Sunwoda EV and WeLion Reach Settlement, Ending RMB 2.3 Billion Contract Dispute

On February 6, Sunwoda Electronic Co., Ltd. announced that its subsidiary, Sunwoda Power Technology, has reached a settlement with Geely Smart Electric Vehicle Technology (Ningbo) Co., Ltd. regarding a prior sales contract dispute and has signed a "Settlement Agreement." Geely Smart has withdrawn its lawsuit from the court. The dispute originated from issues related to contract performance, with Geely Smart having filed suit against Sunwoda Power in December 2025, seeking compensation exceeding RMB 2.3 billion. According to the agreement, taking into account factors such as actual costs incurred, accrued warranty reserves, and the realizable value of battery packs, the settlement is expected to impact Sunwoda Power’s attributable net profit for 2025 by RMB 500 million to RMB 800 million. Should any vehicle recalls be involved, both parties will fulfill their obligations in accordance with applicable laws. Both sides emphasized that the settlement not only safeguards their respective interests but also contributes to the stability and coordinated development of the new energy vehicle industry chain. Sunwoda Power stated it will continue to ensure user interests and the stability of its product and service offerings.