On August 20, 2026, the nation's first institutional REITs follow-on offering for distributed clean energy assets, the "Xingzheng Jishi-Bicheng Nengfa New Energy Holding-Type Real Estate Asset-Backed Special Plan (Carbon Neutrality) (2026 First Follow-On Offering and Acquisition of New Infrastructure Projects)," was successfully completed. The transaction was sponsored by Bicheng Energy as the original equity holder, with Luoneng Capital serving as the asset management advisor and financial advisor.
This milestone follows the initial establishment of China's first institutional REITs for distributed clean energy assets by Bicheng Energy and Luoneng Capital at the end of 2025, marking the company's continued leadership in the commercial and industrial distributed clean energy sector with the first follow-on offering. Notably, this project also represents the market's first institutional REITs follow-on offering for clean energy assets and the first such offering on the Shenzhen Stock Exchange.
The assets added in this follow-on offering uphold Bicheng Energy's consistently high standards for premium commercial and industrial asset development. With the professional assessment and quality control provided by Luoneng Capital, the offering was supported by a solid foundation. The newly included assets maintain the dual-core regional layout of East China and South China, closely aligned with load centers characterized by robust electricity demand and seamless grid absorption capacity.
The credit quality of energy consumers has been further strengthened, as the newly added projects primarily feature listed companies, industry leaders, and large private enterprises. These projects demonstrate stable consumption patterns, balanced electricity pricing, historical generation output in line with expectations, and consistent cash flow performance. Following the completion of this follow-on offering, the advantages of the overall asset portfolio have become even more pronounced.
The cross-regional and cross-industry portfolio further diversifies risks associated with individual energy consumers and climate-related factors. The inclusion of high-quality corporate credit enhances the portfolio's resilience against risk, while the expansion in scale, coupled with maintained asset quality, establishes a more robust and sustainable income foundation for asset-backed security holders.
This follow-on offering attracted robust participation from a diverse range of investors, including insurance companies, trust institutions, asset management firms, and local state-owned capital. Existing investors from the initial offering eagerly increased their investments, underscoring the strong alignment between Bicheng Nengfa's institutional REITs and the allocation requirements of long-duration capital. Guangzhou Kaide Investment, as an investor in the Luoteng first-phase commercial and industrial distributed asset development fund, actively participated, vividly demonstrating the strategic allocation demands of local state-owned capital as it evolves alongside the asset lifecycle, continuously holding high-quality assets through various product formats such as development funds and institutional REITs.
The sustained trust and support from both new and existing investors serve as a strong testament to the high recognition of Bicheng Energy's asset selection and operational capabilities, as well as Luoneng Capital's asset management expertise.
The REITs market is transitioning from "asset issuance" to "capital circulation." While the initial offering marks the starting point, the follow-on offering represents the true test of a REIT's vitality. The successful completion of this follow-on offering signifies that the complete asset operation closed loop, collaboratively developed by Bicheng Energy and Luoneng Capital, has been fully realized. At the front end, development and acquisition funds continuously lock in assets; in the middle, professional operations and maintenance capabilities drive value enhancement; and at the back end, REITs and follow-on offerings facilitate the release of mature assets. These three components are interlinked, forming a replicable and sustainable path for scalable expansion.
From the first establishment to the first follow-on offering, Bicheng Energy, in partnership with Luoneng Capital, is defining the industry standard for China's distributed clean energy asset securitization through its asset operation expertise.