HONG KONG, February 13, 2026. CSPI Ratings has assigned a global scale long-term issuer credit rating (LTICR) of ‘BBB’ to Zhangzhou Jingyuan Development Co., Ltd. (ZJDC), with a stable outlook. The company is an important infrastructure construction entity within Zhangzhou High-tech Industrial Development Zone (ZHIDZ), primarily responsible for the construction of transportation infrastructure and resettlement housing projects in the Jingyuan area, while also engaging in leasing, trading, and property services. The Finance Bureau of ZHIDZ holds 100% of the company’s equity, serving as its sole shareholder and ultimate controller. The company’s issuer credit rating is based on a standalone credit profile (SACP) of ‘b-’, together with our assessment that the ZHIDZ government demonstrates extremely strong willingness to provide additional support should the company encounter financial distress.
KEY RATING RATIONALES
Credit Strengths
Continued Strong government support. The ZHIDZ Finance Bureau holds 100% of the company’s equity, serving as its sole shareholder and actual controller. Over the long term, the company has benefited from substantial government support in asset transfers and capital injections. Between 2024 and Jan-Sep 2025, the ZHIDZ Finance Bureau successively transferred assets to the company, including water supply networks, substations, power pipeline facilities, concession rights, residential properties, and parking spaces, with a total value of RMB 3.7 billion.
In terms of capital injections, during 2024–2025, the Finance Bureau converted special-purpose funds previously allocated to the company into capital reserves. Since 2022, the company’s capital reserves have cumulatively increased by RMB 3.9 billion, significantly strengthening its capital base. Furthermore, benefiting from the government’s injection of operational assets such as reservoirs, pipeline networks, and earthwork operation rights, the company has enhanced its business diversity and broadened its revenue sources.
Considering that the company’s directors, supervisors, and senior management team are all appointed with the approval of the ZHIDZ government, and given the advancement of key projects undertaken by the company, we believe the ZHIDZ government will continue to provide necessary support to ensure the company’s sustainable development, thereby promoting urban construction and economic growth within the region.
Core Role in Urban Construction and State-Owned Asset Operations in ZHIDZ, with Strengthening Position. As the primary infrastructure construction entity responsible for the development of the Jingyuan area in ZHIDZ, the company has undertaken a large number of infrastructure and resettlement housing projects, effectively driving the industrial economy of ZHIDZ. As of the end of September 2025, the company maintained a sizable portfolio of projects under construction, continuing to play a central role in urban development and state-owned asset operations in ZHIDZ, with its position steadily consolidated and enhanced.
We believe that, given the company’s ongoing importance to the economic development and urban construction of ZHIDZ, its business outlook remains favorable. Should the company encounter operational difficulties, it is expected that the ZHIDZ government would take necessary measures to ensure the company’s sustainable development, and provide financial support if needed, thereby safeguarding the uninterrupted growth of the regional economy.
Zhangzhou city and ZHIDZ government maintains a stable credit profile. ZHIDZ is one of the four key economic growth poles prioritized by Zhangzhou City. Leveraging abundant land resources and proximity to the main urban area, the zone has in recent years advanced the development of its “three major areas,” driving strong industrial momentum and sustaining solid economic growth. In 2024, ZHIDZ achieved a regional GDP of RMB 25.6 billion, representing a year-on-year increase of 5.5%. General public budget revenue reached RMB 940 million, up 11.8% year-on-year, ranking third among all districts in the city and first among development zones. From January to September 2025, ZHIDZ recorded a cumulative regional GDP of RMB 15.0 billion, reflecting a 2.8% year-on-year increase.
On the debt dimension, ZHIDZ faces certain structural pressures. We estimate that in 2024, the ratio of broad debt to budget revenue reached 406.7%, while the ratio of broad debt to regional GDP stood at 62.3%. The debt burden exerts notable pressure on both fiscal revenue and economic development. However, based on the zone’s solid budget surplus performance, its liquidity coverage ratio is assessed as strong, and overall liquidity conditions remain favorable.
Credit Weaknesses
Entrusted Construction Projects Face Significant Capex Pressure; Leverage Remains Elevated. As of end-September 2025, ongoing entrusted construction projects still require investment of RMB 3.5billion, indicating continued funding pressure ahead. With the advancement of engineering projects and the expansion of trading business scale, rising capital demand has driven rapid growth in liabilities, resulting in increased volatility in total debt. Benefiting from large-scale asset transfers from the government during 2024-2025, ZJDC’s leverage level declined significantly, though it remains elevated overall. Given the substantial investment still required for ongoing infrastructure projects and the persistent net cash outflow from operating activities, the company will continue to rely on external financing to meet funding needs. Debt scale is expected to keep expanding, and leverage is likely to remain at a high level.
Profitability Remains Weak, and Certain Transferred Assets Face Liquidity Challenges. ZJDC’s profitability is currently weak, with our estimates indicating a weighted average EBITDA margin of 4.2% for 2023-2027. Excluding government subsidies, the company’s margin is relatively low. We further estimate a weighted average return on capital of 1.1% during 2023-2027, reflecting modest profit levels relative to capital investment. In addition, some of ZJDC’s assets—such as pipeline networks, gas pipelines, land for seedlings, substations, and various operating rights—are constrained by their functional characteristics, making monetization through collateralization or sale difficult. As a result, asset liquidity faces certain challenges.
RATING OUTLOOK
The Stable rating outlook reflects our expectation that the ZHIDZ government will maintain a stable credit profile and that the company is expected to continue to receive significant external support from the ZHIDZ government.
We would consider a rating downgrade if:
- ZJDC’s ties with ZHIDZ government loosen from current level;
- The economic strength and fiscal capacity of ZHIDZ declines significantly; and/or
- ZJDC’s market position in ZHIDZ declines significantly.
We would consider a rating upgrade if:
- ZJDC’s importance to the ZHIDZ government increases significantly;
- Liquidity in ZHIDZ has improved considerably with a notable easing of debt pressures, or a substantial expansion in budget revenues; and or;
- There is substantial improvement in ZJDC’s leverage and financial profile.
ANALYSTS CONTACT
Primary Analyst
Elka Zhou
+852 3615 8307
Secondary Analyst
Leon Li
+86 755 2348 3667
Committee Chair
Larissa Wu
+852 3615 8317
MEDIA CONTACT
RATING SERVICE CONTACT
Date of Relevant Rating Committee: 12 February 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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