The two sides have been participating in several mediation sessions at an attempt to negotiate and find a solution before their legal fight goes through the official hearings. However, they were not able to reach any sort of agreement, and thus their legal reps entered into their first oral proceedings today. 

Unfortunately, the two weren't able to make any progress as the argument ended with both sides insisting on two opposite stance on the topics of contract length, profit distribution, and so on.

Hearing both their arguments, the court proposed perhaps lowering the amount of years under the contract. However, SM stated that the contract length has to be the same amount of years as all the other EXO members, while Luhan's side also refused to budge on their position of lowering the number of years under the contract.

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In response to the court's suggestion about profit distribution, SM also stated, "There are members who are currently promoting, having accepted the current contract terms. And their profit distribution ratio has already been decided on, so if there is a difference between their distribution [and Luhan's], it'll be difficult for the other members to accept."

Luhans' side fired back and pointed out that the profit distribution was never made clear to begin with and that SM has all the documents related to the matter. They also insisted that if SM revealed those documents, then it would be clear that there is a clear imbalance between the profit distribution compared to what the group is earning. 

However, SM refuted their accusations, saying that Luhan's side has never presented any evidence that backs up their statements and is making one sided claims.

The two also fired off at one another about Luhan's activities in China, but in the end no conclusion was reached for any of the issues raised. Thus, the court once again recommended the two sides to try to figure out whether they're willing to compromise, and scheduled the next oral argument for next month. 

The two sides will once again face off on September 11.