Hubei Optics Valley East State-owned Capital Investment and Operation Group 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 Hubei Optics Valley East State-owned Capital Investment and Operation Group Co., Ltd. (“HOVE” or “the Company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Daye City (“the Daye government”) would provide strong support to HOVE if needed, in light of its full ownership of HOVE, HOVE’s strategic importance as the most important local investment and development company (“LIDC”) that is responsible for infrastructure construction, land consolidation and city operations in Daye, and the strong linkage between the Daye government and HOVE, including control of the board of directors, 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 HOVE encounters any operational and financial difficulties.

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