Core Viewpoint - The company, through its wholly-owned subsidiary Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., is involved in a patent infringement lawsuit against three defendants, with the Zhejiang Provincial High Court recently issuing a ruling that dismissed all claims made by the company in the first instance [2][4]. Group 1: Lawsuit Details - The lawsuit pertains to a dispute over the infringement of invention patent rights, with the company claiming that the defendants used its patented fermentation process for Cordyceps sinensis without authorization [2][8]. - The total amount involved in the lawsuit is 111,386,405 yuan, which has increased by 10,600 yuan since the initial disclosure [2]. - The company plans to appeal the first-instance ruling to the Supreme People's Court of the People's Republic of China [2][8]. Group 2: Court Proceedings - The Zhejiang Provincial High Court accepted the case on December 25, 2023, and conducted two public hearings on April 8 and June 11, 2024 [3]. - The court's ruling rejected all claims made by the company, and the company is responsible for the litigation costs amounting to 598,732 yuan [4][5]. Group 3: Financial Impact - The ongoing lawsuit is not expected to have a significant impact on the company's current or future profits [7]. - The company has stated that it believes the court's findings and evidence used during the trial do not accurately reflect the actual circumstances of the case [7][8]. Group 4: Other Legal Matters - As of the announcement date, the company has no other significant undisclosed litigation or arbitration matters [6]. - There are minor ongoing legal matters that do not meet the threshold for significant disclosure, with a total amount involved of approximately 36,991.38 million yuan domestically and 2,539.5 million yuan internationally [6].