Taixing Zhiguang Environmental Protection Technology 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 Taixing Zhiguang Environmental Protection Technology Co., Ltd. (“TZEPT” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Taixing City (“Taixing government”) would provide strong support to TZEPT if needed, in light of its indirectly full ownership of TZEPT, TZEPT’s strategic importance as the important investment and development company (“LIDC”) responsible for infrastructure construction and land development in Jiangsu Taixing High-tech Industrial Development Zone (“Taixing HTZ”), and the linkage between the Taixing government and TZEPT, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and other government support. In addition, the Taixing government may face significant negative impact on its reputation and financing activities if TZEPT encounters any operational and financial difficulties.

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