The public REIT market has welcomed a major new product, with strong offline investor participation. On September 24, Yinhua Yuehai Water Conservancy REIT (fund code: 180702), the nation's first hydropower facility REIT and first provincial-level water conservancy REIT, released its fund unit offering announcement, revealing that during the offline inquiry phase, the fund received quotation information from 420 placement targets managed by 78 offline investors, with total proposed subscription volume reaching 22,917.80 million units, equivalent to 218.26 times the initial offline offering.

It is understood that Yinhua Yuehai Water Conservancy REIT (fund code: 180702), the country's first water conservancy facility REIT, will be offered from October 8 to October 12, 2026, at an offering price of 3.451 yuan per unit, with total expected fundraising of 1.7255 billion yuan. Of this, 45 million units will be offered to the public, and public investors may subscribe through on-exchange or off-exchange channels.

Public information shows that the original equity holder of Yinhua Yuehai Water Conservancy REIT is Guangdong Yuehai Feilaixia Hydropower Generation Co., Ltd., with underlying assets covering two core hydropower hubs: first, the specific assets and power generation business charging rights related to the power generation function of the Feilaixia Water Conservancy Hub, with total installed capacity of 140MW and projected average annual power generation of 593 million kWh; second, the specific assets and power generation business charging rights of the Dongxi Hydropower Station and Xixi Hydropower Station of the Chaozhou Water Supply Hub Project, with total installed capacity of 46MW and projected average annual power generation of 205 million kWh.

Notably, the river basins to which these two projects belong have been relatively fully developed through cascade exploitation, further highlighting the scarcity of existing hydropower assets. (Note: As of the date of this fund's prospectus, apart from the Huangmaoxia Reservoir Project, Guangdong Province has no other large-scale hydropower projects under construction. According to the Guiding Opinions on Accelerating the Green Transformation and High-Quality Development of Small Hydropower released on March 16, 2026, no new small hydropower stations will in principle be built. It is expected that within the next three years, hydropower installed capacity growth in Guangdong Province will be relatively limited. Source: Prospectus, 20260914.)

Water conservancy REITs are typical counter-cyclical assets. Their underlying assets are tied to essential public needs, are less affected by macroeconomic conditions and industrial cycles, and feature a mandatory high dividend mechanism with relatively high dividend certainty. As market volatility intensifies and asset cost-performance diverges, investor demand for stable, counter-cyclical allocation tools is rising. Water conservancy REITs, with their prudent valuation system, offer unique allocation value, and long-term investors who do not pursue short-term absolute returns and can tolerate certain fluctuations may wish to pay attention, provided it aligns with their risk tolerance.

Moreover, as the nation's first provincial-level water conservancy REIT, Yinhua Yuehai Water Conservancy REIT has not only made beneficial explorations in revitalizing existing water conservancy assets to raise funds for major water conservancy project construction, but has also created a replicable and promotable practical model for provincial-level water conservancy existing assets across the national water conservancy industry, holding positive demonstration significance for deepening the reform of the national water conservancy infrastructure investment and financing system.

Risk Disclosure: Yinhua Yuehai Water Conservancy REIT Fee Structure. Fee Type / Charging Method / Rate: Subscription fee: M<5 million yuan 0.30%; M≥5 million yuan 1,000 yuan per transaction. Purchase fee/redemption fee: This fund is a closed-end fund with no purchase or redemption mechanism, and no purchase/redemption fees are charged. On-exchange transaction fees are subject to actual charges by securities companies. Management fee: 1. Fund management fee: The fund management fee of this fund includes fund management fee and special plan management fee. The combined value of the fund management fee and special plan management fee is accrued at an annual rate of 0.20% of the fund net assets disclosed in the most recent audited annual report (before the first disclosure of year-end audited fund net assets after product establishment, it shall be the fund raised amount (including subscription period interest)), of which 85% is fund management fee collected by the fund manager, and 15% is special plan management fee collected by the plan manager. Operating management service fee: The operating management service fee consists of a base management fee and a floating management fee, with the floating management fee subdivided into floating management fee 1 and floating management fee 2. 1. Base management fee: The base management fee is the basic fee payable to the operating management institution for the relevant costs incurred in providing operating management services. According to the Operating Management Service Agreement, the base management fee adopts a fixed lump-sum responsibility model, using the forecast data corresponding to the real estate project asset appraisal report as the upper limit, paid quarterly on a fixed lump-sum basis. During the operating management service period, the base management fee shall in principle not be adjusted, but if actual operating management costs change significantly due to non-subjective factors such as industry policies, economic conditions, or price levels, the fund manager may propose an adjustment, which shall take effect after resolution by the real estate fund unit holders' meeting. 2. Floating management fee: Floating management fee = Floating management fee 1 + Floating management fee 2. (1) Floating management fee 1 refers to the base management fee to be reduced/deducted based on daily operating management assessment results, with a negative list mechanism for single deductions from the base management fee. (2) Floating management fee 2 is determined from the dimension of operating performance completion rate and paid to the operating management institution as agreed in the Operating Management Service Agreement. Custodian fee: The custodian fee of this fund is accrued at an annual rate of 0.01% of the fund net assets disclosed in the most recent audited annual report (before the first disclosure of year-end audited fund net assets after product establishment, it shall be the fund raised amount (including subscription period interest)). Note: For fee details, please refer to the fund product information summary, as of 20260914. Please refer to the latest fund announcements and fund legal documents at that time.

Mr. Zhu Haoxiang, master's degree, worked at Beijing Yuanyang Xinglian Management Co., Ltd. and Ping An Real Estate Co., Ltd. Beijing Branch from 2018 to 2024, mainly responsible for market research, investment management, and operations management of commercial real estate. He joined Yinhua Fund Management Co., Ltd. in 2024 and currently serves as proposed REIT operations manager in the REITs Investment Management Department, engaged in public REIT operations management, with over 5 years of real estate project operations management experience. Mr. Liu Wenxue, bachelor's degree, registered safety engineer, first-class constructor, supervision engineer, consulting engineer, worked at Xinjiang Xinhua Hydropower Investment Co., Ltd. from 2015 to 2025, mainly responsible for hydropower station operations management, maintenance, safety management, clean energy investment development and mergers and acquisitions. He joined Yinhua Fund Management Co., Ltd. in 2025 and currently serves as proposed REIT operations manager in the REITs Investment Management Department, engaged in public REIT operations management, with over 5 years of real estate project operations management experience. Ms. Kang Fang, master's degree, worked at Yinhua Chang'an Capital Management (Beijing) Co., Ltd. from 2018 to 2025, mainly responsible for the implementation and execution of public REITs and asset securitization businesses, as well as investment research and post-investment management of asset management projects. She joined Yinhua Fund Management Co., Ltd. in 2025 and currently serves as proposed REIT investment manager in the REITs Investment Management Department, engaged in public REIT investment management, with over 5 years of real estate project investment management experience.

Investment involves risks, and caution is advised. Publicly offered securities investment funds (hereinafter referred to as "funds") are long-term investment tools whose primary function is to diversify investments and reduce the individual risks associated with investing in a single security. Funds differ from financial instruments such as bank deposits that can provide fixed return expectations. When you purchase fund products, you may share in the returns generated by fund investments based on your held units, but you may also bear the losses incurred by fund investments. Before making investment decisions, please carefully read the fund contract, fund prospectus, fund product information summary, and other product legal documents and this risk disclosure, fully understand the risk-return characteristics and product features of this fund, carefully consider the various risk factors present in this fund, and based on your own investment objectives, investment period, investment experience, asset status, and other factors, fully consider your own risk tolerance, and make rational judgments and prudent investment decisions on the basis of understanding the product and sales suitability opinions. The views in the document represent only the views of the fund company at the time of writing, and the fund company has the right to make adjustments. Third-party reports or materials reproduced in the document represent only the views of the third party and do not represent the position of the fund, and the fund company does not provide direct or implied representations or warranties regarding their accuracy or completeness. According to relevant laws and regulations, Yinhua Fund Management Co., Ltd. makes the following risk disclosures: 1. Based on different investment objects, funds are divided into different types such as equity funds, mixed funds, bond funds, money market funds, fund of funds, and commodity funds. Investing in different types of funds will yield different return expectations and bear different degrees of risk. Generally speaking, the higher the return expectation of a fund, the greater the risk you bear. 2. Funds may face various risks during investment operations, including market risk as well as the fund's own management risk, technical risk, and compliance risk. Massive redemption risk is a risk unique to open-end funds, meaning that when the net redemption applications of a fund on a single open day exceed a certain proportion of the fund's total units (10% for open-end funds, 20% for periodic open-end funds, except for special products stipulated by the China Securities Regulatory Commission), you may not be able to redeem all fund units in a timely manner, or your redemption proceeds may be delayed. 3. You should fully understand the differences between regular fixed-amount fund investment and savings methods such as zero-deposit lump-withdrawal. Regular fixed-amount investment is a simple and easy long-term investment method that guides investors to invest long-term and average investment costs, but it cannot avoid the inherent risks of fund investment, cannot guarantee investor returns, and is not an equivalent wealth management method to replace savings. 4. Risk disclosure for special types of products: [Yinhua Yuehai Water Conservancy Closed-End Infrastructure Securities Investment Fund] is a real estate fund with different risk-return characteristics from public funds investing in stocks or bonds. It is a medium-to-high risk product, and the specific risk rating results shall be based on the ratings provided by the fund manager and sales institutions. This fund invests most of its assets in real estate projects and has equity attributes. Affected by economic environment, operations management, and other factors, the market value and cash flow of real estate projects may change, which may cause fluctuations in the fund's price, and there is even the risk that real estate projects encounter extreme events (such as earthquakes, typhoons, etc.) resulting in significant losses that affect the fund's price. This fund invests in fixed-income assets outside of real estate projects, which may face credit risk, interest rate risk, yield curve risk, spread risk, supply-demand risk, and purchasing power risk. This fund operates as a closed-end fund, does not offer purchase or redemption, and can only be traded on the secondary market, posing a risk of insufficient liquidity. This fund has other risks related to public funds and risks related to real estate projects; please refer to the prospectus and other legal documents for details. 5. The fund manager undertakes to manage and utilize fund assets in accordance with the principles of good faith and due diligence, but does not guarantee that this fund will necessarily be profitable or guarantee minimum returns. The past performance of this fund and its net value levels do not predict its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Yinhua Fund Management Co., Ltd. reminds you of the "buyer beware" principle in fund investment. After making investment decisions, the investment risks arising from fund operations and changes in fund net value shall be borne by you. The fund manager, fund custodian, fund sales institutions, and related institutions make no commitments or guarantees regarding fund investment returns. 6. [Yinhua Yuehai Water Conservancy Closed-End Infrastructure Securities Investment Fund] is applied for offering by Yinhua Fund in accordance with relevant laws, regulations, and agreements, and has been registered with the approval of the China Securities Regulatory Commission (hereinafter referred to as the "CSRC"). The fund contract, fund prospectus, and fund product information summary of this fund have been publicly disclosed through the CSRC Fund Electronic Disclosure Website [http://eid.csrc.gov.cn/fund/] and the fund manager's website [www.yhfund.com.cn]. The CSRC's registration of this fund does not indicate that it makes any substantive judgment or guarantee regarding the investment value, market prospects, and returns of this fund, nor does it indicate that investing in this fund is risk-free. This product is issued and managed by Yinhua Fund, and the distribution agency does not bear responsibility for product investment, redemption, and risk management. MACD golden cross signals have formed, and these stocks are performing well!