HONG KONG, April 14, 2026. CSPI Ratings has affirmed the global scale long-term issuer credit rating (LTICR) of Ji’an Chengtou Holding Group Co., Ltd. (referred to as ‘JACH’ or ‘the company’) as ‘BBB+’, with a stable outlook. The issuer credit rating of JACH is based on its 'b' standalone credit profile (SACP) and our expectation that the Ji'an Municipal Government has a very strong willingness to provide support should the company face financial distress.
JACH is the core municipal-level state-owned investment and financing platform under Ji'an Municipality, with a mandate to undertake major industrial and investment-financing services within and outside the city. As the holding and financing platform at the parent level, the company also has subsidiaries responsible for infrastructure construction, land consolidation and comprehensive development, real estate development, and public services in Ji'an. The State-owned Assets Supervision and Administration Commission of Ji'an Municipal People's Government (hereinafter "Ji'an SASAC") holds 90% of the company's equity, making it the controlling shareholder and actual controller. The issuer credit rating of JACH is underpinned by its 'b' SACP and our view that the Ji'an Municipal Government is highly willing to extend support if the company encounters financial difficulties.
KEY RATING RATIONALES
Credit Strengths
Leading infrastructure investment, construction and operation entity in Ji'an. JACH is primarily responsible for infrastructure project construction, real estate development, and regional land development in the central urban area and high-speed rail zone of Ji'an. It also engages in concrete sales, engineering trading, and public services. We assess that the company maintains sound business stability and sustainability. As a major participant in urban construction and operator of state-owned assets in Ji'an, it is deeply integrated into the region's economic development and urbanization, with favorable development prospects. Should the company face operational difficulties, the Ji'an Municipal Government will take necessary measures to ensure its sustainable development and provide requisite support during financial distress to safeguard regional economic stability.
Close government ties and sustained fiscal support. As the premier municipal-level holding platform of Ji'an, the company is directly 90% owned and controlled by Ji'an SASAC. In recent years, the Ji'an Municipal Government has provided strong support through fiscal subsidies, asset injections and other measures. The company received fiscal subsidies of RMB410 million, RMB370 million, and RMB270 million in 2023, 2024, and January–September 2025 respectively, effectively boosting its profitability. Meanwhile, over the past three years, the company has also obtained capital, equity, land and other assets transferred by the municipal government, strengthening its capital base. As of the end of September 2025, the company's capital reserve reached RMB47.04 billion. In addition, as a direct enterprise under Ji'an SASAC, its senior management is appointed and evaluated by the commission. We believe the Ji'an Municipal Government exercises high control and influence over the company's operations. A default by JACH would negatively impact Ji'an's economic development and government credit standing.
Strong economic fundamentals of Jiangxi Province and stable credit profile of Ji'an Municipal Government. Benefiting from its unique geographical advantages, abundant resources and well-developed industries, Jiangxi Province boasts robust economic growth momentum. In 2025, the province's GDP reached RMB3.6 trillion, a year-on-year increase of 5.2%. Having entered the mid-to-late stage of industrialization, Jiangxi has continuously optimized its industrial structure and actively undertaken industrial transfers from developed countries and eastern coastal regions. Supported by national policies to revitalize old revolutionary base areas and boost the rise of central China, we maintain an optimistic outlook on Jiangxi's long-term economic prospects. Ji'an is a prefecture-level city in central Jiangxi, strategically located along the core corridor from Hong Kong and Guangdong Province through Jiangxi to central China. Driven by fast-growing industrial sectors, vibrant consumer spending and rising fixed-asset investment, Ji'an's economy has expanded rapidly. In 2025, its GDP amounted to RMB310.57 billion, up 5.7% year on year, continuing to outpace both provincial and national averages. Moreover, stable and substantial higher-level transfer payments have strongly supported the growth of Ji'an's fiscal budget revenue.
Credit Weaknesses
Relatively high financial leverage. As of the end of 2024, the company's interest-bearing debt stood at RMB51.81 billion. Given its role in financing and constructing major infrastructure and public housing projects in Ji'an's central urban area and high-speed rail zone, its debt burden is likely to continue rising in the coming years. We estimate its debt-to-capital ratio at 52.5% in 2024 and expect it to remain above 50% over the medium term. In addition, the company's EBITDA is modest relative to its debt stock. We project its weighted average debt-to-EBITDA ratio and EBITDA interest coverage ratio to reach 46.9x and 0.6x respectively between 2023 and 2027. Overall, we expect leverage to stay elevated in the next few years, exerting pressure on the company's cash flow and debt-servicing capacity.
Low cash turnover efficiency. Affected by its industry and business model, the company exhibits weak operating efficiency. In 2024, its accounts receivable turnover days and inventory turnover days were 1,049 days and 6,243 days respectively. As of end-2024, inventory totalled RMB59.02 billion, equivalent to 13.2 times annual operating revenue. Inventory mainly consists of development costs from engineering construction and land consolidation projects, which feature long construction and payback periods, resulting in low capital turnover efficiency. The lengthy cash conversion cycle also weakens operating cash flow and its ability to cover debt. Considering the size of debt maturing within the next year, we assess the company's overall cash flow position as moderate
RATING OUTLOOK
The stable outlook reflects our view that the Ji’an Municipal Government’s credit profile will remain stable and that, with the government’s extremely strong support, the company will be able to sustain its expected business performance.
We would consider a rating downgrade if 1) JACH’s ties with the Ji’an Municipal Government loosen from the current level; 2) Ji’an’s economic growth slows sharply or its liquidity deteriorates materially; and/or 3) JACH’s business interactions with the Ji’an Municipal Government decline and its market position in Ji’an’s infrastructure development and state‑owned capital operations weakens significantly.
We would consider a rating upgrade if 1) the Ji’an Municipal Government’s debt level decreases substantially or its fiscal deficit pressures ease meaningfully; and/or 2) JACH’s importance to the Ji’an Municipal Government increases significantly.
ANALYSTS CONTACT
Primary Analyst
Jameson Zuo
+852 3615 8341
Secondary Analyst
Gill Wu
+86 755 8287 2333
Committee Chair
Winnie Guo
+852 3615 8344
MEDIA CONTACT
RATING SERVICE CONTACT
Date of Relevant Rating Committee: 26 March 2026
Additional information is available on www.cspi-ratings.com
Related Criteria
General Corporate Rating Criteria (15 March 2018)
Corporate Financial Adjustments and Ratio Definitions (7 May 2018)
Government-Related Entities Rating Criteria (31 August 2018)
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