S.F. Holding (06936) disclosed that its board approved a maximum external-guarantee quota of up to RMB 46.00 billion for 2026 to support subsidiaries’ daily operations, bank credit applications and other financing activities. The guarantee authority will run from the date of approval at the 2025 annual general meeting until the 2026 AGM.
The planned guarantees may cover certain subsidiaries whose debt-to-asset ratios exceed 70%, a risk specifically highlighted by the company. All guarantees will follow the group’s existing authorisation and risk-control framework; where S.F. Holding lacks full ownership, minority shareholders are in principle required to provide proportionate counter-guarantees unless exempted for practical reasons.
As of the announcement date, the group’s outstanding guarantees stood at RMB 37.60 billion, representing 38% of its audited 2025 net assets. The cumulative board-approved guarantee ceiling, including the newly proposed amount, totals RMB 92.20 billion, or 93% of 2025 audited net assets; 96% of this limit is earmarked for consolidated subsidiaries, with the remaining 4% for non-consolidated investees. The company reported no overdue guarantees.
Beyond the fixed quota, S.F. Holding also intends to establish uncapped intra-group operating guarantees—covering reciprocal assurances among the parent and subsidiaries—to meet routine procurement, service provision and regulatory requirements during the same mandate period.
The proposal, adopted at the seventh board’s fourth meeting on 30 March 2026, requires shareholder approval at the forthcoming 2025 annual general meeting. The board stated that the guaranteed entities possess “sound credit profiles and repayment capability,” and assessed overall risk as controllable.
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