In-Depth Analysis of Sunwoda's RMB 2.314 Billion Claim by Viridi E-Mobility

Based on the collected information, I now provide you with a systematic and comprehensive analysis report.

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On December 26, 2025, Sunwoda Electronic Co., Ltd. (Stock Code: 300207.SZ) issued an announcement stating that its wholly-owned subsidiary Sunwoda Power Technology Co., Ltd. has been sued by Viridi E-Mobility Technology (Ningbo) Co., Ltd. over a sales contract dispute, with a claim amount of

[1][2]. The case has been officially accepted by the Ningbo Intermediate People’s Court of Zhejiang Province, with the case number (2025) Zhe 02 Min Chu No. 1870, and has not yet been heard in court.

Party	Background Description
Plaintiff: Viridi E-Mobility	A new energy technology company jointly controlled by Zeekr (51% shareholding) and Geely Holding Group (49% shareholding), founded in 2013, mainly providing power battery systems for Geely Group brands[1][3]
Defendant: Sunwoda Power	A wholly-owned subsidiary of Sunwoda, focusing on R&D and manufacturing of power batteries. It won the designated supplier qualification for cell development of Viridi E-Mobility’s “PMA Platform Project” in 2021[1][2]
Involved Time Period	Cell products delivered between June 2021 and December 2023[1][2]

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In its complaint, Viridi E-Mobility alleges that the cells provided by Sunwoda have

, and the claimed compensation includes[1][2][3]:

• Direct economic loss:
  RMB 2.314 billion
• Interest calculated based on the LPR (Loan Prime Rate) starting from the date of the lawsuit
• Appraisal fees, attorney fees, and all litigation costs

It is worth noting that in February 2024, media reported that a Zeekr 001 in Shaoxing, Zhejiang, caught fire, with visible damage to the battery base and melted aluminum parts. This is highly consistent with the involved time window (June 2021 to December 2023)[2].

Sunwoda clearly stated in its announcement[1][2][3]:

1. Denies quality defects
   : The cells delivered by the company have undergone strict testing and have no quality issues
2. Disputes liability attribution
   : Emphasizes that cells are only the “core energy storage unit” of battery packs, which also include battery management systems (BMS), thermal management systems, structural components, etc., and the problem may lie in the system integration link
3. Normal operations
   : Currently, the company and its subsidiaries within the consolidated statements are operating normally
4. Proactive response
   : Will seek reasonable solutions, strengthen communication with relevant parties, and strive for a proper resolution

Dispute Point	Sunwoda’s View	Industry Background
Cell Quality	Tested qualified, no defects	Cells are energy storage units, not the entire system
Root Cause of Problem	May lie in BMS or system integration	Power batteries are complex systems, and problems are the result of superimposed effects
Liability Division	Clear evidence chain required	There are differences in the industry on this

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Financial Indicator	Amount (in RMB 100 million)	Percentage
Viridi’s Claim Amount	23.14	-
Sunwoda’s 2023 Net Profit	10.76	215%
Sunwoda’s 2024 Net Profit	14.68	158%
Total Net Profit for Two Years	25.44	91%
Net Profit for First Three Quarters of 2025	14.1	164%

: The RMB 2.314 billion claim amount equals of Sunwoda’s total net profit from 2023 to 2024. A loss in the case will have a significant impact on its financial position[1][3].

[0][4]:

Time Node	Closing Price	Change Description
Before the incident (December 25)	29.53 CNY	Normal trading
First trading day after the incident (December 29)	Opened down 15.97%	Panic selling in the market
Lowest point (December 30)	27.19 CNY	Maximum decline of -7.92%
Latest (January 7)	25.86 CNY	12.43% decline compared to before the incident

: The single-day market value evaporated by more than after the announcement was released[3].

Risk Type	Potential Impact
Liquidity Pressure	The RMB 2.3 billion compensation will directly wipe out the accumulated profits of the past two years
Credit Rating	A loss in the case may lead to a rating downgrade, increasing financing costs by 2-3 percentage points
Hong Kong Stock Listing	The Hong Kong stock prospectus was just submitted in July 2025, and the lawsuit may affect the listing process
Supplier Payment Terms	Upstream suppliers may tighten credit policies

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According to data from the China Automotive Power Battery Industry Innovation Alliance, Sunwoda’s power battery market share reached

in the first 11 months of 2025, ranking [1][5]. Its customers include:

Customer Type	Customer List	Impact Level
Mainstream Domestic Automakers	Li Auto, NIO, XPeng, Leapmotor, GAC Group	⚠️ High
Geely Group	Zeekr, Volvo, Lotus	🔴 Severe
Traditional Automakers	Dongfeng Motor, Dongfeng Liuzhou Motor, SAIC-GM-Wuling	⚠️ Medium
International Manufacturers	Volkswagen, Renault, Nissan, eGT New Energy Automotive	⚠️ Medium-High

• Li Auto i6 adopts a dual-supplier strategy of CATL + Sunwoda
• Consumers explicitly request “no Sunwoda batteries” before paying the deposit
• Some car owners
  gave up pickup and refunded deposits
  after finding their vehicles were equipped with Sunwoda batteries[3]

• Measured winter range is less than 70% of the claimed range
• Abnormal battery temperature rise when parked triggers safety concerns
• Some car owners
  sold used cars at a low price
  to avoid risks[3]

• Models equipped with Sunwoda batteries have received intensive inquiries from users
• Dealers need to provide additional explanations, increasing service costs[3]

The current power battery market presents a

[4][5]:

Ranking	Enterprise	Market Share (Jan-Nov 2025)
1	CATL	42.7%
2	BYD	22.9%
3	CALB	Approximately 7%
6	Sunwoda	3.25%

:

1. Order Loss
   : Existing customers may switch to leading manufacturers such as CATL and BYD
2. Hindered New Customer Expansion
   :
   • Automakers will be more cautious in selecting suppliers
   • Strict terms such as quality guarantees and shortened payment terms may be increased
   • International manufacturers (such as Volkswagen and Renault) may re-evaluate cooperation
3. Damaged Brand Reputation
   :
   • Consumers have formed the perception that “Sunwoda batteries = quality issues”
   • Li Auto once launched a policy of “additional extended warranty for models equipped with Sunwoda batteries”[3]
4. Joint Venture Dissolution
   :
   • In April 2025,
     Geely Automobile withdrew
     from the joint venture “Shandong Geely Sunwoda Power Battery Co., Ltd.”[3]

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This lawsuit exposes the hidden concerns behind the rapid expansion of the new energy battery industry[3][4]:

Aspect of the Problem	Specific Performance
Consequences of Price Wars	Second-tier manufacturers seize market share by “low prices and high volumes”, and relax quality control
Complexity of System Integration	Cells, BMS, packaging, and vehicle scenarios are superimposed issues, not single-point failures
Narrow Fault Tolerance Space	As a core component, cell quality issues are directly related to consumer safety
Automakers’ Supplier Anxiety	Zeekr once claimed “the only new energy vehicle brand with zero spontaneous combustion globally”, and fell into a trust crisis after being disproven

Trend	Forecast
Strengthened Head Effect	Automakers tend to choose stable suppliers such as CATL
Differentiation of Second-Tier Manufacturers	Focus on niche markets or “compete to the extreme” in terms of quality
Quality System Upgrade	Disclosure of problems and improvement roadmaps are key to rebuilding trust
Supply Chain Transparency	Battery supplier information will become an important consideration for consumers when purchasing cars

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Dimension	Assessment
Financial Impact	A loss in the case will severely impact profits; the RMB 2.3 billion claim is equivalent to two years of profits being wiped out
Stock Price Trend	Has fallen by over 12%, facing obvious short-term pressure
Customer Relationships	Cooperation with Geely Group has essentially broken down, and other customers are taking a wait-and-see attitude
Listing Process	The Hong Kong stock listing plan may be passively delayed

1. Case Trend
   :
   • It is expected to enter the evidence appraisal stage, and may move towards a phased settlement
   • Viridi’s claim of RMB 2.314 billion is to leave room for negotiations, and the actual compensation may be significantly reduced

2. Prospects for Customer Expansion
   :
   • Domestic Customers
     : Li Auto, XPeng, etc. may maintain cooperation but will strengthen quality constraints
   • International Customers
     : Volkswagen, Renault, etc. may suspend in-depth cooperation and wait for the lawsuit result
   • Emerging Customers
     : New power automakers will be more cautious in selecting suppliers

3. Industry Restructuring
   :
   • Second-tier battery manufacturers face increased survival pressure, and industry integration accelerates
   • Quality will become the core competitive variable, and the “low-price strategy” will be unsustainable

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[1] ESM China - “Sunwoda’s Subsidiary Involved in RMB 2.3 Billion Power Battery Quality Dispute” (https://www.esmchina.com/news/13792.html)

[2] Beijing News - “An Old Debt and a Gamble: Sunwoda’s ‘Year-End Crisis’” (https://www.bjnews.com.cn/detail/1767575117168698.html)

[3] NetEase/Sina Finance - “Sunwoda Hit with RMB 2.3 Billion Sky-High Claim, Exposing the ‘Quality Fester’ Behind the Fierce Competition in the Battery Industry” (https://www.163.com/dy/article/KIKU01T60556BMXG.html, https://cj.sina.cn/articles/view/3656659427/d9f431e3001018n54)

[4] Eastmoney - “Sunwoda’s Subsidiary Suddenly Hit with RMB 2.3 Billion Claim Over Cell Quality Issues” (https://wap.eastmoney.com/a/202512273603570473.html)

[5] Qianzhan Industry Research Institute - “Competition Pattern and Ranking of China’s Lithium Battery Industry” (https://finance.sina.com.cn/roll/2025-11-20/doc-infxzvma0848641.shtml)

[0] Gilin AI API Market Data