Magic Design faces $5.4m in litigation, arbitration

Shenzhen Magic Design & Decoration Engineering (SZSE:002856) announced that it faces approximately 53.99 million yuan (roughly $5.4 million USD) in cumulative litigation and arbitration matters over the past twelve months. This amount represents 15.19% of the company's latest audited net assets. The company is the plaintiff in cases totaling 51.05 million yuan, while being the defendant in cases totaling 293,800 yuan. The firm said that it will actively defend itself and take measures to mitigate potential losses. While the outcome of some pending cases remains uncertain, Magic Design assured investors it would adhere to accounting standards and disclose information in a timely manner.