Core Insights - The report emphasizes the construction of an AI-based low-frequency index enhancement strategy using deep learning frameworks to build alpha and risk models [3][14]. - The performance of various index enhancement funds has been highlighted, showing significant excess returns compared to their respective indices [10][11]. Market Index Performance - As of December 5, 2025, the Shanghai Composite Index rose by 0.37%, the Shenzhen Component Index increased by 1.26%, and the CSI 300 Index gained 1.28% [7][8]. - The year-to-date performance shows the CSI 300 Index up by 16.5%, while the CSI 300 index enhancement portfolio increased by 26.2%, resulting in an excess return of 9.7% [18]. Index Enhancement Fund Performance - For the CSI 300 index enhancement fund, the minimum excess return was -1.28%, the median was 0.11%, and the maximum was 0.95% for the week ending December 5, 2025 [10][11]. - Year-to-date, the CSI 500 index enhancement fund showed a minimum excess return of -10.18%, a median of 3.15%, and a maximum of 13.55% [11]. Tracking Portfolio Performance - The report outlines the construction of enhancement portfolios for the CSI 300, CSI 500, and CSI 1000 indices, utilizing deep learning to optimize alpha and risk signals [14][15]. - The CSI 500 index enhancement portfolio has achieved a year-to-date return of 30.3%, outperforming the CSI 500 index, which rose by 24.0%, resulting in an excess return of 6.4% [23][24]. Specific Index Enhancement Performance - The CSI A500 index enhancement portfolio has increased by 28.4% year-to-date, compared to a 19.6% rise in the CSI A500 index, yielding an excess return of 8.7% [29][32]. - The CSI 1000 index enhancement portfolio has shown a year-to-date increase of 38.0%, significantly outperforming the CSI 1000 index, which rose by 23.2%, leading to an excess return of 14.8% [35][36].

Core Viewpoint - Xiaopeng Motors reported a total revenue of 15.81 billion yuan for Q1 2025, reflecting a year-on-year growth of 141.5% but a quarter-on-quarter decline of 1.8%. The net loss was 660 million yuan, an improvement from a net loss of 1.37 billion yuan in the same period last year and 1.33 billion yuan in the previous quarter [1]. Financial Performance - Total revenue for Q1 2025 was 15.81 billion yuan, a 141.5% increase year-on-year and a 1.8% decrease quarter-on-quarter [1]. - The net loss for Q1 2025 was 660 million yuan, compared to a net loss of 1.37 billion yuan in Q1 2024 and 1.33 billion yuan in the previous quarter [1]. - Adjusted net loss, not in accordance with US GAAP, was 430 million yuan, down from 1.41 billion yuan year-on-year and 1.39 billion yuan quarter-on-quarter [1]. Strategic Outlook - The company aims for a stable and long-term strategy in 2025, focusing on enhancing its overall capabilities [3]. - New product launches are expected to begin in Q3 2025 and continue into 2026, which will contribute positively to the company's growth [4]. - The improvement of the AI system capabilities is anticipated to elevate the company to a leading position in the industry [4]. Operational Quality - The stable performance in Q1, typically a slow season for the Chinese automotive market, indicates an improvement in operational quality [5]. - The company is confident that new models, including the upcoming MONA M03 Max and the new versions of Xiaopeng G7 and P7, will act as catalysts for sustained growth [5]. - The introduction of new models is expected to lead to higher price points and gross margins, benefiting the overall product mix [5].