LNGF(SZ:002717) Zheng Quan Zhi Xing·2025-06-02 08:48Core Viewpoint - The company, Lingnan Ecological Culture and Tourism Co., Ltd., is facing significant financial difficulties, including the inability to repay its convertible bonds on time, which may lead to further legal and operational challenges [2][4][6]. Financial Performance - In 2024, the company's operating revenue was 861.84 million yuan, a decline of 59.55% compared to 2023 [3]. - The net profit attributable to shareholders for 2024 was -984.33 million yuan, indicating a reduction in the scale of losses compared to 2023 [3]. - For the first quarter of 2025, the net profit attributable to shareholders was -66.40 million yuan, a decrease of 26.36% in losses compared to the same period in 2024 [3]. Bond Default Risk - The company announced that it could not make timely principal and interest payments on the "Lingnan Convertible Bonds," leading to a downgrade of its credit rating to C [2][4]. - The default on the bonds may undermine creditor confidence, further straining the company's financing capabilities and exacerbating its liquidity issues [2][4]. Operational Challenges - The company has faced significant impacts on its ecological environment construction, water management, and cultural tourism businesses, resulting in delayed project bidding and construction [2][4]. - The high asset-liability ratio and declining profitability have led to ongoing liquidity pressures [2][4]. Legal and Regulatory Risks - As of December 31, 2024, the company had 251 pending lawsuits with a total amount in dispute of 2.95 billion yuan [6][7]. - The company is at risk of being delisted if its stock price remains below 1 yuan for 20 consecutive trading days [6]. Pledge and Collateral Risks - The company has pledged its receivables and equity from project companies as collateral for the convertible bonds, but the realizable value of these assets is uncertain due to long collection periods and lack of market reference [5][6]. - There are risks associated with the potential bankruptcy of the company within a year of the collateral establishment, which could lead to the revocation of the pledge [5][6]. Management and Oversight - GF Securities has been appointed as the trustee for the convertible bonds and is monitoring the situation closely to protect the interests of bondholders [8]. - The company has proposed a delay in certain fundraising projects, extending the completion date to May 2026 [8].