ST Rongkong: Subsidiary litigation first instance judgment "Land Use Right Transfer Agreement" valid.

ST Rongkong announced that its holding subsidiary Changchun Rongfeng is in a dispute with Shanghai Pudong Development Bank over a construction land use right transfer contract, involving an amount of 22.3114 million yuan. Recently, Changchun Rongfeng received a first-instance judgment from the court, ruling that the "Land Use Right Transfer Contract" signed by both parties on December 31, 2009 is valid, rejecting Changchun Rongfeng's lawsuit and Pudong Development Bank's counterclaim. Changchun Rongfeng is responsible for the court filing fee of 153,357 yuan for the original lawsuit, while Pudong Development Bank is responsible for the counterclaim filing fee of 59,775 yuan. It is currently uncertain how this will impact the company's profits.