Core Viewpoint - ST Lingnan has announced the second phase of repayment for its convertible bonds, following the completion of the first phase in January 2025, with a repayment amount exceeding 31 million yuan [1][2]. Group 1: Repayment Details - The second phase repayment will be based on the remaining bond quantity after the first phase, with a standard of repaying 1 bond for every 13 held, and any remaining bonds less than 13 will also be repaid as 1 bond [2][3]. - The company has transferred 31.68 million yuan to the China Securities Depository and Clearing Corporation for the second phase repayment [2][3]. - The total remaining bond principal after the first phase is 41071.92 million yuan, with 410.72 million bonds available for partial repayment [2][3]. Group 2: Company Financial Performance - ST Lingnan's main business includes ecological environment construction, water environment governance, and cultural tourism, but it is facing significant financial losses, with expected net losses of 130 million to 195 million yuan for the first half of 2025 [5][6]. - The company has experienced delays in project payments due to financial difficulties faced by clients, impacting cash flow and project progress [6][7]. - The company has attempted multiple self-rescue measures, including lowering the conversion price of bonds, but these efforts have not yielded significant results [7]. Group 3: Market Context - The Lingnan convertible bond has previously caused market volatility, being the first state-owned enterprise bond to default, which heightened market risk aversion [4]. - The bond was issued in August 2018 with a total amount of 660 million yuan, and prior to the default, the remaining amount was 645 million yuan, with a high non-conversion ratio of 97.77% [4].

Core Viewpoint - ST Lingnan has announced the second phase of repayment for its convertible bonds, following the completion of the first phase in January this year, with a repayment amount exceeding 31 million yuan [1][2][3]. Summary by Sections Repayment Plan - The company will repay one bond for every 13 held, with any remaining bonds being repaid as one [3]. - The actual face value of the bonds remains unchanged, and the number of bonds held by investors will be reduced according to the repayment quantity [3]. - A total of 31.68 million yuan has been transferred to the China Securities Depository and Clearing Corporation for the second phase of repayment [3]. Previous Repayment Phase - The first phase of repayment was completed on January 27, 2025, with a remaining bond principal of 410.72 million yuan after accounting for judicial/pledged frozen amounts [3][4]. - The first phase repayment was set at 10% of the total bond amount, with subsequent repayments planned every six months based on available funds [4]. Market Impact - The Lingnan convertible bond has been a focal point in the market due to its significant default, marking the first instance of a state-owned enterprise's convertible bond default, which heightened market risk aversion [5][6]. - Following the default, the number of bonds trading below par reached a historical high of 185, accounting for 34.3% of the market's outstanding bonds [6]. Company Performance - The company has faced substantial losses, with an expected net loss of 130 million to 195 million yuan for the first half of 2025, compared to a loss of 259 million yuan in the same period last year [7][8]. - The decline in performance is attributed to reduced investment from clients, delayed payments due to financial difficulties of some clients, and a general downturn in the construction sector [8]. Debt and Financial Strategy - The company has attempted various self-rescue measures, including multiple adjustments to the conversion price of the bonds, but with limited success [9]. - The repayment plan specifies that the 7% interest on bonds held to maturity will not be paid, and interest during the repayment period will be at an annualized rate of 4.75% [9].