ST Palm announced that due to a construction contract dispute, Zhuzhou Eba Landscaping Engineering Co., Ltd. sued the company and its related party, Shanghai Zongyuan Green Valley Urban Construction Co., Ltd., and the Guangxin District People's Court of Shangrao City has filed a case and accepted it, but has not yet held a trial. The amount involved was 142 million yuan, accounting for 33.76% of the company's 2025 audited net assets. The plaintiff requested confirmation of the invalidity of the relevant construction contract and supplementary agreement, and ordered the two defendants to jointly pay 122 million yuan in discounted compensation for the project, interest on capital occupation, overdue maintenance costs, etc., totaling 142 million yuan, and bear all the costs of the lawsuit. There is still uncertainty about the impact of this lawsuit on the company's current and post-term profits.

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