Shenzhen Beauty Star faces loan default risk from subsidiary guarantee

Shenzhen Leaguer Co., Ltd. announced that its wholly-owned subsidiary, Leaguer Science & Technology Innovation Group Co., Ltd., guaranteed a 20 million yuan credit line for its controlled subsidiary, Shuyun Keji (Shenzhen) Technology Co., Ltd., from Shenzhen High-tech Investment Small Loan Co., Ltd. The loan, which matured on December 19, 2025, remains unpaid by Shuyun Keji.

As of the announcement date, Shuyun Keji's asset-liability ratio has exceeded 70%, posing a risk of recourse for Leaguer Science & Technology Innovation Group as the guarantor. This transaction was initially approved by the company's third extraordinary general meeting in 2024 and constitutes a related party transaction.

The guarantee was further secured by a patent from Shuyun Keji. As of the announcement date, Shenzhen Leaguer's total external guarantee balance, including its controlled subsidiaries, amounts to 835.33 million yuan, representing 9.98% of the company's most recent audited net assets.