Investment Rating - The investment rating for the construction decoration industry is "Positive" (maintained) [4] Core Viewpoints - The construction sector is currently focusing on two main lines: dividends and "Construction+" strategies. The macro liquidity is abundant, and interest rates remain low, leading to a preference for low-volatility, high-dividend, and low-valuation assets. The value of dividend asset allocation continues to rise. Additionally, policies are continuously supporting construction companies to explore new growth avenues through mergers, restructuring, and transformation into new business areas such as new energy, smart manufacturing, digitalization, and operation services [4][12] Summary by Sections Key Recommendations - Recommended companies include Sichuan Road and Bridge, which is deeply involved in infrastructure construction in the Sichuan-Chongqing region, benefiting from a strong order backlog and high profitability. The company’s order scale is expected to reach 291.3 billion yuan by the end of 2024, providing solid growth assurance for the next three years. The dividend policy is continuously optimized, with a commitment to a dividend payout ratio of no less than 60% over the next three years, and a current dividend yield at a relatively high level in the industry [5][11][14] - Attention is also drawn to Jianghe Group, which has maintained its leading position in the industry despite the overall downturn. The company has a strong order expansion capability and is actively returning profits to shareholders, with a projected dividend payout ratio of nearly 98% in 2024, resulting in a dividend yield of approximately 9% [5][18][24] Market Performance - The construction decoration index increased by 0.63% during the week, with sub-sectors such as landscaping, steel structures, and decoration showing significant gains of 4.01%, 3.33%, and 2.13% respectively. A total of 96 stocks in the construction sector rose, with the top five performers being Chengbang Co. (+42.23%), Hangzhou Landscaping (+31.16%), Hopu Co. (+21.35%), Huilv Ecology (+15.65%), and Baijia Technology (+12.50%) [7][37] Structural Investment Opportunities - The report suggests three main lines for structural investment opportunities in the construction sector: 1. Continued investment in regional infrastructure, particularly in the central and western regions and along the "Belt and Road" initiative [7] 2. Valuation recovery of central and state-owned enterprises benefiting from stable dividends and governance improvements [7] 3. Growth potential through transformation and upgrading into new business areas such as smart manufacturing and digitalization [7][12]

Summary of the Construction Industry Conference Call Industry Overview - The construction industry is entering a plateau phase, with a projected decline in corporate revenue for the first time in 2024, leading to an increase in receivables and weaker cash flow and profitability [1][2] - Infrastructure investment growth is expected to stabilize at 5-6% in 2025, supported by accelerated government bond issuance, although much of the new funding will be used for debt resolution rather than actual construction [1][5] Key Investment Directions - Future investments should focus on two main areas: external demand transformation and high dividend yields, along with quality business models [1][2] - Significant attention should be given to major national strategies and safety-related projects, such as special government bonds supporting dual construction initiatives, desertification control in Northeast China, and coal chemical projects in Xinjiang [1][7] Company Performance and Recommendations - In 2024, only China Energy Engineering and China Chemical Engineering are expected to achieve revenue growth, with similar expectations for 2025 [1][14] - Recommended stocks include: - **China Construction**: Strong dividend stability with an expected yield of 4-5% in 2025 [3][16] - **China Chemical**: Fast order growth and positive corporate improvement outlook [3][16] - **Sichuan Road & Bridge**: Notable for its high dividend yield and strong order backlog [17] Structural Opportunities - The construction industry is at a crossroads of transformation, with many small-cap companies in sectors like landscaping and decoration presenting merger and acquisition opportunities [4][31] - The manufacturing sector is outperforming infrastructure and real estate investments, with specific focus on power, water conservancy, and water transport investments [8] Economic Environment Impact - The overall economic environment is stable, with Q1 GDP at 5.4% and expectations for Q2 to exceed 5% [5] - Government bond issuance is robust, with special bonds increasing from 1 trillion in 2024 to 1.3 trillion in 2025, primarily for dual construction projects [7] Market Performance - In the first half of 2025, the construction industry ranked 28th in market performance, down 2.1%, with traditional state-owned enterprises underperforming [11] - Small-cap transformation companies have shown better performance compared to large state-owned enterprises [11] Industry Characteristics and Stock Selection - The construction industry is characterized by light assets, high debt, labor intensity, and a lack of significant scale advantages [12] - Stock selection should prioritize manufacturing, followed by new economy sectors, specialized engineering, and quality regional enterprises [12] Future Trends and Risks - Traditional state-owned enterprises face pressure from aging infrastructure projects, necessitating a focus on emerging fields and specialized markets [13] - The overall industry is expected to face significant pressure in 2025, with conservative performance expectations for most companies [14] Conclusion - The construction industry is currently in a transitional phase, with a need for strategic focus on high dividend stocks, emerging sectors, and structural opportunities through mergers and acquisitions. The economic environment remains stable, but the industry faces challenges that require careful navigation and selection of investment opportunities.

Core Viewpoint - The announcement details the second unlock period of the 2021 Restricted Stock Incentive Plan for Sichuan Road and Bridge Group Co., Ltd, allowing 11,927,160 shares to be listed and traded starting from July 14, 2025, following the fulfillment of specific performance conditions [1][11][21]. Summary by Sections 1. Incentive Plan Approval and Implementation - The board of directors approved the 2021 Restricted Stock Incentive Plan and its implementation procedures, including the list of initial incentive recipients [2][3]. - The plan allows for the granting of up to 43.75 million shares, with 29.97 million shares granted to 308 initial recipients on May 6, 2022, and 8.74 million shares reserved for 110 additional recipients on July 26, 2022 [6][11]. 2. Unlock Conditions and Performance Metrics - The second unlock period allows for a 30% release of shares, contingent upon meeting specific performance targets, including a minimum revenue of 110 billion yuan and a net profit of at least 8 billion yuan for 2023 [11][12]. - The company achieved a net profit of 90.18 billion yuan for 2023, surpassing the target, and a revenue of 1150.42 billion yuan, also exceeding the requirement [11][12]. 3. Shareholder and Legal Compliance - The company received necessary approvals from the Shudao Investment Group and confirmed compliance with relevant regulations regarding the incentive plan [3][21]. - The legal advisor concluded that the conditions for the unlock have been met, and the company must fulfill its disclosure obligations regarding the unlock process [21]. 4. Stock Structure Changes - Following the unlock, the total number of unrestricted shares will increase by 11,927,160, resulting in a new total of 6,715,566,605 unrestricted shares [19][20]. - The total number of restricted shares will decrease to 1,994,472,880 after the unlock [20].

四川路桥建设集团股份有限公司 关于 2021 年限制性股票激励计划首次授予部分 第二个解除限售期解除限售暨股票上市公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 重要内容提示： 本次股票上市类型为股权激励股份；股票认购方式为网下，上市股数为 11,927,160股，均为依据《2021 年限制性股票激励计划（草案）》（以下简称《2021 年激励计划》）首次授予部分第二个解除限售期解除限售的股票。 证券代码：600039 证券简称：四川路桥 公告编号：2025-074 本次股票上市流通总数为11,927,160股。 本次股票上市流通日期为2025 年 7 月 14 日。 四川路桥建设集团股份有限公司（以下简称公司）于 2025 年 6 月 27 日召开 第八届董事会第五十七次会议，审议通过了《关于 2021 年限制性股票激励计划首 次授予部分第二个解除限售期解除限售条件成就的议案》，现将相关内容公告如下： 一、限制性股票激励计划的批准及实施情况 （一）已履行的决策程序和实施情况 1、2021 年 10 月 20 日，公司 ...

法律意见书 四川省成都市东御街 18 号百扬大厦 1 栋 11 楼邮编：610000 11th floor, building 1, Baiyang building, No. 18, Dongyu street, Chengdu, Sichuan 电话/TEL:（028）87747485 传真/FAX：（028）86512848 网址/WEBSITE：www.kangdacdlawyers.com 北京康达（成都）律师事务所 关 于 四川路桥建设集团股份有限公司 2021 年限制性股票激励计划首次授予部分第二个解除限售期 解除限售条件成就以及回购注销部分限制性股票的 法律意见书 康达（成都）法意字[2025]第 0372 号 在本《法律意见书》中，除非文义另有所指，下列简称具有如下含义： 二〇二五年六月 1 北京 BEIJING 上海 SHANGHAI 广州 GUANGZHOU 深圳 SHENZHEN 海口 HAIKOU 西安 XI'AN 天津 TIANJIN 杭州 HANGZHOU 南京 NANJING 沈阳 SHENYANG 成都 CHENGDU 菏泽 HEZE 苏州 SUZHOU 武汉 WUHAN 香 ...

Group 1: Company Overview - Chengdu Xinzhu Road & Bridge Machinery Co., Ltd. introduced its historical development and industrial layout [2] - The company is undergoing a major asset restructuring plan [2] Group 2: Restructuring Plan Details - The company plans to sell 100% equity of Sichuan Development Maglev Technology Co., Ltd. and related assets to Sichuan Shudao Rail Transit Group [2] - It intends to sell 100% equity of Chengdu Xinzhu Traffic Technology Co., Ltd. to Sichuan Road and Bridge Construction Group [2] - The company will issue shares and pay cash to acquire 60% equity of Sichuan Shudao Clean Energy Group [2][3] Group 3: Financial Aspects - The total amount of funds raised through the issuance of shares will not exceed 100% of the transaction price for asset acquisition [3] - The number of shares issued will not exceed 30% of the total share capital after the completion of the asset acquisition [3] Group 4: Debt Management - The restructuring aims to divest assets related to maglev and bridge components to improve core competitiveness and asset quality [3] - The company plans to enhance capital strength and reduce the debt-to-asset ratio through the issuance of shares to specific investors [3] Group 5: Progress and Timeline - Professional intermediaries have been engaged to conduct audits and evaluations, with tasks progressing as planned [3] - The company will announce restructuring progress every 30 days until the notice for the shareholders' meeting is issued [3]

Core Insights - The construction industry is officially entering a platform period, with infrastructure investment maintaining resilience but showing signs of decline in revenue among major state-owned enterprises [5][28][30] - The overall investment tone for infrastructure in the second half of 2025 will focus on stability, supported by proactive fiscal policies and accelerated government bond issuance [2][37] - Structural opportunities are emerging, particularly in manufacturing, power, water conservancy, and water transport sectors, driven by special government bonds [5][6] Industry Overview - The construction industry has seen a decline in total revenue for the first time in 2024, confirming a turning point for the industry [30] - The total revenue for the construction industry in 2024 was 86,962.78 billion, a decrease of 4.29% year-on-year, with net profit dropping by 13.74% [30][32] - The share of real estate in GDP has been declining since its peak in 2021, while infrastructure investment has been rising but not enough to offset the decline in real estate [26][28] Investment Strategy - Long-term investment should focus on manufacturing-oriented companies like Honglu Steel Structure, while short-term strategies should prioritize high-dividend stocks and significant changes in individual companies [6][7] - The report emphasizes the importance of structural opportunities in the construction sector, particularly in areas aligned with national strategic initiatives and safety capabilities [60] State-Owned Enterprises - There is a growing divergence among state-owned construction enterprises, with only a few, such as China State Construction and China Energy Engineering, showing positive growth in Q1 2024 [7][28] - The report recommends focusing on companies with strong dividend stability and growth potential, such as China Chemical Engineering and China Communications Construction [7][8] Professional Engineering and International Opportunities - The international engineering sector is expected to benefit from ongoing orders and the deepening of cooperation along the Belt and Road Initiative [8] - Companies like China National Materials and China Steel International are highlighted for their low valuations and high dividend yields, indicating strong performance potential [8] Mergers and Acquisitions - The construction industry is moving towards maturity, necessitating mergers and acquisitions to find new growth points [10] - The report anticipates that future mergers will primarily come from smaller, weaker segments of the industry, such as design and decoration [10]

1. Report Industry Investment Rating - No industry investment rating information is provided in the report. 2. Core Viewpoints of the Report - The report regularly updates the latest information on private exchangeable bond (private EB) projects from public channels and conducts basic element tracking on private exchangeable bond projects, emphasizing that the issuance terms and progress may change, and the final prospectus and relevant underwriters should be referred to [1]. 3. Summary by Relevant Catalogs 3.1 New Project Information - There is no new project information this week, and some projects are not listed due to compliance reasons [2]. 3.2 Project Status Table - The table lists the details of multiple private EB projects, including bond names, lead underwriters, scales, underlying stocks, project statuses, and update dates. Projects include those from companies such as Shudao Investment Group Co., Ltd., China Pingmei Shenma Group Co., Ltd., and Guangdong Shunde Holdings Group Co., Ltd., with statuses of "Passed", "Feedback Received", and "Accepted" [3].

Investment Rating - The industry rating is maintained as "Outperform" [6] Core Viewpoints - The construction sector has underperformed the broader market, with a weekly increase of 0.72% compared to the 1.78% rise in the CSI 300 index, resulting in a 1.06 percentage point lag [5][26] - There is an increasing market focus on low-valuation, high-dividend stocks within the construction sector, particularly among central state-owned enterprises (SOEs), local SOEs, international engineering firms, and private enterprises [14][34] - The construction sector's central SOEs, such as China Chemical, have significantly lower price-to-earnings (PE) ratios compared to their peers, with China Chemical's PE at 7.99, placing it in the 6.8% percentile since 2010 [15][14] - Local SOEs like Shandong Road and Anhui Construction show low PE ratios of 3.94 and 6.10, respectively, with dividend yields exceeding those of central SOEs [16][14] - Private enterprises such as Jianghe Group and Sanwei Chemical also demonstrate strong dividend capabilities, with yields of 8.90% and 4.83% respectively [19][14] Summary by Sections Low-Valuation Stocks Worth Attention - Central SOEs like China Chemical and China Railway Construction have low PB ratios, with China Railway at 0.41 and China Railway at 0.45 [14][15] - Local SOEs such as Shandong Road and Anhui Construction have PE ratios significantly below 10, indicating potential investment opportunities [16][14] - Private enterprises like Jianghe Group and Yaxiang Integration have returned to reasonable valuation levels, with PE ratios of 11.66 and 12.21 respectively [19][14] Market Performance Review - The construction index increased by 0.72% in the week from June 30 to July 4, lagging behind the CSI 300's 1.78% increase [5][26] - Notable individual stock performances included Chengbang Co. (+42.23%) and Hangzhou Garden (+31.16%) [5][26] Investment Recommendations - Focus on cyclical opportunities arising from improvements in construction activity, particularly in water conservancy, railways, and aviation sectors [34][35] - Highlight the potential of nuclear power investments and emerging business directions within the construction sector [36][34] - Emphasize investment opportunities in major hydropower projects and the deep-sea economy, with recommendations for companies involved in these sectors [37][34]

Core Viewpoint - The Hongli Low Volatility ETF (512890) has seen significant inflows and performance, indicating strong investor interest and potential for continued growth in the low-volatility investment space [1][2]. Fund Performance - The Hongli Low Volatility ETF (512890) increased by 0.83% to a latest price of 1.211 CNY, with a turnover rate of 2.36% and a trading volume of 466 million CNY [1][2]. - From June 30 to July 3, the ETF experienced a net inflow of 770 million CNY over four consecutive trading days, bringing its latest circulating scale to 19.622 billion CNY, a new high since its inception [1][2]. Holdings and Investment Strategy - The ETF's top holdings include Chengdu Bank, Yageo, Industrial Bank, and others, with significant weightings in these stocks [3]. - The fund manager, Liu Jun, has positioned the ETF to outperform its benchmark, the CSI Low Volatility Index, with a year-to-date performance exceeding that of the benchmark [2][3]. Market Outlook - According to Xiangcai Securities, the core profitability of banks is improving, and earnings are expected to remain stable, which supports the ongoing appeal of dividend investments in the banking sector [3]. - The strategy of investing in "high dividend + regional growth" is likely to perform well during periods of slowing economic growth [3]. Investment Options - Investors seeking stable returns and low-risk alternatives can consider the Hongli Low Volatility ETF's linked funds, which include various classes such as A, C, I, and Y [4].