Lingnan Landscape Co Ltd

On September 30, Yuandao Communication, now trading under the abbreviated name Yuandao Delisting with stock code 301139, resumed trading on the first day of its delisting consolidation period with a sharp gap down. It briefly triggered a trading halt during the session and closed down 72.51 percent. The company's delisting stems from fabricating major false content in its securities issuance documents. According to the China Securities Regulatory Commission's administrative penalty decision, from 2019 to 2021 Yuandao Communication inflated operating revenue by a total of about 490 million yuan through methods such as fabricating workload confirmation forms. The commission also determined that then-chairman Li Jin seriously failed to perform his duties diligently and that the violations were serious. The company had already corrected expressions such as diligent and responsible in its earlier announcement on the evening of September 29. On the same day, ST Lingnan, stock code 002717, which faces face-value delisting risk, opened at the daily limit down again, with its share price at 0.62 yuan per share. From September 7 to September 29, its closing price had been below 1 yuan for 16 consecutive trading days. Based on the September 30 closing price, even if it hit the daily limit up for the next three trading days, it would still be unable to return above 1 yuan. ST Lingnan has been under delisting risk warning since April 30 this year, and other risk warnings have continued to apply, because its net assets at the end of 2025 were negative, its audit report contained a disclaimer of opinion, and its main bank accounts were frozen. On June 3, additional other risk warnings were imposed again. Recently, ST Lingnan and relevant parties received an administrative penalty decision from the Guangdong branch of the China Securities Regulatory Commission. The company was given a warning and fined 8 million yuan for failing to disclose fund occupation matters as required, for major omissions and false records in its 2021 annual report, and for failing to promptly disclose that it was under investigation on suspicion of criminal activity.

ST Lingnan announced that as of September 21, 2026, the company's closing share price had been below 1 yuan for eleven consecutive trading days, creating a risk of delisting because the stock price is below par value. This is the third time the company has issued a delisting risk warning. If the closing price remains below 1 yuan for 20 consecutive trading days, the company's shares will be delisted and will not enter a delisting consolidation period. Previously, on September 18, 2026, ST Lingnan and relevant parties received an administrative penalty decision from the Guangdong Securities Regulatory Bureau. The company failed to disclose fund occupation matters as required, causing material omissions in its 2021 annual report, and fabricated seedling procurement business to conceal the fund occupation, resulting in false records in the 2021 annual report. It also failed to promptly disclose that it was under investigation for suspected crimes and that a then-director had been subjected to compulsory measures. The Guangdong Securities Regulatory Bureau ordered the company to rectify the issues and imposed a fine of 8 million yuan, and separately imposed fines and market ban measures on responsible persons Yin Hongwei, Liu Yuping, He Shifeng, and Chen Jianbo. The company said it will continue to monitor developments, strictly fulfill information disclosure obligations, and strengthen internal governance standards.

*ST Lingnan released its 2026 interim report. As of June 30, net profit attributable to shareholders was negative 284 million yuan, a decrease of 156 million yuan from the same period last year, with the loss widening year on year. Total operating revenue was 58.2383 million yuan, down 67.44 percent year on year. Net cash inflow from operating activities was 16.4188 million yuan, down 83.08 percent year on year. The asset-liability ratio rose to 114.50 percent, gross margin was negative 161.91 percent, and diluted earnings per share was negative 0.16 yuan.