Royal Group's external guarantees soar, exceeding net assets by 260%

Royal Group has reported that its total external guarantee amount for the company and its controlled subsidiaries now stands at RMB 242,746.63 million. This represents 259.76% of the company's net assets from the most recent audited period, exceeding the 100% threshold for its net assets. The total approved guarantee limit for 2025 is RMB 375,816.00 million.

The company's recent guarantee activities include providing a RMB 10,000 million guarantee to Guangxi Huangshi Dairy Co., Ltd. for a working capital loan from China Construction Bank. Additionally, Royal Group guaranteed a RMB 2,000 million working capital loan for Guangxi Huangshi Dairy Co., Ltd. from Guangxi Beibu Gulf Bank and a RMB 2,000 million working capital loan for Huangshi Group Zunyi Dairy Co., Ltd. from China CITIC Bank Zunyi Branch. A further RMB 500 million guarantee was issued for Huangshi Laibin Dairy Co., Ltd. for a working capital loan from Bank of China Nanning Xixiangtang Sub-branch.

Royal Group highlighted that it currently has no overdue external guarantees, no external guarantees involved in litigation, and no losses from adverse judgments related to guarantees. The company also indicated that it has provided guarantees for subsidiaries with asset-liability ratios exceeding 70%, advising investors to be aware of the associated risks.