Core Viewpoint - The company has received an arbitration ruling requiring it to pay damages of RMB 23.3398 million and arbitration costs of RMB 292,000 due to a breach of contract related to a development cooperation agreement [1] Group 1: Arbitration Details - The arbitration ruling was issued by the Huizhou Arbitration Commission on January 16, 2026 [1] - The company’s subsidiaries, including Fudi International Holdings Limited, Luoyang Wanheng Real Estate Co., Ltd., and Kayuan Enterprise Investment Co. Limited, were the respondents in the arbitration [1] - The ruling involves a development cooperation contract established on August 10, 2023, concerning the leasing arrangements for the Guangzhou Changliu Industrial Park, which is owned by the group [1] Group 2: Financial Implications - The total amount to be paid by the company includes RMB 23.3398 million in damages and RMB 292,000 in arbitration fees [1] - The company is seeking legal advice regarding the arbitration ruling [1] - The company believes that the ruling will not have a significant adverse impact on its overall business operations [1]