Meituana Beijing-based e-commerce platform that provides local living services, is now quietly arranging deals involving electric batteries for the upstream new-energy vehicle industry, according to a Chinese media report valuable planet September 5. Sunwoda, China’s leading lithium-ion battery company, on Aug. 25 disclosed a convertible bond loan and related party transactions of its subsidiary, Sunwoda Electric Vehicle Battery Co., Ltd. (Sunwoda EVB). Meituan was on the list of investors.
According to the announcement, Sunwoda EVB has signed convertible bond agreements with 12 companies, including Shenzhen Meizhu Meipeng Enterprise Management Consulting Partnership (Limited Partnership), referred to simply as “Meizhu Meipeng”, and CICC-GCL Carbon Neutral Industrial Investment Fund, and borrowed convertible bonds of bonds totaling 1.19 billion yuan ($171.5 million) from the above parties for Sunwoda EVB’s operating funds. It should be mentioned that the real controller of Meizhu Meipeng is Zhu Yonghua, a founding partner of Meituan Industry Fund, and Wang Xing, co-founder and CEO of Meituanalso listed as shareholders of Meizhu Meipeng.
In August, Sunwoda EVB also closed round A financing, and together with the aforementioned convertible bond loans from investors, the cumulative amount of this round of financing was about 8 billion yuan. The company’s post-investment valuation was around 30 billion yuan. Meituan was also among the investors named in this round.
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Now, Meituan makes foreign investments mainly through Long-Z Investments, Meituan Wang Xing’s strategic investment and personal investment. In his experience over the years, Meituan began to invest in automobile transportation in 2018. After 2019, intelligent hardware, automobile transportation, advanced manufacturing and other fields have become the focus of Meituanthe investment.
In the automotive and travel sector, since the beginning of 2022, Meituan entered into three agreements. In February, Meituan followed the 188 million yuan B+ round financing from Inceptio Technology, a technology and operation company for automated driving trucks. In April, Meituan led an $80 million C+ round financing investment for VisionNav Robotics. In August, the company led the A round financing of Sunwoda EVB.
The investment plan of Meituan can cover almost the entire “life cycle” of a smart car, from production to after-sales. The industrial areas of MeituanInvestment participation includes automated driving (Inceptio Technology), lidar (Haomo.AI) and electric batteries (Sunwoda EVB). Service areas include travel services (Go-Jek) and new car sales (Shanghai Sankuai Shengxingou Technology Co., Ltd.). At the same time, there is already a car maintenance services section on the Meituan application.
In addition, Meituan has already invested in Li-Auto, a Chinese manufacturer of new energy vehicles. In 2020, before Li-Auto made public in the United States, Wang Xing and Meituan invested more than $1.1 billion in it. As for the reasons for the agreement, Wang once explained that “technologies such as automated driving and human-vehicle interaction developed by Li-Auto will ride with Meituanin the future. Meituan is essentially a mobile business, so vehicles are very important to them. Moreover, the future will belong to electric vehicles, so Meituan hope to participate.