Xiaomi plans to invest 1.7 billion yuan (about $253 million) in Sunwoda Electric Vehicle Battery (Sunwoda EVB), giving it a 5.34% stake and making it the battery unit’s third-largest shareholder. The investment will be made through Xiaomi subsidiary Hanxing Venture Capital. The capital-increase agreement has been signed, but it still needs approval from Sunwoda shareholders.
Sunwoda is also ending its plan to issue H shares and list Sunwoda EVB on the Hong Kong Stock Exchange, citing market conditions, company changes and its development plans. The listing proposal had received board and shareholder approval in July 2025. Sunwoda says cancelling it will not materially affect its business.
After the capital increase, Sunwoda’s stake will decline from 24.06% to 22.78%, although it will remain the largest shareholder. A board reshuffle will leave Sunwoda with no more than half the seats, ending its control of the unit and its consolidation of Sunwoda EVB’s accounts. Sunwoda preliminarily expects the accounting change to add 3.2 billion to 4.5 billion yuan to its 2026 net profit, subject to audit.
The investment is intended to strengthen Sunwoda EVB’s finances and expand cooperation with Xiaomi in research and development, capacity support and market growth. It follows a strategic partnership announced on September 4. Li Auto is also investing in the battery maker: its planned 2.65 billion yuan injection will give it a direct stake, which is expected to fall to 8.32% after Xiaomi’s investment. Sunwoda EVB recorded 15.53 billion yuan in revenue and a 324 million yuan net loss in the first half of 2026.