Core Viewpoint - The company, Hai Fu Tong Fund, is experiencing a significant wave of fund liquidations, with four funds already closed and two more on the verge of closure, primarily affecting newly established products that have been in operation for about a year [1][2][3]. Fund Liquidation - In less than six months, Hai Fu Tong has seen four funds shut down, including Hai Fu Tong Digital Economy and Hai Fu Tong ESG Leading, placing it among the top five in the industry for fund closures [3][4]. - The direct cause of these liquidations is attributed to the funds' net asset values falling below 50 million yuan [6][7]. - Among the 97 non-monetary funds currently managed by Hai Fu Tong, 15 funds have sizes below the 50 million yuan threshold, representing over 15% of the total [7]. Performance Issues - The recently closed Hai Fu Tong Digital Economy fund, established in June 2024, recorded a cumulative loss of 3.67% since inception, significantly underperforming its benchmark by over 31 percentage points [8][10]. - Despite a favorable market for technology-related sectors, the fund failed to deliver returns, raising questions about its investment strategy and stock selection capabilities [9][10]. Broader Industry Context - The public fund industry is experiencing a growth in total assets, increasing from approximately 20 trillion yuan to over 27 trillion yuan from 2021 to 2024, while Hai Fu Tong's management scale has seen negligible growth [20][22]. - The company's bond fund scale, which was once a stronghold, has declined from 450 billion yuan to 439 billion yuan, indicating a loss of market share and competitive strength [22]. Financial Performance - Hai Fu Tong's revenue has decreased from 1.638 billion yuan in 2021 to 1.164 billion yuan in 2023, with net profit dropping from 530 million yuan to 417 million yuan, reflecting a decline of over 20% in both revenue and profit over three years [22].