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There has been new progress in the first case of "state-owned enterprise convertible bond default". Zhongshan State-owned Assets has stepped in to acquire part of the "Lingnan convertible bonds".

Affected by this,Lingnan SharesThe stock price hit the daily limit today, with the latest price at 1.02 yuan per share and a total market value of 1.793 billion yuan.

Default sets "double record"

On August 17, Lingnan Shares issued an announcement stating that Zhongshan Talent Innovation and Entrepreneurship Ecological Park Service Co., Ltd. (a subsidiary of Zhongshan State-owned Assets) is planning to acquire part of the "Lingnan convertible bonds" and its rights.

Zhongshan State-owned Assets will acquire eachBondsThe maximum number of holders is 1,000, and the purchase price is 100.127 yuan per ticket, slightly higher than the face value of 100 yuan per ticket.

As of August 14, if the bondholders hold no more than 1,000 "Lingnan Convertible Bonds", they will be purchased according to the total number of bonds they hold; if the number of bonds held exceeds 1,000, they will be partially purchased, limited to 1,000 bonds.

"Lingnan convertible bond" became the first state-owned enterprise convertible bond default in the country, and it also became the first case in which the convertible bond defaulted before the underlying stock was delisted.

Looking back, on August 14, 2018, Lingnan Shares issued 660 million yuan of convertible bonds, "Lingnan Convertible Bonds", which adopted the payment method of annual interest payment and a lump sum repayment of the principal and the last year's interest upon maturity. If the conversion fails upon maturity, Lingnan Shares shall redeem the bonds from investors at a price of 107 yuan per bond.

On August 14 this year, the "Lingnan convertible bond" expired, but because Lingnan shares failed to raise sufficient funds, it was unable to repay the principal and interest on time.

At present, the remaining amount of "Lingnan convertible bonds" is 456 million yuan, which also means that investors of the convertible bonds face the risk of not being able to recover 456 million yuan of funds.

After the acquisition by Zhongshan State-owned Assets, each investor can get back a maximum of 100,127 yuan.

It should be noted that this bond acquisition requires the consent of the bondholders. If the holder disagrees or fails to express a clear consent, the "Lingnan convertible bonds" held by the bondholder will not be acquired.

The underlying stock is facing operating difficulties

Although Lingnan Shares has a state-owned background, it has encountered great operational difficulties in recent years.

Lingnan shares' main business is ecological environment construction and sewageEnvironmental governanceIn recent years, due to the difficulty in collecting payments due to delayed payments from local governments, the company has suffered losses.Debt-to-asset ratioHigher.

Since 2022, Lingnan Shares' net profit has been negative.

In 2023, Lingnan Shares achieved operating income of 2.13 billion yuan, a year-on-year decrease of 17.08%; net profit loss was 1.096 billion yuan, and net cash flow generated by operating activities was -279 million yuan.

In the first quarter of this year, the company achieved revenue of 305 million yuan, a year-on-year decrease of 39.09%, and a net profit of -90.1613 million yuan, with losses widening.

At the end of the period, the company's total assets were 15.108 billion yuan, total liabilities were 12.898 billion yuan, and the asset-liability ratio exceeded 85%. As of the end of the first quarter, the company had a total of approximately 94,000 shareholders.

The fundamentals continued to be weak, and the share price of Lingnan shares also continued to decline.

Since the beginning of this year, the stock has fallen by 64.75%. It should be noted that the company's stock price once reached a high of 180.57 yuan per share.

On August 14, Lingnan shares closed at 0.93 yuan per share, below 1 yuan. Subsequently, the company announced thatThere is a risk of delisting at par value.

If today's stock price can continue to hit the daily limit until the closing, it will alleviate the delisting crisis.