Chinese power battery maker Sunwoda Electric Vehicle Battery Co., Ltd. “Sunwoda EVB”) will increase capital by introducing 19 investors. The decision has been approved by the board of directors of its parent company Sunwoda Electronic Co Ltd. “Sunwoda”).

Battery pack of Sunwoda EVB; photo credit: Sunwoda EVB

According to the announcement Sunwoda issued on Feb. 24, the new investors will pour a total of 2.43 billion yuan $384.378 million around 1.237 billion yuan $195.6 million) of which will be included in the registered capital of Sunwoda Battery and the rest part will be included into the capital public reserves.

Notably, Jiangsu Chehejia Automobile Co., Ltd. “Chehejia” an affiliated company of Li Auto, is among the new investors. It will invest 400 million yuan $63.272 million) to get a 3.218% stake in Sunwoda EVB.

Upon completion of the capital increase, the registered capital of Sunwoda EVB will be increased to 6.325 billion yuan $1.001 billion) from 5.089 billion yuan $804.927 million).

The new transaction will provide the operational capital for Sunwoda EVB’s further development, and can help the battery firm optimize its financial structure, ease the burden of debts, enhance the anti-risk capability, and improve the overall profitability, Sunwoda said in the announcement.

In January 2022, Sunwoda EVB recorded a power battery installed capacity of 0.23GWh, accounting for 1.41% of the country's total volume and ranking eighth among power battery makers in China, according to China Automotive Power Battery Industry Innovation Alliance CAPBIIA).