Shang Hai Zheng Quan Bao·2025-11-04 15:48Core Viewpoint - ST Lingnan is facing multiple legal challenges, including a recent lawsuit for alleged collusion in bidding, which may impact its operations and finances depending on court outcomes [2][5]. Group 1: Legal Issues - ST Lingnan received a summons from the Henan Province Tangyin County People's Court for a hearing on October 31, related to allegations of collusion in bidding [2]. - The company is also involved in a lawsuit initiated by the Agricultural Development Bank of China, with a claim amounting to 294 million yuan due to a financial loan contract dispute [5]. - As of October 28, 2025, ST Lingnan has reported approximately 131 million yuan in undisclosed litigation and arbitration matters, representing 12.28% of its latest audited net assets [5]. Group 2: Financial Impact - The ongoing legal issues have not yet significantly affected the company's production and operations, but the potential financial impact remains uncertain pending court decisions [5]. - ST Lingnan's recent financial performance has been poor, with a reported revenue of 253 million yuan for the first three quarters of 2025, a decrease of 68.75% year-on-year, and a net loss of 206 million yuan [6]. Group 3: Management Issues - The company's current co-chairman and legal representative, Yin Hongwei, is under investigation by the China Securities Regulatory Commission for violations related to information disclosure [5]. - ST Lingnan has filed a lawsuit against Yin Hongwei for the recovery of 142 million yuan in misappropriated funds, which has not yet been resolved [6].