Qingdao Haike Holdings 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 Qingdao Haike Holdings Co., Ltd. (“QHH” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Jimo District, Qingdao City (“Jimo government”) would provide strong support to QHH if needed, in light of its indirect full ownership of QHH, QHH’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for infrastructure construction and asset maintenance and management in Jimo District, Qingdao City (“Jimo”), especially in the Qingdao Oceantec Valley (“Oceantec Valley”), and the linkage between the Jimo government and QHH, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing operational and financial support. In addition, the Jimo government may face significant negative impact on its reputation and financing activities if QHH encounters any operational and financial difficulties.

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