On November 18, Fitch Ratings, one of the three major international rating agencies, issued a rating update, affirming the long-term credit rating of Shandong Gaoxin Holdings Group Co., Ltd. (hereinafter referred to as “Shandong Gaoxin Holdings”, stock code: 00412.HK) at A- and removing it from the watch list, with a stable outlook. Shandong Gaoxin Holdings becomes the first overseas subsidiary of a Shandong provincial state-owned enterprise to receive an international issuer rating of A, and also the highest-rated overseas subsidiary of a local state-owned enterprise, indicating that the market fully recognizes the effectiveness of Shandong Gaoxin Holdings’ strategic transformation.
In May of this year, Fitch upgraded Shandong Gaoxin Holdings’ issuer rating from BBB+ to A- and conducted a six-month watch review, particularly focusing on the overall operational situation following Shandong Gaoxin Holdings’ acquisition of Shandong Gaoxin New Energy (formerly “Beijing Enterprises Clean Energy”, stock code: 01250.HK), conducting a comprehensive, rigorous, and detailed assessment of industrial synergy, resource integration, financial performance, and management improvement.
Fitch Ratings believes that after completing the asset acquisition of Shandong Gaoxin New Energy, Shandong Gaoxin Holdings has transformed into an overseas industrial investment and financing platform with new energy and new technology sectors as its main investment focus. Given that Shandong Hi-Speed Group’s new energy projects align with the strategies of Shandong Hi-Speed Group and Shandong Province, this asset acquisition will enhance Shandong Hi-Speed Group’s competitive advantage and growth potential. As Shandong Hi-Speed Group’s largest subsidiary, Shandong Hi-Speed New Energy will play a crucial role in the Group’s new energy development strategy.
This rating confirmation reflects the international authoritative rating agency’s full affirmation of the effectiveness of Shandong Hi-Speed Group’s strategic transformation. It will help improve Shandong Hi-Speed Group’s image in overseas capital markets and is expected to reduce its financing costs in overseas markets, further accelerating the company’s strategic transformation.
Since launching its strategic transformation from a financial investment company to an industrial investment group last June, Shandong Hi-Speed Group has focused on industries such as new energy, new technology, and healthcare. Through the organic combination of minority equity investments and controlling investments, it has concentrated resources on strategic emerging industries, seized development opportunities in key industries, and played a greater role in the country’s industrial restructuring and layout optimization. In May of this year, the company acquired Shandong Hi-Speed New Energy, rapidly entering the new energy industry from a high starting point. It fully leverages the rich resources of its controlling shareholder, Shandong Hi-Speed Group, to promote the high-quality integrated development of infrastructure and energy networks, and is committed to building Shandong Hi-Speed New Energy into an industry-leading enterprise. In addition, Shandong Hi-Speed Holdings has invested in high-tech enterprises such as the IoT unicorn Nenglian Group, with its industrial investment ratio continuing to grow. As of the end of June 2022, the company’s total assets were HK$77.65 billion, with industrial assets reaching HK$55 billion, accounting for approximately 71% of total assets.
In the future, Shandong Hi-Speed Holdings will fully leverage its professional capabilities and rich experience cultivated in domestic and international capital markets over many years, utilizing its advantages of “industry-finance integration + domestic and international linkage” to deeply cultivate the green and low-carbon industry sector, supporting Shandong Hi-Speed Group’s new energy development strategy and achieving healthy, stable, and sustainable development.
