Core Viewpoint - The company is facing legal proceedings initiated by Cedar Wealth Management SPC, which has resulted in a court order for asset preservation affecting its bank account in China, with a cash balance of approximately RMB 2.55 million, until November 30, 2026 [1][2]. Group 1: Legal Proceedings - The court issued a notification on December 24, 2025, regarding the asset preservation order based on Cedar Wealth's arbitration application submitted on August 11, 2025 [1]. - Cedar Wealth claims that the company owes them approximately USD 2.05 million in unpaid service fees and other expenses, along with interest and legal fees totaling around RMB 1.04 million [2]. - The company has not received any invoices or requests for payment prior to the arbitration application, and is actively seeking more information from Cedar Wealth to understand the claims [2]. Group 2: Company Response - The board of directors is consulting legal advisors regarding the legal proceedings and arbitration, and is monitoring the potential legal, operational, and financial impacts on the company [2]. - As of the announcement date, the board believes that the legal proceedings and asset preservation order have not significantly adversely affected the company's overall business, operations, or cash flow [2]. - The company intends to negotiate with Cedar Wealth to explore possible settlement options to resolve misunderstandings and potentially terminate the legal proceedings and asset preservation order [3].

Core Points - The government of the Republika Srpska in Bosnia has decided to assume repayment responsibility for debts owed by the Ugljevik Thermal Power Plant and its parent company to Slovenia's electricity company if they fail to meet their obligations [1] - This decision aims to protect the normal operation of the Ugljevik Thermal Power Plant, as stated by the Minister of Energy, Jokić [1] - Ongoing negotiations with the Slovenian company are expected to continue, with the government playing an increasingly significant role [1] Financial Summary - The dispute involves a total amount of €770 million, with an arbitration ruling requiring the repayment of €67 million in principal and €65 million in damages due to failure to fulfill electricity supply obligations [1] - Negotiations regarding the €67 million interest portion will continue, with €30 million expected to be waived, leaving €37 million to be resolved separately [1] Legal Context - The dispute originates from labor and resource coordination agreements from the former Yugoslavia, with arbitration proceedings initiated in both Belgrade and Washington [1] - Jokić expressed hope that a new agreement with Slovenia would conclude the arbitration case in Washington [1] - The dual arbitration approach by Slovenia is viewed as a legal right to safeguard its interests [1]

General Principles - The law aims to ensure fair and timely arbitration of economic disputes, protect the legitimate rights and interests of parties, and promote the healthy development of the socialist market economy [3] - The development of arbitration services aligns with the policies and decisions of the Communist Party and the state, serving high-quality development and high-level opening-up [3] - Disputes arising between equal subjects, including natural persons, legal persons, and unincorporated organizations, can be arbitrated, except for certain types of disputes such as marriage and administrative disputes [3] Arbitration Institutions and Personnel - Arbitration institutions can be established in municipalities and provincial capitals, and they are non-profit entities organized by local governments and chambers of commerce [14][15] - Arbitration institutions must meet specific criteria, including having a name, necessary assets, qualified personnel, and appointed arbitrators [18] - The composition of arbitration institutions includes a director, deputy directors, and members, with a majority being experts in law, economics, and technology [22] Arbitration Agreements - An arbitration agreement can be included in a contract or reached in writing before or after a dispute arises [34] - The agreement must specify the intention to arbitrate, the arbitration matters, and the chosen arbitration institution [35] - An arbitration agreement is invalid if it exceeds the legal scope, is made by individuals without civil capacity, or is made under coercion [36] Arbitration Procedures - Parties must submit a valid arbitration agreement and specific requests to initiate arbitration [40] - The arbitration application must include detailed information about the parties, the arbitration request, and supporting evidence [42] - The arbitration process is confidential unless the parties agree otherwise, and hearings must be conducted unless waived by the parties [48] Awards and Enforcement - Arbitration awards are final and binding, and parties must comply with them; non-compliance allows the other party to seek enforcement through the courts [75] - Courts may refuse to enforce an award if it violates public interest or if there are procedural irregularities [76][77] - The law provides for the possibility of appealing an arbitration award under specific circumstances, such as lack of an arbitration agreement or procedural violations [62][63] International Arbitration - The law includes provisions for international arbitration, allowing parties to choose arbitration institutions and rules, and it emphasizes cooperation with foreign arbitration bodies [12][78] - In cases of international disputes, parties can apply for evidence preservation through local courts, which must act promptly [79] - The law encourages the selection of Chinese arbitration institutions and designating China as the arbitration venue for international disputes [87]