Shang Hai Zheng Quan Bao·2025-11-17 20:26Core Viewpoint - The company, through its wholly-owned subsidiary, has initiated a lawsuit concerning a construction contract dispute, with the amount in question being approximately 122.56 million yuan, which represents 10.12% of the company's audited net assets [2][3]. Group 1: Lawsuit Details - The lawsuit has been accepted by the People's Court of Xingtai Economic Development Zone in Hebei Province and has not yet gone to trial [2]. - The plaintiff in this case is Suzhou Industrial Park Landscape Greening Engineering Co., Ltd., a wholly-owned subsidiary of the company [2]. - The defendants include Dongxu Lantian Ecological Environmental Technology Co., Ltd., China Energy Construction Group Southern Investment Co., Ltd., and Southern Construction Xingtai Landscape Construction Co., Ltd. [2]. Group 2: Financial Implications - The total amount involved in the lawsuit is 122,557,486.08 yuan, excluding late payment interest and penalties [2][3]. - The company has already received 149,899,000 yuan of the total contract value of 272,456,486.08 yuan, leaving a remaining balance of 122,557,486.08 yuan unpaid [3]. - The company will assess the impact of the lawsuit on its profits based on accounting standards and the progress of the case, with final accounting treatment to be determined after the annual audit [2][4]. Group 3: Legal Actions and Requests - The company requests the court to order Dongxu Lantian to pay the outstanding amount along with overdue interest calculated at 1.95 times the current bank LPR from July 1, 2021, until the payment is made [3]. - Additionally, the company seeks to hold Southern Construction and Xingtai Construction liable for the unpaid amount within the scope of the contract [3]. - The company also requests that the litigation costs be borne by the defendants [3]. Group 4: Other Legal Matters - As of the announcement date, the company and its subsidiaries have not identified any other significant litigation or arbitration matters that have not been disclosed, particularly those involving amounts exceeding 10% of the company's audited net assets [4].