On July 24, Sunwoda made an announcement revealing that its subsidiary, Sunwoda Electric Vehicle Power Battery, is set to embark on a C+ round of capital increase and share expansion. This strategic move involves bringing in Sungrow Power Supply and Tianqi Lithium (Shehong) Co., Ltd. as key investors. These two entities will collectively invest RMB 805 million to acquire a 2.93% stake in Sunwoda Electric Vehicle Power Battery.
Following the capital injection, Sunwoda's ownership stake in its subsidiary will see a slight dilution, dropping from 27.18% to 26.38%. However, Sunwoda will retain its controlling interest, ensuring that Sunwoda Electric Vehicle Power Battery remains a consolidated entity in its financial statements.
The primary objective of this capital increase is to foster stronger industrial collaboration with downstream customer Sungrow Power Supply and upstream lithium resource provider Tianqi Lithium. By doing so, Sunwoda aims to bolster the capabilities of its energy storage cell business and secure a stable supply of essential raw materials.