CATL and BYD are kings of China’s electric vehicle (EV) battery market, leaving breadcrumbs for a long list of second-tier players to fight over. A life-and-death period is shaping up for that group, as a brutal price war threatens to wipe out many – a common theme in numerous emerging Chinese sectors plagued with overcapacity.

In such a challenging environment, companies are scrambling for the funds they will need to survive the building shakeout. Such capital is critical not only to keep operating, but also to keep innovating in a fast-moving sector where customers only want the latest technology.

One such player hoping to survive the shakeout is Sunwoda Electronic Co. Ltd., which aims to tap global investors for cash with a planned IPO. Last week the company filed a preliminary prospectus for the listing in Hong Kong, just weeks after first revealing its intentions.