Northeast Electric Development Co. Ltd. is currently involved in litigation after Liaoning Trust and Investment Company filed a lawsuit seeking to declare the company's debt assignment agreement invalid. The first-instance ruling did not favor Northeast Electric, but the company believes there were legal errors regarding the statute of limitations and liability for fault. As a result, Northeast Electric has filed an appeal with the Shenyang Intermediate People's Court. The final outcome of the case could have a material adverse impact on the company's financial position, but as of now, the litigation has not affected its operations. Shareholders and investors are advised to exercise caution in dealing with the company's securities while the case is ongoing.