1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In Q2 2025, the scale of fixed - income plus funds continued to grow, and the inflow of funds was expected to continue due to the bond market under - allocation and the upward movement of equities. Convertible bond funds and fixed - income plus funds still had strong support [4][6]. - Brokers significantly increased their positions in convertible bonds, while public funds and insurance funds actively reduced their positions on the whole. The behavior of brokers was different from that of public funds and insurance funds, with brokers more likely to increase positions in a bull market and the latter reducing positions when the convertible bond valuation was high [10][12]. - Public funds continued to reduce their positions in bank convertible bonds and sought bottom - position substitutes. Other convertible bonds in the financial sector and those in the public utilities sector received certain increases in positions [19]. 3. Summary According to Relevant Catalogs 3.1. Growth of Fixed - Income Plus Fund Shares with Market Support - In Q2 2025, fixed - income plus funds had a net subscription of 56.41 billion shares. Among them, first - tier bond funds had a net subscription of 52.548 billion shares, second - tier bond funds had a net subscription of 7.774 billion shares, and partial - debt hybrid funds had a net redemption of 3.68 billion shares, with the net redemption volume further decreasing compared to Q1 2025. Convertible bond funds had a net redemption of 2.164 billion shares, slightly higher than that in Q1 2025 but with relatively low net redemption pressure compared to Q4 2024 [4][6]. - In Q2 2025, the positions of convertible bond funds and fixed - income plus funds in equity - related assets decreased slightly. The reasons might include the tariff event in early April, profit - taking in May and June, and the reduction in the scope of investable targets in the convertible bond market [8]. 3.2. Public Funds and Insurance Funds Reduce Positions Marginally, while Brokers Increase Positions in Convertible Bonds - Brokers significantly increased their positions in convertible bonds in February, March, May, and June 2025, while public funds and insurance funds actively reduced their positions when the convertible bond valuation was high. With the convertible bond market hitting a new high and the equity market at a relatively high level, there was a need to be cautious about possible valuation drops [10][12]. - From January to June 2025, the positions of funds, insurance, and social security in convertible bonds decreased, while those of brokers' self - operation and asset management increased. The positions of convertible bond ETFs had net outflows in April and May and recovered significantly after late June [12][13][15]. 3.3. Analysis of Public Fund Holdings - In terms of industry distribution, public funds continued to reduce their positions in bank convertible bonds in Q2 2025 due to the forced redemption of Nanyin Convertible Bond, Hangyin Convertible Bond, Qilu Convertible Bond, and the approaching maturity of Pufa Convertible Bond. Other convertible bonds in the financial sector and those in the public utilities sector received certain increases in positions [19]. - Public funds increased their positions in some high - elasticity varieties such as those in the electronics, computer, communication, pharmaceutical, and food and beverage sectors, which might benefit from the structural market of technology, medicine, and consumption sectors. The positions in convertible bonds of the basic chemical and building materials industries also increased [21]. - In addition to financial bottom - position convertible bonds such as bank convertible bonds, public funds increased their positions in high - prosperity and high - elasticity targets such as Outong Convertible Bond, Wentai Convertible Bond, Shenma Convertible Bond, and Hengbang Convertible Bond [26].

- The report aims to track large purchases and net active purchases using transaction detail data[1] - The indicators used are the proportion of large order transaction amounts and the proportion of net active purchase amounts[7] - The proportion of large order transaction amounts reflects the buying behavior of large funds[7] - The proportion of net active purchase amounts reflects the active buying behavior of investors[7] - The top 5 stocks with the highest average proportion of large order transaction amounts over the past 5 days are: Sobute, China Railway Industry, Tibet Tianlu, Poly United, and China Power Construction[4][9] - The top 5 stocks with the highest average proportion of net active purchase amounts over the past 5 days are: Weixing Co., HNA Holdings, Kaili Medical, Liaogang Co., and Hengyi Petrochemical[4][10] - The top 5 industries with the highest average proportion of large order transaction amounts over the past 5 days are: Banking, Real Estate, Petroleum and Petrochemical, Transportation, and Coal[4] - The top 5 industries with the highest average proportion of net active purchase amounts over the past 5 days are: Media, Textile and Apparel, Computers, Electronics, and Light Manufacturing[4] - The top 5 ETFs with the highest average proportion of large order transaction amounts over the past 5 days are: China Agricultural Theme ETF, E Fund CSI 300 Medical and Health ETF, Huabao CSI Medical ETF, Bosera SSE STAR 100 ETF, and Guotai CSI Livestock Breeding ETF[4][15] - The top 5 ETFs with the highest average proportion of net active purchase amounts over the past 5 days are: Penghua CSI Subdivision Chemical Industry Theme ETF, GF SSE STAR 50 ETF, Harvest CSI Rare Metals Theme ETF, E Fund Guozheng Robotics Industry ETF, and Harvest CSI Software Services ETF[4][16]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report highlights significant developments in ESG policies and initiatives, emphasizing the importance of climate change cooperation between China and the EU, as well as the acceleration of clean energy transitions globally [9][20][24] Policy Developments - The China Securities Regulatory Commission (CSRC) is seeking public opinion on the revised "Corporate Governance Guidelines for Listed Companies," aiming to enhance governance standards and protect minority investors [5][6] - The National Development and Reform Commission (NDRC) has revised the "Energy Conservation Review and Carbon Emission Evaluation Measures for Fixed Asset Investment Projects," integrating carbon emission evaluations into energy conservation reviews [7][8] Industry Trends - The joint statement by China and EU leaders on climate change emphasizes the need for stable policies and cooperation in addressing climate challenges, highlighting the significance of the Paris Agreement [9][12] - The 2025 World Artificial Intelligence Conference introduced the "Global Governance Action Plan for Artificial Intelligence," focusing on the opportunities and challenges posed by AI technology [13][14] - The Ministry of Water Resources released the "China Water Conservation Report 2024," indicating a 2.15 billion cubic meter increase in total water usage compared to 2023, while improving water efficiency metrics [17][18] International Events - The UN Secretary-General called for an accelerated transition to clean energy, noting that renewable energy investments have surged to $2 trillion, surpassing fossil fuel investments by $800 billion [20][21] - France is expected to see a slowdown in greenhouse gas emission reductions in 2025, with a projected increase in emissions in the first quarter of that year [22][23] - The International Court of Justice provided a systematic interpretation of countries' legal responsibilities in addressing climate change, emphasizing the urgent need for action [24][25] Corporate Developments - The first annual list of "Best ESG Companies on the Sci-Tech Innovation Board" was released, highlighting 20 companies that excel in ESG performance across various sectors [26][27] - The agricultural, forestry, and fishery sectors showed an increase in ESG disclosure rates, yet still lag behind the overall industry average [29][30]

Investment Rating - The report rates the military industry as "Overweight" [5][12]. Core Viewpoints - The intensification of great power competition is a long-term trend, indicating a positive long-term outlook for the military industry. Increased defense spending is essential to ensure peace and security, especially as tensions around China may escalate [2][8]. Summary by Sections Investment Highlights - Key investment themes include: 1. General Assembly: AVIC Shenyang Aircraft Corporation, Aerospace South Lake, AVIC Xi'an Aircraft Industry [11]. 2. Components: AVIC Optoelectronics, Aerospace Electric, Guobang Electronics, Ruichuang Micro-Nano [11]. 3. Subsystems: AVIC Onboard, North Navigation [11]. 4. Materials and Processing: AVIC Heavy Machinery, Feilihua, Guangwei Composite, Huayin Technology, Bolite, Western Materials, Aviation Materials [11]. Market Review - The military industry index rose by 1.22% from July 20 to July 25, underperforming the broader market by 0.45 percentage points, ranking 24th out of 29 sectors [13][16]. - The Shanghai Composite Index increased by 1.67%, and the ChiNext Index rose by 2.76% during the same period [13][16]. Major News in the Military Industry - The 155th joint patrol operation in the Mekong River concluded successfully, highlighting international cooperation in regional security [9][24]. - The China Weapon Industry Group showcased new unmanned and anti-unmanned combat systems, emphasizing advancements in military technology [23]. - The successful first flight of the Xinzhou 60 civil rescue aircraft marks a significant step in enhancing China's emergency response capabilities [23]. International Military Situation - The report notes a complex international military landscape, with various nations calling for an end to the Gaza conflict and highlighting the importance of defense construction amid ongoing tensions [10][25]. - The U.S. has increased its military presence in the Pacific, deploying additional submarines in response to perceived threats from China [10][30].

Investment Rating - The report assigns an "Overweight" rating for the dairy industry, indicating a positive outlook compared to the market benchmark [6]. Core Insights - The implementation of the national childcare subsidy program is expected to result in an annual average subsidy of approximately 100 billion, which is likely to boost demand in the dairy sector and other related industries [2][6]. - The subsidy program will commence on January 1, 2025, providing 3,600 yuan per child per year for children under three years old, with the potential for future adjustments to the subsidy amount [6][8]. - The report highlights the strong multiplier effect of the subsidy, which is anticipated to stimulate consumption across various sectors, particularly in dairy products such as infant formula [6][8]. Summary by Sections Investment Recommendations - The report suggests increasing holdings in companies such as Yili Group, Mengniu Dairy, New Dairy, Tianrun Dairy, Youran Dairy, and Miaokelando, which are expected to benefit from the subsidy [6][8]. - Beneficiary stocks identified include China Feihe and Modern Farming [6]. Policy Details - The childcare subsidy program emphasizes fairness, efficiency in distribution, and tax exemption for the subsidies, reflecting the government's commitment to addressing fertility and population issues [6][8]. - The report estimates that the total subsidy amount could reach around 100 billion yuan based on various assumptions regarding the number of newborns in 2025 [7]. Market Context - The report notes that the total sales of large-scale dairy enterprises in China were approximately 510.5 billion in 2024, indicating a significant market size for the expected subsidy impact [6]. - The report also references previous government initiatives aimed at boosting consumption, such as the 1,500 billion yuan special bond for consumer goods in 2024, which increased to 3,000 billion in 2025 [6][8].

Investment Rating - The report maintains an "Accumulate" rating for the company [5][11]. Core Views - The launch of the Leap B01 electric sedan is expected to drive sales growth, with over 10,132 units locked in within 72 hours of its release [2][11]. - The company is projected to achieve significant revenue growth, with estimated revenues of 64.8 billion RMB in 2025, 93.49 billion RMB in 2026, and 113.01 billion RMB in 2027 [10][11]. - The report highlights the competitive pricing of the B01, which ranges from 89,800 to 119,800 RMB, making it more attractive compared to competitors like Xpeng Motors and BYD [11]. Financial Summary - Total revenue is expected to grow from 16.75 billion RMB in 2023 to 64.8 billion RMB in 2025, reflecting a growth rate of 101% [10]. - The net profit is projected to turn positive in 2025, reaching 940 million RMB, and further increasing to 3.08 billion RMB in 2026 and 6.43 billion RMB in 2027 [10][12]. - The report uses a price-to-sales (PS) ratio of 1.5 for valuation, leading to a target price of 79.85 HKD for 2025 [11]. Market Performance - The company achieved a record delivery of 48,000 vehicles in June 2025, marking a year-on-year increase of 138% [11]. - The B01's long-range version accounted for 70% of the initial orders, indicating strong consumer interest [11].

Investment Rating - The report assigns a rating of "Buy" for the company [1]. Core Insights - The company is experiencing high growth in its imaging product business, driven by AI capabilities and a successful global expansion strategy [2][10]. - The projected revenue for 2024 is 3.34 billion RMB, representing a year-on-year increase of 23.9%, with a gross margin of 68.7% [10]. - The company has a total MAU of 266 million as of December 2024, with a significant increase in paid subscription users [10]. Financial Summary - Total revenue is expected to grow from 2.696 billion RMB in 2023 to 6.013 billion RMB by 2027, with a compound annual growth rate (CAGR) of approximately 19% [4]. - Net profit is projected to increase from 378 million RMB in 2023 to 1.302 billion RMB in 2027, reflecting a substantial growth trajectory [4]. - The company’s PE ratio is expected to decrease from 40.00 in 2023 to 37.23 in 2027, indicating a potential increase in valuation [4]. Business Segment Projections - The imaging and design products segment is anticipated to generate revenue of 2.088 billion RMB in 2024, with a year-on-year growth of 57.1% [14]. - The beauty solutions segment is expected to decline, with revenues projected to decrease by 32.4% in 2024 [14]. - Advertising revenue is forecasted to grow steadily at 10% annually from 2024 to 2027 [14]. User Growth and Engagement - The company aims to increase its global paid user base to 15.76 million by 2025, with a subscription penetration rate of 5.9% [13]. - The average annual revenue per subscription user is projected to rise gradually, reaching 215 RMB by 2027 [13]. - The company has launched several AI-driven features, enhancing user engagement and expanding its product offerings [10][13]. Strategic Partnerships - The company has secured a $250 million convertible bond investment from Alibaba, which will facilitate strategic cooperation in e-commerce, AI, and cloud computing [10][13]. - Alibaba will prioritize promoting the company's AI e-commerce tools on its platforms, providing essential technical support [10].

Investment Rating - The report does not explicitly state an investment rating for the automotive industry Core Insights - The automotive industry is experiencing significant growth, with Chinese brand passenger cars selling 9.27 million units in the first half of 2025, a year-on-year increase of 25% [15] - New energy vehicle sales are expected to stabilize due to government policies aimed at improving product quality and optimizing supply chain processes [11] - Recent trends indicate a shift towards smart driving technologies, with various companies receiving funding to enhance their capabilities in this area [31][30] Information Dispatch - **Weekly Sales Rankings**: In the third week of July, the top three new energy vehicle brands by sales were BYD (51,400 units, +5.3%), Wuling (12,700 units, +14.4%), and Tesla (9,900 units, -19.5%) [9] - **New Car Releases**: Several new models were launched, including BYD's Hai Si 06 EV and DM-i, and the Wuling Zhi Guang EV [10] - **Policy and Hot Events**: Guangdong and Anhui provinces are taking steps to regulate competition in the new energy vehicle sector, promoting quality management and industry self-discipline [11] Technology Dynamics - **Chip Development**: MediaTek's C-X1 cockpit chip is gaining traction among luxury car manufacturers in China, expected to see large-scale shipments in 2026 [18] - **Battery Innovations**: Honeycomb Energy's second-generation Dragon Scale battery pack has been launched, featuring a capacity of 65 kWh and supporting 5C fast charging [20] Lithium Battery Insights - The price of battery-grade lithium carbonate has surged to 72,940 yuan per ton as of July 25, 2025, reflecting a significant increase of 9.4% from the previous week [22][23] - The report highlights fluctuations in the prices of various lithium battery materials, with lithium iron phosphate prices rising by 7.22% [23] Investment and Financing Events - **Zero One Automotive**: Completed a 500 million yuan Series A financing round to advance its autonomous driving technology [30] - **Weikensi Technology**: Secured Series A funding to accelerate the development of its drive-by-wire chassis [31] - **Jinmao Smart Transportation**: Raised several hundred million yuan in Series A financing to support its zero-carbon transportation solutions [32]

Quantitative Models and Construction Methods - **Model Name**: Value Smart Beta Portfolio **Model Construction Idea**: The model selects stocks based on the value style, aiming for high beta elasticity and long-term stable excess returns[8] **Model Construction Process**: The Value Smart Beta Portfolio includes two sub-portfolios: Value 50 Portfolio and Value Balanced 50 Portfolio. These portfolios are constructed by selecting stocks with low historical correlation and aligning with the value style. The detailed construction process is based on the methodology outlined in the October 5, 2024, report on Smart Beta portfolio construction[8] - **Model Name**: Growth Smart Beta Portfolio **Model Construction Idea**: The model focuses on the growth style, targeting high beta elasticity and long-term stable excess returns[8] **Model Construction Process**: The Growth Smart Beta Portfolio includes two sub-portfolios: Growth 50 Portfolio and Growth Balanced 50 Portfolio. Stocks are selected based on their alignment with the growth style and low historical correlation. The methodology follows the principles outlined in the October 5, 2024, report on Smart Beta portfolio construction[8] - **Model Name**: Small-Cap Smart Beta Portfolio **Model Construction Idea**: The model emphasizes the small-cap style, aiming for high beta elasticity and long-term stable excess returns[8] **Model Construction Process**: The Small-Cap Smart Beta Portfolio includes two sub-portfolios: Small-Cap 50 Portfolio and Small-Cap Balanced 50 Portfolio. Stocks are chosen based on their small-cap characteristics and low historical correlation. The construction process adheres to the methodology described in the October 5, 2024, report on Smart Beta portfolio construction[8] Model Backtesting Results - **Value Smart Beta Portfolio** - **Value 50 Portfolio**: - Weekly Absolute Return: 0.09% - Weekly Excess Return: -1.24% - Monthly Absolute Return: 3.51% - Monthly Excess Return: 0.03% - Year-to-Date Absolute Return: 14.88% - Year-to-Date Excess Return: 9.41% - Maximum Relative Drawdown: 2.34%[9] - **Value Balanced 50 Portfolio**: - Weekly Absolute Return: 1.72% - Weekly Excess Return: 0.39% - Monthly Absolute Return: 5.31% - Monthly Excess Return: 1.82% - Year-to-Date Absolute Return: 10.67% - Year-to-Date Excess Return: 5.20% - Maximum Relative Drawdown: 3.99%[9] - **Growth Smart Beta Portfolio** - **Growth 50 Portfolio**: - Weekly Absolute Return: 1.67% - Weekly Excess Return: -1.12% - Monthly Absolute Return: 5.00% - Monthly Excess Return: -1.20% - Year-to-Date Absolute Return: 6.07% - Year-to-Date Excess Return: 1.69% - Maximum Relative Drawdown: 3.61%[9] - **Growth Balanced 50 Portfolio**: - Weekly Absolute Return: 1.19% - Weekly Excess Return: -1.60% - Monthly Absolute Return: 2.09% - Monthly Excess Return: -4.12% - Year-to-Date Absolute Return: 10.52% - Year-to-Date Excess Return: 6.14% - Maximum Relative Drawdown: 6.11%[9] - **Small-Cap Smart Beta Portfolio** - **Small-Cap 50 Portfolio**: - Weekly Absolute Return: 1.30% - Weekly Excess Return: -0.82% - Monthly Absolute Return: 9.84% - Monthly Excess Return: 4.30% - Year-to-Date Absolute Return: 34.84% - Year-to-Date Excess Return: 18.00% - Maximum Relative Drawdown: 6.23%[9] - **Small-Cap Balanced 50 Portfolio**: - Weekly Absolute Return: 1.82% - Weekly Excess Return: -0.29% - Monthly Absolute Return: 5.54% - Monthly Excess Return: 0.00% - Year-to-Date Absolute Return: 27.99% - Year-to-Date Excess Return: 11.15% - Maximum Relative Drawdown: 4.56%[9]

Investment Rating - The investment rating for the company is "Accumulate" [4][11]. Core Views - The company has shown stable growth in domestic sales, while exports are under short-term pressure but are expected to accelerate in the future. Overall, the company's operations are stable [11]. - The projected net profit for the company from 2025 to 2027 is estimated to be 22.96 billion, 24.26 billion, and 25.88 billion yuan respectively, with EPS of 2.87, 3.03, and 3.23 yuan, reflecting year-on-year growth of +2.3%, +5.7%, and +6.7% [11]. - The target price for the company is set at 66.01 yuan, based on a valuation of 23 times the estimated earnings for 2025 [11]. Financial Summary - Total revenue for 2023 is projected at 21,304 million yuan, with a growth rate of 5.6%. This is expected to increase to 22,427 million yuan in 2024, 23,600 million yuan in 2025, 24,620 million yuan in 2026, and 25,856 million yuan in 2027 [3][12]. - The net profit attributable to the parent company for 2023 is estimated at 2,180 million yuan, with a growth rate of 5.4%, and is expected to reach 2,244 million yuan in 2024, 2,296 million yuan in 2025, 2,426 million yuan in 2026, and 2,588 million yuan in 2027 [3][12]. - The company's net asset return rate is projected to increase from 34.4% in 2023 to 40.2% in 2027 [3][12]. Market Data - The company's market capitalization is 41,414 million yuan, with a total share capital of 801 million shares [5]. - The stock price has ranged between 48.15 yuan and 59.29 yuan over the past 52 weeks [5]. Operational Insights - The company reported a total revenue of 11,478 million yuan in the first half of 2025, reflecting a year-on-year increase of 4.68%. The second quarter revenue was 5,691 million yuan, up 1.9% year-on-year [11]. - The company has maintained a stable growth rate in domestic sales, with online sales in Q2 showing a year-on-year increase of 13.4% [11].