Battery Firm Sunwoda Plans IPOs in London and Switzerland
Battery manufacturer Sunwoda released an announcement on Tuesday saying that the company plans to issue global depository receipts (GDRs) and apply for IPOs on the Swiss Stock Exchange and the London Stock Exchange. The GDRs take newly issued China A-shares – RMB-denominated equity shares – as its basic securities.
The newly added A-shares of basic securities represented by the company’s GDRs this time shall not exceed 172 million shares, including securities issued due to any over-allotment options, which would not exceed 10% of the total A-shares’ capital of the company before this new issuance.
Sunwoda, established in 1997, is one of the earliest enterprises engaged in the Chinese lithium battery industry. In addition to the firm’s production bases within China, it has operations in Delhi, and has set up technical centers and customer service centers in Los Angeles, Tel Aviv and Hamburg.
Since the company landed on the ChiNext of the Shenzhen Stock Exchange in 2011, its performance has maintained high growth. From 2012 to 2021, its operating income increased from 1.41 billion yuan ($210.4 million) to 37.36 billion yuan ($5.574 billion), with a compound annual growth rate of 43%. The net profit attributed to parent company owner’s also increased from 70 million yuan to 920 million yuan, with a compound annual growth rate of 32.8%.
In 2014, three years after landing at the Shenzhen Stock Exchange, Sunwoda has accumulated considerable achievements in 3C products (computers, communications, consumer electronics), as well as intelligent hardware and lithium batteries for electric vehicles. This year, the firm formally established Sunwoda Electric Vehicle Battery Co., Ltd. (Sunwoda EVB), a holding subsidiary focusing on the R&D of power batteries. In February 2022, Sunwoda EVB received an investment worth about 2.43 billion yuan from 19 investors.
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According to the company’s annual report, in 2021, Sunwoda EVB reached revenue of 2.933 billion yuan, a year-on-year increase of 584.67%. However, from the perspective of the company’s operating income composition, electric vehicle batteries only account for 7.85%, so there is still much room for future improvement.