Core Viewpoint - The company, China Merchants Commercial Real Estate Investment Trust (招商局商业房托基金), has shown significant performance improvements and strategic initiatives since its establishment in December 2019, becoming a mature real estate trust fund covering various asset types across major cities in China [2][31]. Financial Performance - The total revenue reported is 2.25 billion RMB [4]. - The distributable income stands at 1.07 billion RMB [7]. - The annualized return rate for the unit distributable income is 9.1% [9]. Financing and Cost Management - The company has successfully signed a contract for a fixed asset mortgage loan of 4 billion RMB, with a new cost of 2.80%, reflecting a reduction of 37 basis points from the previous rate of 3.17% [11][12]. Property Portfolio - The total estimated value of the properties is 8.819 billion RMB [18]. - The occupancy rates for various properties are as follows: - New Era Plaza: 98.2% - China Merchants Hanghua: 97.4% - Digital Building: 92.2% - Science and Trade Center: 86.3% - Garden City Shopping Center: 89.5% [20][21]. Rental Rates - The rental prices per square meter per month for different properties are: - China Merchants Hanghua: 219.3 RMB - Garden City Shopping Center: 144.6 RMB - Digital Building: 142.6 RMB - New Era Plaza: 127.0 RMB - Science and Trade Center: 121.7 RMB [22]. ESG Performance - The property portfolio has achieved a 100% certification rate for ISO 14001 environmental management system [25]. - The safety production goal achievement rate is also 100% [26]. - Tenant satisfaction survey coverage is at 100%, with continuous ESG report publication [28]. Future Outlook - The company aims to stabilize operations, enhance rental growth, reduce operating costs, and expand tenant resources to strengthen its investment portfolio and risk resilience [30].

Group 1 - The average occupancy rate of the office portfolio for China Merchants Commercial REIT was 82.1% in Q2, with an overall property occupancy rate of 85.3% [1] - The leasing market is affected by a persistent oversupply, leading to high vacancy rates in the office market, prompting landlords to lower rents as a competitive strategy [1] - The rental price for China Merchants Hanghua Science and Trade Center was adjusted from RMB 224.7 per square meter to RMB 219.3 per square meter, resulting in a significant occupancy rate increase from 70% to 92.2%, a rise of 22.1 percentage points [1] Group 2 - The occupancy rate of Shenzhen Net Valley's Grade B office buildings, including Digital Plaza, decreased by 10.5 percentage points to 89.5%, with rental prices dropping from RMB 123.1 per square meter to RMB 120.9 per square meter [2] - Despite the decline, the operational performance of the Grade B offices remains above the average level of the Shenzhen office leasing market [2] - The Garden City Shopping Center showed strong performance, with occupancy rising from 95.9% to 97.9%, indicating positive operational conditions based on various metrics [2]

Group 1 - The average occupancy rate of the office portfolio for China Merchants Commercial REIT was 82.1% in Q2, with an overall property occupancy rate of 85.3% [1] - The leasing market is affected by a persistent oversupply, leading to high vacancy rates in the office market, prompting landlords to lower rents as a competitive strategy [1] - The rental price for the China Merchants Hanghua Science and Trade Center was adjusted from RMB 224.7 per square meter to RMB 219.3 per square meter, resulting in a significant increase in occupancy from 70% to 92.2%, a rise of 22.1 percentage points [1] Group 2 - The occupancy rate of the Digital Port Building decreased by 10.5 percentage points to 89.5%, with rental prices dropping from RMB 123.1 per square meter to RMB 120.9 per square meter [2] - Despite the decline, the performance of the secondary-grade office buildings remains above the average level of the Shenzhen office leasing market [2] - The Garden City Shopping Center showed strong performance, with occupancy rising from 95.9% to 97.9%, indicating a positive operational trend [2]