Sunwoda EVB to work with five government-backed firms to invest in subsidiary’s battery project

Shanghai (Gasgoo)- Chinese power battery manufacturer Sunwoda Electric Vehicle Battery Co., Ltd. ("Sunwoda EVB") intends to introduce a new investor to its wholly-owned subsidiary, Shandong Sunwoda New Energy Co., Ltd. ("Shandong Sunwoda"), in order to support the latter's 30GWh manufacturing base project for power batteries, energy storage batteries, and relevant supporting facilities, according to an announcement issued Monday by Sunwoda EVB's parent company, Sunwoda Electronic Co., Ltd. ("Sunwoda").

Photo credit: Sunwoda

The new investor will be Zaozhuang Sunwoda Venture Capital Partnership (L.P.) ("Zaozhuang Sunwoda"), which is co-founded by Sunwoda EVB and five government-backed platform firms, including Zaozhuang Gaoxin Finance Investment Holdings Group Co., Ltd., Shandong New Growth Drivers Fund Management Co., Ltd., Zaozhuang City New Kinetic Energy Equity Investment Management Co., Ltd., etc. Incorporated in August 2022, Zaozhuang Sunwoda features a registered capital of 3 billion yuan ($424.96 million), which is 25% contributed by Sunwoda EVB. 

According to Sunwoda's announcement, Shandong Sunwoda was established on Dec. 31, 2021 as a wholly-owned subsidiary of Sunwoda EVB. It has a line of businesses including R&D of emerging energy technologies and new materials technologies, manufacturing of batteries, PTD (power transmission and distribution) facilities and photovoltaic equipment, sale of batteries, intelligent PTD facilities, electronics products and photovoltaic equipment, as well as operation of electric vehicle (EV) charging infrastructures.

Zaozhuang Sunwoda plans to add 150 million yuan ($21.248 million) to the registered capital of Shandong Sunwoda. Upon completion of the capital increase, Shandong Sunwoda will see its registered capital grow to 450 million yuan ($63.744 million) from 300 million yuan ($42.496 million), while the share held by Sunwoda EVB will be diluted to 66.6667%.

Under the new transaction, Sunwoda EVB and its five government-backed partners attempt to invest in a total of 3 billion yuan ($424.96 million) in Shandong Sunwoda through Zaozhuang Sunwoda. To be carried out in three phases evenly, the investment will be used to purchase equipment and other fixed assets.