The Issuer Credit Rating reflects a high possibility that the People’s Government of Rizhao City (“Rizhao government”) would provide modrately strong support to RXIID if needed, in light of its indirect full ownership of RXIID, RXIID’s strategic importance as the key entity for industrial investment, park development and market-oriented operation in Rizhao City (“Rizhao”) and the linkage between the local government and RXIID, including appointment of the senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Rizhao government may face significant negative impact on its reputation and financing activities if RXIID encounters any operational and financial difficulties.