LNGF(SZ:002717) Zhong Guo Jing Ying Bao·2025-10-27 09:49Core Viewpoint - ST Lingnan is pursuing legal action against its former actual controller and current co-chairman, Yin Hongwei, for the recovery of misappropriated funds amounting to 142 million yuan, which has raised concerns about the company's financial stability and governance issues [2][3][5]. Financial Issues - The company reported cumulative losses exceeding 3.63 billion yuan over the past three years, with net losses of 1.55 billion yuan in 2022, 1.09 billion yuan in 2023, and 984 million yuan in 2024 [5][6]. - As of the end of 2024, ST Lingnan's accounts receivable stood at 2.26 billion yuan, indicating significant challenges in cash flow and collection [6]. Legal Proceedings - The case against Yin Hongwei has been officially accepted by the court, with the amount in question being 142 million yuan plus associated losses due to fund occupation [2][3]. - Yin Hongwei's personal assets are uncertain, raising doubts about the recovery of the owed amount [4][5]. Governance and Compliance - The company has faced scrutiny from the China Securities Regulatory Commission for suspected violations of information disclosure, which is believed to be linked to the fund misappropriation case [5]. - Internal control issues have been highlighted, with auditors issuing negative opinions on the company's internal controls due to the misappropriation of funds [3][5]. Shareholder Impact - Following the misappropriation, Yin Hongwei's shareholding has been significantly affected, with 208 million shares frozen and 100 million shares recently auctioned off, reducing his stake from 14.71% to 11.42% [4][5].