Sunwoda’s EV battery unit nets food delivery giant Meituan and others $875m

Sunwoda Electric Vehicle Battery, an electric vehicle (EV) battery solution provider affiliated with Chinese company Sunwoda Electronic, pocketed 6 billion yuan ($875.1 million) in a series funding round A from investors including food delivery giant Meituan.

One of the deal’s lead investors, Meituan, made the bet through its strategic investment department, investment bank Fanzhuo Capital, the deal’s financial adviser, said in a statement. Thursday evening. A series of Chinese domestic investment firms co-led the deal, including Source Code Capital, Broad Vision Funds, CoStone Capital and Shenzhen Capital Group.

The investment marks another big deal in China’s electric vehicle battery industry, attracting billions of US dollars as makers of these environmentally friendly vehicles seek to increase production and diversify their supply.

Sunwoda EVB in February raised 2.43 billion yuan ($354.5 million) from 19 investors led by Nasdaq and Hong Kong-listed electric vehicle company Li Auto, as well as state-owned automakers GAC Group and SAIC Motor. The previous investment saw the group of investors collectively acquire a 19.5% stake in the subsidiary, indicating a valuation of nearly 12.5 billion yuan ($1.8 billion).

The new funding will help Sunwoda EVB, which primarily offers electric vehicle batteries and energy storage solutions, invest in new product R&D, technology upgrades, production capacity expansion and deliveries guarantees.

Founded in 1997, Sunwoda started manufacturing batteries for smartphones and entered the EV battery industry in 2008 by in-house developing products such as EV battery cells and battery management systems (BMS), before the formal establishment of Sunwoda EVB in 2014. The lithium-ion battery manufacturer currently operates 11 production bases in China and India with technical and customer service centers in the United States and Europe.

After about 25 years of development, Sunwoda has built a main business line to provide batteries in the fields of electric vehicles, computer, communication and consumer electronics (3C), intelligent hardware, energy technologies, smart manufacturing and the Industrial Internet of Things (IIoT). ).

The Shenzhen-based parent company counts smartphone brands such as Apple and Xiaomi among its main customers, as well as automakers such as Zhejiang Geely Holding Group and Dongfeng Motor Group.

Sunwoda went public on Shenzhen’s ChiNext board in 2011. It generated revenue of more than 21.7 billion yuan ($3.2 billion) in the first six months of 2022, up from 38.5% compared to the same period last year. Its net profit attributable to shareholders in the first half of 2022 was 372 million yuan ($54.3 million), down 39.7% year-on-year.