XMXYG Corporation (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB+’ global scale Long-term Issuer Credit Rating to XMXYG Corporation; Outlook is Positive.

The Issuer Rating reflects XMXYG Corporation’s (formerly known as Xiamen Xiangyu Group Corporation; “XMXYG” or ”the company”) leading market position in comprehensive supply chain management industry and track record of revenue growth, supported by its established nationwide logistics network and the strengthening of its comprehensive service capability. Moreover, XMXYG has proven track record of strong external support from Xiamen government. However, the rating is constrained by XMXYG’s high financial leverage and low profit margin.

The Positive Outlook reflects our expectation that XMXYG will continue to consolidate and strengthen its leading market position in the comprehensive supply chain management industry, especially with the expected increase in production of stainless-steel smelting project in Indonesia, extend its support to government function to port operation and upgrade through utilizing its nationwide and overseas logistics network, while remain prudent in its expansion pace with demonstrated efforts to maintain its operating efficiency and improve its profitability.