygen supply project in Hongyuan County, Aba Prefecture, Sichuan, helped the prefecture achieve a breakthrough in centralized oxygen supply. In Yiwu, Zhejiang, a 118unit wholebuilding oxygen supply project is supporting a new concept of healthy premium living.

03 “Oxygen + Hot Water + SolarPV”: A Differentiated Product Approach Put to the Test

In the medical oxygen generation sector, ZOY has not followed a simple equipmentselling model. Instead, it has developed a differentiated product system built around “oxygen + hot water + solarPV”.

The first layer is “oxygen + hot water.” ZOY's fullperformance oxygen and hotwater integrated container combines a compressor system, heat recovery system, oxygen generation system and oxygencylinder filling system. While generating oxygen efficiently, it recovers waste heat to provide hot water. One system therefore addresses two essential hospital needs: oxygen supply and hot water, making fuller use of available energy.

The second layer is “+ solarPV.” ZOY's oxygen generation systems can be equipped with a dual power supply combining solarPV and grid electricity. When sunlight is sufficient during the day, photovoltaic power takes priority. During cloudy weather or at night, the system automatically switches to grid power without interruption, keeping oxygen production running while reducing electricity costs.

In July 2026, ZOY presented its integrated “oxygen + hot water + solarPV” onestop zerocarbon energysaving solution at the 10th China Hospital Energy Conservation Conference in Shanghai. Its 10 Nm³/h outdoor weatherproof integrated oxygen generator operated steadily throughout the event. During a special presentation, the company proposed a threeinone solution integrating core oxygen generation technology, wasteheat recovery for hotwater production, and photovoltaic clean energy. This has evolved from product innovation into a systematic solution addressing hospital energy consumption.

The commercial logic is clear: hospitals are typically highenergyconsuming facilities, with oxygen generation and hotwater supply among their major energy demands. One system addresses three energyrelated areas and creates a closedloop energysaving model. Against the backdrop of tighter medical insurance controls and highquality hospital development, “reducing costs and increasing efficiency” is one of the most practical drivers behind hospital procurement.

04 Capacity, Channels and Overseas Markets Accelerate Together — Opportunities and Challenges Coexist

In January 2026, ZOY's new production workshop in Changsha Economic and Technological Development Zone was completed and put into operation. Covering more than 8,000 square meters, the new facility features an organized production line and planned annual capacity of more than 1,000 units. This gives ZOY greater capacity to undertake largescale procurement orders. The days when the company hesitated to accept orders because it was concerned about delivery capacity are becoming a thing of the past.

Almost at the same time, ZOY entered into a strategic partnership with UIHMedInfo (United Imaging Medical Information Technology). President Zhao Yuxing stated clearly that the company would provide ZOY with deep support through medical channels and industrial investment. The two sides have maintained close interaction since then. In June, Zhao Yuxing led a core team to visit ZOY, and in July, ZOY's team visited UIHMedInfo for a study tour. This twoway cooperation is opening new channels into the medical market.

Overseas, the company is also accelerating its expansion. In July 2026, Hou Xingwang, Chairman of Xingwang Technology Group and President of the Hunan ChinaAfrica Economic and Trade Chamber of Commerce, led a delegation to visit ZOY. The company subsequently decided to use Tanzania as an entry point to introduce ZOY's oxygen equipment into African mining areas and remote regions. The first Tanzanian oxygen project was signed that same month. Previously, in October 2024, 15 integrated oxygen and hotwater containers purchased by the World Bank had been shipped from Changsha to Zambia. From the Dubai Arab Health exhibition to brand stores in the United Kingdom, Germany and Bangkok, Thailand, ZOY's products have now entered more than 60 countries and regions worldwide.

The production base is being strengthened, and distribution channels are gradually expanding. But whether the market will fully embrace the company still depends on the broader industry. The medical oxygen generation sector is currently undergoing three structural changes.

1. Safetydriven substitution: Oxygen cylinders operate under pressures of around 150 kg/cm², while liquid oxygen is stored at around 183°C. Storing both within hospital premises involves significant safety risks. With oxygencylinder safety incidents occurring over the years, an increasing number of hospitals are turning to quieter and more energyefficient PSA oxygen generation systems.
2. Policydriven development: In July 2026, ZOY's “Medical Molecular Sieve Central Oxygen Generation System” was included in the ClassII priority medicaldevice reviewandapproval program in Hunan Province. As industry requirements become stricter, resources are increasingly moving toward compliant leading companies.
3. Expansion of application scenarios: Emerging markets such as highaltitude oxygen supply, civilian health and elderlycare oxygen are gaining momentum. In January 2026, ZOY was recognized as a "ThreeProduct Initiative" benchmark enterprise in Hunan and was the only oxygengeneration company selected. Its current product portfolio covers six sectors: medical, civilian, military, highaltitude, overseas and smart aquaculture applications.

But opportunity does not mean every company will benefit. ZOY has differentiated itself through the integrated “oxygen + hot water + solarPV” solution, but the path is not wide. Once leading companies decide to pursue integrated solutions, or use price competition to capture market share, ZOY will need to maintain its firstmover advantage.

There are also uncertainties in the technology route. PSA oxygen generation is not unique to ZOY. Companies such as Peking University Pioneer continue to advance largescale oxygen generation equipment for industrial combustionsupport applications. If technologies such as membrane separation make further breakthroughs, existing barriers could potentially be bypassed.

In addition, payment cycles for public hospitals and nationallevel projects are generally long. As orders increase, accounts receivable can accumulate more quickly. As a nonlisted company, ZOY has relatively limited financing channels, making its financial pressure worth continued attention. At the same time, expanding from medical oxygen into civilian health, highaltitude engineering and smart aquaculture stretches the company's business boundaries considerably. Whether its management capabilities and talent pool can keep pace will also be an important challenge.

Conclusion

From entering the medical oxygen generation sector in 2015 after years in the air compressor business to reaching an expected annual output value of RMB 120 million in 2026, ZOY Technology has spent a decade completing its transition from “air compressors” to “oxygen generators.”

What makes the company distinctive is that it has not simply pursued incremental growth within its comfort zone. Instead, it has built its capabilities through extreme operating environments. The tunnels of the SichuanTibet Railway, the decks of naval hospital ships and the earthquakestricken areas of Tingri County — these “extreme scenarios” have become ZOY's strongest brand credentials and a barrier that competitors may find difficult to replicate.

For ZOY, 2026 is a critical year for moving “from 1 to N.” The new 8,000squaremeter workshop is releasing additional capacity; strategic cooperation with UIHMedInfo is opening new channels; solarPVrelated products are continuing to gain market validation; overseas expansion is accelerating with Africa as a foothold; and the ClassII priority medicaldevice reviewandapproval process is advancing.

Capacity, channels, products, policy and overseas markets — five factors are beginning to converge. For this “invisible champion,” which remains relatively unknown to the capital market, the key questions for the next decade will be how to continue expanding its market share amid competition from major players, and how to develop its three growth curves — medical oxygen, highaltitude oxygen and civilian applications — at the same time.