Financial Impact Analysis of Geely's 2.3 Billion Yuan Claim Against Sunwoda

Based on the latest news reports and financial data, I will provide a detailed analysis of the financial impact of the 2.3 billion yuan claim against Sunwoda Power on its parent company.

On the evening of December 26, 2025, Sunwoda (300207.SZ) announced that its wholly-owned subsidiary Sunwoda Power Technology Co., Ltd. had received a lawsuit from the Ningbo Intermediate People’s Court of Zhejiang Province. The plaintiff is Viridi Electric Vehicle Technology (Ningbo) Co., Ltd. (a wholly-owned subsidiary of Geely Auto), and the reason for the lawsuit is the quality issues of power battery cells delivered by Sunwoda Power to Viridi Power between June 2021 and December 2023 [1][2].

From the financial data perspective, this 2.314 billion yuan claim indeed poses significant pressure on Sunwoda [1]:

• In the
  first three quarters of 2025
  , Sunwoda’s non-GAAP net profit attributable to parent company was only
  1.015 billion yuan
  , a year-on-year decrease of 12.74%
• From
  2021 to 2024
  , the company’s cumulative non-GAAP net profit attributable to parent company was approximately
  3.91 billion yuan
• Among them, 2023 and 2024 were 973 million yuan and 1.605 billion yuan respectively
• The 2.314 billion yuan claim amount is close to
  90%
  of the total profits of 2023 and 2024

After the lawsuit news was disclosed, the company’s stock price fell significantly [0][3]:

• The daily decline reached 11.39%
• The closing price was 26.36 yuan per share, a明显 drop from the previous day’s closing price of 29.75 yuan per share
• This indicates the capital market’s negative reaction to this lawsuit event

It should be noted that the Securities Times pointed out that

[2]. The core of judicial judgment is “based on facts and laws”, and the lawsuit claim needs solid evidence to be supported.

Sunwoda stated:

• The company has actively prepared response materials
• The
  production and operation order of subsidiaries within the parent company’s consolidated statement scope is normal
• This lawsuit
  has not yet had a substantial impact on the company’s profits
• The final impact scope still needs to be determined based on the court’s effective judgment and the accountant’s audit results [2]

• The cooperation between the two parties began in April 2021, when Sunwoda Power obtained the intent letter for power battery cell development of Viridi’s PMA platform
• This platform covers core brands such as Zeekr, smart, Volvo, and Geometry
• In the first quarter of 2023, Geely Group (including Zeekr and Viridi) became Sunwoda’s
  third largest customer
  [1]

• In December 2024, Zeekr announced that some Zeekr 001 WE86 models (equipped with Sunwoda batteries) had
  problems such as slow charging speed and abnormal battery capacity decay
• Even if the warranty replacement standard was not met, the company still
  provided free battery pack replacement
  for users and launched full-scale owner testing [1]

Sunwoda’s power battery business is in a period of rapid development, but its profitability still faces challenges [1]:

• In the first half of 2025, shipment volume increased by
  93.04% year-on-year
  to 16.08 GWh, with revenue of 7.604 billion yuan
• However, the
  gross margin in the same period was only 9.77%
  , far lower than CATL’s 22.41%
• The 2025 third quarter report shows that the power battery business is still in the
  loss reduction phase

If the company loses the lawsuit and has to pay full compensation, it will cause a major financial impact on Sunwoda, possibly requiring:

• Using cash reserves or conducting financing
• Affecting normal business investment plans
• Having a significant negative impact on short-term performance

From a positive perspective:

• The company’s current production and operation order is normal
• The power battery business is still growing rapidly
• The lawsuit amount may not equal the final compensation amount

This lawsuit highlights the importance of

in the new energy vehicle industry chain [1][2]. As the industry enters a new stage of “quality competition”, how to balance profitability and quality control during scale expansion will become a challenge that second-tier battery manufacturers must face.

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The 2.3 billion yuan claim faced by Sunwoda does pose significant financial pressure, especially considering the company’s limited profitability in recent years. However, the lawsuit has not yet been finally judged, and the actual compensation amount may be lower than the claim. The company’s stock price plummeted 11.39% on the day reflects the market’s concern about this uncertainty. Investors are advised to closely follow the subsequent progress of the lawsuit and pay attention to the profit improvement of the company’s power battery business.

: This analysis is for reference only and does not constitute investment advice. The outcome of the lawsuit is highly uncertain, and investors should pay attention to subsequent official announcements and court judgment results.

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[1] Zhihu Column - “Geely Sues Sunwoda for 2.3 Billion Yuan, Stemming from Last Year’s Zeekr 001 Slow Charging Incident” (https://zhuanlan.zhihu.com/p/1988030070263130082)

[2] Securities Times - “Sunwoda Subsidiary Lawsuit Attracts Attention: Power Battery Quality Dispute Remains to Be Clarified by Judiciary, Claim Amount is Not a Fact Finding” (https://www.stcn.com/article/detail/3561272.html)

[3] Sina Finance - “Claim Exceeds 2.3 Billion! Geely-affiliated Company Accuses Sunwoda of Battery Cell Quality Issues” (https://finance.sina.com.cn/roll/2025-12-27/doc-inhefkhi7116935.shtml)