LJZ(SH:600663) Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2025-09-05 05:02Core Viewpoint - The company is currently involved in a legal dispute with Shanghai Depu Cultural Development Co., Ltd. regarding unpaid rent and other claims, with both parties appealing the initial court ruling [2][4][6]. Group 1: Legal Proceedings - The case involves Shanghai Dongrao Real Estate Co., Ltd. (a subsidiary of the company) and Shanghai Depu Cultural Development Co., Ltd., with both parties appealing the first-instance judgment [2][3]. - The first-instance judgment ordered Depu Cultural to vacate the premises and pay Dongrao a total of 15.7 million yuan for rent and occupation fees, while Dongrao is required to pay 36 million yuan in compensation for renovations [2][3]. - The total amount claimed by Depu Cultural in its appeal is approximately 629.6 million yuan, which includes various damages due to the early termination of the lease [4]. Group 2: Financial Implications - The company has recognized a provision for estimated liabilities based on the first-instance judgment, but the final impact on the company's profits for 2025 remains uncertain pending the outcome of the appeal [3][9]. - According to an agreement with its controlling shareholder, Shanghai Lujiazui (Group) Co., Ltd., any economic losses incurred by Dongrao due to the case will be fully compensated by Lujiazui Group, which will be recorded as capital reserves [3][9]. Group 3: Ongoing Developments - Following the first-instance ruling, both Dongrao and Depu Cultural signed a property handover confirmation and retrieved the premises, but both parties have filed appeals against the ruling [6][9]. - The company will continue to monitor the situation and fulfill its disclosure obligations as required by regulations [10].