Sunwoda Boosts Energy Storage Investment with $70M Fund for Standalone Projects

Sunwoda’s wholly-owned subsidiary, Sunwoda Energy Technology, plans to jointly establish Tianjin Kaixin Energy Storage Equity Investment Partnership (provisional name) with Kaixian Capital, Huizhou Yuede Energy, and Xunneng Technology. The fund will have a registered capital of RMB 500 million. Among the contributors, Sunwoda Energy Technology will invest RMB 240 million, holding a 48% stake; Xunneng Technology will contribute RMB 250 million for a 50% stake; and the other two partners will each invest RMB 5 million, holding 1% each. Kaixian Capital will serve as the fund manager. At least 70% of the fund’s paid-in capital will be allocated to independent energy storage projects—defined as storage facilities or project companies equipped with independent metering, control, and settlement capabilities that can directly connect to the public grid and participate in electricity market trading—with potential additional investments in wind and photovoltaic sectors depending on market conditions. Sunwoda’s core businesses include consumer batteries, electric vehicle (EV) batteries, and energy storage systems. According to its 2025 financial report, consumer batteries accounted for nearly 50% of revenue, EV batteries contributed approximately 30%, and energy storage systems represented only 3.7%. The EV battery segment has been significantly impacted by intense market competition, resulting in a gross margin in 2025 substantially lower than both other business segments and the industry average. From 2021 to 2025, this segment accumulated losses of approximately RMB 5.759 billion, and its net profit in Q1 2026 remained minimal. Although the consumer battery business remains stable, it faces growth constraints due to slowing expansion in the smartphone and PC markets. In contrast, despite its small revenue share, the energy storage business has shown remarkable growth: in 2025, energy storage system revenue increased by 22.42% year-over-year, with a gross margin of 23.34%, and installed capacity surged by 188%. Global shipments of energy storage batteries grew substantially in 2025, with Chinese companies occupying all top-ten positions—though Sunwoda has yet to break into this elite group. To support the development of new businesses like energy storage, Sunwoda Power completed a Series C financing round in May 2026, securing RMB 1.68 billion from 13 investors. The company is also advancing its Hong Kong IPO and has resubmitted its prospectus, though no substantive progress has been made to date. Facing rising capital requirements and an increasing debt-to-asset ratio, Sunwoda is now prioritizing energy storage as its key strategic focus for future growth.