Xiaomi invests RMB 1.7 billion in Sunwoda Mobility Energy

Xiaomi, through its subsidiary Hanxing Venture Capital, has agreed to invest RMB 1.7 billion in Sunwoda Mobility Energy. This investment will grant Xiaomi a 5.34% stake, making it the third-largest shareholder behind Sunwoda and Li Auto.

The deal marks a transition from a supplier relationship to a deep strategic partnership. Xiaomi previously collaborated with Sunwoda on the “Longjia” battery series for its upcoming electric vehicles. This equity stake is expected to help Xiaomi secure supply chain stability and increase its influence over battery technology development.

As a result of this capital increase and a subsequent board reshuffle, Sunwoda will no longer hold a controlling interest in its power battery subsidiary. Consequently, Sunwoda Mobility Energy will be removed from the parent company’s consolidated financial statements. This accounting change is expected to improve Sunwoda’s reported profitability by removing the subsidiary’s recent losses from its consolidated balance sheet.

In its latest financial report, Sunwoda reported a significant increase in revenue for the first three quarters of 2026, reaching RMB 63.46 billion, a 45.78% year-on-year rise. However, net profit attributable to shareholders fell by 56.37% during the same period, driven by rising raw material costs and margin pressures in the consumer electronics sector.