On July 8, YaGuang Technology Group issued an announcement regarding the public solicitation and selection of restructuring investors.
The announcement discloses that Yaguang Technology is implementing an out-of-court restructuring to resolve its debt issues and overcome liquidity constraints, with a liquidation team established by the Yuanjiang Municipal People’s Government serving as an assisting body. The company is now publicly soliciting and selecting restructuring investors, aiming to bring in investors with industrial synergy capabilities and financial strength to help resolve debts, optimize the balance sheet structure, and restore the company’s ability to operate on a going-concern basis.
Yaguang Technology stated that this out-of-court restructuring aims to assess the company’s reorganization value and feasibility, reduce restructuring costs, and improve efficiency, thereby laying the groundwork for potential formal reorganization proceedings; it does not signify that the company has entered the formal reorganization process.
It is worth noting that if the court rules to accept the company’s reorganization, the Shenzhen Stock Exchange will impose a delisting risk warning on Yaguang Technology’s stock; furthermore, should the court accept the reorganization but the process ultimately fails, Yaguang Technology would face the risk of being declared bankrupt.
At the same time, the process of soliciting reorganization investors is subject to uncertainty, and there is a possibility that a qualified reorganization investor may not be secured.
Previously, in April, Yaguang Technology became subject to risk warnings regarding its stock trading effective April 21, 2026, because “the lower of the net profit before and after the deduction of non-recurring gains and losses was negative for each of the last three fiscal years, and the audit report for the most recent fiscal year indicated uncertainty regarding the company’s ability to continue as a going concern.”
In 2025, Yaguang Technology recorded operating revenue of 784 million yuan (approximately US$115 million), a year-on-year decrease of 17.63%; net loss attributable to shareholders of the listed company was 1.229 billion yuan (approximately -US$181 million), a year-on-year decline of 33.77%; and net loss attributable to shareholders of the listed company, excluding non-recurring gains and losses, was 1.259 billion yuan (approximately -US$185 million), a year-on-year decline of 30.66%.
Yaguang Technology attributes the decline in performance to three main factors. Those related to its shipbuilding business include: the pace of asset disposal in the vessel segment falling short of expectations; a lack of significant economies of scale; high depreciation and amortization expenses; and substantial interest-bearing debt resulting in high financial costs, all of which have impacted overall profitability.
In June 2026, ST Yaguang announced that its overdue borrowings totaled 57.037 million yuan, while overdue notes payable and accounts payable amounted to 30.7802 million yuan. If these overdue obligations are not properly resolved, ST Yaguang and its subsidiaries could face risks such as the freezing of bank accounts, the freezing or auctioning of pledged assets, litigation, arbitration, the enforcement of guarantee obligations, and the acceleration of debt maturity.
According to available data, Yaguang Technology was established in June 2003 and listed in 2010, becoming the first publicly traded yacht manufacturing enterprise in China. Its core business focuses on military electronics and intelligent vessels. The intelligent vessel portfolio comprises three main product lines—official service vessels, defense equipment, and yachts/excursion boats—manufactured across two industrial parks located in Yiyang, Hunan, and Zhuhai, Guangdong. The Zhuhai production base has an annual capacity of over 200 new yachts of various types, while the Yiyang base primarily produces vessels made from composite materials, metal, and hybrid materials, as well as marine engineering vessels.