LONGZHOU GROUP CO.(SZ:002682) Mei Ri Jing Ji Xin Wen·2026-02-10 10:35Core Viewpoint - Longzhou Co., Ltd. (龙洲股份) announced a significant lawsuit development regarding its subsidiary Dongguan Zhongqi Hongyuan Automobile Co., Ltd. (中汽宏远), which was ordered by the Dongguan First People's Court to compensate a total of 51.835 million yuan for operational losses due to battery failures in electric buses sold in 2018 [1][2][3]. Group 1: Lawsuit Details - The lawsuit stems from battery failures in electric buses sold by Zhongqi Hongyuan, leading to operational disruptions for Dongguan Buses and Dongguan City Bus Transportation [2][3]. - The court ruled that Zhongqi Hongyuan must compensate Dongguan Buses 19 million yuan and Dongguan City Bus Transportation 32.83 million yuan, totaling 51.835 million yuan [3][4]. - The original claims from the plaintiffs were 205 million yuan and 226 million yuan, respectively, indicating a significant reduction in the awarded amount [2][3]. Group 2: Company Financials and Implications - For the first three quarters of 2025, Longzhou Co., Ltd. reported revenues of 1.825 billion yuan, a year-on-year decrease of 26.61%, and a net loss attributable to shareholders of 95.6357 million yuan, down 32.45% [6][9]. - The company has been involved in multiple lawsuits, with a total amount of approximately 222 million yuan in ongoing litigation, representing 19.12% of the latest audited net assets [6][9]. - Longzhou Co., Ltd. anticipates a net loss for the entire year of 2025 between 390 million yuan and 550 million yuan, reflecting an increase in losses compared to previous years [9].