Xiaomi is set to become the third-largest shareholder in Sunwoda Electric Vehicle Battery Co Ltd (Sunwoda EVB) through a planned investment of $254.5M (~AUD 361.3M). The move comes as Sunwoda restructures its EV battery business and cancels its Hong Kong listing plans.
Xiaomi’s Planned Investment in Sunwoda EVB
Xiaomi plans to invest $254.5M (~AUD 361.3M) for a 5.34% stake in Sunwoda EVB, according to a filing released on October 30. This investment will make Xiaomi the third-largest shareholder in the battery subsidiary.
The investment will be made through Xiaomi’s wholly owned subsidiary Hanxing Venture Capital Co Ltd. The capital increase agreement has been signed, but the transaction still requires approval from Sunwoda’s shareholders.
Sunwoda Restructures Battery Subsidiary and Cancels Hong Kong Listing
Alongside the investment announcement, Sunwoda revealed it is terminating plans to issue H shares and list Sunwoda EVB on the Hong Kong stock exchange, citing market conditions and changes within the company.
Following the capital increase, Sunwoda’s stake in Sunwoda EVB, held through Sunwoda Huizhou New Energy Co Ltd, will fall to 22.78% from 24.06%. Sunwoda will remain the largest shareholder but will lose control of the subsidiary after a board reshuffle, holding no more than half of the board seats and no longer consolidating Sunwoda EVB’s financial statements.
Financial Impact and Recent Performance
Sunwoda estimates that the accounting treatment associated with the deconsolidation will increase its 2026 net profit by 3.2 billion to 4.5 billion yuan. The final impact will be subject to audit and shareholder approval.
In the first three quarters of 2026, Sunwoda’s revenue rose 45.78% year-on-year to 63.46 billion yuan, while net profit attributable to shareholders fell 56.37% to 613 million yuan. Sunwoda EVB reported revenue of 15.53 billion yuan and a net loss of 324 million yuan in the first half of 2026. Sunwoda’s shares closed down 4% in Shenzhen on October 30.
Existing Partnerships and Industry Context
Xiaomi and Sunwoda EVB have an established supply relationship, with a strategic partnership announced on September 4. The Dragon Armour co-developed by Sunwoda EVB is already used in Xiaomi’s Sky Nomad series.
This investment follows a similar move by Li Auto, which announced a 2.65 billion yuan investment for an 8.79% stake in Sunwoda EVB in September. Li Auto and Sunwoda also formed a joint venture in 2025 to manufacture Li Auto’s in-house developed batteries. After Xiaomi’s investment, Li Auto’s stake will fall to 8.32%, remaining the second-largest shareholder.
Why this matters
Xiaomi’s planned investment marks a significant shift in the ownership structure of one of China’s major EV battery suppliers. The move highlights the growing involvement of technology companies in the EV battery sector and reflects ongoing changes in the competitive landscape.
Sunwoda’s restructuring and the entry of new investors like Xiaomi and Li Auto could influence future collaborations and supply chain dynamics within the Chinese EV industry.
What this means for buyers
Buyers interested in Xiaomi’s EVs or those using Sunwoda batteries may see continued collaboration between the two companies. However, there are no immediate changes to product offerings or technology as a result of this investment.
Those following the Chinese EV market should watch for further developments in battery partnerships and supply arrangements as Sunwoda adjusts its business strategy.
Key Specs
- Xiaomi Investment Amount: $254.5M (~AUD 361.3M)
- Xiaomi Stake in Sunwoda EVB: 5.34%
- Sunwoda Stake After Capital Increase: 22.78%
- Sunwoda EVB Revenue (H1 2026): $2.3B (~AUD 3.3B)
- Sunwoda EVB Net Loss (H1 2026): $48.5M (~AUD 68.9M)
- Sunwoda Revenue (Q1-Q3 2026): $9.5B (~AUD 13.5B)
- Sunwoda Net Profit (Q1-Q3 2026): $91.8M (~AUD 130.3M)
- Estimated Net Profit Increase from Deconsolidation (2026): $479M (~AUD 680.1M) to $673.6M (~AUD 956.4M)
Images sourced from: electrek.co
