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Xiaomi follows Li Auto with planned Sunwoda EVB investment to deepen battery ties

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Xiaomi follows Li Auto with planned Sunwoda EVB investment to deepen battery ties

Sunwoda (SZSE: 300207) plans to bring in Xiaomi (HKEX: 1810) as an investor in its EV battery business while scrapping its own Hong Kong listing plan. It will lose control of the subsidiary following the capital increase and a board reshuffle.

Xiaomi plans to invest 1.7 billion yuan ($253 million) for a 5.34% stake in Sunwoda Electric Vehicle Battery Co Ltd (Sunwoda EVB), becoming its third-largest shareholder, according to a filing released on Thursday evening.

That same evening, Sunwoda announced it was terminating plans to issue H shares and list on the Hong Kong stock exchange's main board, citing market conditions, changes within the company and its development plans.

The listing plan received board and shareholder approval in July 2025. Sunwoda said the cancellation would not materially affect its operations or continued development.

Xiaomi plans to make the investment through its 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.

Following the capital increase, Sunwoda's stake in Sunwoda EVB, held through its wholly owned subsidiary Sunwoda Huizhou New Energy Co Ltd, will fall to 22.78% from 24.06%. It will remain the largest shareholder.

Sunwoda EVB will also elect a new board. Once the capital increase and board reshuffle are completed, Sunwoda will hold no more than half of the board seats and will no longer consolidate the unit's financial statements.

5 billion yuan. The final impact will be subject to audit.



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