Investors are closely monitoring the situation at Zhejiang Narada Power Source Co., Ltd. (Stock Abbreviation: ST Narada, Code: 300068) as the company, a nearly three-decade industry veteran, disclosed on July 8, 2026, that a creditor has filed for its pre-restructuring and restructuring.

The company announced it has been unable to repay its due debts, prompting creditor Zhejiang Huazheng Energy Materials Co., Ltd. to submit the application to the Hangzhou Intermediate People's Court.

This development marks a critical juncture for the once-prominent energy storage giant. Concurrently, the company is facing a wave of investor compensation claims triggered by financial and internal control issues revealed in its recent annual report.

Financial and Internal Control Irregularities

During the recent annual reporting season, auditor ShineWing issued a qualified opinion on ST Narada's 2025 financial statements and, notably, an adverse opinion on its internal controls.

The audit report highlighted severe financial mismanagement. As of the end of 2025, the company's prepayment balance to a core supplier stood at 365 million yuan, with cumulative annual prepayments of 4.633 billion yuan resulting in goods received worth only 134 million yuan.

Furthermore, the company improperly guaranteed 2.364 billion yuan in private lending for a business partner without undergoing the required internal approval procedures.

Significant Earnings Downgrade and Mounting Losses

The company's financial performance also took a dramatic turn. On April 24, 2026, ST Narada issued a revised earnings forecast, drastically adjusting its previously estimated 2025 net profit loss attributable to shareholders from a range of 890 million to 1.25 billion yuan down to a loss of 2.4 billion to 2.8 billion yuan.

The final annual report confirmed a massive net loss of 2.642 billion yuan for 2025. Combined with a loss of 1.497 billion yuan in 2024, the company's cumulative losses over two years exceed 4 billion yuan.

Due to the adverse internal control opinion, the company's stock was placed under special treatment (ST) on April 30, 2026, officially changing its ticker to "ST Narada." The stock subsequently experienced two consecutive 20% daily limit-down declines.

Investor Legal Action for Misrepresentation

Beyond its operational struggles, the listed company now confronts legal accountability from investors. The substantial inaccuracy in its earnings forecast and the identified major internal control deficiencies have led to allegations that ST Narada constitutes false statement misrepresentation.

Investors who meet specific criteria are currently being sought for a potential compensation claim. This includes those who purchased shares between January 31, 2026, and April 24, 2026 (inclusive), and subsequently sold or held the shares at a loss after April 25, 2026.