Overview Key strengths Key risks Extremely high likelihood of extraordinary support from controlling shareholder, Qingdao municipal government, which has a strong economic base. Potential weakening of credit association with the government, due to the group?s growing commercial exposure. Hard to replace the group's social role as an operator of transportation infrastructure and civic facilities. Large debt balance arising from ongoing capital investments. Less than adequate liquidity due to high short-term debt maturities. As one of the most important local government financing vehicles (LGFVs) of the Qingdao municipal government, the company has a very important social responsibility to fund certain key transportation infrastructure in Qingdao city and operate non-profitable civic facilities such as exhibition halls and sports centers. We consider QCD?s
