Core Viewpoint - The company is currently involved in a legal dispute regarding the termination of management consulting agreements with several non-profit institutions in the healthcare sector, which may significantly impact its future revenue from this segment [2][3][10]. Group 1: Litigation Background - The lawsuit is in the second instance, with the company’s wholly-owned subsidiary, Shanghai Renxing Health Management Co., Ltd., as the appellant [2]. - The total amount involved in the case is reported as 0 yuan, indicating no direct financial claim is being pursued [3]. - The company is unable to receive operational income from the healthcare segment due to the unilateral termination of agreements by the non-profit institutions [3][10]. Group 2: Details of the Agreements - The company acquired 100% of Shanghai Renxing for 600 million yuan in 2019, which included management rights over several healthcare institutions [4]. - In April 2020, management consulting rights were transferred to a subsidiary, Horqin Renheng Health Management Co., Ltd., which subsequently faced contract terminations from the non-profit institutions [5]. Group 3: Legal Proceedings - The company filed lawsuits to declare the management consulting agreements invalid after receiving termination notices from the non-profit institutions [5][6]. - The first-instance judgment rejected all of the company’s claims, leading to an appeal filed on April 11, 2025 [7][12]. - The second-instance ruling upheld the original judgment, confirming the termination of the agreements [8][9]. Group 4: Financial Impact - The company anticipates a loss of approximately 56.65 million yuan in consulting management fee income, which constituted 15.63% of its total revenue in 2021 [10]. - Following the termination of agreements, the company has improved operational efficiency in its self-operated nursing institutions to mitigate losses [10]. - The company has fully recognized impairment provisions for future income from these management consulting fees in its 2022 annual report [11]. Group 5: Future Actions - The company plans to appeal the court's decision and will actively seek a retrial [12].