Quanyang Spring: Subsidiary filed a lawsuit involving 1.23 billion yuan, accounting for 10.12% of net assets.

Quanyangquan announced that its wholly-owned subsidiary Park Garden Company is in a construction contract dispute with Dongxu Lantian, Southern Construction, and Xingtai Construction. The case has been accepted by the Xingtai Economic Development Zone People's Court in Hebei Province, and a court date has not yet been scheduled. The amount involved in the case is 123 million yuan, accounting for 10.12% of the recently audited net assets. Park Garden Company has completed the construction project as per the contract, with a settlement amount of 272 million yuan. It has received 150 million yuan, with the remaining 123 million yuan yet to be received. The company is requesting Dongxu Lantian to pay the construction fees and interest, with the other two parties holding responsibility for the unpaid amount and bearing the litigation costs. The impact of this litigation on the company's current profits is uncertain.