On the evening of October 29, Sunwoda Electronic Co., Ltd. ("Sunwoda") released multiple announcements regarding its third-quarter financial results for 2026, a capital increase and share expansion in its power battery subsidiary, and the termination of its proposed H-share offering and listing on the Main Board of The Stock Exchange of Hong Kong Limited.
Revenue Grew in the First Three Quarters, While Net Profit Dropped Year-on-Year
Financial disclosures indicate that in the first three quarters of 2026, Sunwoda achieved an operating revenue of RMB 63.462 billion, representing a year-on-year increase of 45.78%. Net profit attributable to shareholders of the listed company totaled RMB 613 million, falling 56.37% year-on-year, while net profit deducting non-recurring gains and losses stood at RMB 227 million, down 77.65% year-on-year.
On a quarterly basis, the company generated operating revenue of RMB 25.284 billion in the third quarter, a year-on-year increase of 52.78%. However, net profit attributable to shareholders dropped 98.08% year-on-year to RMB 10.5671 million, and net profit deducting non-recurring items stood at RMB 129 million, down 69.98% from the prior-year period.
Addressing the drivers behind the profit decline over the first three quarters, Sunwoda stated that margin contraction was primarily caused by persistent demand pressure across downstream consumer electronics and rising raw material costs compared to the previous year. Additionally, factors including the appreciation of the Renminbi, reduced export tax rebate rates, and consumption taxes exerted further downward pressure on company earnings.
Xiaomi to Invest RMB 1.7 Billion in Sunwoda Mobility Energy
On October 28, Sunwoda convened a board meeting and approved the proposed capital increase and share expansion of its subsidiary, Sunwoda Mobility Energy Technology Co., Ltd. ("Sunwoda Mobility Energy"). According to the announcement, Hanxing Venture Capital Co., Ltd. ("Hanxing Venture Capital"), an investment vehicle under Xiaomi, plans to invest RMB 1.7 billion to subscribe for approximately 898 million newly issued shares of Sunwoda Mobility Energy, securing a 5.34% equity stake upon completion of the transaction.
Following this capital injection, the registered capital of Sunwoda Mobility Energy will expand from approximately RMB 15.915 billion to approximately RMB 16.813 billion. Sunwoda's indirect shareholding—held through its subsidiary Sunwoda Huizhou New Energy Co., Ltd.—will be diluted from 24.06% to 22.78%.
Notably, this transaction will also alter the governance structure of Sunwoda Mobility Energy and the consolidation scope of Sunwoda's financial statements. Following the capital increase and the re-election of the board of directors, Sunwoda will hold no more than half of the board seats and will no longer maintain control over Sunwoda Mobility Energy. Consequently, Sunwoda Mobility Energy will transition from a consolidated controlling subsidiary to an equity-participating associate company and will be deconsolidated from Sunwoda's financial statements.
Termination of Proposed Hong Kong Listing Plan
In addition, Sunwoda published an announcement regarding the termination of its proposed H-share issuance and listing on the Main Board of The Stock Exchange of Hong Kong Limited.
According to the filing, Sunwoda's board previously deliberated and approved the H-share offering and listing plan in July 2025. After taking into account prevailing market conditions, internal operational shifts, and future strategic growth plans, the board of directors met on October 28, 2026, and resolved to terminate the proposed H-share issuance and listing.
Regarding the rationale behind the withdrawal, Sunwoda stated in an investor relations exchange that this was a prudent decision reached after balancing multiple considerations. The company emphasized that its day-to-day operations remain normal and sound, and the decision will not have any material adverse impact on its ongoing business activities or long-term growth.
Source：EnergyTrend