SUNWODA(SZ:300207) Xin Lang Cai Jing·2025-12-29 13:39Core Viewpoint - The lawsuit against XWANDA by Weirui Electric Vehicle Technology highlights significant quality issues with battery cells supplied by XWANDA, leading to a claim of 2.314 billion RMB, which poses a substantial risk to the company's financial health [21][4][26]. Group 1: Lawsuit Details - XWANDA's subsidiary, XWANDA Power Technology, is being sued by Weirui Electric Vehicle Technology for a breach of contract, claiming severe quality issues with battery cells supplied from June 2021 to December 2023 [21][4]. - The lawsuit involves claims for direct economic losses, appraisal fees, attorney fees, and litigation costs, with the Ningbo Intermediate People's Court officially accepting the case [4][5]. - This lawsuit signifies a deeper internal conflict within the supply chain of major automotive manufacturers, rather than a typical customer-supplier dispute [5][24]. Group 2: Financial Implications - The claim amount of 2.314 billion RMB is significantly higher than XWANDA's net profit of 1.47 billion RMB for the entire year of 2024 and 1.41 billion RMB for the first three quarters of 2025 [26][7]. - If XWANDA loses the case and is required to pay the full amount, it could have a severe impact on the company's financial status, although the final effects will depend on the court's ruling and auditor assessments [26][6]. Group 3: Company Overview and Market Position - XWANDA has established a strong market presence, focusing on square aluminum shell battery technology and expanding into cylindrical batteries, covering various electric vehicle segments [27][8]. - The company's market share in the power battery sector has increased to 3.25%, ranking sixth in the industry, showcasing robust growth [28][9]. - XWANDA has formed partnerships with major automotive brands, including NIO, Xpeng, and Li Auto, and has secured a battery supply project for Xiaomi's third vehicle model [30][12]. Group 4: Strategic Challenges - The ongoing lawsuit not only affects the relationship between XWANDA and Weirui but also raises alarms across the entire industry supply chain [32][14]. - As XWANDA seeks to expand its market share and potentially list in Hong Kong, the resolution of this lawsuit will be crucial for its future growth and capital market ambitions [32][14]. - Following the announcement of the lawsuit, XWANDA's stock experienced a significant drop of nearly 16%, reaching a four-month low [32][14].