Core Viewpoint - The company is currently involved in a legal execution phase, with significant financial implications due to a court ruling regarding a government subsidy repayment and associated financial losses [1][2][3]. Group 1: Legal Proceedings - The company and its wholly-owned subsidiary, Dongfang Shifang Driving School Jinzhong Co., Ltd., are the defendants in the ongoing legal case [1]. - The execution amount specified in the execution notice is 250.567445 million yuan, plus financial occupation losses calculated based on the same amount from September 1, 2023, until actual repayment [1][3]. - The company has received an execution notice and ruling from the Jinzhong Intermediate People's Court, mandating immediate compliance with the court's orders [3]. Group 2: Financial Impact - The company has accounted for the repayment of government subsidies as non-operating expenses in its 2024 annual report, with related tax expenses reversed [2][3]. - The specific accounting treatment for financial occupation losses will be confirmed by the annual audit results [2][3]. - The uncertainty of the execution results may affect the company's current and future profits, with the final outcome dependent on the court's execution results [2][3]. Group 3: Disclosure of Other Legal Matters - As of the announcement date, the company and its subsidiaries do not have any other significant undisclosed litigation or arbitration matters [4].
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