Sunwoda Deconsolidates Battery Unit After Xiaomi Investment, Sees Net Profit Boost of RMB 3.2-4.5 Billion; Halts H-Share IPO
Sunwoda Electronics will no longer consolidate its battery subsidiary after Xiaomi's strategic investment, expecting a net profit increase of RMB 3.2-4.5 billion in 2026, while simultaneously terminating its planned H-share listing.
On October 29, Chinese battery manufacturer Sunwoda Electronic Co., Ltd. (300207.SZ) released its Q3 2026 operating results and disclosed several key announcements regarding equity adjustments in its power battery segment and the termination of its H-share listing plan. The report shows that the company achieved revenue of RMB 63.462 billion in the first three quarters, a year-on-year increase of 45.78%; single-quarter revenue for Q3 was RMB 25.284 billion, up 52.78% year-on-year.
Announcements released on the same day revealed that Sunwoda Power, a controlled subsidiary, underwent capital expansion introducing Xiaomi as a strategic shareholder. Following the investment, Sunwoda's shareholding in Sunwoda Power dropped to 22.78%, with board seats not exceeding half. According to Accounting Standards for Business Enterprises, Sunwoda Power changed from a controlled subsidiary to an associate company and is no longer included in the consolidated financial statements. Sunwoda stated that this accounting treatment change is expected to have a positive impact on net profit for fiscal year 2026, with an estimated increase of RMB 3.2 billion to RMB 4.5 billion.
Additionally, regarding the previously planned issuance of H-shares for listing on the Main Board of the Stock Exchange of Hong Kong, Sunwoda announced the voluntary termination of the plan. The announcement noted that the decision was made based on comprehensive considerations of market conditions, internal changes, and development plans, adhering to the principle of protecting shareholder interests, and would not significantly affect daily operations or sustainable development. The company emphasized that internationalization remains a long-term core strategy, and this termination is merely a timing choice.