SUNWODA(SZ:300207) Nan Fang Du Shi Bao·2026-01-17 03:49Core Viewpoint - The company Xiwanda is facing significant challenges due to safety issues with its battery products, leading to recalls and legal claims from partners, which may impact its financial performance and market reputation [1][6][8]. Group 1: Battery Safety Issues - Volvo has initiated a recall of its EX30 model due to potential overheating risks in high-voltage batteries, which are produced by a joint venture between Xiwanda and Geely [3][4]. - The recall affects multiple markets, with specific numbers including 40 vehicles in the U.S. and 2,815 in Australia, highlighting the scale of the issue [4]. - Xiwanda has not clearly defined its responsibility in the recall and has not disclosed potential impacts on its battery business [5][6]. Group 2: Legal Challenges - Xiwanda is facing a lawsuit from Geely's subsidiary, Weirui Electric Vehicle Technology, claiming damages of 2.314 billion yuan due to quality issues with battery cells delivered between June 2021 and December 2023 [6][8]. - The lawsuit is linked to previous quality complaints, including a situation where Zeekr, a Geely brand, offered free battery replacements to customers due to performance issues [7]. Group 3: Financial Performance and Market Position - Xiwanda's revenue from its automotive battery business has grown rapidly, from 428 million yuan in 2020 to 151.39 billion yuan in 2024, increasing its share of total revenue from less than 3% to 27.02% [8][9]. - Despite this growth, the gross margin for Xiwanda's electric vehicle batteries is only 9.77%, significantly lower than competitors like CATL and EVE Energy, which have margins of 22.41% and 17.6%, respectively [9]. - The company reported a net loss of 877 million yuan in the first half of 2025, despite generating 7.392 billion yuan in revenue from its battery segment [9].