Core Viewpoint - Hualian Co., Ltd. is actively responding to the policy call from the China Securities Regulatory Commission regarding the pilot launch of commercial real estate investment trusts (REITs) by initiating a partnership to manage and invest in commercial real estate assets [1] Group 1: Company Actions - The company held its 18th meeting of the 9th Board of Directors on February 10, 2026, where it approved a proposal for external investment and participation in the application and issuance of commercial real estate REITs [1] - Hualian Co., Ltd. plans to jointly invest with Shou Nong Information Industry Investment Co., Ltd. and Beijing Sanyuan Jiaye Group Co., Ltd. to establish Beijing Yuanchuanglian Commercial Enterprise Management Center (Limited Partnership) [1] - The partnership aims to acquire a 50% stake in Longde Real Estate Co., Ltd. held by Hualian's wholly-owned subsidiary, Beijing Longdi Tiantong Commercial Management Co., Ltd. [1] Group 2: REITs Initiative - The newly formed partnership, Yuanchuanglian, will collaborate with another shareholder of Longde Real Estate, Beijing Grain Group Co., Ltd., to utilize commercial real estate projects as underlying assets for the REITs application and issuance [1]

Market Performance - The equity market saw most sectors rise on February 10, 2026, with the Shanghai Composite Index and Shenzhen Composite Index increasing by 0.13% and 0.05% respectively, while the CSI 300 rose by 0.11%. The CSI 500 experienced a slight decline of 0.06%. The Shenwan Real Estate Index fell by 1.40% [1]. Individual Stock Performance - The top five gainers in the real estate sector were Huangting International, Huangting B, Guangming Real Estate, Sunshine Holdings, and Rongfeng Holdings, with increases of 10.05%, 7.25%, 5.17%, 5.00%, and 3.13% respectively. Conversely, the largest decliners included Dayuecheng, I Love My Home, Gree Real Estate, Hualian Holdings, and New Town Holdings, with declines of -5.87%, -3.94%, -3.74%, -3.65%, and -3.61% respectively [2]. Industry News - Three residential land parcels in Nantong's Haimen North New City were sold at a base price of 1.4 billion yuan. The parcels, numbered HM-R26002, HM-R26003, and HM-R26004, were acquired by local state-owned enterprises at floor prices of 6,424 yuan/m², 6,648 yuan/m², and 7,112 yuan/m² respectively. Additionally, a residential land parcel in Chengdu's Jinjiang District was won by Jinjiang Tongjian at a floor price of 20,300 yuan/m², with a premium rate of 23.03%, totaling 604 million yuan [3]. Company Announcements - Binjiang Group announced on February 10, 2026, that it acquired a piece of state-owned construction land in Huzhou, Zhejiang Province, for a total price of 503 million yuan, designated for residential use. The land parcel is identified as Huzhong District 2026-01. - Shoukai Co., Ltd. disclosed that its board approved a proposal to issue a closed-end commercial real estate investment trust (REIT) using assets from the Songjiazhuang Fumao project and other related assets [4].

Core Viewpoint - The recent approval of the first batch of commercial real estate REITs in China marks a significant step in the development of the REITs market, with a total fundraising target of 37.7 billion yuan across 10 projects, indicating strong interest and potential for growth in this sector [1][20]. Group 1: REITs Approval and Fundraising - The first batch of 10 commercial real estate REITs has been accepted for registration, with a total intended fundraising of 377 billion yuan [1]. - Among the approved projects, the Huaxia Yintai Department Store REIT aims to raise approximately 4.2785 billion yuan, with its underlying assets being the Hefei Yintai Center [5][21]. Group 2: Project Details and Financial Performance - The Hefei Yintai Center's total asset valuation is approximately 4.273 billion yuan, with significant appreciation compared to its book value, reflecting a 143.77% increase [5][6]. - The center has experienced a decline in revenue over the past three years, with projected revenues of 903.57 million yuan in 2023, decreasing to 734.13 million yuan by 2025, alongside a 13.9% drop in sales [10][12]. - The average occupancy rate for the center has shown fluctuations, with rates of 95.71%, 97.25%, and 95.48% from 2023 to 2025 [10][12]. Group 3: Operational Structure and Management - The operational management of the Huaxia Yintai Department Store REIT is handled by Hangzhou Yintai Commercial Management, with the project company absorbing two SPVs for streamlined management [7][19]. - The REIT's structure allows for a shift from a heavy asset model to a lighter asset management approach, enhancing financial flexibility and operational efficiency [21][22]. Group 4: Market Implications and Future Outlook - The launch of commercial real estate REITs is expected to revitalize existing assets and provide a pathway for high-quality commercial properties in Anhui to access public markets [20][22]. - The Hefei Yintai Center's early submission serves as a model for other commercial real estate projects in the region, potentially leading to a reevaluation of local asset values and sustainable development [22].

Core Viewpoint - The company is issuing commercial real estate REITs to enhance the value of its commercial assets and support sustainable development, aligning with national policies for high-quality capital market development [1][2] Group 1: Company Actions - The company approved the issuance of commercial real estate REITs at its board meeting on February 9, 2026, as a strategic move to activate its commercial assets and enhance long-term value [1] - The establishment of the commercial real estate REITs platform aims to create a comprehensive asset operation model covering investment, financing, construction, management, and exit [1] - The issuance of REITs will not constitute a related party transaction or a significant asset restructuring as defined by relevant regulations [1] Group 2: Industry Implications - The issuance of commercial real estate REITs is a significant step for the company to leverage innovative financing tools, optimize resource allocation in the industry, and support the development of a new real estate model [2] - This initiative is expected to broaden financing channels, effectively activate existing assets, and enhance the quality and efficiency of asset operations, contributing to sustainable development [2]

Core Viewpoint - The company has approved the issuance of commercial real estate REITs to enhance the value of its commercial assets and support sustainable development [1][2] Group 1: Company Actions - The company held its 58th meeting of the 10th Board of Directors on February 9, 2026, where it approved the issuance of commercial real estate REITs based on the Songjiazhuang Fumao project and other related assets [1] - The issuance of commercial real estate REITs is a significant measure for the company to implement the central government's directives on promoting high-quality capital market development [1][2] - The establishment of the commercial real estate REITs platform aims to create a comprehensive operational model for commercial assets, covering investment, financing, construction, management, and exit [1] Group 2: Industry Implications - The issuance of commercial real estate REITs is expected to optimize resource allocation within the industry and support the development of a new real estate model [2] - This initiative will help the company broaden its financing channels, effectively revitalize existing assets, and enhance the quality and efficiency of asset operations [2]

Group 1 - The company announced the approval of a proposal to issue a closed-end commercial real estate investment fund (public REITs) based on assets including the Songjiazhuang Fumao project [1] - The company plans to include three projects, such as Huqiao Village Commercial Street, as underlying assets for the fund application, which will be sold by a public fund manager upon approval [1] - The company or its affiliates will participate in a strategic placement, committing to subscribe for no less than 20% of the fund's issuance [1] Group 2 - The board of directors has authorized the general manager's office to handle matters related to the application and issuance, with an authorization period of 24 months [1] - Issuing REITs is expected to help the company activate assets and broaden financing channels, although the application process carries uncertainties and may face market, operational, and valuation fluctuations [1]

Summary of Huijia Times Conference Call Company Overview - **Company**: Huijia Times - **Industry**: Retail, specifically supermarkets and department stores Key Points and Arguments 1. **2026 Performance Outlook**: Huijia Times has shown strong performance in early 2026, with significant growth in supermarket sales and remodeled stores, benefiting from an extended sales peak due to the late Spring Festival [2][4] 2. **Store Performance**: The North Huijia store, a benchmark for the company, achieves daily sales of approximately 900,000 to 1,000,000 yuan on weekdays and up to 1,500,000 yuan on weekends, maintaining a net profit margin of around 8% and a gross margin of 22%-23% [2][7] 3. **Strategic Initiatives**: The company plans to advance its initiatives in urban renewal electricity, low-altitude economy, and overseas market expansion to enhance gross margins and drive business growth [2][4] 4. **Low-Altitude Economy**: Huijia Times is actively pursuing low-altitude economy projects, including testing drone delivery on a pilot route from Tiemenguan to Alar, aiming to promote franchise business development [2][9] 5. **Agricultural Collaboration**: The company is collaborating with the Aksu region to advance agricultural pest control services, expected to launch in 2026, leveraging existing qualifications for rapid implementation [10] 6. **Supply Chain Structure**: In the North Huijia supermarket, approximately 10% of sales come from Donglai products, with 40% supplied by Dazhang's unified supply chain and 30% from the same-source supply chain with Pang Donglai [17][18] 7. **Revenue and Profit Growth**: The company anticipates steady revenue and profit growth of around 10% in 2026, contingent on the performance of remodeled stores [4][29] 8. **Franchise Business Development**: The franchise business is in the early stages, primarily aligning with the Xinjiang Production and Construction Corps, awaiting policy changes to relax low-altitude airspace restrictions [9] 9. **Overseas Market Strategy**: The initial overseas strategy focuses on exporting supply chains rather than establishing retail stores, with plans to evaluate the feasibility of opening stores later [14][15] 10. **Real Estate Investment Trusts (REITs)**: The company is exploring opportunities related to REITs, particularly in light of new policies that simplify approval processes, aiming for larger scale and faster growth [21] Additional Important Information 1. **Consumer Demographics**: The North Huijia store primarily serves Han consumers, with a consistent product selection across stores, although specific items may vary [8] 2. **Market Position**: Huijia Times does not face competition from higher-end shopping districts in Urumqi, benefiting from a strong consumer base [26] 3. **Investment Strategy**: The company maintains a cautious approach to new industry investments, focusing on core business stability and growth [23] 4. **Store Renovation Impact**: The renovation of stores, particularly the North Huijia store, has significantly improved foot traffic and sales, contributing to overall positive performance [4][19] 5. **Future Growth Paths**: The company’s growth strategies include international expansion, store openings, and franchise development, with dedicated teams for each area [28]

Core Viewpoint - The first batch of 10 commercial real estate REITs has been submitted for approval, aiming to raise a total of 37.7 billion yuan, marking the official entry of China's public REITs market into a comprehensive development phase for both infrastructure and commercial real estate [1][9]. Group 1: REITs Submission Details - As of February 8, 10 commercial real estate REITs have been submitted, with 9 to the Shanghai Stock Exchange and 1 to the Shenzhen Stock Exchange [3]. - The specific funds include Everbright's closed-end commercial real estate fund, Bosera's infrastructure fund, and several others, with notable fundraising targets [3][4]. - The largest fundraising target is for the CICC Vipshop closed-end commercial real estate fund at 7.47 billion yuan, followed by Guotai Junan's fund at 5.064 billion yuan [4]. Group 2: Asset Types and Market Dynamics - The underlying assets of the commercial real estate REITs are diverse, including hotels, office buildings, shopping malls, and commercial complexes [5]. - The hotel assets are primarily four-star and above, with only one project involving hotel assets, indicating sensitivity to economic cycles [5]. - The CICC Vipshop fund's underlying projects include the Zhengzhou and Harbin Outlets, with significant operational history and remaining land use rights [5][6]. Group 3: Regulatory and Institutional Support - The development of commercial real estate REITs is supported by regulatory bodies, with the China Securities Regulatory Commission emphasizing its importance for the capital market and real estate sector [9][10]. - Various local securities regulatory bureaus are actively promoting the implementation of commercial real estate REITs, conducting training sessions and preparing for pilot submissions [10]. - Multiple listed companies, including Poly Developments, are preparing to submit their commercial real estate REITs, aligning with regulatory calls to enhance their real estate management capabilities [11]. Group 4: Role of Intermediaries - The commercial real estate REITs involve various intermediaries, including fund managers, custodians, and financial advisors, with major firms like Guotai Junan and CITIC Securities playing significant roles [7][12]. - The regulatory framework mandates strict adherence to responsibilities by all involved parties to ensure compliance and effective operation of the REITs [7].

商业不动产REITs申报启幕。 截至2月8日，首批10家商业不动产REITs已经申报，合计拟募资377亿元。华泰证券固收张继强认为，这是继2025年12月31日 证监会发布《中国证监会关于推出商业不动产投资信托基金试点的公告》以来，商业不动产REITs的首次申报，标志中国公募 REITs市场正式进入"基础设施不动产+商业不动产"全面发展时期。 据悉，REITs政策助推多层次市场快速形成，供给端形成了基础设施REITs、商业不动产REITs、机构间REITs等多层次的产品 体系。券商在REITs业务中扮演着财务顾问的角色，本次首批10家商业不动产REITs的申报，国泰海通、中信证券作为财务顾 问，占据6家份额。 以中金唯品会封闭式商业不动产证券投资基金为例，其不动产项目是郑州杉杉奥特莱斯项目、哈尔滨杉杉奥特莱斯项目，预 计募资规模74.70亿元。郑州杉杉奥特莱斯项目于2016年9月开业，迄今已运营近10年，该项目分三期建设，其中一期为2层地 上广场及地下车库，二期为3层地上广场（其中第3层为车库），三期为1层地上广场，总建筑面积约11.20万平方米。截至2025 年12月31日，该项目土地剩余使用年限约为30. ...

1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoints of the Report - The China Securities REITs Total Return Index closed at 1042.83 points this week, down 0.91% week - on - week. The average daily trading volume, average daily turnover, and average daily turnover rate decreased by 16.39%, 18.49%, and 0.10 pct respectively, indicating a market decline with shrinking trading volume. The listing of Huaxia Zhonghe Clean Energy REIT on February 2, 2026, with a first - day closing increase of 28.16%, is expected to boost the attention of primary issuance and subscription [1][12]. - Two new commercial real estate REITs were accepted this week. The total planned fundraising scale of the 10 commercial real estate REITs under review has reached 37.7 billion yuan. The market is worried about the supply shock of commercial real estate REITs, and the current distribution rate of listed consumer facility REITs is lower than that of commercial real estate REITs under review, which may limit the upward space of listed consumer facility REITs [2][7]. - All asset sectors in the secondary market declined this week, with the consumer facilities sector having the largest decline of 1.74% and the energy facilities sector having the smallest decline of 0.27%. 3. Summary by Relevant Catalogs 3.1 Primary Market - Two new commercial real estate REITs were accepted this week. Everbright Prudential Everbright Anshi REIT, to be listed on the Shanghai Stock Exchange, has two shopping malls as underlying assets and plans to raise 4.905 billion yuan. Huatai Zijin Huazhu Anzhu REIT, the first commercial real estate REIT on the Shenzhen Stock Exchange, has hotel projects as underlying assets and plans to raise 1.32 billion yuan [2][18]. - Among the 10 commercial real estate REITs under review, there are two hotel - type REITs. The Huazhu project has better location, occupancy, and room rates than the Jinjiang project but is restricted by the "trading price for volume" strategy. The Jinjiang project has a certain risk - diversification effect due to a large number of hotels in different regions [3][23]. - As of February 6, 2026, 10 infrastructure REITs projects are in the inquiry and feedback stage, and 1 project has been accepted [4][24]. 3.2 Secondary Market - All asset sectors declined this week, with the consumer facilities sector having the largest decline, followed by new - type facilities and rental housing, and the energy facilities sector having the smallest decline [25]. - The IDC sector continued to decline this week. Benefiting from the strong demand in the AI computing power sector, the future operating demand of the projects is sustainable, and attention can be paid to opportunities brought by subsequent asset fluctuations [5][27]. - The energy facilities sector had the smallest decline. It is recommended to focus on natural gas power generation, hydropower assets with high stability, or projects with a high guarantee of distributable amounts [6][30]. - The consumer infrastructure sector had the largest decline. After this adjustment, attention can still be paid to consumer facility REITs with high distribution rates, such as Hua'an Bailian Consumption, Jiashi Wumei Consumption, and CICC Yinli Consumption [6][33]. - The industrial park sector had few rising bonds. It is recommended to pay attention to park REITs with stable fundamentals, income distribution adjustment mechanisms, and high distribution rates [37]. - The REITs trading sentiment weakened this week, with the average daily trading volume, average daily turnover, and average daily turnover rate decreasing. The consumer infrastructure sector was actively traded, while the turnover rates of other asset sectors declined [41][45].