Core Viewpoint - The private equity fund industry has seen significant growth over the past decade, with its management scale increasing from 1.73 trillion to over 3 times that amount, indicating a strong demand and interest in this investment category [2]. Group 1: Growth of Private Equity - Ten years ago, there were only 21 private equity firms with over 10 billion in assets, while today that number has increased to 81 [4]. - Despite the high entry barriers for ordinary investors, private equity continues to attract attention and favor due to its flexibility [6]. Group 2: Flexibility of Private Equity - Private equity funds are highly flexible, catering to diverse and personalized investment needs, contrasting with public funds which are more standardized [8]. - The flexibility of private equity is attributed to several key "superpowers" [13]. Group 3: Key Advantages of Private Equity - **Flexible Positioning**: Unlike public funds, which have strict position limits (minimum 80% in stocks), private equity funds can adjust their positions freely, allowing for better performance in volatile or bear markets [15]. - **Broader Investment Scope**: Private equity funds can invest in a wider range of assets, including commodities and foreign exchange, beyond just stocks and bonds [19]. - **Use of Financial Derivatives**: Private equity funds can utilize various financial derivatives, which are often restricted for public funds, allowing for more complex strategies such as hedging and short selling [23]. - **Leverage Investment**: Private equity funds commonly use leverage, enhancing capital efficiency by borrowing to invest, which is less common in public funds [32].

Core Viewpoint - The company has approved the use of up to 800 million RMB of its own funds for wealth management and securities investment to enhance the efficiency of its capital utilization and maximize shareholder returns [1][2]. Investment Overview - The investment amount will not exceed 800 million RMB, including reinvested investment income, and will not involve raised funds or bank credit [2]. - The investment will include various financial products such as equity funds, stocks, bonds, and asset management plans, in compliance with relevant regulations [2][3]. - The investment period is valid for one year from the date of board approval [2]. Risk Analysis and Control Measures - The company acknowledges several risks including market volatility, unpredictable investment returns, liquidity risks, and operational risks [2][3]. - To mitigate these risks, the company will adhere to strict internal controls and regulatory guidelines, ensuring safe investment practices and maximizing returns [3][4]. - The finance department will manage and monitor investments, reporting any risks to senior management promptly [4]. Impact on the Company - The company aims to enhance the efficiency of its capital and increase investment returns without affecting its core business operations [4][5]. - The investment strategy is expected to improve overall performance and provide greater returns to shareholders [4]. Decision-Making Process - The board of directors approved the investment plan during its fourth meeting on May 16, 2025, and this decision falls within the board's authority, thus not requiring shareholder approval [5].