A state-owned power utility has announced plans to divest its entire stake in a leading electric heavy-duty truck battery swapping service provider.
CHINA POWER (02380.HK) disclosed its intention to sell its entire 24.8726% shareholding in Shanghai Qiyuan Xindongli Technology Co., Ltd. The shares have been publicly listed on the Shanghai United Assets and Equity Exchange with a minimum asking price of 2.556 billion yuan, implying a total valuation for Qiyuan Xindongli of approximately 10.28 billion yuan.
The company stated that the potential divestment would allow the group to focus more on its strategic development of a comprehensive clean energy platform encompassing thermal, hydro, wind, and photovoltaic power generation. It also noted that the listing price offers a favorable premium over the book value of the investment, providing an opportunity to realize its investment value. Proceeds from a successful sale are expected to strengthen the group's capital structure and improve its cash flow position.
Qiyuan Xindongli, established in October 2020, is a comprehensive smart energy service provider focused on the "green power transportation" sector. It pioneered the "battery-swapping" business model for heavy-duty trucks, creating a new segment for commercial vehicle energy replenishment. Its current operations cover electric heavy trucks, shared battery storage systems for vehicles, charging and swapping station operations, and integrated energy solutions.
The company has deployed over 1,800 charging and swapping stations across China, covering 78.5% of prefecture-level cities. It has also established more than 100 heavy-duty truck charging and swapping corridors to meet medium- to long-haul transportation needs, supporting multiple energy replenishment methods and forming what it claims is China's most extensive heavy truck battery-swapping network.
Data shows Qiyuan Xindongli holds a 55% market share in delivered battery-swapping heavy trucks, compatible with 731 models from 105 manufacturers, with cumulative deployments exceeding 28,000 vehicles.
Financially, in 2025, the company reported revenue of 9.525 billion yuan and a net profit of 356 million yuan. For the first four months of this year, it achieved revenue of 2.448 billion yuan and a net profit of 190 million yuan.
Regarding its shareholder structure, CHINA POWER is the largest shareholder. Other investors include enterprises affiliated with State Power Investment Corp., battery manufacturing leader Contemporary Amperex Technology Co.,Ltd. (CATL), the National Green Development Fund, and several other financial institutions.
Contemporary Amperex Technology Co.,Ltd. (CATL) invested in January 2022 and currently holds a 5.4433% stake, making it the fourth-largest shareholder. Based on the current valuation, CATL's investment has generated a paper profit of approximately 23 times its initial outlay. The two companies also have a supplier-customer relationship.
The listing information for the equity transfer specifies that "existing shareholders have not waived their preemptive rights." This means at least one current shareholder intends to participate in the bidding. As a major shareholder, CATL legally holds such a right.
CATL is actively promoting its "Ten Thousand Stations Plan" under its heavy-duty truck swapping brand, "Qiji Swapping," aiming to build 900 stations by 2026 and expand its network nationwide by 2030. The company is also collaborating with the Ministry of Transport to promote industry standards for battery swapping.
The question arises: will CATL seize this opportunity to increase its stake? From a financial perspective, CATL reported robust first-quarter results with ample cash reserves, positioning it well to potentially acquire the stake.
Strategically, acquiring the 24.87% stake would increase CATL's holding to over 30%, granting it controlling interest in Qiyuan Xindongli. This would provide immediate access to a vast, established swapping network covering most of China, complementing its own Qiji Swapping business and strengthening its influence in setting industry standards.
Policy tailwinds are also favorable. A multi-ministry plan issued in June aims for new energy heavy trucks to reach a 40% penetration rate by 2030, supporting business model innovation and the construction of thousands of heavy truck charging and swapping stations. Gaining control of the market leader could allow CATL to rapidly capture a dominant position in this promising sector.
However, risks exist. The battery-swapping sector is still in a capital-intensive expansion phase. The 10.28 billion yuan valuation already incorporates high growth expectations. If industry competition intensifies or business expansion falls short, acquiring the stake at this valuation could pose a risk of buying at a peak. Furthermore, the transaction is not guaranteed, as CHINA POWER noted no binding agreement has been signed, and the sale may or may not proceed.
Given the powerful roster of shareholders in Qiyuan Xindongli, the final outcome of who might acquire the stake remains uncertain.
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