On October 29, Sunwoda Electronic Co.,Ltd. (300207.SZ) released its third-quarter report and simultaneously announced the termination of its plan to issue H-shares and list on the Hong Kong Stock Exchange Main Board.
The company cited "a comprehensive consideration of market conditions, changes within the company, and development plans, upheld by the principle of safeguarding shareholder interests" as its reason. This termination announcement stands in sharp contrast when viewed against Sunwoda's series of moves in the Hong Kong market over the past year.
Just months before terminating its Hong Kong IPO, Sunwoda's investment entities were still appearing密集地 as cornerstone investors in the international placing lists of multiple Hong Kong new listings. Nearly HK$127 million in Hong Kong cornerstone investments on one side, while waiting for its own IPO on the other.
According to Wind data and company announcements, Sunwoda, through entities such as Sunwoda Treasury (Hong Kong), participated in cornerstone investments in four Hong Kong IPOs within the past year, with cumulative cornerstone investments totaling approximately HK$127 million. Most of the invested companies have industrial chain connections to Sunwoda's own business: Zhongwei New Material is a lithium battery cathode material precursor supplier, Senior Technology is a lithium battery separator leader, while National Technology and SENASIC are involved in semiconductors and information technology, intersecting with battery management systems or the chip industry chain.
This kind of "mutual investment" along the industrial chain is not uncommon in the Hong Kong IPO market. Industrial capital locks in shares as a cornerstone investor, accepts a lock-up period, provides a pricing anchor for the offering, and at the same time builds deeper capital ties with upstream and downstream partners.
But what deserves more attention is the overlap in timeline. From the second half of 2025 to the first half of 2026, Sunwoda was in the critical period of preparing for its own Hong Kong IPO. Participating in others' IPOs as industrial capital while seeking cornerstone investors for its own IPO is logically consistent: through deep participation in Hong Kong projects, it accumulates practical knowledge of Hong Kong pricing mechanisms and institutional communication.
However, this "training" process, which cost over HK$100 million, ultimately stopped at the door of its own IPO.
Pressure on the Income Statement Is More Direct Than Market Conditions
The termination announcement attributed the reason to "market conditions and internal changes," but reviewing Sunwoda's 2026 financial data, the pressure on the profit side is more concrete than market sentiment.
In the first three quarters of 2026, Sunwoda's revenue reached 63.462 billion yuan, up 45.78% year-on-year, hitting a record high for the same period; but net profit attributable to shareholders was only 613 million yuan, down 56.37% year-on-year; non-GAAP net profit was 227 million yuan, down 77.65% year-on-year. In the third quarter alone, revenue was 25.284 billion yuan, up 52.78% year-on-year, while net profit attributable to shareholders was only 10.5671 million yuan, down 98.08% year-on-year. Revenue is surging while profit is contracting.
What directly dragged down profit was the power battery quality lawsuit that erupted at the end of 2025. Geely's subsidiary Viridi E-Mobility Technology filed a claim of 2.314 billion yuan against Sunwoda Power over cell quality issues delivered from June 2021 to December 2023. The two parties reached a settlement in February 2026, with Sunwoda Power required to pay 608 million yuan over five years, paying 60% of that in 2026. This settlement cost, combined with exchange losses and export tax rebate adjustments, directly eroded the profit space for the period.
At the same time, on October 29, Sunwoda completed another key adjustment: introducing Xiaomi as a shareholder. After the capital increase and share expansion, Sunwoda's shareholding in Sunwoda Power dropped to 22.78%, with board seats not exceeding half. The power battery segment changed from a controlling subsidiary to an associate company and will no longer be consolidated into the financial statements. This arrangement is expected to add 3.2 billion to 4.5 billion yuan in net profit for Sunwoda in 2026.
In other words, terminating the Hong Kong IPO, deconsolidating the power battery business, and bringing in Xiaomi — all three landed in the same time window, pointing to the same goal: stabilizing the financial statements during a period of pressure on the income statement.
What Else Does a 30 Billion Yuan Market Cap Sunwoda Need to Prove?
As of the close on October 30, Sunwoda's total market capitalization was approximately 29.67 billion yuan. For a lithium battery leader with revenue exceeding 63 billion yuan in the first three quarters, a price-to-book ratio (PB) of 1.20 times directly reflects the market's extremely low valuation of its massive heavy-asset base; while its trailing price-to-earnings ratio (PE-TTM) of 112 times reveals a reality: it is not that the market has granted a high valuation, but rather that due to litigation settlement fees, exchange losses, and fierce price wars, net profit over the past twelve months has been extremely compressed, causing the denominator to plummet and passively pushing up the PE.
This "PB at the bottom, PE abnormally high" split valuation reflects the market's current contradictory attitude toward its fundamentals — the asset base is still there, but the profit machine has temporarily stalled.
The long-term suppression of market capitalization comes not only from the short-term bleeding on the income statement but also from the quality and trust issues repeatedly exposed by the power battery segment over the past two years.
Terminating the Hong Kong IPO means Sunwoda has temporarily given up an important overseas financing platform. After deconsolidating the power segment, Sunwoda's consolidated financial statements will mainly reflect consumer battery and energy storage businesses, making the profit base "cleaner," but it also loses the boost from power battery revenue scale.
The market's current pricing is effectively waiting for a revaluation after the company divests the power battery burden and restores true profitability. For an industrial capital that once spent over HK$120 million appearing frequently as a cornerstone investor in others' IPOs, Sunwoda's own IPO story still needs to wait for a more solid profit inflection point.
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