Core Viewpoint - Shanghai Lujiazui Financial Trade Zone Development Co., Ltd. has disclosed that its subsidiary, Lujiazui International Trust Co., Ltd., is involved in six major lawsuits with a total amount of 3.243 billion yuan, implicating well-known real estate companies such as Sunac and Shimao [1] Group 1: Legal Issues - Lujiazui Trust is pursuing 1.831 billion yuan in debt from Nanjing Shierong Real Estate and three other companies, with the case now in the execution phase [2] - Shimao Real Estate has been ordered to bear joint compensation liability of 55.3 million yuan due to a mortgage contract breach involving ten properties [2] - The court has auctioned 93 properties mortgaged by Shimao, concluding a 348 million yuan guarantee rights dispute [2] - A second-instance ruling has supported Lujiazui Trust's claims in a 579 million yuan financial loan case against Pingyang Longheng Real Estate and Sunac Group, covering all claims including principal and penalty interest [2] - A typical case involves a 430 million yuan financial loan contract dispute with four Shimao-related companies, where the court ordered repayment of 319.8 million yuan in principal and 110.2 million yuan in overdue interest [2] Group 2: Operational Challenges - Lujiazui International Trust, established in 2003, has faced significant operational and compliance crises, with a registered capital of 10.4 billion yuan [3] - The company has been penalized multiple times for regulatory violations, including a 4.2 million yuan fine for misusing trust funds for land transfer payments [3] - The 2023 annual report shows a dramatic decline in performance, with revenue dropping by 49.77% to 842 million yuan and net profit falling by 71.50% to 237 million yuan [3] - Investment income plummeted from 259 million yuan to a loss of 52.215 million yuan, a decline of 120.19% [3] - The total assets decreased by 7.22%, and the non-performing asset ratio surged from 0% to 7.65% [3] - The scale of managed assets shrank by 34.74% to 83.762 billion yuan, with trust project income and net profit declining by 41.57% and 28.05%, respectively [3] Group 3: Industry Impact - The lawsuits reflect the liquidity crisis in the real estate sector and its impact on financial institutions, indicating that Lujiazui Trust is aggressively pursuing debt recovery through legal means [4] - The progress of these cases and their repercussions on the real estate and financial sectors warrant ongoing market attention [5]