SG Automotive subsidiary secures new 5m yuan loan guarantee from parent company

Liaoning SG Automotive Group announced a new guarantee of up to 5m yuan for its wholly-owned subsidiary, Fenghcheng Shuguang Auto Half-Shaft Co., Ltd. (Shuguang Half-Shaft), for financing from Liaoshen Bank Co., Ltd., Dandong Branch. As of June 30, 2025, Shuguang Half-Shaft's asset-liability ratio was 55.83%, which is below 70%. This guarantee falls within the 160m yuan total estimated guarantee limit approved by the company's 2024 annual shareholders' meeting, covering inter-group guarantees for 2025.

As of the disclosure date, the total actual guarantee amount provided by Liaoning SG Automotive Group and its subsidiaries to Shuguang Half-Shaft, including this new guarantee, stands at 81m yuan, with outstanding guarantee debt of 66.5m yuan. Shuguang Half-Shaft reported total assets of 190.77m yuan and net profit of 3.54m yuan for the first half of 2025.

The guarantee is a maximum amount guarantee valid for three years, covering the principal and associated costs up to 5m yuan. The company confirmed no outstanding overdue external guarantees and stated that the provision of this guarantee is crucial for Shuguang Half-Shaft's operational efficiency and strategic development, without posing undue risk to the company or its shareholders.