Against the backdrop of strong national policy backing for the public REITs market, ICBC Credit Suisse has positioned its public REITs business as a strategic priority. Two of its funds have made their capital market debuts: ICBC Hebei Expressway REIT (508086), Hebei Province's first public REIT, listed on the Shanghai Stock Exchange in June 2024, injecting fresh momentum into the Beijing-Tianjin-Hebei transportation integration effort; and ICBC Inner Mongolia Clean Energy REIT (180402), Inner Mongolia's first public REIT, which followed on the Shenzhen Stock Exchange in December of that same year, supporting the high-quality development of the region's new energy industry.
2025 marked the first full operational year for both REITs following their listings. Recently, the two funds released their annual ESG reports for 2025, showcasing their work across governance foundation, safe operations, green development, and social responsibility. According to the reports, ICBC Hebei Expressway REIT achieved distributable income of RMB 474 million for the year, while ICBC Inner Mongolia Clean Energy REIT posted RMB 194 million in distributable income.
One fund, aptly described as "smooth and far-reaching," employs systematic rescue mechanisms and integrated "air-ground" digital patrols to safeguard the traffic arteries in its region along the Rongwu Expressway. The other, "riding the wind higher," leverages four-dimensional penetration governance and digital operations to deliver 2,709.50 equivalent full-load hours and a 98.06% equipment availability rate, showcasing the operational resilience of its green power assets. Across governance, safety, environmental, and social dimensions, ICBC Credit Suisse has delivered a commendable first-year ESG performance in two sectors—transportation infrastructure and clean energy—that are both closely tied to people's daily lives.
Stable underlying asset operations and a solid fundamental business profile
The underlying asset of ICBC Hebei Expressway REIT is the Rongwu Expressway (from Dawangdian Hub Interchange to the Hebei-Shanxi border), covering 97.068 kilometers. It is a key segment of the G18 national expressway trunk network, linking the Xiong'an New Area with northwest China and serving as a vital corridor for Shanxi coal transport eastward and Beijing-Tianjin-Hebei coordination. In 2025, the project company generated operating revenue of RMB 514 million, with toll income accounting for RMB 513 million (99.80% of total). During the reporting period, RMB 485 million was distributed to unitholders. On the safety front, road conditions remained in good standing, with an average Pavement Quality Index (PQI) of 92.32 and an average Maintenance Quality Index (MQI) of 93.59. No major production safety incidents were recorded throughout the year.
The underlying assets of ICBC Inner Mongolia Clean Energy REIT consist of two onshore wind farms—the Huachen Wind Project (100MW) and the Hengze Wind Project (49.5MW)—with a combined installed capacity of 149.5MW, both located in Inner Mongolia's Class 1 wind energy resource zone. Commissioned in 2017 and 2011 respectively, the projects have performed well. In 2025, annual electricity generation reached approximately 405 million kWh, with settled electricity at 391 million kWh. The equipment availability rate across both sites hit 98.06%, and the average equivalent full-load hours stood at 2,709.50 hours, surpassing the national average for wind power during the same period. Market-based trading accounted for roughly 91.63% of electricity volume, with a comprehensive settlement price of RMB 0.3326 per kWh. In terms of income distribution, the project company achieved distributable income of RMB 194 million, reaching 106.70% of the forecast set in the prospectus. The first distribution paid RMB 0.6000 per unit, translating to an annualized cash distribution yield of 15.06%. On safety, the Huachen and Hengze projects have operated safely for 3,309 days and 5,275 days respectively, with no major production safety incidents during the year.
Financial empowerment for green transition, unlocking ecological and social value
It's worth noting that these two REITs have delivered more than just investment returns—they have also generated tangible ecological and social benefits. The Rongwu Expressway, underlying asset of ICBC Hebei Expressway REIT, serves as the primary transportation corridor for energy and construction materials needed for the Xiong'an New Area development, while also acting as a key link between the Bohai Rim and northwest China. During the reporting period, the Rongwu branch completed 783 effective rescues, with average incident response times down 65.9% year-on-year and average rescue response times down 31.07%. The expressway's cloud response rate reached 96.85%, with 100% satisfaction rates in driver follow-ups and complaint resolution. In 2025, toll reductions totaled RMB 17.9 million, with 3,845 traffic information releases and 55,000 driver inquiries answered. For road maintenance, the branch advanced refined traffic safety facility upgrades, completing the K917+050 improvement project in just 20 days. Cumulative water recycling reached 32,900 tonnes, with RMB 783,300 invested in landscaping maintenance to create a quieter, more comfortable environment for residents along the route.
The underlying assets of ICBC Inner Mongolia Clean Energy REIT delivered approximately 391 million kWh of grid-connected electricity in 2025. Based on emission factors disclosed in the China Electric Power Industry Annual Development Report 2026, this translates to annual carbon dioxide reductions of approximately 321,600 tonnes (equivalent to the annual carbon sequestration of roughly 17.575 million trees), savings of about 118,000 tonnes of standard coal, and reductions of approximately 30.09 tonnes of sulfur dioxide, 48.85 tonnes of nitrogen oxides, and 4.69 tonnes of soot.
The core function of public REITs—revitalizing existing assets while driving incremental investment—has been validated by both products. ICBC Hebei Expressway REIT raised RMB 5.698 billion in its initial offering, and after repaying external debt, paying taxes, and subscribing to the fund, the original equity holder realized net recovered capital of RMB 1.17 billion. On December 20, 2024, all net proceeds were invested as project capital into the G95 Beijing-Tianjin-Hebei Ring Expressway Langfang-Zhuozhou section expansion project, injecting capital into incremental construction for regional transportation integration. Meanwhile, ICBC Inner Mongolia Clean Energy REIT raised RMB 1.067 billion in its IPO, with the sponsor realizing approximately RMB 322 million in net recovered capital, all directed to the "A-Dian-Ru-Wu" 2-million-kW regional mutual-aid new energy project. That project's installed capacity is 13 times that of the current underlying assets, and its designed annual emission reductions are approximately 12 times those of the existing wind projects. With RMB 1.17 billion and RMB 322 million respectively channeled into expressway expansion and new energy project construction, both products have demonstrated the leverage effect of public REITs in "revitalizing existing assets and driving new investment" through securitization.
Strengthening governance and risk control systems to support long-term sustainable operations
In terms of governance and risk prevention, both products reflect ICBC Credit Suisse's proactive management philosophy toward public REITs. The Rongwu branch of ICBC Hebei Expressway REIT has implemented a "1+5" internal joint supervision model. In 2025, compliance training covered 400 person-times, 69 routine and unscheduled safety inspections were conducted with a 100% rectification rate for identified hazards, and a "1+12" emergency management system—comprising one comprehensive plan and 12 specialized plans—was established, with 12 emergency drills organized during the year. For ICBC Inner Mongolia Clean Energy REIT, the fund manager has stationed directors, general managers, supervisors, and financial officers at the project companies, forming a four-dimensional penetration governance mechanism covering personnel embedding, decision control, financial management, and license oversight. In 2025, each project company conducted 14 safety inspections to identify potential risks, with risk controls spanning market, policy, operational, liquidity, and compliance processes.
The publication of ESG reports for both products provides a warmer perspective, broader dimensions, and "human stories" to complement the long-term value signals that financial statements alone cannot convey. For assets like expressways and clean energy, whose cash flows are subject to multiple disruptions from macroeconomic cycles, climate patterns, and policy shifts, an ESG report is not merely decorative—it serves as a second narrative for navigating cycles and stabilizing expectations. Financial figures may fluctuate with the economic cycle, but safety records, emission reduction contributions, and governance capabilities form a "comprehensive ledger" that transcends financial metrics, building a cross-cycle asset foundation.
Looking ahead, both REITs have clear growth trajectories. As the Xiong'an New Area continues to develop, transportation demand for energy and construction materials along ICBC Hebei Expressway REIT's route is expected to release steadily, further solidifying its position as a key freight corridor between Shanxi and Hebei, and supporting growth in traffic volume and toll revenue. The operating manager continues to advance digital dispatch, autonomous rescue capabilities, and refined maintenance to boost operational efficiency and profitability. The sponsor, Hebei Expressway Group, as a provincial key enterprise responsible for highway investment, construction, and operation in Hebei, holds a rich portfolio of existing road assets.
Meanwhile, the sponsor of ICBC Inner Mongolia Clean Energy REIT, Inner Mongolia Energy Group, has combined installed, under-construction, and planned new energy capacity exceeding 50 million kilowatts—ranking among the top provincial energy enterprises nationwide—and will continue supporting the development of a national key energy base and the revitalization of existing assets. Moving forward, ICBC Credit Suisse will use the steady operations of these two REITs as a new starting point, deepening its public REITs footprint in transportation infrastructure and clean energy. Leveraging active management and full-process risk control capabilities, the firm aims to deliver long-term stable returns for investors while contributing greater financial strength to revitalizing existing assets, supporting the real economy, and advancing the nation's dual-carbon goals.
Risk disclosure: Public REITs are real estate investment trusts in the infrastructure sector, structured as "public funds + infrastructure asset-backed securities." They exhibit different risk-return characteristics compared to public funds investing in stocks or bonds. Over 80% of fund assets are invested in infrastructure ABS, with full ownership of those securities, and the fund holds 100% equity of the infrastructure project companies through the ABS, obtaining complete ownership or operating rights of the underlying infrastructure. The primary objective is to generate stable cash flows from rents, tolls, and other fees, with distribution ratios of no less than 90% of the fund's annual distributable income on a consolidated basis. These funds operate under a closed-end structure without open-ended subscription or redemption. Units trade on stock exchanges, and off-exchange holders must transfer their units to on-exchange accounts before selling or accepting tender offers. During the fund's term, it primarily invests in infrastructure ABS to earn operating income while bearing the risk of fluctuations in the underlying asset prices, which differentiates its risk-return profile from funds investing mainly in stocks or bonds. Under normal market conditions, the expected risk and return of these funds are higher than bond funds and money market funds, but lower than equity funds. Investing involves risk. Before investing, investors should carefully read the fund contract, prospectus, and fund product summary, and select products suited to their risk tolerance after fully understanding the product features, fee structures, and sales channel charges, and considering the suitability opinions of sales institutions. Investors should invest with caution.