Largest auto retailer in China's highly competitive and fragmented auto retail industry. Extensive national retail network and diversified product offerings. Weaker competitive position in the energy and property segments. High leverage due to aggressive debt-funded expansion. Strained cash flows from the highly volatile and capital-intensive energy and property segments. Less than adequate liquidity mainly because of a large portion of short-term debt. The stable outlook on Xinjiang Guanghui Industry Investment (Group) Co. Ltd. (Guanghui) reflects our expectation that the company will continue to shift its focus to higher-margin after-sales auto services and maintain its satisfactory position in China's auto retailing market over the next 12 months. We expect these factors will support the company's cash flow generation. However, Guanghui's leverage
