Core Viewpoint - The company is facing significant risks related to its financial reporting and potential delisting due to unresolved audit issues and ongoing litigation, which may impact its financial stability and operations [2][9][15]. Group 1: Financial Reporting and Audit Issues - The company received a regulatory inquiry from the Shanghai Stock Exchange regarding its Q3 2025 financial report, indicating that the annual auditor may not be able to issue an unqualified opinion due to unresolved issues [2][3]. - As of the inquiry date, the annual auditor has not obtained sufficient audit evidence regarding external loan interest and the accuracy of project cost measurements, which could lead to the company's stock being delisted if unresolved by the end of the fiscal year [2][9]. - The company has reported 252 new lawsuits since the beginning of 2025, with a total amount involved of approximately 497.65 million yuan, which represents 177.73% of its net assets as of Q3 [3][5]. Group 2: Litigation and Financial Liabilities - The company has identified 21 lawsuits that may affect prior financial statements, indicating potential accounting errors that require retrospective adjustments [5][6]. - The company is conducting a self-examination of its project costs and liabilities related to the ongoing lawsuits, which may lead to adjustments in future financial reporting [6][11]. - The annual auditor has expressed concerns about the accuracy and completeness of the company's financial reporting, particularly regarding external loans and project costs, which could significantly impact the financial statements [20][27]. Group 3: Subsidiary Operations and Internal Controls - The company has disclosed information about its major subsidiaries, including their operational status and financial data, as part of its internal control improvements [22][23]. - The company has established an internal control working group to enhance governance and has implemented new procedures to manage key operational areas [23][24]. - The company has confirmed that there are no instances of non-operating fund occupation or illegal guarantees by controlling shareholders or related parties [24][27]. Group 4: Cash Flow and Fund Management - As of Q3 2025, the company reported cash and cash equivalents of 72.38 million yuan, with 81.66 million yuan frozen due to litigation and guarantees [28][29]. - The company has acknowledged challenges in repaying 190 million yuan of temporarily supplemented funds due to cash flow pressures and ongoing litigation [32][33]. - The company is actively working on strategies to recover receivables and manage asset sales to alleviate financial pressure and facilitate the repayment of the temporarily supplemented funds [35][37].