LVGEM (China) Real Estate Investment Company Limited (Surveillance Report)

The Issuer Rating reflects LVGEM (China) Real Estate Investment Company Limited (“LVGEM” or “the company”)’s established track record of handsome profit margin, specialized management expertise in the urban renewal industry, and its focus in the Greater Bay Area (GBA), including the Baishizhou project which so far marks the record-large redevelopment project in Shenzhen. Rating constraints include LVGEM’s modest business franchise in terms of contracted sales, acceptable liquidity profile with the basic source of funding, and significant concentration risks given its revenue drivers relying on a limited number of projects under development.