Core Viewpoint - The report provides an overview of the performance and investment strategy of the Bosera ESG Quantitative Stock Selection Mixed Securities Investment Fund for the second quarter of 2025, highlighting its focus on ESG themes and quantitative investment strategies to achieve long-term asset appreciation while managing risks [1][2][3]. Fund Overview - Fund Name: Bosera ESG Quantitative Stock Selection Mixed Fund [3] - Fund Manager: Bosera Fund Management Co., Ltd. [3] - Fund Custodian: Standard Chartered Bank (China) Co., Ltd. [3] - Total Fund Shares at Reporting Period End: 489,693,664.75 shares [3] - Investment Objective: To achieve investment returns that exceed the performance benchmark while seeking long-term asset appreciation [3]. Investment Strategy - The fund employs a quantitative model to select ESG-themed securities while strictly controlling risks [3]. - The investment strategy includes asset allocation, stock investment, bond investment, asset-backed securities investment, derivatives investment, and participation in financing business [3]. - The fund aims to dynamically adjust asset allocation ratios based on macroeconomic cycle research to avoid systemic risks [3]. Performance Metrics - Performance Benchmark: 75% of the CSI 800 ESG Index return + 5% of the CSI Hong Kong Stock Connect Comprehensive Index (RMB) return + 20% of the China Bond Composite Wealth Index return [3]. - The fund's risk-return characteristics are higher than bond funds and money market funds but lower than equity funds [3]. Financial Indicators - A Class Fund Net Value as of June 30, 2025: 1.3447 RMB, with a net value growth rate of 43.04% over the past year [11]. - C Class Fund Net Value as of June 30, 2025: 1.3276 RMB, with a net value growth rate of 42.29% over the past year [11]. Investment Portfolio - Total Assets in Stocks: 614,998,467.51 RMB, accounting for 93.35% of total fund assets [12]. - Investment in Hong Kong Stocks via Stock Connect: 273,101,724.86 RMB, representing 41.72% of net asset value [12]. - The fund's top sectors include manufacturing (37.07%), information technology (13.40%), and finance (10.22%) [12][13]. Market Environment - The report notes increased volatility in the stock market, with small-cap stocks outperforming large-cap stocks during the reporting period [10]. - The CSI 300 Index rose by 1.25%, while the CSI 500 and CSI 1000 increased by 0.98% and 2.08%, respectively [10]. - The fund's strategy includes a differentiated selection approach for A-share and Hong Kong markets, focusing on risk control and long-term effective factors [11].

Core Viewpoint - The interview with Chen Angliang, the Secretary of the Board of Ningbo Fujia Industrial Co., Ltd., highlights the company's commitment to innovation, sustainability, and strong corporate governance, emphasizing its recent achievements in ESG ratings and its strategic direction in the smart cleaning appliance sector [3][14]. Company Overview - Ningbo Fujia Industrial Co., Ltd. was established in 2002 and specializes in designing and manufacturing various vacuum cleaners, robotic vacuums, motors, and pet products. In 2022, the company expanded into energy storage and special robotics, focusing on solutions for residential and commercial energy storage systems [3][4]. - The company holds 435 valid patents, including 40 invention patents, 308 utility model patents, 69 design patents, and 18 international patents, showcasing its strong emphasis on innovation and R&D [3]. Production and Market Presence - The company has a robust vertical supply chain and production capacity, with modern manufacturing facilities in China and Vietnam. Its products are exported to over 30 countries and regions, including North America, Europe, Asia, and Oceania [4]. - Fujia has received numerous accolades, including being recognized as one of the "Top Ten Vacuum Cleaner Export Enterprises" and "Top 100 Manufacturing Enterprises in Ningbo," reflecting its competitive position in the market [4]. Corporate Governance and Investor Relations - The company actively engages in institutional research and investor communication, having hosted 22 institutional visits in May to discuss governance, performance, and strategic direction [5]. - Fujia emphasizes transparency and investor education through various platforms, including its official website and social media, to enhance investor understanding of its operations and industry trends [5]. ESG Initiatives - The company has integrated ESG principles into its operations, focusing on environmental and social dimensions. It aims for low-carbon operations and has implemented measures to optimize resource use and reduce waste [8][9]. - Fujia's ESG rating was upgraded from BB to A by WindESG, reflecting its commitment to sustainable practices and corporate responsibility [5][14]. Financial Performance and Shareholder Returns - The company has implemented a share buyback program, repurchasing 1,180,820 shares, which represents 0.21% of its total share capital, at an average price of 14.86 RMB per share [6]. - Since its listing in November 2021, Fujia has distributed approximately 600 million RMB in cash dividends, with annual cash dividends representing 61.81% of the net profit attributable to shareholders in 2022 [7]. Social Responsibility - Fujia is committed to social responsibility, actively participating in community support through donations and volunteer services, contributing over 12 million RMB to various social welfare projects since 2011 [13]. - The company prioritizes employee welfare, ensuring fair employment practices and providing a comprehensive benefits system to enhance employee satisfaction and productivity [13].

Core Viewpoint - Sustainable finance is becoming a core topic in the financial industry as the global economy accelerates towards low-carbon and sustainable transformation, presenting both opportunities and challenges for financial institutions and companies [1][2]. Group 1: Challenges and Opportunities in Sustainable Finance - Financial institutions face challenges in integrating sustainability into investment strategies, including the need for high-quality data and advanced analytical tools to assess environmental and social risks [2][3]. - The rapid progress of China's sustainable finance market, driven by policy guidance and standardized data disclosure, offers opportunities for deeper integration of global capital with green development goals [2][10]. - Investors are increasingly focused on how sustainable factors impact financial performance, leading to a more rational and pragmatic approach to capital allocation and risk management [3][12]. Group 2: Bloomberg's Innovative Solutions - Bloomberg provides decision-relevant, forward-looking, and financially significant data to help clients navigate the complexities of sustainable finance [5][6]. - The company has launched various tools, such as the Transition Risk Assessment Company Tool (TRACT) and MARS Climate solutions, to help investors evaluate risks and opportunities related to sustainability [5][6]. - AI-driven research tools have been introduced to assist users in identifying industry-specific risks and understanding emerging issues related to sustainability [6][12]. Group 3: Data Quality and Disclosure Standards - High-quality, decision-relevant data is essential for sustainable finance, enabling investors to identify risks and optimize capital allocation [7][8]. - The European Commission's recent proposals to simplify disclosure requirements aim to reduce the reporting burden on companies while maintaining data quality and consistency [7][9]. - The alignment of global sustainable disclosure standards, such as CSRD and ISSB, is crucial for providing comparable and auditable data across different regulatory frameworks [8][9]. Group 4: Progress in China's Sustainable Finance - China is making significant strides in sustainable finance, with plans for mandatory sustainability information disclosure for listed companies starting in 2026 [10][11]. - Bloomberg is actively supporting the development of sustainable finance in China by enhancing data coverage and aligning with local regulatory developments [11][12]. - Despite progress, challenges remain regarding data quality and consistency, particularly in areas like Scope 3 emissions and supply chain impacts [10][11]. Group 5: The Evolution of ESG - The discussion around ESG is evolving, with a shift from a vision-oriented approach to a responsibility-oriented model that emphasizes financial value [12][13]. - ESG-related data is becoming increasingly important for revealing risks and opportunities that traditional financial statements may not capture [12][13]. - The growth of ESG assets is projected to continue, with a significant majority of institutional investors expecting the pace of sustainable development to either maintain or accelerate through 2030 [12].

Core Viewpoint - The article discusses the recent regulatory actions and compliance issues related to the sale of non-compliant lithium battery products on e-commerce platforms in China, particularly focusing on the implications for companies like JD.com and Pinduoduo in terms of their ESG ratings and responsibilities [1][2][3]. Group 1: Regulatory Actions - Starting from June 28, 2023, the Civil Aviation Administration of China has prohibited passengers from carrying power banks without a 3C mark, unclear 3C marks, or recalled models on domestic flights due to safety concerns related to lithium batteries [1]. - The State Administration for Market Regulation announced that from August 1, 2023, lithium-ion batteries and power banks will be subject to CCC certification management, with a complete ban on uncertified products from August 1, 2024 [2]. - E-commerce platforms like Taobao, Tmall, and Pinduoduo have strengthened their regulatory measures by blocking searches for "3C stickers" and similar terms to prevent the sale of non-compliant products [2][10]. Group 2: ESG Ratings and Company Performance - JD.com received an A+ rating from MSCI for its ESG performance, ranking third among 16 peers in the professional retail sector, with a social responsibility score of 7.6, the highest in its industry [3][5]. - Pinduoduo, on the other hand, received a CCC rating from MSCI, indicating a need for significant improvement in its social responsibility efforts, with a score of only 2.7 [3][7]. - The actions taken by e-commerce platforms align with the Electronic Commerce Law of the People's Republic of China, which mandates that products sold must meet safety and environmental protection requirements [3][10]. Group 3: Market Implications - The enforcement of these regulations and the subsequent actions by e-commerce platforms may reduce the risk of legal actions and fines related to the sale of non-compliant products, thereby protecting consumer safety [10]. - The ongoing issues with the availability of non-compliant products highlight the need for further refinement in regulatory measures to close existing loopholes [10].

Group 1 - The "Belt and Road" comprehensive service platform in Beijing has been officially launched, providing a one-stop service focusing on policy communication, business facilitation, financial connectivity, information sharing, talent exchange, and risk prevention [1][2] - The platform has integrated resources from 60 international service institutions across 12 sectors, offering 13 practical functions and has published thousands of pieces of information [1][3] - Approximately 90% of Beijing's outbound enterprises are private, indicating a strong demand for authoritative one-stop services in policy guidance, specialized services, and risk prevention [1] Group 2 - The platform offers both online and offline services, with online access through a lightweight mini-program and three physical reception areas for consultations and events [2] - It features three main zones: a practical tools area with 13 functional modules, a special area for activity announcements and funding support policies, and a latest news area covering international and domestic updates [2][3] - The platform connects with various professional service institutions in legal, accounting, information services, and engineering consulting, facilitating access to high-quality international services [3] Group 3 - The platform includes financial product modules and price inquiries, showcasing various policy financial tools and cross-border financing products to help enterprises find diverse funding sources [3] - Beijing's total import and export volume with Belt and Road countries is projected to reach 2.12 trillion yuan by 2024, a 30% increase from 2019, accounting for nearly 60% of the overall trade volume [3]

Core Viewpoint - Skafeel has achieved a 95% reduction in Scope 1 and 2 carbon emissions compared to the same period in 2024, with plans to achieve operational carbon neutrality within the next two to three years [1][2] Group 1: Carbon Emission Reduction - Skafeel has completed preliminary data collection and analysis for Scope 3 carbon emissions and plans to reduce these emissions by 4.6% annually to meet carbon reduction targets [2] - The company aims to reduce total carbon emissions by 60% by 2030 compared to 2024 levels and achieve net-zero emissions by 2050 [2] - Skafeel participates in international reduction agreements and scientific carbon target initiatives to align its actions with global climate goals [2] Group 2: ESG Governance and Management - Skafeel has established an independent ESG department composed of senior management and experts from various fields to implement and monitor ESG goals [2][3] - The company conducts regular ESG assessment meetings to review progress and adjust strategies as needed to align with industry trends [3] Group 3: Resource and Energy Management - Skafeel has conducted a comprehensive evaluation of high-energy-consuming equipment, replacing inefficient units to save approximately 19.5% in electricity and improve energy efficiency by 38.2% [3] - The company invested 300,000 yuan in 2024 to upgrade its air conditioning system, resulting in an annual electricity savings of 200,000 kWh [3] - Skafeel has shifted to in-house nitrogen production, reducing transportation emissions and improving energy efficiency, leading to a 10.4% decrease in natural gas usage [3] Group 4: Renewable Energy and Water Management - In 2024, Skafeel invested 5 million yuan in a distributed rooftop photovoltaic project, generating 1.6 million kWh annually, which accounts for 20% of the company's total electricity consumption [4] - The company has implemented a rainwater collection and reuse project, enhancing water resource management [4] Group 5: Green Production and Waste Management - Skafeel has replaced high-VOC cleaning agents with low-VOC alternatives, reducing VOC content from 800 g/L to 200 g/L [5] - The company has established an environmental impact assessment system and complies with ISO 14001 certification for environmental management [5] - Skafeel follows a waste management philosophy of "reduce, classify, recycle," ensuring proper disposal and resource recovery of waste materials [5] Group 6: Green Procurement - Skafeel has developed a green procurement policy prioritizing suppliers that meet environmental and social responsibility standards [6] - The company conducts regular evaluations of suppliers' environmental performance and collaborates on clean production technologies and waste recycling initiatives [6]

Core Insights - Global capital and technology are accelerating around "deep decarbonization," with the EU postponing mandatory ESG disclosures for large companies to 2027 to ease short-term compliance burdens [2][6] - China is intensifying its green finance and ESG policies, with the central bank releasing a new version of the "Green Finance Support Project Directory (2025 Edition)" outlining eight major green industry directions [2][26] - The academic frontier shows that trade policy uncertainty has a significant inverted U-shaped relationship with corporate ESG performance, indicating that moderate levels of trade policy uncertainty incentivize ESG investment [2][4] ESG Important Events - The EU has decided to delay key sustainability reporting requirements for large companies until 2027, allowing for a two-year extension on new or upgraded ESG disclosures [20][25] - Saudi Arabia has committed to investing $8.3 billion in renewable energy projects by 2028, aiming to provide 15,000 MW of clean energy capacity [6][8] - Iberdrola has signed over $7.5 billion in sustainable financing agreements, including €4.1 billion for the construction of one of the world's largest offshore wind farms [8][26] Academic Frontiers - A study published in the "International Review of Economics and Finance" found that trade policy uncertainty has a significant inverted U-shaped relationship with corporate ESG performance, suggesting that moderate levels of uncertainty can encourage ESG investments [2][4] - Another study indicated that an increase in provincial digital trade levels correlates with a 0.131 increase in corporate ESG scores, particularly in state-owned enterprises and regions with strong environmental regulations [2][4] Domestic ESG Hotspots - The People's Bank of China has released a new version of the "Green Finance Support Project Directory (2025 Edition)," which clarifies eight major green industry directions [2][26] - The first "ESG-linked" carbon quota loan has been issued in Yunnan, marking a significant step in integrating ESG principles into financial products [2][26] - Geely Auto has announced plans to enhance its new energy layout by absorbing Zeekr, indicating a strategic shift towards sustainable transportation [2][26]

Core Insights - The article discusses the performance of ESG public funds, highlighting that all funds listed in the latest weekly ranking experienced gains during the observation period from July 14 to July 18, with an average return of 9% for broad ESG-themed actively managed funds and 2.68% for broad ESG-themed index funds [1]. Group 1: ESG Fund Performance - All funds in the latest ranking reported positive returns, with broad ESG-themed actively managed funds leading with an average return of 9% [1]. - Broad ESG-themed index funds achieved an average return of 2.68% during the same period [1]. - Pure ESG-themed actively managed funds outperformed their index counterparts, with average returns of 3.11% for actively managed funds compared to 1.25% for index funds [1]. Group 2: Top Performing Funds - The top 10 actively managed ESG funds showed significant weekly returns, with the highest being 国金ESG持续增长A at 4.97% and 汇添富ESG可持续成长A at 4.92% [4]. - The top 10 broad ESG-themed actively managed funds included 永赢新能源智选A with a weekly return of 12.63% and 中加低碳经济六个月持有A at 10.2% [6]. - The top 10 ESG index funds had 中金中证500ESG基准指数增强A leading with a weekly return of 1.56% [9].

Group 1 - The article emphasizes the growing importance of ESG (Environmental, Social, and Governance) factors in corporate competitiveness, indicating that non-financial aspects are becoming decisive in business success [2][3] - The development of ESG frameworks in China is still in its early stages, with government departments planning to introduce sustainable disclosure guidelines by 2027 and a unified disclosure system by 2030 [2][3] - The article is part of a series focused on the genuine issues surrounding ESG, highlighting the need for ongoing discussions and insights from relevant stakeholders [2] Group 2 - Ren Wenjun, the Executive Director of China National Petroleum Corporation's (CNPC) Eastern Geophysical Exploration Company, is exploring how to transform ESG into a financial driver through technological innovation [4][5] - The company has developed "green exploration" equipment and a new industrial chain layout, which has not only reduced operational costs but also secured contracts with international energy firms like Shell and BP [4][5] - ESG is viewed as both a cost item and a revenue-generating opportunity for technology-driven state-owned enterprises, particularly in the context of global competition [5] Group 3 - In the short term, ESG serves as a risk management tool, with innovations like the EV56 controllable seismic source improving project efficiency and reducing energy consumption [6] - Long-term, ESG is seen as a "pass" for financing and market access, with a commitment to maintaining over 4% of R&D investment to tackle deep exploration technologies [6][18] - The company has achieved significant safety records, such as 38 million safe man-hours over 20 years in Oman, which has helped in renewing contracts with major international oil companies [6] Group 4 - Eastern Geophysical Exploration faces unique ESG pressures, including the challenge of deep resource exploration and the need for advanced seismic technology to ensure energy security and low-carbon development [8][9] - The company also deals with ecological challenges in diverse fieldwork environments and the high carbon emissions associated with traditional exploration equipment [8][9] - Talent shortages in emerging industries and the need for cross-disciplinary teams for new business areas like geothermal exploration and carbon capture are significant hurdles [9][10] Group 5 - The company must overcome high R&D costs and supply chain management difficulties, as suppliers need to upgrade their equipment to meet ESG standards, which increases procurement costs [12][13] - Variability in ESG standards across different countries complicates management for overseas projects, while rising expectations from investors and communities necessitate continuous improvement in ESG performance [14][15] - The company plans to enhance its ESG reporting by localizing narratives around safety and carbon reduction, aiming to attract more financing [15] Group 6 - Key practices for enabling ESG through technological innovation include the use of high-precision green exploration equipment and the establishment of a cloud platform for data processing and interpretation [16][17] - The company is diversifying its business into clean resource exploration and carbon storage, with expectations of over 50% growth in new energy market contracts by 2024 [17][20] - The long-term strategy includes building a new industrial cluster and enhancing the weight of ESG indicators in corporate assessments, with a focus on digital transformation in exploration [18][19] Group 7 - The company aims to collaborate with Huawei to develop a smart ecosystem for exploration, leveraging regional policy advantages to reduce costs [20] - The approach taken by Eastern Geophysical Exploration seeks to turn ESG pressures into a driving force for technological advancement, aiming to break market barriers through R&D investments [20][21]

Investment Rating - The investment rating for the company is "Hold" [6] Core Views - The company expects a significant increase in net profit for the first half of 2025, projecting a range of CNY 350 million to CNY 410 million, representing a year-on-year growth of 50% to 76%. The net profit after excluding non-recurring gains is expected to be between CNY 323 million and CNY 383 million, indicating a growth of 202% to 258% [1] - The growth in profitability is attributed to a full order book in both domestic and overseas markets, along with improved overall capacity utilization [1] - The company's color-spun yarn products are driving profitability, with sales expected to generate CNY 4.056 billion in revenue for 2024, accounting for 55% of total revenue, and a gross margin of 11.22% [2] - The company is focusing on innovation and sustainable production, launching new eco-friendly products to meet global demand [2] - The company's production capacity in Vietnam accounts for approximately 77% of total capacity, benefiting from lower labor costs and tax incentives, which enhances its international competitiveness [3] Financial Projections - Revenue projections for 2025 to 2027 are CNY 87.5 billion, CNY 97.2 billion, and CNY 107.6 billion respectively, with net profits expected to be CNY 5.5 billion, CNY 5.9 billion, and CNY 6.5 billion [4] - Earnings per share (EPS) are projected to be CNY 0.37, CNY 0.39, and CNY 0.43 for the years 2025, 2026, and 2027 respectively, with corresponding price-to-earnings (P/E) ratios of 14x, 13x, and 12x [4] - The company’s total revenue for 2023 is reported at CNY 6.914 billion, with a growth rate of -1.08%, and is expected to grow by 14.86% in 2024 [5] Market Position - The company operates in the textile and apparel manufacturing industry, with a strong focus on innovative and sustainable practices [6] - The current market capitalization is approximately CNY 7.753 billion, with a total share capital of 1,499.57 million shares [7]