China Securities Pengyuan Credit Rating Co., Ltd. affirmed its AA+ issuer credit rating on Hunan Tianyi Group Co., Ltd. on July 10, 2026, with a stable outlook. The rating on its outstanding bond, '21 Tianyi 08/21 Hunan Tianyi 01,' was also affirmed at AA+.
The rating reflects the company's strategic role in the Zhuzhou Hi-Tech Industrial Development Zone (Tianyuan District), a political and industrial hub for Zhuzhou city. The zone is focusing on new energy vehicles, new energy equipment, new materials, and electronic information industries, where industrial growth drives the regional economy. Hunan Tianyi remains the zone's main urban resource developer and operator, with a solid land development pipeline totaling 116,000 mu of planned area. In 2025, the company received CNY 50 million in government grants. Bondholder protection is further strengthened by an unconditional and irrevocable joint liability guarantee from Zhuzhou Gaoke Group Co., Ltd.
However, CSPengyuan highlighted several concerns. Asset liquidity is weak, with inventories, investment properties, construction-in-progress, and intangibles accounting for 79.83% of total assets at end-2025, and restricted assets comprising 25.76%. Debt pressure is pronounced: despite total debt declining to CNY 8.955 billion from CNY 10.655 billion, the cash-to-short-term-debt ratio stood at only 0.20, and the EBITDA interest coverage ratio at 0.23. Operating cash flow turned negative to -CNY 1.167 billion in 2025, and ongoing projects require further funding. Business performance is sensitive to policy, market conditions, and investment attraction, adding uncertainty to land sales and property destocking. The company also faces contingent liability risk from CNY 277 million in external guarantees to private entities without counter-guarantees.
In 2025, operating revenue was stable at CNY 2.11 billion, but the mix shifted dramatically. Land development revenue plunged to CNY 223 million, while industrial park development revenue surged to CNY 1.505 billion due to large-scale factory sales to related parties. Real estate sales rose to CNY 377 million on solid demand for commercial properties and shops.
The company's stand-alone credit profile was lowered to 'a' from 'a+' due to sharply weaker cash-to-short-term-debt and EBITDA interest coverage metrics. However, because the gap between its stand-alone profile and the supporting government widened, the extraordinary external support adjustment increased to '+4' from '+3', keeping the issuer rating at AA+.
The rating uses CSPengyuan's infrastructure investment corporate credit rating methodology (cspy_ffmx_2024V1.0) and extraordinary external support methodology (cspy_ffmx_2025V1.0). At end-2025, total assets stood at CNY 56.219 billion and equity at CNY 23.258 billion.