Core Viewpoint - The company has disclosed an increase in litigation and arbitration cases, with a total amount involved of 159.95 million yuan, representing 9.64% of the company's audited net assets for 2024 [2]. Group 1: Litigation and Arbitration Overview - From May 24, 2025, to September 2, 2025, the company and its subsidiaries have added litigation and arbitration cases totaling 159.95 million yuan, with 88.40% of this amount (approximately 141.40 million yuan) as the plaintiff and 11.60% (approximately 18.55 million yuan) as the defendant [2]. - There are no individual cases with amounts exceeding 10% of the company's latest audited net assets or over 10 million yuan [2]. Group 2: Reasons for Increased Litigation - The increase in litigation is attributed to cash flow issues faced by some enterprises, prompting the company to file lawsuits to recover accounts receivable [4]. - Delays in project completion and settlement procedures have also led to increased litigation from suppliers seeking payment [4]. Group 3: Company’s Legal Strategy - The company is actively working to mitigate litigation risks through various measures, including asset preservation and evidence collection [4]. - For cases where the company is the plaintiff, it aims to assert its rights to priority payment under construction contracts [5][6]. - The company is prepared for potential impacts on its accounts due to asset freezes resulting from ongoing litigation [6]. Group 4: Potential Impact on Financials - The majority of the cases involve construction contract disputes, with the company seeking overdue payments [5]. - The impact on current or future profits remains uncertain as cases are still pending and have not yet been adjudicated [6].

Core Viewpoint - The announcement from Palm Eco-Town Development Co., Ltd. reveals an increase in litigation and arbitration cases, with a total amount involved of 159.95 million yuan, representing 9.64% of the company's audited net assets for 2024 [1][2]. Summary by Sections Litigation and Arbitration Cases - From May 24, 2025, to September 2, 2025, the company and its subsidiaries faced a total of 15 new litigation and arbitration cases, with a cumulative amount of 159.95 million yuan [1]. - The breakdown of the cases shows that the company acted as the plaintiff in 88.40% of the total amount (approximately 141.40 million yuan) and as the defendant in 11.60% (approximately 18.55 million yuan) [1]. Reasons for Increased Litigation - The increase in litigation is attributed to cash flow issues among some enterprises, prompting the company to initiate lawsuits to recover accounts receivable and avoid bad debt risks [2]. - Delays in project completion and settlement procedures have led to downstream suppliers suing the company for payment, contributing to the rise in cases against the company [2]. Company’s Response to Litigation Risks - The company is actively managing litigation risks by implementing various strategies, including asset preservation measures for cases it initiates and evidence collection for cases against it [2]. - The company is also pursuing mediation and settlement options to resolve cases promptly and is collaborating with legal counsel to develop litigation strategies for significant cases [2]. Progress of Previously Disclosed Major Cases - The announcement includes updates on previously disclosed major litigation and arbitration cases, with several cases awaiting court hearings and some already in the execution phase [3][4]. - Notable cases include disputes over construction contracts and loan agreements, with amounts involved ranging from 1.01 million yuan to 90.90 million yuan [3][4].