Core Viewpoint - In the first half of 2025, Nanhua Fund reported a net loss of 6.18 million CNY, indicating a significant decline in financial performance compared to the previous year, where it achieved a slight profit of 0.34 million CNY [2][4]. Financial Performance - Nanhua Fund's operating income for the first half of 2025 was 24.02 million CNY, a decrease of over 35% year-on-year [4]. - Cumulative losses since its establishment in 2016 have approached 120 million CNY, with only one profitable year in 2023, where it reported a net profit of 1.19 million CNY [4][5]. - The total assets and net assets of Nanhua Fund as of June 30, 2025, were 139 million CNY and 132 million CNY, respectively [4]. Business Structure and Growth - As of the second quarter of 2025, Nanhua Fund's public fund management scale reached 21.51 billion CNY, a year-on-year increase of 45.4% [8]. - The company has no money market funds, with bond funds accounting for approximately 97% of the total public fund scale, while equity funds represent only about 3% [8]. Recent Developments - Nanhua Futures announced a capital increase of 100 million CNY for Nanhua Fund to enhance its capital strength, raising its registered capital from 250 million CNY to 350 million CNY [5][6]. - Despite the capital increase, the company acknowledged that the benefits of this move are uncertain due to various influencing factors [6]. Fund Performance - Most of Nanhua Fund's products have not shown significant performance highlights, with many funds experiencing net redemptions [7][12]. - Among the bond funds, the annual net value growth rate has generally been below 1%, with the best-performing equity fund achieving a growth rate of over 38% [11].