Shuguang Group reports August production decline, increased guarantee exposure

Liaoning SG Automotive Group reported a decline in August 2025 production, with total vehicle output down 7.95% month-over-month to 151 units, and year-to-date production decreasing by 6.62% to 1,524 units. Sales also fell 13.91% in August to 336 units, and year-to-date sales dropped 25.28% to 1,132 units. Despite the overall decline, pickup truck production surged 6,650.00% in August, contributing to a 1,061.54% increase in total vehicle production compared to the previous year.

Concurrently, the company announced an updated external guarantee for its wholly-owned subsidiary, Liaoning Huanghai Automobile Import and Export Co., Ltd. Liaoning SG Automotive Group provided a maximum mortgage guarantee of RMB59.90m. As of the announcement date, the actual guaranteed amount for Huanghai Import and Export, including the current guarantee, totals RMB93.90m, with an outstanding balance of RMB28.85m. Huanghai Import and Export's asset-liability ratio stood at 90.97% as of June 30, 2025.

The total estimated guarantee limit for 2025, including counter-guarantees, is RMB160bn, representing 119.29% of the company's latest audited net assets. As of the announcement date, the actual utilized guarantee amount for other subsidiaries stands at RMB66,187.66m, with an outstanding balance of RMB49,794.56m.