Sunwoda becomes the supplier of Volkswagen HEV system

It shows that the company has made important progress in the HEV electric vehicle battery business, and at the same time proves that the company has entered an important milestone in developing the world’s top well-known car brand customers, which is conducive to enhancing Sunwoda’s comprehensive competitiveness in the field of electric vehicle batteries.

At present, Sunwoda is promoting the follow-up related work with Volkswagen of Germany. It is understood that the German Volkswagen Group was established in 1937 and is the largest company in Germany. In 2010, it became the largest automobile company in the world. The company is a multinational automotive group with production plants in many countries around the world and has several subsidiaries.

Supply of Sunwoda HEV battery products

HEV refers to mild hybrid vehicles. According to the calculation of 38 million vehicles sold in 2025 and HEV models accounting for 50%, the demand for HEV batteries is expected to reach 95GWh in 2025. The supply of HEV batteries is dominated by Japanese battery companies such as Toyota, Honda, and Nissan.

However, global car companies such as GM, Ford, CATL in top 10 power battery manufacturers in the world, and 18650 batteries manufacturer EVE are accelerating the deployment of HEV batteries. It is worth noting that before obtaining the order from Volkswagen, Sunwoda has reached cooperation with a number of car companies in HEV battery products:

In June 2020, Nissan announced to cooperate with Sunwoda to develop the next-generation Nissan electric vehicle e-POWER battery to ensure the supply of HEV batteries for e-POWER models; In August 2020, Sunwoda announced that Sunwoda Electric Vehicle Battery Co., Ltd., a wholly-owned subsidiary of the company, received a notification letter from Dongfeng Liuzhou Automobile Co., Ltd. on the selection of product suppliers for the Dongfeng Liuzhou project.

Sunwoda electric vehicle was officially selected as a supplier for the simultaneous development of parts of Dongfeng Liuzhou Auto to supply HEV power battery assembly products; On April 6, 2021, Sunwanda announced that, Sunwoda Electric Vehicle Battery Co., Ltd., a wholly-owned subsidiary of the company, received a notice from GAC on the development and trial production of parts for the A9E model, providing power battery system products for GAC HEV platform series products.

Sunwoda quickly seizes the market

According to public information, Xinwangda was founded in 1997, and its main business is the research and development, design, production and sales of lithium battery cells and modules. According to data, from January to September this year, Sunwoda’s power battery installed capacity was 5.9GWh, with a market share of 1.7%, ranking ninth in the world.

Data shows that from January to September this year, the total installed capacity of Sunwoda power batteries was 4.84GWh, with a market share of 2.50%, ranking fifth among Chinese battery factories. In terms of growth rate, Sunwoda’s battery installed capacity has grown significantly, with a year-on-year growth rate of 414.2% in September, making it the fastest-growing company among the top ten power battery manufacturers in terms of installed capacity.

Since 2008, Sunwoda has officially laid out the electric vehicle battery business, and has successively obtained letters of designation for the model projects of many car companies such as Dongfeng Liuqi, Dongfeng, Geely, SAIC, SAIC Maxus, SAIC-GM-Wuling, and GAC.

It has established cooperative relationships with many well-known auto manufacturers such as Renault, Nissan, and Easyjet. With the subsequent expansion of new customer orders, the customer structure of its power battery business will be more diversified. At present, Sunwangda has established production bases in Shenzhen, Huizhou, Nanjing, Zaozhuang, Nanchang and other places in China.

Regarding the successful entry into the power battery supplier system of Volkswagen, Sunwoda said that it is promoting follow-up related work with Volkswagen of Germany. Both parties have a good ability to perform the contract. The actual supply volume is subject to the official sales order, and the impact on this year’s operating performance is temporarily uncertain. Industry insiders judge that Xinwangda becomes the power battery supplier of Volkswagen, which will help it to further expand its cooperation territory.

Not long ago, Sunwoda also signed the “Strategic Cooperation Framework Agreement” with Zhongwei Co., Ltd., and the two parties agreed to conduct comprehensive cooperation on a global scale around the new energy material industry chain. The scope of cooperation includes resource development cooperation, product procurement, sales and processing cooperation, product research and development cooperation, etc.

Downstream demand may continue to be strong

On October 27, Sunwoda released its third-quarter report. In the first three quarters, the company achieved an operating income of 36.584 billion RMB, a year-on-year increase of 43.00%, and a net profit of 688 million RMB, a year-on-year increase of 2.72%. Among them, in the third quarter, Sunwoda achieved a revenue of 14.866 billion RMB, a year-on-year increase of 50.14%, a month-on-month increase of 33.96%, and a net profit of 316 million RMB, a year-on-year increase of 504.79% and a month-on-month increase of 13.86%.

From the perspective of revenue structure, from January to September, Sunwoda’s mobile phone digital business revenue was 15.9 billion RMB, a year-on-year increase of about 10%; The energy storage revenue was 327 million RMB, an increase of about 100% year-on-year; the electric vehicle battery business revenue was 7.8 billion, a year-on-year increase of 406%, the fastest growth rate among all business segments.

The proportion of revenue from the power battery business has increased rapidly, and has gradually become the main growth point of Sunwoda’s performance. At present, the company has successively cooperated with Dongfeng Liuqi, Geely, SAIC-GM-Wuling, GAC and many other car companies. At the same time, Sunwoda is also constantly exploring customers in the power battery field. With the increase of new customers next year, downstream demand is expected to continue to be strong.

In fact, the relationship between Sunwoda and car companies is not limited to supply and demand. So far, Sunwoda has received investment from many companies with battery needs, such as Xiaopeng Motors, Lili Automobile, Weilai Automobile, GAC Capital, and Dongfeng Assets.

Not long ago, Sunwoda EVB, an electric vehicle battery company under Sunwoda, completed a new round of 6 billion RMB financing, far exceeding the previously planned 3 billion RMB fundraising quota. It is foreseeable that with the deepening of cooperation with Volkswagen and other enterprises, Sunwoda will usher in a new stage of development