CATL injects RMB4.1 billion into Zhongheng Technology for 49% stake

CATL agreed to inject about RMB4.1 billion into Zhongheng Technology Investment, the controlling shareholder of power-supply maker Zhongheng Electric, taking a 49 percent stake and deepening its push into AI data-center infrastructure.

The capital increase, disclosed in a filing Thursday, will be settled through RMB3.512 billion in cash and RMB588 million in equity, with CATL transferring its 49 percent stake in Shidai Tianyuan (Shenzhen) Technology as the equity consideration, the company said.

Upon completion, CATL becomes the second-largest shareholder of Zhongheng Electric (002364.SZ), while founders Zhu Guoding and Bao Xiaoru retain 51 percent of Zhongheng Technology Investment, keeping Zhu as the actual controller. Zhongheng Electric shares fell 0.6 percent Thursday, while CATL (03750.HK) rose 1.6 percent.

The deal pairs CATL's energy-storage strength with Zhongheng Electric's 800V high-voltage direct-current (HVDC) power architecture, a technology in surging demand as AI data centers consume more electricity. The two companies also signed a strategic cooperation agreement covering computing power infrastructure, new energy, and electricity trading.

The transaction, first flagged four months ago, has now entered its substantive performance stage with the signing of the capital increase and shareholders' agreements. The subscription targets newly added registered capital of RMB14.4118 million in Zhongheng Technology Investment, with the RMB4.1 billion consideration representing a substantial premium to that nominal amount.

Zhongheng Electric's main computing-power business centers on the 800V HVDC architecture, which has drawn attention from manufacturers because of its high energy efficiency as AI data-center power consumption climbs. Demand for HVDC is growing explosively in both domestic and international markets, according to the company. The technology is regarded as one of the core infrastructures for AI computing centers, where power delivery efficiency directly affects operating costs.

Zhongheng Electric, a leading domestic HVDC player, previously hosted a visit from Schneider Electric's chief executive, a move the market read as a sign of potential cooperation. Schneider leads the North American UPS market but lacks HVDC products, suggesting the two companies' businesses are complementary.

Two Zhongheng Electric subsidiaries will also cooperate with CATL. Hangzhou Zhongheng Yunqi Energy Technology, which makes charging and swapping products, reported net profit of about RMB7.59 million in 2024. Beijing Zhongheng Borui Digital Power Technology, a power software supplier, posted net profits of about RMB25.07 million in 2024 and RMB16.36 million in 2025.

CATL's data-center focus has centered on energy storage, and its 2025 annual report flagged extending electrification to low-altitude economy, shipping, and data centers. The investment gives the world's largest battery maker a direct stake in the HVDC supply chain as global AI infrastructure spending accelerates, while giving Zhongheng Electric access to CATL's scale and energy-storage expertise. If HVDC adoption continues to climb with AI buildout, the partnership positions both companies to capture a larger share of data-center power spending.

This article is for informational purposes only and does not constitute investment advice.