Sinochem Hong Kong (Group) Co. Ltd.

Overview Key strengths Key risks Integral to Sinochem Holdings Corp. Ltd. as a direct extension of the group. Benefits from parent support for refinancing. Sinochem Hong Kong's property development business to continue to suffer from weaker turnover and profitability amid the China real estate industry downturn. Sinochem Holdings has a very high likelihood of receiving extraordinary support from Chinese government, if needed. Sinochem Holdings' leverage to stay elevated over the coming two years, despite tightened financial management. Sinochem Holdings has leading market positions in agrochemical and material chemical businesses both in the domestic and global markets. Sinochem Holdings' earnings susceptible to fluctuations of energy and chemical product prices. Sinochem Hong Kong's credit profile is linked to that of its parent.

...Sinochem Hong Kong (Group) Co. Ltd. will remain integral to Sinochem Holdings. Sinochem Hong Kong's credit profile is linked to that of its parent. The company serves as a direct extension of Sinochem Holdings, mostly on its offshore treasury management function. It is fully integrated with the group strategically, operationally, and financially. The company will benefit from support from Sinochem Holdings and indirectly from the Chinese government, in our view. Sinochem Hong Kong is the key offshore investment and financing platform of Sinochem Holdings. The company is distinct from the other financing and investment subsidiaries of Sinochem Holdings, in that it directly acts on behalf of the parent for high-level, strategic initiatives....

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