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].