Royal Group’s external guarantees significantly exceed net asset value

Royal Group Co., Ltd. (SZSE:002329) announced that its total external guarantees, including those from its holding subsidiaries, now exceed 100% of its most recent audited net assets, specifically reaching 259.29% or RMB 242,314.57. The company's guarantees for subsidiaries with an asset-liability ratio above 70% also represent a significant portion of this total. Investors are advised to be aware of the associated risks.

The company's board approved an aggregate guarantee limit of RMB 375,816.00 for 2025. Following recent transactions, the outstanding guarantee balance for subsidiaries with an asset-liability ratio of 70% or higher is RMB 54,801.01, with RMB 14,098.99 remaining available. For subsidiaries below 70%, the outstanding balance is RMB 131,513.56, with RMB 109,702.44 still available.

Key guarantee agreements include RMB 11,124.40 million to Guangxi Royal Dairy Co., Ltd. for working capital loans and bank acceptance bills, RMB 4,000 million to Guangxi Royal Dairy Co., Ltd. for working capital, RMB 1,000 million to Royal Group Zunyi Dairy Co., Ltd. for comprehensive credit facilities, and RMB 500 million to Royal Laibin Dairy Co., Ltd. for credit facilities. All guarantees are joint and several liabilities with a three-year term.