Core Viewpoint - The company, Zhuhai Huafa Industrial Co., Ltd., has initiated a lawsuit against Jilin Tianmao Real Estate Group Co., Ltd. for a financial dispute involving a total amount of approximately 627.93 million yuan [3][4]. Group 1: Lawsuit Details - The lawsuit has been filed and accepted by the Zhuhai Intermediate People's Court, with the case number (2025) Yue 04 Min Chu 609 [4]. - The plaintiff, Zhuhai Huazhuo Real Estate Development Co., Ltd., is a subsidiary within the company's consolidated financial statements [4]. - The defendant, Jilin Tianmao, is accused of failing to return funds that were requested multiple times, totaling 627 million yuan [5]. Group 2: Financial Implications - The lawsuit seeks to recover the 627 million yuan along with compensation for the financial losses incurred due to the fund's occupation, calculated based on the one-year Loan Prime Rate (LPR) from the date of the lawsuit until the funds are fully repaid [6]. - Additionally, the plaintiff is requesting compensation for legal fees amounting to 930,000 yuan and for the defendant to bear all related litigation costs [7]. - The company has indicated that the impact of this lawsuit on its current or future profits remains uncertain as the case has not yet been heard [3][7]. Group 3: Other Legal Matters - As of the announcement date, the company has no other undisclosed significant litigation or arbitration matters apart from the current case [7]. - Over the past twelve months, the company and its subsidiaries have been involved in litigation totaling approximately 1.74 billion yuan, which does not meet the disclosure standards for significant litigation as per the Shanghai Stock Exchange regulations [7].

Core Viewpoint - Zhuhai Huafa Industrial Co., Ltd. has initiated a lawsuit against Jilin Tianmao for the misappropriation of project company funds amounting to 627.93 million yuan, which includes principal and legal fees [1][2][3] Group 1: Lawsuit Details - The plaintiff is Zhuhai Huazhuo, a subsidiary of Huafa, while the defendant is Jilin Tianmao, with two other subsidiaries involved as third parties [2] - The lawsuit was filed on November 11, 2025, for a dispute over the infringement of company interests [2] - The case has been accepted by the Zhuhai Intermediate People's Court, but has not yet entered the trial phase [4] Group 2: Background and Claims - Huazhuo and Jilin Tianmao had a cooperation agreement to jointly establish a target company with a 50:50 equity ratio, which fully owns the project company responsible for the "Huamao Tiancity International Peninsula Garden Project" [3] - The project company has repeatedly requested the return of funds from Jilin Tianmao, totaling 627 million yuan, which have not been returned [3] - The lawsuit requests the return of the misappropriated funds, compensation for legal fees of 930,000 yuan, and coverage of related litigation costs [3] Group 3: Company Impact - The company has stated that it is currently unable to assess the impact of the lawsuit on its profits for the current or future periods due to the case not yet being heard [4] - As of November 18, 2025, the company and its subsidiaries have ongoing litigation totaling 1.742 billion yuan, which represents 8.82% of the audited net assets as of the end of 2024 [4]