Produced by Radar Finance Leizhuba Text | Xiao Wenzhu Editor | Deep Sea
On June 6, ST Lingnan issued an announcement on major arbitration.
According to the announcement, ST Lingnan (hereinafter referred to as the "Company" or "First Respondent") recently received a "Arbitration Notice" from the Dongguan Arbitration Commission. Due to a dispute over the financial loan contract, the Dongguan Branch of Guangdong Huaxing Bank Co., Ltd. (hereinafter referred to as "Huaxing Bank" or "Applicant") filed an arbitration application with the Dongguan Arbitration Commission.
As of the date of disclosure of this announcement, this case has not yet been heard. The case acceptance location is Dongguan City, Guangdong Province; the applicant is Dongguan Branch of Guangdong Huaxing Bank Co., Ltd.; the respondents are ST Lingnan (first respondent), Zhuhai Lingnan Financial Holdings Investment Co., Ltd. (second respondent), Yin Hongwei (third respondent), and Gu Yuyan (fourth respondent).
The arbitration request is: 1. The first respondent immediately repays the applicant's four loan principals of the loans under the "Working Capital Loan Contract" of 349 million yuan, interest, penalty interest, and compound interest (temporarily calculated as April 30, 2025, and interest 27.2791 million yuan, fine interest 0 yuan and compound interest 0 yuan, and the above amount is a total of 376 million yuan. Subsequent interest is collected at a fixed annual interest rate of 7.5%, and the penalty interest and compound interest rise by 50% at the loan interest rate, and are calculated to the date of repayment).
2. The applicant has ruled that the applicant has a pledge right for the following pledges and has a priority right of compensation for the discounted auction and sale amount; the first respondent provided by the Bajiaohe Park Contract, the Anhui Jieshou Liangwan National Wetland Park Landscape Project (Phase II) Construction Contract, the Foshan First Ring Expressway Renovation (Guicheng Section) Landscape Improvement Project Design-Construction General Contract (EPC) General Contracting Contract, and the Lingyun "Si Shui Colorful" Pastoral Complex-Chengbihe" Sicheng Ancient Town-Haokun Lake "The Riverside Landscape Basic Supporting Service Facilities, Water Environment Governance Engineering Survey, Design, and Construction (EPC) General Contracting Contract", "Beibei District Liangtan River Basin Ecological Comprehensive Governance (Phase II) Design and Construction General Contracting Contract", "Henan Xinhui Construction Investment Co., Ltd. Demonstration Zone Comprehensive Governance Project" and "Henan Xinhui Construction Investment Co., Ltd.'s Demonstration Zone Comprehensive Governance Project" and "Henan Xinhui Construction Investment Co., Ltd.'s Demonstration Zone" are all accounts receivable and 5% of the equity of Dongguan Private Investment Group Co., Ltd. held by the second respondent.
3. Decide the second respondent, the third respondent, and the fourth respondent shall bear joint and several liability for the aforementioned debts of the first respondent.
4. The ruling shall be held jointly by the respondents in this case (including but not limited to acceptance fees, preservation fees, etc.).
ST Lingnan said that based on the company's current operating conditions and financial conditions, and the occurrence of litigation or arbitration cases, Huaxing Bank filed an arbitration application against the company, causing the loan contract to expire early. The company is actively communicating with the applicant and striving to discuss practical solutions on the above matters. As of the date of this announcement, the case has not yet been heard, and there is uncertainty on the impact of the company's current profit or after-term profit. The company will conduct corresponding accounting treatments in accordance with the requirements of relevant accounting standards and actual conditions, and perform information disclosure obligations in a timely manner in accordance with the requirements of the rules.
It is worth noting that on April 29, ST Lingnan issued a reminder announcement on the company's self-inspection and found that the original actual controller occupied and had returned part of the company's funds.
After self-inspection, Yin Hongwei, the former actual controller and current co-chairman and president of the company, occupied funds from listed companies during the period. As of the date of disclosure of this announcement, Yin Hongwei's remaining unrepaid balance of funds occupied by the company was 142 million yuan, accounting for 13.37% of the company's latest audited net assets attributable to shareholders.
It is worth mentioning that on the same day, the 2024 annual report released by ST Lingnan showed that the company's stock will be subject to other risk warnings. Radar Finance noticed that since the opening of the market on April 30, 2025, the company has officially been issued with other risk warnings.
In this regard, Song Lianmin, director of Jiangsu Shengheng Law Firm, who has represented many stock claims and received compensation, told Radar Finance that if listed companies do not disclose information in a timely and inaccurate manner, the damaged investors can claim compensation in accordance with the law. Any investors who buy from January 3, 2024 to April 29, 2025 and hold ST Lingnan shares at the close of April 29, 2025 can sign up to participate in the claim. Please follow the official account "Leizhu Bar" (Leizhu Code: 99) to participate in the registration, and there is no fee before receiving compensation.
Tianyan Check shows that ST Lingnan has 62 trademark information, 339 patent information, and 1 copyright information.
