Group 1 - The company’s wholly-owned subsidiary, Lanzhou Kangpeng, is involved in a construction contract dispute with Shanghai Tianyi Decoration Engineering Co., Ltd., which has led to a lawsuit filed in the Gansu Provincial Intermediate People's Court [1] - Lanzhou Kangpeng raised an objection to the jurisdiction during the submission of the defense, and the Gansu Provincial High People's Court ruled on August 29, 2023, to revoke the previous civil ruling and designate the case to be under the jurisdiction of the Lanzhou New District People's Court [1][2] - The recent final judgment from the Gansu Provincial Intermediate People's Court ordered Lanzhou Kangpeng to pay an engineering fee of 52,953,288.97 yuan, along with interest calculated based on the one-year Loan Prime Rate (LPR) from March 30, 2023, until the payment is completed [2][3] Group 2 - The company has accounted for the estimated engineering fee and interest totaling 3.28 million yuan in its 2024 profit and loss statement, with an expected impact of 730,000 yuan on the 2025 profit and loss statement [3] - The company anticipates that this lawsuit will not have a significant adverse effect on its production and operations, as all business operations are currently normal [3]