Sunwoda to Expand Production Cautiously Amidst Industry Capacity Issues

In response to investor concerns over sluggish demand in the consumer electronics market and overcapacity of power batteries, Sunwoda has announced that it will be expanding its business cautiously. The company, which is a major producer of power batteries, stated that it is currently expanding its production according to customer orders and fixed points. It also highlighted that it is mindful of the industry's production capacity issues and will take measures to expand production carefully.

Controlling Risks Faced by the Company

Sunwoda emphasized that it will be taking measures to control the risks faced by the company in light of the current market conditions. The company plans to expand its production by carefully considering market conditions and customer needs. It also aims to prevent idle production capacity, improve equipment capacity utilization and efficiency, and optimize the company's capital structure. Additionally, Sunwoda will be adopting equity financing to solve capital problems and will optimize the management of supplier accounts to improve its ability to pay back debts. The company also plans to increase the proportion of medium and long-term debt financing to optimize its debt structure. Sunwoda will also be applying for preferential supporting policies to enhance its operations. Moreover, the company is in talks with downstream customers to explore plans for cooperation in building production capacity.

Sodium-ion Batteries as a Supplement to Lithium Batteries

Sunwoda is currently developing sodium-ion batteries as a supplement to lithium batteries. It pointed out that sodium batteries have a lower energy density and are suitable for low-speed electric vehicles and energy storage. The company's overall product development progress is in line with expectations.

Price Drop of Lithium Carbonate Conducive to Cost Control

Earlier this month, Sunwoda stated that the drop in the price of lithium carbonate is conducive to the company's cost control on the raw material side, which enhances its profitability. However, the company emphasized that its overall profitability depends not only on cost control but also on factors such as the prosperity of the terminal market and competitors.

Power Battery Production Capacity to Reach 25GWh by H1 2022

According to data released by Sunwoda, the company's power battery production capacity will reach approximately 25GWh by the first half of 2022. Moreover, the self-supply rate of power batteries will be 100%.

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