Jiangyou Xingyi Agricultural Investment Co., Ltd. (Initial Issuer Report)

The Issuer Credit Rating reflects a high possibility that the Jiangyou People’s Government (“the Jiangyou government”) would provide strong support to JXAI if needed, in light of its majority ownership of JXAI, JXAI’s strategic importance as an important local investment and development company (“LIDC”) responsible for project construction and agricultural development in Jiangyou, and the linkage between the Jiangyou government and JXAI, including the appointment of the senior management, strategic alignment, supervision of major financing plan and investment decisions and ongoing operational and financial support. In addition, the Jiangyou government may face significant negative impact on its reputation and financing activities if JXAI encounters any operational and financial difficulties.