Project Background - The company has proposed to issue public REITs based on its wholly-owned subsidiary's assets, including the Technology Building, R&D A1 Building, and State Grid Headquarters Building No. 4 [2] - The board of directors approved the proposal during the 28th meeting of the 12th board on March 11, 2024 [2] Project Progress - The application materials for the project were officially accepted by the China Securities Regulatory Commission and the Shanghai Stock Exchange on May 20, 2025 [3] - The outcome of the application will depend on the approval or registration results from the relevant regulatory authorities [3]

Core Viewpoint - The recent surge in bulk trading of REITs, particularly in the consumer sector, indicates increased institutional activity and interest in this market segment, despite liquidity challenges in the secondary market [1][6][7]. Group 1: Bulk Trading Activity - On May 15, multiple REITs completed significant bulk trades, including China International Capital Corporation's (CICC) consumer REIT with 2.35 million shares traded for approximately 10 million yuan [3][4]. - Consumer REITs such as CICC's and Huaxia's commercial REITs have frequently appeared in bulk trading lists, reflecting a bullish trend in this sector [5][6]. Group 2: Market Performance - The CSI REITs index has shown an average increase of 8.34% this year, with consumer REITs leading the gains, including a 47.66% rise in Huazhong's consumer REIT [5]. - Institutional investors have increased their holdings in public REITs, with a 14.4% decrease in the number of individual holders and a 17.9% increase in average holdings per account [5]. Group 3: Liquidity Issues - The prevalence of bulk trading highlights liquidity issues in the secondary market for REITs, with many trading days seeing volumes below 10 million yuan [6][7]. - The concentration of institutional investors and the small market size contribute to significant price volatility, as large trades can heavily influence market prices [7][8]. Group 4: Valuation and Assessment Mechanisms - The current valuation system for public REITs in China is inadequate, as it primarily relies on closing prices, which do not accurately reflect underlying asset values due to low market liquidity [8]. - Recommendations include broadening the investor base, optimizing valuation and assessment mechanisms, and encouraging long-term capital participation to enhance market activity [8]. Group 5: Institutional Interest - Insurance companies are increasingly interested in REITs, with significant allocations to newly listed REITs, indicating a shift towards utilizing REITs for stable returns [10][11]. - The establishment of large-scale public REITs, such as the 10 billion yuan infrastructure REIT, is expected to enhance market liquidity and attract diverse investors [10][12].

Core Viewpoint - The company has demonstrated resilience and achieved high-quality growth in the first quarter of 2025, with significant increases in both revenue and net profit despite a complex global economic environment [7]. Financial Performance - In Q1 2025, the company achieved a total volume of 3.56 billion parcels, a year-on-year increase of 19.7%, and generated operating revenue of RMB 69.85 billion, up 6.9% year-on-year [7]. - The express logistics business revenue grew by 7.2%, while supply chain and international business revenue increased by 9.9% [7]. - Gross profit reached RMB 9.29 billion, reflecting an 8.0% year-on-year increase, with a gross margin of 13.3%, up 0.1 percentage points [8]. - The net profit attributable to shareholders was RMB 2.23 billion, a 16.9% increase year-on-year, with a net profit margin of 3.2%, up 0.3 percentage points [8]. Share Buyback Program - The company announced a share buyback plan for 2025, intending to repurchase A-shares with a total amount between RMB 5 billion and RMB 10 billion, at a price not exceeding RMB 60 per share [40][41]. - The buyback aims to enhance the long-term incentive mechanism and motivate core employees, with shares intended for future employee stock ownership plans or equity incentive plans [41][46]. - The buyback period is set for 12 months from the board's approval date [42]. Debt Financing - The company issued a super short-term financing bond of RMB 500 million through its wholly-owned subsidiary to support business development needs [12]. REITs Issuance - The company is actively pursuing the issuance of public infrastructure REITs to support the sustainable development of logistics industrial parks, with a total fundraising amount of RMB 3.29 billion [14].