Daye Lake High-tech Industrial Development Co., Ltd. (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB’ global scale Long-term Issuer Credit Rating with Stable Outlook to Daye Lake High-tech Industrial Development Co., Ltd. (“DLHID” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Daye City, Huangshi City (“Daye government”) would provide strong support to DLHID if needed, in light of its indirect full ownership of DLHID, DLHID’s strategic importance as the key entity for industrial park development and state-owned asset operation in Huangshi’s Daye City, Hubei Province (“Daye”), especially in Daye Lake High Tech Zone (“Daye Lake HTZ”) and the strong linkage between the Daye government and DLHID, including the control of the senior management, management supervision, strategic alignment, and ongoing operational and financial support. In addition, the Daye government may face significant negative impact on its reputation and financing activities should DLHID encounters any operational and financial difficulties.

The Stable Outlook reflects our expectation that DLHID’s strategic importance would remain intact while the Daye government will continue to ensure DLHID’s stable operation.