Guoguang Electric backs Vietnamese subsidiary with $20m credit guarantee

Guoguang Electric Co., Ltd. recently signed an external guarantee contract with a bank, providing a guarantee for its wholly-owned subsidiary, Guoguang Electric (Vietnam) Co., Ltd., for a credit facility not exceeding $20 million. This guarantee, approved by shareholders at the 2024 annual general meeting, becomes effective upon issuance and remains valid for five years or until all guaranteed obligations are fully settled.

As of December 31, 2024, Guoguang Electric (Vietnam) reported total assets of yuan 1,029.7244 million and owner's equity of yuan 184.4212 million, with an asset-liability ratio of 82.09%. For the period ending September 30, 2025, the subsidiary's asset-liability ratio increased to 86.84%, with total assets of yuan 1,300.6683 million and owner's equity of yuan 171.1995 million.

The total amount of external guarantees signed by Guoguang Electric and its holding subsidiaries stands at yuan 1,846.69 million, representing 43.18% of the company's most recent audited net assets. Guoguang Electric highlights the increased risk due to Guoguang Electric (Vietnam)'s asset-liability ratio exceeding 70%.