Hong Kong, March 28, 2024/US Communication/ -- On March 28, China's infrastructure asset management services firm First Cheng Holdings (0697.HK) announced its 2023 annual results. 2023 will be the first year since the pandemic has opened its doors in three years. Despite the slow pace of economic recovery, the company remains focused on precision investment+efficiency over the period The core operating philosophy is to steadily advance the expansion of quality assets in the asset operating business, strive to improve the level of operational services, continue to operate this niche in the operational environment, and facilitate the business cycle of managing assets through asset financing, full-chain closure The mode runs smoothly gradually. ASSET OPERATING INCOME FOR THE PERIOD WAS HK$6.58 BILLION AND ASSET FUSION REVENUE WAS HK$2.25 BILLION. ASSET OPERATING SERVICES REVENUE, WHICH BEST REFLECTS THE COMPANY'S ASSET OPERATING STRENGTH, GREW BY 43.44% COMPARED TO THE SAME PERIOD LAST YEAR, FURTHER DEMONSTRATING ITS CORE CAPACITY IN INFRASTRUCTURE ASSET MANAGEMENT.

Long-Term Asset Operating Advantage Highlights, Continued Growth Momentum Further Strengthens

Priority Holdings aims to become a provider of infrastructure assets with long-term value, acquiring high-quality assets with high performance performance in 2023 through asset acquisition - operations to securitize assets with a cash flow reinvestment through asset acquisition - operations “Asset financing+asset transportation” Continuous practice validation of this new model has successfully explored a path of continuous cyclical development, and the business model should be updated iteratively to “Asset Flow+Operations Technology” 3.0.

Asset transfer is a new asset management model for asset management using asset securitisation tools such as IPO REITs, i.e. acquiring quality assets and asset securitisation back and forth, asset operations and asset financing to leverage the performance of leveraged assets, enabling future growth momentum of Initial Holdings to build.

In 2023, the first holding's asset operating segment continued to perform steadily, with significant breakthroughs in parking and industrial park projects. Adhering to the investment core areas, core areas and core cities as a guiding idea, the company concentrates on the first-line and strong-line cities in the Qingzhinji area, the Greater Bay Area, the Chengyu area and the Long Triangle region, further expanding its layout in the areas of major transportation hubs such as airports, railways, commercial property, etc. In 2023, the company successfully marked the first Guangzhou Baiyun Airport parking lot project in the country, which ranked first in the country for three consecutive years since 2020 in the Greater Bay Area, with a total of 10,407 new operating parking spaces. At the same time, it also successfully marked approximately the largest railway hub in Asia, The Beijing Fengdai Station parking project in the Keijinji area, through the continuous locking of the core transport hub parking projects, the company continues to upgrade its travel services. Thus, Shunshi seized the gradual return of domestic and foreign flights to normal in 2023, and business travelers from all over the world increased business opportunities, and a tight grip on the core parking project made it the first Cheng Holding Company On the other hand, high-quality assets can be stored continuously; on the other hand, it helps to increase the operating income of its assets and optimize overall performance.

In addition to focusing on the layout of the core transport hub, the company also focused on the layout of the concession parking lot in the Zushin area. Through continuous expansion of the core regional car parks, the company successfully acquired the Chongqing Wealth Center and Longhu New City projects, as well as the Tianchong Technology Building project in Haidian District, Beijing.

While focusing on the core business of parking, the company is also actively exploring opportunities to expand the industry chain, where, in line with the country's policy oriented towards the development of the new energy car industry, the company is actively developing the charging pile business. In 2023, the company deployed a batch of high-standard, intelligent charging piles, effectively achieving scale, enriching business categories and expanding revenue streams through self-built or strategic acquisitions, marking the company's foray into the new field of energy automotive services, where the company's core competitiveness continues to improve.

In terms of parks, First Cheng Holdings has already taken control of six core industrial park projects, including Six Congolese in the North, Rongshi Plaza, Shuanggang Dong Olympic Square, Xiangying Building and the First Era Center in the southeast of Shugang Yuen, and the Beijing Shunyi Ideal Car Park Phase II project, which was approved by First Cheng Holdings Precise market positioning and customized products help revitalize flagship park projects and show a thriving development momentum. With only six projects under construction, the current industrial rental rate has reached 95%, and the future development momentum of the industrial park block cannot be underestimated.

Maximize the value of asset operations with asset fusion as a leverage point

While continuing to operate this niche in real assets, Startup Holdings uses asset fusion as a leverage point to drive the maximum value of asset operations, primarily through asset securitisation to pave the way out of premium assets, such as the company's launch of first-order parking asset class REITs in 2023, to further exit Exit path. And the fund's formidable strength of scale provides critical support for bridging two major business flow models.

With strong shareholder strength, a well-established network of industry chain resources and extensive operational experience, Startup Holdings has an advantage in bringing in sufficient development capital. In 2023, the company, in cooperation with strategic shareholder Sunshine Insurance Group Co., Ltd., established a total of RMB 100 billion Sunlight First City Development Fund. Joint Strategic Shareholder Beijing National Capital Operations Management Co., Ltd., and the Beijing Municipal Government Investment Guidance Fund jointly launched a targeted Beijing aircraft with a target size of 100 billion Robot Fund. The fund was set up to enable the company to continuously invest in quality projects, to provide ample headwater in reserve for long-term potential assets, to enhance asset efficiency through years of operational management, to be leveraged by marketing exits or public REITs to withdraw funds, and ultimately to form reinvestment by combat REITs. The above is a four-step process of integrating infrastructure assets into eco-chain services, which will provide highly synergistic effects for the company's strategic investments on the one hand, while fully embodying the company's precise industrial investment capabilities and efficiency. Operational and management skills, mature comprehensive exit capability.

While the overall IPO REITs in 2023 will be subject to greater volatility due to the overall market environment, China's public sector REITs still have ample room for development under the support of relevant policies such as the new accounting desk. With a strong track record in 2023, Seocheng Holdings will take full advantage of its resource and property advantages, fully deploying assets such as parking, long term rental apartments (sheltered housing) and community business, leveraging key assets such as parking, long term rental apartments (sheltered housing) and community business China core assets with long-term stable cash returns and high potential characteristics. They rely on the core capabilities of asset operations and asset financing to create long-term returns for all shareholders.