Suqian Yunhe Port Area Development 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 Suqian Yunhe Port Area Development Group Co., Ltd. (“SYPAD” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Sucheng District, Suqian City (“Sucheng government”) would provide strong support to SYPAD if needed, in light of its indirect ownership of SYPAD, SYPAD’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for infrastructure construction, land development and project investment in supporting facilities in Sucheng District, Suqian City (“Sucheng”), especially in the Suqian Canal Port Area (“Port Area”), and the linkage between the Sucheng government and SYPAD, 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 Sucheng government may face significant negative impact on its reputation and financing activities if SYPAD encounters any operational and financial difficulties.

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