Shandong Longda Meat Foodstuff Co Ltd

Hog prices continue to run at low levels, and multiple listed pig companies plan to suspend new farm construction projects. Shennong Group announced it intends to suspend construction of the Longmen pig farm project of Guangxi Daxin Shennong Agriculture Company Limited, which originally planned an investment of 120 million yuan, aimed at implementing hog production capacity control targets. Earlier, New Wellful terminated the construction project of a 2,400-head sire line pig farm in Yangjiadu Village, Huitong County, by Hunan Tianxin Breeding Company Limited in May. ST Longda announced on July 22 the termination of two hog breeding investment projects, scaling back capacity expansion and shifting focus to safeguarding cash flow and improving quality and efficiency at already operational pig farms.

Lianhe Credit has downgraded the long-term debt rating of Longda Meishi and the rating of the Longda convertible bond from CCC to CC, with the rating outlook placed on negative. The issuer and bond ratings have been downgraded by 13 notches from A+ over the past two years. Longda Meishi reported a net loss attributable to the parent company of 736 million yuan for 2025, and the outstanding Longda convertible bond amounts to 697 million yuan. China Fortune Land Development has added a new large enforcement record of 1.51 billion yuan. As of the end of May 2026, the cumulative principal of debts that have failed to be repaid on time reached 27.442 billion yuan. The company posted a loss of 22.859 billion yuan in 2025, with negative net assets of 4.831 billion yuan. Nine outstanding bonds have defaulted, with a total default amount of 18.314 billion yuan, and nine offshore bonds have defaulted with a total amount of 4.56 billion US dollars. The Dongshi convertible bond issued by Dongfang Shishang has matured and defaulted. The issuer is still in the pre-restructuring stage, and the trustee will file a lawsuit. The default amount of this bond is 62 million yuan. Rongxin Group announced that the repayment funds for H20 Rongxin 3 have not yet been secured, and it will negotiate and adjust the repayment arrangements within the grace period. The company reported a loss of 8.51 billion yuan in 2025, and its audit report was issued with a disclaimer of opinion. The total size of its 10 outstanding bonds is 10.632 billion yuan, of which 9 have been extended.

ST Longda has launched an out-of-court restructuring and is openly recruiting restructuring investors to ease debt pressure. On July 6, Longda convertible bonds hit their daily limit up, and the company's share price rose 9.70%. The company initiated the out-of-court restructuring process on July 3, planning to negotiate with creditors, shareholders, and potential investors on debt repayment, debt adjustments, and the introduction of incremental funds before entering judicial bankruptcy proceedings. On the same day, it began the open recruitment of restructuring investors. The Longda convertible bonds will mature on July 12, 2026, with a redemption price of 115 yuan per bond. As of July 2, there were still 7,490,961 bonds outstanding that had not been converted into shares, accounting for 78.85% of the total issuance of 9.5 million bonds, corresponding to a maturity redemption amount of approximately 861 million yuan. The company's current cash funds are expected to be insufficient to cover the principal and interest due at maturity. To reduce redemption pressure, the company has repeatedly lowered the conversion price from the initial 9.56 yuan per share to 1.95 yuan per share. However, based on the share price of 1.47 yuan on July 6, the conversion value per bond is about 75.38 yuan, still below the bond price and the maturity redemption price, making it difficult for the market to voluntarily convert shares to ease the pressure. The recruitment of restructuring investors is divided into industrial investors and financial investors. Industrial investors are required to pay a deposit of 30 million yuan, while financial investors must pay 10 million yuan. The company's 2025 operating revenue was 10.019 billion yuan, down 8.83% year-on-year, with a net loss of 736 million yuan. In the first quarter of 2026, revenue was 2.058 billion yuan, down 19.25% year-on-year, with a net loss of 993,500 yuan. The company cautioned that out-of-court restructuring does not have judicial compulsory effect, and there is uncertainty as to whether it will subsequently enter the restructuring process. If the restructuring fails, it may face bankruptcy and delisting risks.