Core Viewpoint - Shanghai Shimao Construction Co., Ltd. has disclosed significant legal issues and overdue debts, including a pending lawsuit involving a claim of 11.291 billion yuan, which may be related to the Shenzhen-Hong Kong International Center project [1][5] Group 1: Legal and Financial Issues - The company is facing a new lawsuit with a claim amount of 11.291 billion yuan, with the plaintiff being China CITIC Financial Asset Management Co., Ltd. [1] - The lawsuit is based on a contract dispute, and the first-instance hearing is scheduled for September 30, 2025 [1] - The company has also been involved in a land recovery situation, where 12 plots related to the Shenzhen-Hong Kong International Center are being evaluated for a compensation of only 6.8 billion yuan, significantly lower than the original acquisition cost [4][6] Group 2: Project Development and Challenges - The Shenzhen-Hong Kong International Center project was initially acquired for 23.943 billion yuan in December 2017, but the project has faced multiple delays and adjustments in height from 700 meters to below 500 meters [3][4] - Originally planned for completion by July 2025, the project has not progressed as expected, leading to speculation about government land recovery [4][6] - The project aims to be a comprehensive development including a conference center, hotel, and commercial spaces, but has been stalled due to financial difficulties and legal challenges [3][5] Group 3: Financial Performance - The company has reported continuous losses since 2022, with a net profit of -2.056 billion yuan for the first nine months of 2025, which is over 100% of its net assets at the end of 2024 [8] - The total contracted sales for the first ten months of 2025 were approximately 20.919 billion yuan, reflecting a year-on-year decline of 26.5% [8]