SG Automotive guarantees $5m loan for high-debt subsidiary

Liaoning SG Automotive Group has provided a maximum guarantee of RMB5 million for Liuzhou SG Axle Co., a wholly-owned subsidiary. This guarantee facilitates Liuzhou SG's financing application with the Industrial and Commercial Bank of China, Liuzhou Railway Branch. As of the announcement date, SG Automotive and its subsidiaries have provided total guarantees of RMB15 million to Liuzhou SG, with an outstanding balance of RMB8 million.

The company's board of directors and the 2024 annual shareholders' meeting approved a total guarantee limit of RMB1.6 billion for 2025 for its subsidiaries, including counter-guarantees. Guarantees for subsidiaries with an asset-liability ratio exceeding 70% are capped at RMB120 million. Liuzhou SG's asset-liability ratio was 79.90% as of December 31, 2024, and increased to 81.39% by September 30, 2025.

As of September 30, 2025, Liuzhou SG reported total assets of RMB131.4943 million, total liabilities of RMB107.0199 million, and net assets of RMB24.4744 million. For the first nine months of 2025, it recorded operating revenue of RMB105.5046 million and a net loss of RMB3.2098 million. SG Automotive states that no external guarantees are overdue.