Remaining 90 Million Yuan in Funding Could Lift Investor’s Stake in Sunrise Guizhou to 10%
Key Facts
Funding of 90 million yuan, equivalent to about $13.5 million, remains due under an agreement to increase the capital of the Sunrise Guizhou project, according to details reported by Investing.com on October 26, 2026. Once the funding is completed, the investor’s stake will rise to 10% of the project’s registered capital, the outlet said. Part of the funding therefore remains pending until the outstanding amount is paid, while the agreement values Sunrise Guizhou at 2.0 billion yuan after full funding. The pre-money valuation is 1.8 billion yuan, according to the agreement details. The valuation applies to the joint venture upon completion of funding and does not represent a valuation of EPOW shares.
The agreement says proceeds from the capital increase will be used to expand the business, provide working capital, fund research and development, and launch new projects, according to Investing.com. It bars the use of funds to repay non-operating debt, distribute dividends, or repurchase equity. These terms specify the planned uses of the funding within the project, rather than describing it broadly as operational support. Expansion and research and development are among the stated uses, alongside working capital needs. The source did not provide a timeline for those uses in the details available.
Sunrise Guizhou operates a production facility in China’s Guizhou province that makes graphite and silicon-carbon anode materials used in lithium-ion batteries, according to Investing.com. That places the project in the battery-materials manufacturing chain, while the agreement targets funding for expansion and new projects. E-Power’s disclosures to the U.S. Securities and Exchange Commission say the holding company has no material operations of its own and that a substantial portion of its business is conducted through Sunrise Guizhou. The filing describes the project as a joint venture for the production and sale of graphite anode materials. Once the funding is completed, E-Power’s stake in the project will be 35.4167%, according to agreement details cited by Investing.com.
The capital change was registered with local authorities on July 29, 2026, raising Sunrise Guizhou’s registered capital from 321.41 million yuan to 341.05 million yuan, according to Investing.com. The registration reflects an update to the project’s registered capital, while the remaining funding is still tied to completion of the agreement. The figures show registered capital of 341.05 million yuan after the change, compared with 321.41 million yuan before it. Registered capital is not the same as the project value cited in the agreement’s valuation, which sets a pre-money valuation and another valuation after full funding. Under the agreement, the post-money valuation reaches 2.0 billion yuan once funding is completed.
The transaction comes as E-Power’s 2025 annual filing showed financial pressure on the company and its project. The company said Sunrise Guizhou failed to comply with financial covenants on 3 long-term loans with the Qianxinan Branch of China Construction Bank, totaling $68,917,581 as of December 31, 2025. The filing added that the bank had not declared the loans in default because of the covenant breaches. E-Power also recorded a net loss of $26,659,381 for the year ended December 31, 2025. Cash used in operating activities totaled $25,160,584 during the same year, according to the filing submitted to the U.S. regulator.
The filing said the losses and loan conditions raised substantial doubt about the company’s ability to continue as a going concern, and that management intended to fund working capital needs and capital expenditures through financing activities or debt and equity issuances. In the stock market, EPOW closed at $3.54 on October 23, 2026, up from the previous session’s close of $2.83, according to EL7 data. The move compares two consecutive session closes and, by itself, does not establish the effect of the funding agreement on the stock. In the context of the company’s activity in China, EL7 reported on September 23 that E-Power had received a payment of $9.2 million for a completed phase of an anode-materials supply contract. The pending funding is part of the project’s broader battery-materials activity, while the next step specified in the agreement is to complete the outstanding amount to reach the announced stake and valuation after full funding.