On the evening of December 26, Sunwoda released an announcement revealing that its wholly-owned subsidiary, Sunwoda Electric Power, has been embroiled in a lawsuit initiated by VREMT (Wayray Electric Motor Technology) over a sales contract dispute. The disputed amount soars to a staggering RMB 2.314 billion. This case has been duly filed with and accepted by the Ningbo Intermediate People's Court, although no court hearing has taken place as of yet.

VREMT alleges that the battery cells supplied by Sunwoda Electric Power from June 2021 to December 2023 suffered from significant quality defects, which led to substantial losses. Consequently, VREMT has lodged multiple claims in this regard. Sunwoda, on the other hand, stated that its operations are proceeding as usual. Given the inherent uncertainty surrounding the outcome of the litigation, the company is, for the time being, unable to evaluate the precise impact this lawsuit will have on its profits. Nevertheless, the company is actively exploring viable solutions.

Established in 1997, Sunwoda has made its foray into the electric vehicle battery industry since 2014. In the first three quarters of 2025, the company reported a revenue of RMB 43.534 billion and a net profit of RMB 1.405 billion. It's worth noting that VREMT is an enterprise under the umbrella of Geely Holding Group. Sina Technology has reached out to Geely Auto for verification on this matter; however, it has not received a response thus far.