Overview Key strengths Key risks Robust support from controlling shareholder Qingdao municipal government, which has a strong economic base. Potential weakening of government support, due to growing commercial exposure mainly in financial services. Toll fee revenue from second Qingdao Jiaozhou Bay tunnel, contributes sizable and stable cash flow to the group. Highly leveraged, with large debt balance arising from ongoing capital investments. Less than adequate liquidity due to large short-term debt maturities. As one of the major local government financing vehicles (LGFVs) of the Qingdao municipal government, the company undertakes crucial social responsibility to fund certain key transportation infrastructure in the city of Qingdao and operate unprofitable civic facilities such as exhibition halls and sports centers. The Qingdao municipal government
