Core Viewpoint - The market is experiencing an innovation-driven bull market, with sectors such as AI, innovative pharmaceuticals, and new consumption witnessing significant growth in "Chinese-style innovation" [1][6]. Group 1: Investment Strategy - The investment strategy is based on a three-dimensional model combining macroeconomic cycle assessment, industry rotation allocation, and in-depth stock analysis [1]. - The approach emphasizes a "prolonged battle" in bull markets and a "guerrilla warfare" strategy in balanced and bear markets, aligning fundamentals with survival [5][6]. - The flexibility in portfolio management is highlighted, with stock positions being adjusted based on market conditions, such as reducing equity exposure from 91% to 67% over two quarters in 2023 [6]. Group 2: Performance Metrics - The fund managed by the company achieved a net value growth rate of 19.18% in the first half of 2025 and 18.70% over the past year, ranking in the top 5% of its peers over the last two years [3]. Group 3: Sector Focus - The focus is on identifying 3 to 5 high-prosperity industries each year, with a keen eye on economic cycles, industry policy shifts, and supply-demand dynamics [4]. - Recent adjustments included reducing exposure to the underperforming power equipment sector while increasing allocations to the automotive and home appliance sectors [4]. Group 4: Stock Selection Criteria - The investment philosophy prioritizes growth stocks with high return on equity (ROE) and sustainable growth potential, aiming to capture both industry and individual stock gains [4]. - Key attributes for stock selection include sensitivity, solidity, rigor, and patience, with a meticulous examination of financial statements to identify potential high-return investments [4]. Group 5: Market Trends - The company identifies three current investment themes with significant potential: AI, innovative pharmaceuticals, and new consumption, which are seen as driving forces in the evolving market landscape [6]. - The innovative pharmaceutical sector is highlighted as undergoing transformative changes, approaching the levels of developed countries, indicating strong fundamentals [6].

Core Viewpoint - The market is experiencing an innovation-driven bull market, with sectors such as AI, innovative pharmaceuticals, and new consumption witnessing significant growth in "Chinese-style innovation" [1][6]. Group 1: Investment Strategy - The investment strategy is based on a three-dimensional model combining macroeconomic cycle assessment, industry rotation allocation, and in-depth stock analysis [1][4]. - The approach emphasizes a dynamic balance in asset allocation, avoiding extreme positions typical of either growth or value investing [4][5]. - The investment framework is characterized by a focus on economic cycles and industry trends, selecting 3 to 5 high-prospect industries for targeted investment each year [4][6]. Group 2: Performance Metrics - The net value growth rate of the fund managed by the company reached 19.18% in the past six months and 18.70% over the past year [3]. - The fund's performance ranked in the top 5% of its peers over the past two years, indicating strong relative performance [3]. Group 3: Market Adaptation - The company adjusts its stock positions flexibly, reducing equity exposure from 91% in Q2 2023 to 67% by the end of Q4 2023, effectively managing drawdowns during uncertain market conditions [6]. - In 2024, the company increased stock positions again, successfully capturing market opportunities [6]. Group 4: Key Investment Themes - The company identifies three key investment themes with contemporary relevance: AI, innovative pharmaceuticals, and new consumption, which are seen as driving forces of the current market [5][6]. - The innovative pharmaceutical sector is highlighted as undergoing significant transformation, approaching the standards of developed countries [6].