On July 8, Bichen Energy, Luoneng Capital, Chengdu Communications Investment Group, and Chengdu Mengjiang Group formally signed an agreement to jointly establish a new energy M&A fund with a total scale of 1 billion yuan. Concurrently, Bichen Energy's Southwest China headquarters was established in Pengzhou.
Examining the partnership structure, the four parties have clear roles and complementary functions. As an investor and operator of commercial and industrial distributed clean energy assets, Bichen Energy leverages its experience in investing, constructing, and operating over 2GW of cumulative distributed clean energy assets to oversee the integrated operation of new energy projects, covering fundraising, investment, management, and exit. Luoneng Capital, a professional new energy asset management platform, synergizes with Bichen Energy to utilize their asset management strengths, jointly creating a closed-loop for green asset management. Chengdu Communications Investment Group aims to build a specialized industrial fund cluster in the new energy sector, leveraging capital to drive high-quality industrial development. Chengdu Mengjiang Group is fully opening up new energy application scenarios within the city's jurisdiction, attracting capital aggregation through genuine industrial demand.
Against the backdrop of sustained long-term capital interest in new energy assets, the establishment of this 1 billion yuan M&A fund follows and connects with the industry's first REITs expansion fundraising that Bichen Energy completed in May. This creates a capital cycle: the front end secures high-quality existing assets, while the back-end asset securitization channel continues to expand. This closed-loop model is now operational and entering a phase of accelerated replication.
First REITs, Expansion, and M&A Fund Form Synergistic Closed Loop
From a capital operation perspective, the most notable aspect of this cooperation is the synergistic effect between the M&A fund and the REITs, including its expansion. Bichen Energy's inaugural institutional REIT was established at the end of 2025. On May 25, its application for expansion fundraising was accepted by the Shenzhen Stock Exchange, marking the industry's first such expansion. This signifies that the original rights holder, Bichen Energy, not only possesses asset development capabilities but also has the capacity for continuous asset operation and injection.
The prerequisite for continuous REITs expansion is the original rights holder having a reserve of high-quality assets suitable for stable inclusion in the portfolio. The establishment of the 1 billion yuan Chengdu M&A fund precisely addresses this need by providing front-end supply. By acquiring and integrating projects in the Southwest region, such as photovoltaic, energy storage, and microgrids, and after systematic cultivation and operation within the Bichen Energy system, these assets can achieve exit through REITs in the future.
Bichen Energy and Luoneng Capital have previously cultivated assets through development funds and M&A funds. Once these assets mature, they are exited via asset securitization, forming a virtuous cycle of "development – construction – operation – securitization – reinvestment." This cycle helps revitalize existing assets, improve capital turnover efficiency, and sustain development capabilities. The establishment of the Chengdu fund represents the replication of this mature model in a regional market.
Energy Assets Gain Recognition from Long-Term Capital, Configuration Value Continues to Rise
Li Wenxuan, Chairman and CEO of Bichen Energy, stated that new energy assets, as a mainstream allocation direction, are attracting increasing attention and recognition from long-term capital. The company has achieved key breakthroughs in areas such as energy asset securitization, AI-powered electricity trading, and asset digital operation.
This assessment has solid industrial backing. Assets like commercial and industrial distributed photovoltaics and energy storage are characterized by stable cash flows, long cycles, and strong counter-cyclicality, aligning well with the risk-return preferences of long-term capital such as insurance funds. Through the issuance and expansion of its first institutional REIT, Bichen Energy has already demonstrated that distributed clean energy assets meet the conditions for securitization and have market acceptance.
With the launch of the 1 billion yuan M&A fund, Bichen Energy's asset acquisition capabilities and capital operation scope in the Southwest region will further expand, reserving more high-quality assets for subsequent continuous REITs expansions. The progress of this expansion will further validate the practical capabilities of Bichen Energy and Luoneng Capital in distributed clean energy asset development, management, and capital circulation.
Chengdu State-Owned Enterprise Capital Operations Accelerate, Industry-Finance Integration Enters Substantive Stage
From the perspective of Chengdu Communications Investment Group, the significance of this cooperation extends beyond a single project. It is reported that the communications investment side aims to "build a specialized industrial fund cluster in the new energy field" and, relying on this cooperation, "comprehensively promote the large-scale growth of the 'three networks and one platform'."
Notably, the role of local state-owned enterprises is evolving from traditional investors or resource providers to "capital platforms." Previously, in April 2026, a subsidiary of Chengdu Expressway invested 150 million yuan to participate in establishing the Chengdu Energy Storage Industry Chain Equity Investment Fund, with a total scale of 1 billion yuan, focusing on investment directions such as "complementary electricity+" microgrids, transportation hub microgrids, and industrial park microgrids. This new cooperation follows a consistent investment direction with the prior layout, indicating an acceleration in capital operations by the communications investment side in the new energy sector.
This strategic layout aligns closely with Chengdu's policy direction of building a national carbon peaking pilot city. The "National Carbon Peaking Pilot (Chengdu) Implementation Plan" explicitly calls to "deepen green financial system reform and innovation, vigorously develop green credit services, and expand the scale of green financing." By jointly establishing M&A funds, setting up regional headquarters, and introducing the professional capabilities and capital operation experience of market-oriented asset management institutions, local state-owned enterprises are exploring a viable path of "driving industry with capital and nurturing capital with industry."
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