Awesome! On June 24, the domestic authoritative credit rating agency Dagong International Credit Rating Co., Ltd. upgraded the long-term main credit rating of Jiangxi Construction Engineering from AA to AA, and the rating outlook was "stable". Jiangxi Construction Engineering has since become a local construction enterprise in Jiangxi Province. The highest rating has achieved a historic breakthrough in the development process.

6 years 13 times rating, how bumpy hard?

In 2014, Jiangxi Construction Engineering hired a rating company for the first time to carry out the main credit rating. The rating was AA-, which was upgraded to AA in 2015 and has been maintained since then.
In July 2018, the group conducted the 12th main credit rating, which was still rated as AA. The group applied for re-evaluation, hoping to be upgraded to AA, but was finally rejected on the grounds that the group's asset-liability ratio was high. Compared with other provincial construction enterprises and large state-owned provincial enterprises in Jiangxi Province, such credit rating is obviously low, resulting in the group's successive "losses" in the direct financing market and the project bidding market ".
In 2019, the Party committee of the group company comprehensively promoted the work of debt to equity swap. Under the leadership of Zhou cai, Secretary of the Party committee and chairman of the board of directors of the group company, the party committee of the group company directly faced the pain points and difficulties in the work of debt to equity swap, faced the difficulties and overcome the difficulties. In the end, the market-oriented debt-to-equity swap was fully implemented, and the group's consolidated asset-liability ratio quickly fell to 88.95 percent.
"For a long time, due to the constraints of high asset-liability ratio and low rating, the group's bond market financing has been seriously hindered, and it has been difficult to effectively open the situation." In April this year, Yu Keming, member of the Party committee and chief financial officer of the group company, directly hit the pain point of Jiangxi construction engineering financing work at the group financial work meeting. "It is necessary to upgrade the group's credit rating in order to fundamentally solve the problem of financing difficulties in the group's direct market."
On June 24 this year, good news came that the "AA" main credit rating of the group company was successfully approved. This is a historic breakthrough and is of great significance to promoting the high-quality development of the group.

"AA" rating, what good information?

Credit rating is the most powerful proof of an enterprise's ability to perform, market reputation and comprehensive competitiveness, and it is also an important means of publicity to show the strength of an enterprise. The promotion of credit rating has further improved the credibility of the group company, established a good social image, and strongly helped the group company to enhance the competitiveness of the industry and expand the market.
Financing channels have been further broadened. The rating agencies' full affirmation of the group's overall strength and development potential has greatly improved the brand image and become the key "pass" for the group company to effectively open the direct financing market financing channels, and provide a more "hard core" financial guarantee for the group to achieve high-quality development.
The financing structure was further optimized. The door to the direct financing market will be further opened, and the Group will gain more independent choices in the direct and indirect financing markets, short-term financing and long-term financing, support the adjustment and optimization of the financing structure, and actively respond to the deepening of financial supply-side structural reform.
Financing costs are further reduced. This credit rating upgrade will help the Group to reduce its financing costs in the direct financing market. At the same time, a higher credit rating will help improve the group's bargaining power over banks, and the cost of financing in the indirect financing market will be further reduced.
Further expansion of credit lines. The credit rating upgrade will help drive the cooperative banks to raise the evaluation level of the Group, thereby expanding the Group's overall credit line and providing a more solid financial guarantee for the Group's sustainable operation.

How to speed up the pace of high-quality development?

As a company with 68 years of development, Jiangxi Construction Engineering has a deep foundation in the construction industry and is a leading provincial construction enterprise. Since 2014, the company has entered the "Top 500 Chinese Enterprises" for 6 consecutive years, and its brand image has been greatly improved. At present, the company has created 16 national highest engineering quality awards "Luban Award" and 6 national high-quality engineering awards. 142 projects have won the highest engineering quality award "Azalea Award" in Jiangxi Province, and 432 projects have won the provincial high-quality engineering quality award.
At present, Jiangxi Construction Engineering adheres to the new development concept, coordinates the three markets within, outside and outside the province, extends the industrial chain, transforms new momentum, and continuously improves the scale and quality of development.
Integrate into the group's development strategy and rationally plan the investment direction of funds. One is to vigorously promote the production of assembly buildings. Effectively grasp the development opportunities and space of assembly-type buildings after the epidemic, vigorously promote the business contracting and production work of assembly-type companies, keep pace with the times, innovate the engineering construction model, achieve rapid production, rapid construction, significantly reduce product costs, rapidly improve quality, and achieve the healthy development of industrialization. The second is to vigorously promote diversified investment mergers and acquisitions. Comply with the general trend of industry development, increase investment and mergers and acquisitions in complementary advantages, and through methods such as merging qualifications, merging markets, merging resources, merging industries, etc., connect the long board, make up for shortcomings, and continue to strengthen, optimize and expand the main business of housing construction. Continuously extend and expand to the fields of municipal administration, highways, water conservancy, and rail transit.
Seize policy opportunities and vigorously develop markets. The group company seizes the opportunities of "giving priority to Jiangxi enterprises and provincial enterprises", and provincial enterprises "group for heating and common development", taking advantage of the new opportunities brought by "new infrastructure of urban agglomeration" for the development of the construction industry, and with the help of "AA" to enhance the enterprise image, the group company continues to expand the scale of operation: first, give full play to the subjective initiative, increase pressure, and tilt towards production and operation in the assessment; the second is to follow the policy orientation, industry direction and capital investment, and earnestly prepare for the rebound or even super-normal demand for the construction of large infrastructure projects in the national and regional markets, as well as various infrastructure investment policies released by the country's steady growth, and actively study and judge the preparation for market operations Work, vigorously undertake business; the third is to implement strategic cooperation with governments at all levels and related enterprises, and actively track and promote related cooperation projects, undertake good high-quality engineering projects; fourth, form strategic cooperation with central enterprises, use the platform of central enterprises to enter high-speed rail, subway, large-scale water conservancy, airport, port and wharf, expand new market share, and cultivate new development momentum and growth points.
Take the credit rating upgrade as an opportunity to do a good job of financing. On the one hand, it strongly connected to the direct financing market, made a breakthrough in the registration and issuance of corporate bonds, medium-term notes, short-term financing, ultra-short-term financing and other bonds, and continued to do a good job in the renewal of perpetual bonds to ensure a steady decline in the Group's asset-liability ratio. On the other hand, further optimize the mode of bank-enterprise cooperation, consolidate the cooperative relationship between major banks, broaden the scope of bank cooperation, and continue to increase the amount of current loans.
"This is a historic breakthrough and a new opportunity for the company's development. We must always adhere to the goal of steady growth and high-quality development requirements, put market operation first, standardize management first, focus on building a strong team, integrate resources, optimize structure, innovate finance, prevent and control risks, ensure the successful conclusion of the company's 13th Five-Year Plan, and lay a solid foundation for the company's 14th Five-Year Plan development!" Zhou caikan said that Jiangxi Construction Engineering will take a higher strategic planning position, take the extension of the industrial chain as a new content of development, focus on transformation and upgrading, focus on industry trends, scientifically carry out merger and acquisition integration, and write a new chapter of reform and development in the new era. (Ye Wang Chunzi Jiang Qian)