Sunwoda Electronic Co., Ltd. made an announcement today that its subsidiary, Sunwoda Power, was served with a civil complaint and a notice to respond to a lawsuit (case number: (2025) Zhe 02 Min Chu No. 1870) by the Ningbo Intermediate People's Court in Zhejiang Province on December 25, 2025. The lawsuit pertains to a sales - contract dispute. The plaintiff, VREX Electric Vehicle Technology (Ningbo) Co., Ltd., claims that the battery cells supplied by Sunwoda Power from June 2021 to December 2023 suffered from quality issues, which led to substantial economic losses. As a result, the plaintiff has initiated legal proceedings, seeking 2.314 billion yuan in compensation for these losses, along with the corresponding interest. At present, the case has not entered the trial phase. Sunwoda stated that its production and business operations are proceeding as usual. However, it is currently unable to evaluate the potential impact of this lawsuit on the company's profits.