Sunwoda released an official announcement revealing that its subsidiary, Sunwoda Power Technology Co., Ltd., has found itself entangled in a legal dispute concerning a sales contract. The plaintiff in this case is VREX Electric Vehicle Technology (Ningbo) Co., Ltd. The staggering amount at stake in this lawsuit reaches RMB 2.314 billion, and as of now, the case has not proceeded to trial.

The plaintiff alleges that the battery cells supplied by the defendant between June 2021 and December 2023 were plagued by quality issues, which subsequently led to financial losses. Sunwoda, on its part, has clarified that its current production and business operations are proceeding as usual. However, it is unable to predict the precise impact this lawsuit will have on the company's profits for the current fiscal period or any subsequent ones. The company also mentioned that it will carry out appropriate accounting measures in accordance with the future developments of the case.