Lingnan Co., listed as ST Lingnan on the Shenzhen Stock Exchange under code 002717, disclosed on October 7 its ninth risk warning that the stock may be delisted because its price has fallen below par value. As of September 30, the company's closing price had been below 1 yuan for 17 consecutive trading days. Under Shenzhen Stock Exchange listing rules, if a stock's closing price stays below 1 yuan for 20 consecutive trading days, the exchange will terminate its listing. From September 28 to September 30, Lingnan Co. hit the daily downside limit for three straight sessions, closing at 0.62 yuan per share on September 30. Earlier, on April 30, the company was placed under delisting risk warning because its 2025 total profit was negative 1.747 billion yuan, net profit was negative 2.336 billion yuan, and non-recurring net profit was negative 2.776 billion yuan, all three negative, while revenue after deductions was 112 million yuan, below 300 million yuan. Audited equity attributable to the parent company at the end of 2025 was negative 1.297 billion yuan. The annual auditor issued an adverse opinion on the company's internal controls for both 2024 and 2025, and issued a disclaimer of opinion on the company's 2025 financial report. In addition, the company's major bank accounts have been frozen and its annual report contains false financial indicators, so the stock has been given an additional other risk warning. On September 18, the company disclosed that it had received an administrative penalty decision from the Guangdong Securities Regulatory Bureau. The bureau found that Lingnan Co. failed to disclose fund occupation matters as required, that its 2021 annual report contained major omissions, that it fabricated seedling procurement business to cover up fund occupation through accounting treatment, that its 2021 annual report contained false records, and that it failed to promptly disclose that the company was under criminal investigation and that a then-director had been subjected to compulsory measures. The bureau ordered the company to correct the violations, issued a warning, and imposed a fine of 8 million yuan.
Lingnan Landscape Co LtdFaces mandatory delisting risk after 17 straight days below 1 yuan, plus regulatory penalty for disclosure failures and fabricated business.
