Financial Risk Assessment of Sunwoda (300207.SZ) 2.3 Billion RMB Claim Lawsuit

On the evening of December 26, 2025, Sunwoda Electronic Co., Ltd. announced that its wholly-owned subsidiary, Sunwoda Power Technology Co., Ltd., received litigation materials from the Ningbo Intermediate People’s Court of Zhejiang Province on December 25. The plaintiff, Viridi EV Technology (Ningbo) Co., Ltd. (a subsidiary of Geely Holding Group), filed a lawsuit against Sunwoda Power on the grounds that the cells delivered between June 2021 and December 2023 had quality issues, demanding compensation for losses of

plus corresponding interest. The case has been filed and accepted with case number (2025) Zhe 02 Min Chu No.1870, and has not yet been heard as of now [1][2].

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Financial Indicator	Value	Comparison with Claim Amount
Net Profit for First Three Quarters of 2025	RMB 1.405 billion	2.314 billion ≈1.65 years of net profit
Company Market Capitalization	RMB 54.96 billion	2.314 billion ≈4.2% of market capitalization
Full-Year Revenue 2024	Approx. RMB 55 billion	2.314 billion ≈4.2% of revenue

• Current Ratio
  : 1.07 (slightly above 1, liquidity in tight balance) [0]
• Quick Ratio
  : 0.87 (below 1, short-term debt repayment pressure is relatively high) [0]
• Free Cash Flow
  : -RMB 2.903 billion (continuous outflow, insufficient cash generation capacity) [0]

From a liquidity perspective, if the company’s book cash reserves cannot cover the full compensation of RMB 2.314 billion, it may need to repay through financing or asset disposal, which will increase the company’s financial burden.

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According to financial analysis, Sunwoda’s

[0]. Specific performance:

• The company adopts conservative accounting policies; high depreciation/capital expenditure ratio indicates that previous investments are being gradually absorbed
• Weak profitability: net profit margin is only 2.71%, low net profit margin means that compensation has a significant erosion effect on the company’s profits
• Operating cash inflow is insufficient to cover capital expenditure needs; free cash flow remains negative

If it loses the lawsuit and bears full compensation, the company’s debt leverage may further rise, and its credit rating may face downward pressure.

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From the secondary market performance, the stock price showed relatively restrained performance on the first trading day after the lawsuit news was released (December 27), with a cumulative increase of 3.41% in the past 5 days, but a decrease of 12.14% in the past 3 months [0]. This reflects that the market has already expected the uncertainty of the lawsuit result, but there has been no panic selling.

It is worth noting that the 200-day moving average of this stock is 24.43 yuan, and the current stock price of 29.75 yuan is still about 21.8% higher than the long-term average, and the bullish pattern on the technical side has not been completely broken [0].

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Scenario	Probability	Financial Impact
Full Compensation (2.314 billion RMB)	Medium	Approx.1.6 years of net profit evaporated, cash flow pressure surges, may trigger financing demand
Partial Compensation	High	Expected compensation range of RMB 500 million to 1 billion, impact on current profit is controllable
Win or Settlement	Medium	No substantial financial impact

:

:<br>1. The 2.314 billion RMB claim amount is equivalent to approx.1.6 years of the company’s net profit; full compensation will have a major impact on profitability [0]<br>2. Negative free cash flow, tight liquidity balance, short-term solvency is limited [0]<br>3. The case has not yet been heard; there is significant uncertainty about the final judgment result

:<br>1. The company’s production and operation are currently normal [2]<br>2. The company is actively seeking negotiation solutions [2]<br>3. As a leading enterprise in the power battery industry, it has certain financing channels and asset disposal space

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Currently, the lawsuit has not yet been heard, and there is great uncertainty about the final compensation amount. Investors need to closely follow the subsequent case progress and company announcements. Recommendations:

1. Short-term
   : Pay attention to the stock price performance after resumption of trading on December 27; if there is irrational selling, you can buy on dips
2. Medium-term
   : Track the company’s 2024 annual report and 2025 Q1 report to see if the lawsuit has accrued a provision for liabilities
3. Long-term
   : The competitive pattern of the power battery industry and changes in the company’s customer structure remain the core investment logic

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[1] Guancha.cn - “Over 2.3 Billion RMB Claim! Zeekr Sues Sunwoda” (https://www.guancha.cn/qiche/2025_12_27_801853.shtml)

[2] Sina Finance - “Geely Sues Sunwoda for 2.314 Billion RMB Claim” (https://finance.sina.com.cn/tech/shenji/2025-12-27/doc-inheevqx0186129.shtml)