LONGZHOU GROUP CO.(SZ:002682) Mei Ri Jing Ji Xin Wen·2025-11-25 15:52Core Viewpoint - Longzhou Co., Ltd. (龙洲股份) disclosed two significant lawsuits involving its subsidiary Dongguan Zhongqi Hongyuan Automobile Co., Ltd. (中汽宏远) due to sales contract disputes, with the cases currently in the first instance awaiting judgment [2][11]. Group 1: Lawsuit Details - Zhongqi Hongyuan is the defendant in two lawsuits filed by Dongguan Bus Co., Ltd. and Dongguan City Bus Transportation Co., Ltd., with the amounts involved being 205 million yuan and 226 million yuan respectively, totaling approximately 431 million yuan [8][10]. - The lawsuits stem from issues related to battery failures in electric buses sold by Zhongqi Hongyuan in 2018, which led to significant operational disruptions starting in 2021 [10][12]. Group 2: Company Actions and Financial Implications - Longzhou Co., Ltd. stated that Zhongqi Hongyuan has reached agreements with the plaintiffs regarding warranty and repair matters, and has completed the necessary maintenance work [11]. - The company has made provisions for the repair costs associated with the affected buses in the 2024 fiscal year [11]. - Longzhou Co., Ltd. reported that the total amount of other undisclosed minor lawsuits and arbitration matters is 83.2852 million yuan, accounting for 7.16% of the company's audited net assets for 2024 [11]. Group 3: Financial Performance - Longzhou Co., Ltd. has experienced three consecutive years of losses, with net losses reported at 79.2269 million yuan, 352 million yuan, and 348 million yuan for the years 2022 to 2024 [17]. - For the first three quarters of 2025, the company reported revenue of 1.825 billion yuan, a year-on-year decrease of 26.61%, and a net profit attributable to shareholders of -95.6357 million yuan, down 32.45% year-on-year [20].