Palm Eco-Town Development Co., Ltd. Announcement on Progress of Accumulated New Litigation, Arbitration, and Previously Disclosed Litigation Matters
The Company and the entire Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or significant omissions.
Palm Eco-Town Development Co., Ltd. (hereinafter referred to as the "Company") disclosed on May 22, 2026, the "Announcement on Subsidiary Initiating Arbitration" (Announcement No.: 2026-071). This announcement disclosed the new litigation and arbitration cases filed by the Company and its consolidated subsidiaries from May 13, 2026, to May 20, 2026. For details, please refer to the announcement disclosed by the Company on May 22, 2026, in the China Securities Journal, Shanghai Securities News, and on the CNINFO website (www.cninfo.com.cn).
Between May 21, 2026, and June 16, 2026, the Company added some small-amount litigation and arbitration cases. The details are as follows:
I. Basic Situation of Accumulated New Litigation and Arbitration Matters
Between May 21, 2026, and June 16, 2026, the Company and its consolidated subsidiaries cumulatively added litigation and arbitration cases with a total claim amount of RMB 2,846.87 million, accounting for 6.76% of the company's net assets audited in 2025. Among these, the cases where the Company and its consolidated subsidiaries were the plaintiffs amounted to RMB 780.24 million, accounting for 27.41% of the total amount; the cases where they were the defendants amounted to RMB 2,066.63 million, accounting for 72.59% of the total amount. Please refer to Appendix I for details.
The Company and its consolidated subsidiaries do not have any major litigation or arbitration cases where the amount involved in a single case accounts for more than 10% of the absolute value of the company's latest audited net assets, and the absolute amount exceeds RMB 10 million.
As of the disclosure date of this announcement, the progress of previously disclosed major litigation and arbitration cases in the last twelve months is detailed in Appendix II.
II. Other Undisclosed Litigation and Arbitration Matters
As of the disclosure date of this announcement, the Company and its consolidated subsidiaries do not have any other major litigation or arbitration matters that should be disclosed but have not been disclosed.
III. Possible Impact of the Accumulated Litigation and Arbitration Matters Announced This Time on the Company's Current or Subsequent Profits
The litigation cases where the Company is the plaintiff are all related to disputes over construction engineering contracts or construction engineering design contracts. The Company will legally assert and protect its legitimate rights and interests, actively apply for property preservation, and take relevant legal measures to protect the interests of the Company and its shareholders.
For the litigation cases where the Company is the defendant, the Company will diligently collect and preserve evidence and actively respond to the lawsuits. For some cases, the plaintiffs have applied for property preservation based on their litigation rights, which may lead to the freezing of some of the Company's funds.
Given that all newly added cases are in the pre-trial stage, the impact on the Company's current or subsequent profits is uncertain. The Company will carry out corresponding accounting treatment in accordance with the requirements of relevant accounting standards and actual circumstances, and fulfill its information disclosure obligations in a timely manner as required by the rules. Investors are advised to pay attention to investment risks.
Hereby announced.