Xiaomi plans to invest 1.7 billion yuan ($253 million) for a 5.34% stake in Sunwoda Electric Vehicle Battery Co Ltd (Sunwoda EVB), according to a filing released on Thursday evening. The investment would 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.
Following the planned capital increase, Xiaomi would become Sunwoda EVB’s third-largest shareholder. Sunwoda’s interest in the battery unit, held through its wholly owned subsidiary Sunwoda Huizhou New Energy Co Ltd, would fall from 24.06% to 22.78%, leaving it as the largest shareholder.
Sunwoda EVB will also elect a new board. After the capital increase and board reshuffle, Sunwoda will hold no more than half of the board seats and will stop consolidating the unit’s financial statements. The deconsolidation remains subject to shareholder approval.
Sunwoda preliminarily estimates that accounting treatment related to the loss of control will increase its 2026 net profit by 3.2 billion to 4.5 billion yuan, subject to audit. The company said the change would allow it to focus resources on consumer batteries and energy storage systems while reducing financing needs and its liabilities-to-assets ratio.
Sunwoda also terminated its plan to issue H shares and list in Hong Kong, citing market conditions, internal changes and its development plans. The listing proposal had received board and shareholder approval in July 2025. Sunwoda said the cancellation would not materially affect its operations or continued development.
Sunwoda EVB reported first-half 2026 revenue of 15.53 billion yuan and a net loss of 324 million yuan. Sunwoda said Xiaomi’s investment would strengthen the unit’s finances and deepen cooperation in research and development, production capacity support and market expansion.
Xiaomi Plans $253 Million Investment in Sunwoda EVB
Xiaomi becomes the third-largest shareholder, while Sunwoda will hold no more than half the board seats and lose control.
Shares closed down 4% on October 30; the deal follows Li Auto’s injection by less than 2 months and a 2025 venture, each holding 50%.
Li Auto previously disclosed plans to invest 2.65 billion yuan for an 8.79% direct stake in Sunwoda EVB. Following Xiaomi’s investment, Li Auto’s holding would decline to 8.32%, retaining its position as the second-largest shareholder.
Source: CnEVPost
