Recently, Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. (Shanghai Brilliance Rating for short) released its follow-up rating report, in which the rating agency recognized that Bright Food (Group) Co., Ltd. (hereinafter Bright Food) still secured AAA corporate credit rating with a stable rating prospect, and enjoyed A-1 credit rating for its short-term financing bonds as it had enjoyed when its first batch of short-term financing bonds were launched in 2014.

According to the report, Bright Food is a highly diversified group company engaged in a wide scope of businesses. It enjoyed a favorable policy environment for all of its major businesses except of real estate projects. Though negatively affected by the falling sugar price, the group company still maintained a sizeable profit margin thanks to its robust performance in modern farming and dairy sectors. On the other hand, the group company has become more capitally powerful as a result of consistently infused capital and accumulated business profits. Therefore, in spite of its expanded loan volume, the group company still enjoyed a basically balanced financial leverage, with its overall debt paying ability remaining intact.

The rating agency also noted it would keep a close watch on the group company from the following aspects: 1) sugar output and sales price, 2) follow-up investment into real estate projects and changes of property inventory, 3) restructure and business progress of the group company’s subordinate companies, 4) initiatives in investment and financing, and impacts brought by changing financial environment on the financing channels and costs, 5) changes of market value of stocks held, 6) integration of overseas merged businesses and their performances in the domestic market.