Core Viewpoint - The company has entered into a compulsory execution mediation agreement to resolve obligations related to unauthorized guarantees and connected transactions, which is expected to impact its financials significantly [1][3][4] Group 1: Mediation Agreement Details - The mediation agreement involves Shanghai Jinyuan and Shanghai Zhijin agreeing to pay a total of RMB 86 million to settle obligations under a share transfer and guarantee agreement [1] - The payment structure includes RMB 43 million through the transfer of 1,034 parking spaces and the remaining RMB 43 million in cash, with specific payment deadlines outlined [1][2] - The agreement allows for the unfreezing of bank accounts of Zhejiang Heyuan and Zhejiang Zhixiang Daceng upon receipt of the initial payment [2] Group 2: Financial Implications - The company anticipates a loss reversal of approximately RMB 109 million due to the mediation, which includes a difference between a previously recorded provision and the mediation amount [3] - The estimated value of the parking spaces to be transferred is around RMB 44.49 million as of March 31, 2025, impacting the overall financial assessment [3] - The actual financial impact will be subject to review by the company's auditors and may differ from the estimates provided [3] Group 3: Strategic Considerations - The board believes that entering into the mediation agreement is a fair and reasonable approach to resolve arbitration matters amicably, avoiding further legal costs and potential negative impacts on the company [4] - The agreement is expected to enhance the company's cash flow and improve operational liquidity by releasing frozen deposits [4] - The company has committed not to pursue claims against Zhejiang Heyuan and Zhejiang Zhixiang Daceng if they fulfill their obligations under the mediation agreement [2][4]