Important Statement
This report is prepared by the bond entrusted manager, GF Securities Co., Ltd. (hereinafter referred to as "GF Securities"), based on relevant public information disclosure documents such as the "Measures for the Administration of Convertible Corporate Bonds," the "Entrusted Management Agreement" between Lingnan Ecology and Culture Travel Co., Ltd. and GF Securities Co., Ltd. regarding the convertible corporate bonds publicly issued by Lingnan Ecology and Culture Travel Co., Ltd. in 2018 (hereinafter referred to as the "Entrusted Management Agreement"), and the "Prospectus for the Public Issuance of Convertible Corporate Bonds by Lingnan Ecology and Culture Travel Co., Ltd." (hereinafter referred to as the "Prospectus"), as well as professional opinions issued by third-party intermediaries. GF Securities has not independently verified the content and information quoted from the above documents and does not guarantee or assume any responsibility for the truthfulness, accuracy, and completeness of such quoted content and information.
This report does not constitute a recommendation for investors to take or not take any action. Investors should make independent judgments on relevant matters and should not use any content in this report as a commitment or statement made by GF Securities. In any case, GF Securities shall not be liable for any action or inaction taken by investors based on this report.
Risk Warning
I. "Lingnan Convertible Bond" Cannot Be Redeemed on Time
According to the company's "Announcement on the Inability of 'Lingnan Convertible Bond' to Be Redeemed on Time" (Announcement No.: 2024-113), the company's existing monetary funds are insufficient to repay the principal and interest of "Lingnan Convertible Bond," and "Lingnan Convertible Bond" cannot be redeemed on time.
According to the company's "Announcement on the Credit Rating of the Company's Main Body and Related Bonds" (Announcement No.: 2024-119), the credit rating agency United Credit Rating Co., Ltd. has downgraded the company's long-term credit rating to C and the credit rating of "Lingnan Convertible Bond" to C.
The overdue situation of "Lingnan Convertible Bond" may affect the confidence of other creditors in the company, further weakening the company's financing capabilities and exacerbating its tight cash flow situation. If the company fails to resolve the issue properly, it may face further lawsuits, arbitrations, frozen bank accounts, and frozen assets, and may also need to pay relevant default penalties, late fees, and interest, which will affect the company's production and operation, increase its financial expenses, and further increase its capital pressure, impacting the company's performance this year.
In addition, the company's debt overdue situation may lead to the company's delisting. If not resolved properly, it will affect the company's reputation in the capital market and further affect investor confidence, as well as the company's stock price. The company may be delisted due to triggering circumstances for mandatory delisting based on trading.
II. Continuous Operation Risk
In recent years, the company's ecological environment construction and restoration business, water affairs and water environment management business, and cultural tourism business have all been severely impacted. The company's project bidding and commencement have been delayed, and the project construction period and settlement progress have been significantly affected. The repayment situation is poor, the asset-liability ratio is high, profitability and solvency are continuously declining, and there is liquidity pressure.
On April 29, 2026, the company disclosed its 2025 annual audit report. United Certified Public Accountants (Special General Partnership) (hereinafter referred to as "United Certified Public Accountants" or "Annual Auditor") audited the company's 2025 financial report and issued a disclaimer of opinion audit report.
According to the company's "Lingnan Ecology and Culture Travel Co., Ltd. 2025 Annual Report," in 2025, the company's operating revenue was 112.0875 million yuan, a year-on-year decrease of 86.99%. In 2025, the net profit attributable to shareholders of the listed company was -233,567.61 million yuan, a loss increase of 137.29% compared to the same period last year.