Taizhou Huaxin Pharmaceutical Investment Co., Ltd.(Surveillance Report)

The Issuer Credit Rating reflects a high possibility that Jiangsu’s Taizhou Municipal People’s Government (“Taizhou Government”) would provide support to Taizhou Huaxin Pharmaceutical Investment Co., Ltd. (“THPI” or “the company”) if needed, in light of its majority ownership of THPI, THPI’s strategic position as the major investment and operating entity of the Taizhou Medical New & Hi-tech Industrial Development Zone (“Hi-tech Zone”) and the strong linkage between Taizhou Government and THPI including management supervision, strategic alignment, and ongoing operational and financial support. In addition, Taizhou Government may face negative impact on its reputation and financing activities should THPI encounter any operational or financial difficulties.

The Stable Outlook reflects our expectation that THPI’s current position in the region will remain while Taizhou Government will continue to ensure THPI’s stable operation.