Core Viewpoint - The military industry has shown a downward trend since the second half of 2024, primarily driven by valuation factors. The defense and military index rose by 37.24% from September 24, 2024, to July 21, 2025, outperforming the Shanghai and Shenzhen 300 index, which increased by 27.17% during the same period [1]. Group 1: Market Performance - The military sector has experienced heightened activity in themes such as low-altitude economy, large aircraft, and military intelligence, driven by ongoing geopolitical conflicts [1]. - The performance of military-related funds has also improved, with the Fangzheng Fubon Core Advantage Mixed Fund heavily investing in core enterprises within the military industry chain [1]. Group 2: Fund Holdings - The top ten holdings of the Fangzheng Fubon Core Advantage Mixed Fund include companies like Zhong无人机 (8.95%), 中航沈飞 (7.97%), and 中航成飞 (7.94%), all within the aerospace sector, reflecting a focus on the military supply chain [2]. - New additions to the fund's holdings include 中兵红箭 (7.34%) and 北方导航 (7.26%), with significant year-to-date price increases of 51.49% and 60.01%, respectively [2]. Group 3: Future Outlook - The fund manager believes that the military sector holds explosive growth opportunities, especially with the upcoming military parade on September 3 potentially boosting military stocks [3]. - The military industry is expected to see a recovery in demand as the "14th Five-Year Plan" approaches its final year, with a clear long-term development goal set for 2035 and 2050 [3].

Group 1 - The Guozheng Free Cash Flow Index decreased by 0.08% as of July 22, 2025, with mixed performance among constituent stocks, including Dongfang Electric and Zhejiang Construction Investment hitting the upper limit, while Shanghai Steel Union and others led the decline [1][3] - The Free Cash Flow ETF (159201) fell by 0.19%, with the latest price at 1.06 yuan, and it recorded a turnover rate of 2.85% with a transaction volume of 112 million yuan [1] - Over the past nine days, the Free Cash Flow ETF has seen continuous net inflows, with a maximum single-day net inflow of 94.76 million yuan, totaling 232 million yuan, averaging 25.79 million yuan in daily net inflow [1] Group 2 - As of June 30, 2025, the top ten weighted stocks in the Guozheng Free Cash Flow Index accounted for 57.97% of the index, including SAIC Motor, China National Offshore Oil, Midea Group, and Gree Electric [3] - The latest financing buy-in amount for the Free Cash Flow ETF reached 6.89 million yuan, with a financing balance of 26.45 million yuan [3] Group 3 - The top ten stocks by weight in the Free Cash Flow ETF include SAIC Motor (10.18%), Midea Group (9.28%), and Gree Electric (7.56%), with varying performance in terms of price changes [5]

Core Viewpoint - The Tianhong Advanced Manufacturing A Fund (011851) reported a profit of 300,400 yuan for Q2 2025, with a net value growth rate of 0.26% and a fund size of 147 million yuan as of the end of Q2 2025 [2][17]. Fund Performance - The fund's weighted average profit per share for the reporting period was 0.002 yuan [2]. - As of July 18, 2025, the fund's unit net value was 1.059 yuan [2]. - The fund's performance over different time frames includes: - 3-month net value growth rate: 10.59%, ranking 100 out of 171 comparable funds [4]. - 6-month net value growth rate: 4.78%, ranking 112 out of 171 comparable funds [4]. - 1-year net value growth rate: 16.01%, ranking 97 out of 166 comparable funds [4]. - 3-year net value growth rate: -11.88%, ranking 26 out of 125 comparable funds [4]. - The fund's Sharpe ratio over the past three years was 0.0736, ranking 26 out of 120 comparable funds [10]. - The maximum drawdown over the past three years was 40.31%, ranking 112 out of 122 comparable funds [12]. Investment Strategy and Outlook - The fund manager anticipates a more optimistic market in the second half of the year, contingent on a stable external environment [3]. - Key investment directions for the second half include: - Cyclical sectors benefiting from domestic economic improvement, extending from consumption to manufacturing and from downstream to upstream [3]. - High-tech sectors benefiting from domestic industrial restructuring, including new energy, AI applications, computing power construction, aerospace manufacturing, and innovative pharmaceuticals [3]. Fund Holdings - As of June 30, 2025, the fund's top ten holdings included: - Geely Automobile, CATL, Air China, China Power, Zhongtian Technology, Shantui, Guangdong Hongda, Xiamen Tungsten, AVIC Shenyang Aircraft, and Torch Electronics [20]. Fund Positioning - The fund maintained an average stock position of 87.59% over the past three years, with a peak of 93.24% at the end of 2024 and a low of 70.32% in mid-2021 [15].

Investment Rating - The investment rating for the transportation industry is "Positive" (maintained) [4] Core Views - The express delivery sector shows significant divergence in June data, with a focus on the industry's anti-involution process [3] - The express logistics market is expanding, supported by the national strategy to boost domestic demand, with a year-on-year growth of 15.8% in express delivery volume in June 2025 [5] - The performance of major express companies varies, with SF Express maintaining a business volume growth rate of over 30%, while other companies like YTO Express and Yunda Express show slower growth [4][5] Summary by Sections Express Logistics - In June 2025, the total express delivery volume reached 16.87 billion pieces, a year-on-year increase of 15.8%, with total revenue of 126.32 billion yuan, up 9.0% [5][24] - Major express companies' performance in June: YTO Express (2.627 billion pieces, +19.34%), Yunda Express (2.173 billion pieces, +7.41%), SF Express (1.460 billion pieces, +31.77%) [4][28] - The market share for these companies is 15.6% for YTO, 12.9% for both Yunda and Shentong, and 8.7% for SF Express [4] Air Transportation - The air travel sector is expected to benefit from macroeconomic recovery, with a year-on-year increase of 4.4% in passenger transport volume in June 2025 [52] - Major airlines are projected to improve their performance in Q2 2025 due to better supply-demand dynamics and lower oil prices [8] Shipping and Ports - The shipping sector is anticipated to benefit from OPEC+ production increases and a favorable economic environment, with a focus on crude oil transportation [16] - The Baltic Dry Index (BDI) increased by 27.8% week-on-week, indicating a recovery in the bulk shipping market [11][68] - Container throughput at Chinese ports showed a slight increase in cargo volume but a decrease in container throughput [81] Road and Rail - In June 2025, road freight volume increased by 2.86% year-on-year, while rail freight volume rose by 7.36% [45] - National logistics operations are running smoothly, with a slight increase in freight truck traffic [14] Supply Chain Logistics - Companies like Shenzhen International and Debon Logistics are expected to benefit from strategic transformations and improved profitability [15]

Core Viewpoint - The performance of central state-owned enterprises (SOEs) listed on A-shares in the first half of the year has shown significant improvement, with 79 companies reporting positive earnings, driven by national policies and internal reforms [1] Group 1: Central SOEs Performance - 32 central SOEs achieved year-on-year growth in net profit attributable to shareholders, while 22 companies turned losses into profits, and 25 companies reduced losses [1] - 19 central SOEs have a projected upper limit for net profit growth exceeding 100%, indicating strong profitability [1] - The sectors of electric power equipment, shipbuilding, and rare earths are experiencing high demand and performance, contributing positively to the overall market [1] Group 2: Electric Power Equipment Industry - The electric power equipment industry is benefiting from national policies aimed at carbon neutrality and the construction of a new power system, leading to high-quality development [2][4] - The Ministry of Industry and Information Technology aims for an average annual revenue growth rate of over 9% for the electric power equipment industry from 2023 to 2024 [4] - Major investments in grid construction and the acceleration of ultra-high voltage projects are creating significant opportunities for electrical equipment companies [5] Group 3: Shipbuilding Industry - Despite a global downturn in shipbuilding, Chinese shipyards lead with 10.04 million CGT and 370 vessels, capturing 52% of global orders [6] - Several central SOEs in shipbuilding are expected to see substantial profit increases, with some companies projecting over 200% growth in net profit [6] - The growth is attributed to effective management, increased delivery of civilian vessels, and rising prices [6] Group 4: Rare Earth Industry - The rare earth sector is thriving due to its strategic importance and increasing demand from industries like new energy and smart manufacturing [7] - China Rare Earth anticipates a net profit of 136 million to 176 million yuan, indicating a turnaround from losses [6] - The company has adapted its marketing strategies and optimized production processes to capitalize on rising prices and demand [7] Group 5: Future Outlook - The high growth in these industries is expected to be sustainable, supported by national strategies and market demand [7] - Companies are encouraged to align with national strategies, innovate technologically, optimize supply chains, and expand into international markets to enhance growth and profitability [7]

Summary of Conference Call Records Industry Overview - The shipbuilding industry is experiencing improved profitability, as indicated by the significant profit growth forecasted by China Shipbuilding for the first half of 2025, driven by high-priced order deliveries, falling steel prices, and early deliveries [1][4] - The new ship order volume in June 2025 increased month-on-month but saw a substantial year-on-year decline due to a high base in June 2024 [1][8] Key Insights - The Clarksons newbuilding price index stabilized in June 2025, with a month-on-month increase, although different ship types showed varied performance, with container ship prices rising while oil tanker prices fell [1][5] - The shipbuilding sector has become a safe haven for performance amid the current macroeconomic backdrop, with steel price declines enhancing the profitability of shipbuilders [2] - The market is witnessing a structural adjustment, with first-tier shipyards experiencing weak order intake while second and third-tier shipyards are seeing considerable order volumes due to capacity anxiety [1][6] Company Performance - China Shipbuilding's profit forecast for the first half of 2025 is between 2.8 billion to 3.1 billion, significantly exceeding previous expectations [3][4] - Other companies like China Heavy Industry and China Power also reported substantial profit growth, attributed to high-priced order deliveries and early payments [4][22] Order Trends - In the first half of 2025, China maintained a leading global market share of 56% in new shipbuilding, while South Korea's share increased from 10% to 30%, driven by a surge in container ship orders [10] - Container ship orders increased by 24% year-on-year, while orders for other types of ships like LNG and oil tankers saw a decline of over 70% [9] Market Dynamics - The current newbuilding market is in a brief downturn within an overall upcycle, with historical data indicating that downturns can occur even during upcycles [15][16] - The low demolition rates of older ships are causing many to remain active in the market, which could lead to supply vulnerabilities if demand surges suddenly [18][19] Future Outlook - The potential demolition volume over the next decade is estimated at 16,000 ships, which could significantly impact the supply-demand balance in the shipbuilding market [20] - Investors are advised to focus on leading companies like China Shipbuilding for stable investments, while considering second-tier companies for higher return potential [23] Additional Considerations - The geopolitical landscape and oil price fluctuations are affecting the cruise market, leading to concerns about new ship deployments [12] - LNG ships and car carriers are expected to have strong growth potential due to increasing demand for alternative fuels and the rise of China's electric vehicle exports [13]

Group 1: Overall Performance of Central Enterprises - 79 central enterprise-controlled listed companies reported positive performance forecasts for the first half of the year, with 32 companies showing year-on-year net profit growth, 22 companies turning losses into profits, and 25 companies reducing losses [1] - 19 central enterprise-controlled listed companies expect a net profit increase of over 100%, with several companies achieving significant turnaround from losses [1] Group 2: Power Sector Performance - Huayin Power, a subsidiary of China Datang Group, is expected to lead the growth with a projected net profit of 180 million to 220 million yuan, representing a year-on-year increase of up to 44 times due to increased power generation and reduced fuel costs [2] - Major investments in the power grid and ultra-high voltage construction by State Grid and Southern Power Grid are expected to drive growth in related companies, with Guodian Nanzi and Baobian Electric forecasting net profit increases of 171.89% to 225.66% and 229.15%, respectively [2] Group 3: Electric Equipment and Cable Industry - Baobian Electric's profit increase is attributed to enhanced market development and increased project orders, while Baoshan Co. anticipates a net profit growth of 167.98% to 301.98% due to optimized sales policies and improved internal management [3] - New Energy Taishan is expected to turn losses into profits in the first half of the year, reflecting a positive trend in the electric cable sector [3] Group 4: Shipbuilding and Rare Earth Industries - The shipbuilding sector is experiencing significant growth, with companies like China Shipbuilding, China Power, and China Heavy Industry expecting net profit increases exceeding 200% due to effective management and increased delivery of civilian ships [5] - The rare earth industry is also thriving, with companies like China Rare Earth and Guangsheng Nonferrous Metals expected to turn losses into profits, driven by rising prices of rare earth products [4] Group 5: Turnaround Companies - 22 central enterprise-controlled listed companies are expected to turn losses into profits, with quality improvement and efficiency enhancement being key factors for their performance recovery [6] - Companies like Zhongnan Co. and Taiji Co. have reported successful turnarounds due to strengthened management and cost control measures [6][7] Group 6: Management and Efficiency Improvements - Many companies achieving year-on-year growth or reduced losses attribute their success to ongoing quality improvement and efficiency enhancement initiatives [7] - Companies are focusing on optimizing resource allocation, controlling costs, and improving operational efficiency as critical drivers of performance growth [7]

Core Viewpoint - The document outlines the management system for the resignation of directors and senior management at China Shipbuilding Industry Corporation Power Co., Ltd, aiming to ensure stability in corporate governance and protect the rights of the company and its shareholders [1]. Group 1: General Provisions - The system is established in accordance with relevant laws and regulations, including the Company Law and Securities Law of the People's Republic of China [1]. - It applies to directors (including independent directors) and senior management who leave due to term expiration, resignation, dismissal, or other reasons [1]. Group 2: Resignation Circumstances - Directors can resign before their term ends by submitting a written resignation report, which becomes effective upon receipt by the company [2]. - If a director fails to attend board meetings consecutively, the board may recommend their removal to the shareholders [2]. - Directors automatically resign upon the expiration of their term if not re-elected, but must continue to fulfill their duties until new directors are appointed [2]. Group 3: Obligations and Responsibilities of Resigning Directors and Senior Management - Resigning directors and senior management must fulfill any public commitments made during their tenure, even after leaving [4]. - They are required to complete all handover procedures within one month after their resignation, including transferring all company documents and materials [4]. - They must cooperate with the company in post-tenure investigations of significant matters and cannot refuse to provide necessary documents [4]. Group 4: Shareholding Management of Resigning Directors and Senior Management - Resigning directors and senior management are prohibited from transferring their shares within six months after leaving the company [5]. - They must adhere to specific regulations regarding shareholding changes during their tenure and for six months post-resignation [5].

Core Viewpoint - The company establishes a long-term mechanism to prevent the controlling shareholder, actual controller, and related parties from occupying its funds, ensuring compliance with relevant laws and regulations [1][2][3]. Group 1: General Principles - The company aims to prevent the occupation of funds by the controlling shareholder, actual controller, and related parties through a set of regulations based on Chinese laws and its own articles of association [1]. - Directors and senior management are required to act diligently to safeguard the company's funds and assets [1]. Group 2: Prohibited Fund Transfers - The company is prohibited from providing funds directly or indirectly to the controlling shareholder, actual controller, and related parties for various expenses, including salaries, benefits, and other costs [2]. - Any loans or financial assistance to these parties must comply with specific conditions, excluding certain exceptions [2]. - Transactions lacking a genuine commercial background or that violate business logic are also prohibited [2]. Group 3: Fund Occupation and Settlement - Funds occupied by the controlling shareholder or related parties should primarily be repaid in cash, with strict controls on non-cash asset settlements [3]. - Non-cash assets used for repayment must belong to the same business system and enhance the company's independence [3][4]. - Independent directors must provide opinions on asset repayment plans, and such plans require shareholder approval [4]. Group 4: Responsibilities and Measures - The company is responsible for preventing fund occupation and establishing a long-term mechanism for this purpose [5]. - The chairman of the board is designated as the primary responsible person for preventing fund occupation [5]. - Regular checks by the finance and audit departments are mandated to monitor transactions with related parties [5]. Group 5: Consequences of Fund Occupation - In cases of fund occupation, the company must develop a repayment plan and report to regulatory authorities [5]. - The company has the right to deduct cash dividends from shareholders who occupy funds to repay the occupied amounts [5]. - Directors who assist or condone such actions may face disciplinary measures [5].

Core Points - The document outlines the management system for the shares held by directors and senior management of China Shipbuilding Industry Corporation Power Co., Ltd. [1] - The system is established in accordance with various laws and regulations, including the Company Law and Securities Law of the People's Republic of China [1][2] Summary by Sections Shareholding and Trading Restrictions - Directors and senior management's shareholdings include all shares registered in their names and those held through others' accounts, including shares in margin trading accounts [2] - Share transfer restrictions apply under specific conditions, such as within one year of the company's stock listing or within six months after leaving the company [2][3] - Major violations that could lead to forced delisting will prevent directors and senior management from selling their shares until the situation is resolved [3] Transfer Limits and Conditions - Directors and senior management can only transfer up to 25% of their total shareholdings each year, with exceptions for certain circumstances [4] - If the number of shares held is less than 1,000, they may transfer all shares at once without restriction [4] - Untransferred shares at the end of the year will count towards the next year's transferable shares [4] Reporting and Disclosure Requirements - Directors and senior management must report their shareholdings and any changes within two trading days [6][14] - A reduction plan must be reported to the stock exchange 15 trading days before the first sale, detailing the number of shares, timing, and reasons for the reduction [6][13] - The company must ensure the accuracy and timeliness of the reported data regarding shareholdings [8][17] Prohibited Trading Periods - Trading is prohibited during specific periods, such as 15 days before the annual or semi-annual report announcements [16] - Additional restrictions apply during significant events that may affect stock prices [16] Governance and Compliance - The board of directors is responsible for interpreting the rules and ensuring compliance with laws and regulations [22][23] - The company secretary manages the data and information related to directors and senior management's shareholdings [8][18]