1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Since 2025, Yongying Fund has actively expanded its equity passive index product line, emphasizing both the original segmented field layout model and traditional broad - based index and enhanced products. It has formed a product line with prominent features and diverse coverage. In fact, the scale has expanded rapidly in the past year, with the cumulative scale of equity index/enhanced products increasing from 3.478 billion yuan in Q2 2024 to the latest 22.654 billion yuan [4][39]. 3. Summary According to the Table of Contents 3.1 Yongying Index Business: Breaking Through with Innovation in Segmented Fields and Rapidly Expanding the Product Line in the Past Year - Yongying Fund's passive index business started in 2019. After more than six years of operation, it has 26 equity index products, including ETFs and their linked funds in broad - based and industry - themed categories, as well as over - the - counter passive index and enhanced products. The latest total scale of equity ETF products is 19.637 billion yuan (as of September 12, 2025). It also has 6 bond index products, including the Science and Technology Innovation Bond ETF established in September 2025 [4][8]. - The equity index product layout focuses on finding areas with future development opportunities and segmented investment opportunities in relatively mature directions, such as medical device ETFs and Hong Kong medical ETFs in the medical field, and commercial satellite ETFs and general aviation ETFs in the military industry. Quantitatively, it combines multi - dimensional frameworks such as fundamental quantification, traditional multi - factors, and machine learning [9]. 3.2 Product Matrix: Forward - looking Layout in Segmented Industries and Steady Expansion of Broad - based Products 3.2.1 Industry - Themed Products - Yongying's industry - themed ETFs cover segmented sectors such as "medical devices", "gold stocks", and "navigation satellites". They combine high granularity in the technology and general manufacturing fields and the style adaptability of gold stocks, adding high elasticity under segmented forward - looking layouts to passive tools. There are many first - batch ETF products in the market, effectively expanding the scope of passive investment [16]. - The gold stock ETF and medical device ETF are the first and largest products tracking their respective indices, with strong market recognition. The latest scale of the gold stock ETF has exceeded 10 billion yuan. The general aviation ETF and satellite ETF are also the first products tracking relevant indices, with prominent advantages [16]. - The gold stock ETF shows high - volatility characteristics of stocks and has a "leverage effect" compared to gold. It has outperformed in terms of returns this year and in the past year and has received large - scale subscriptions since February this year. The medical device ETF has strong tool attributes. A new Hong Kong - stock - connected medical product was launched in April this year, focusing on the AI + medical direction, with differentiated layout in Hong Kong stocks. Both products have received significant attention and subscriptions since July this year [16][17][19]. 3.2.2 Broad - Based Products - Yongying has built a product system covering multi - level markets in the broad - based index field. It laid the foundation through the ChiNext Index in 2019 and significantly accelerated the new product issuance rhythm this year, launching five new products. The management and custody fees of Yongying CSI 300 ETF and Yongying ChiNext Index are at the lowest level in the market for products tracking similar indices. The total scale of all eight products currently reaches 3.689 billion yuan [21][22]. 3.2.3 Smart Beta Products - Yongying has newly launched two characteristic ETFs in the Smart Beta field. Yongying CSI Hong Kong - Stock - Connected Central State - Owned Enterprise Dividend ETF was established in July 2025, with a scale of 296 million yuan and an average daily trading volume of 26 million yuan this year. Yongying China Securities Free Cash Flow ETF was established in June, with a scale of 33 million yuan. Both products use a 0.50% management fee and 0.10% custody fee structure, providing investors with differentiated allocation tools for dividend factors and cash - flow quality factors [24]. 3.2.4 Index - Enhanced Products - Yongying has shown obvious strategic emphasis and product differentiation in the index - enhanced product line. It started to intensively layout the enhanced product line in the second half of 2024 and accelerated the issuance rhythm in 2025, forming a relatively complete enhanced product matrix. It covers both over - the - counter index - enhanced and index - enhanced ETF models, offering a wide range of coverage [28]. 3.2.5 Bond Index Products - Yongying's bond index products appeared in 2019 and have been continuously expanded. The product line covers four types of diversified products, mainly with medium - and short - term durations. Three policy - financial bond and state - development bond products are the largest in their respective tracking indices, with high market recognition. Yongying China Bond - Preferred Investment - Grade Credit Bond (1 - 3 years) Index, established this year, is the only product tracking this index, with uniqueness [36]. 3.2.6 Summary - This year, Yongying's index business has been actively expanding its product line, forming a product line with prominent features and diverse coverage. The scale of various product lines has expanded rapidly in the past year. Currently, industry - themed products represented by gold stock ETFs and medical device ETFs are still the mainstay. Yongying Fund has a high enthusiasm for layout this year, which is expected to provide investors with an investment toolbox with both breadth and depth [39].

Core Insights - The total scale of public funds in China has surpassed 33 trillion yuan, indicating a steady growth in the industry and a diversification of product types [1] - Fund managers are actively exploring niche sectors such as deep-sea technology, controllable nuclear fusion, and satellite communication, alongside popular areas like artificial intelligence and innovative pharmaceuticals [1][3] Group 1: Fund Performance and Focus Areas - As of July 17, 2023, 19 public fund institutions have disclosed a total of 208 second-quarter reports, with Yongying Fund leading with 134 reports [1] - The Yongying Qiyuan Mixed Fund, established in August 2023, focuses on deep-sea technology, particularly in four core areas: deep-sea materials, detection, applications, and infrastructure [1] - The top ten holdings of the Yongying Qiyuan Mixed Fund include China Marine Defense, Zhongke Haixun, and Yaxing Anchor Chain [1] Group 2: Investment Strategies and Market Outlook - The Yongying Manufacturing Upgrade Smart Selection Mixed Fund, launched in June 2023, targets controllable nuclear fusion, with top holdings including Xuguang Electronics and Guoguang Electric [2] - The fund manager emphasizes that controllable nuclear fusion could potentially replace traditional energy sources once commercialized, presenting significant investment opportunities despite its current developmental stage [2] - The exploration of niche investment directions is seen as a way for public fund managers to create differentiated advantages and enhance competitiveness in a highly competitive market [3] Group 3: Fund Structure and Market Dynamics - Initiating funds are considered an important method for public fund managers to enter niche sectors, as they have lower fundraising thresholds and can quickly capitalize on investment opportunities [3] - The requirement for fund managers to hold a portion of the fund shares for a certain period helps convey confidence in the products [3]

Market Overview - The Shanghai Composite Index rose by 1.92% to close at 3342.0 points, with a weekly high of 3359.73 points [1] - The Shenzhen Component Index increased by 2.29% to 10126.83 points, reaching a peak of 10248.98 points [1] - The ChiNext Index saw a gain of 3.27%, closing at 2011.77 points, with a maximum of 2036.1 points [1] - In the global market, the Nasdaq Composite fell by 0.27%, the Dow Jones Industrial Average decreased by 0.16%, and the S&P 500 dropped by 0.47% [1] - In the Asia-Pacific region, the Hang Seng Index rose by 1.61%, and the Nikkei 225 increased by 1.83% [1] ETF Market Performance - The median weekly return for stock ETFs was 1.82% [2] - The top-performing scale index ETF was the Fuguo ChiNext 50 ETF, with a weekly return of 5.03% [2] - The highest return in the industry index ETFs was 6.26% for the Yongying National Satellite Communication Industry ETF [2] - The top strategy index ETF was the Jiashi CSI Fundamental 50 ETF, returning 2.86% [2] - The leading theme index ETF was the Yongying National General Aviation Industry ETF, achieving a return of 6.48% [2] ETF Liquidity - Average daily trading volume for stock ETFs increased by 34.7%, while average daily turnover rose by 29.3% [7] ETF Fund Flows - The top five stock ETFs by inflow were: - Huaxia CSI 50 ETF with an inflow of 0.803 billion [9] - GF CSI 1000 ETF with an inflow of 0.491 billion [9] - Fuguo CSI 1000 ETF with an inflow of 0.490 billion [9] - Guolianan CSI Semiconductor ETF with an inflow of 0.480 billion [9] - Jiashi CSI 500 ETF with an inflow of 0.424 billion [9] - The top five stock ETFs by outflow were: - Huaxia CSI 50 ETF with an outflow of 0.595 billion [10] - Yifangda CSI 300 ETF with an outflow of 0.441 billion [10] - Jiashi CSI 300 ETF with an outflow of 0.294 billion [10] - Guotai CSI Military Industry ETF with an outflow of 0.277 billion [10] - Huatai CSI Dividend ETF with an outflow of 0.250 billion [10] ETF Financing and Margin Trading - The financing balance for stock ETFs increased from 42.1794 billion to 42.3194 billion [12] - The highest financing buy amount was for Huaxia CSI 50 ETF, totaling 0.579 billion [12] - The highest margin sell amount was for Guotai CSI Securities Company ETF, totaling 0.014 billion [12] ETF Market Size - The total market size for ETFs reached 4,113.171 billion, an increase of 55.514 billion from the previous week [15] - Stock ETFs accounted for 29,882.11 billion, representing 72.6% of the total ETF market size [15][17] ETF Issuance and Establishment - No new ETFs were issued last week, but four new ETFs were established, including: - Zhaoshang CSI All-Index Free Cash Flow ETF - Yifangda CSI State-Owned Enterprises 50 ETF - Morgan CSI A500 Enhanced Strategy ETF - GF CSI 800 Free Cash Flow ETF [18] Institutional Insights - The military industry is expected to enter a new upward cycle from 2025 to 2027, with significant performance improvements anticipated starting in Q2 2025 [18] - The commercial aerospace and low-altitude economy sectors are expected to continue to deepen and evolve, driven by the recovery of the military industry fundamentals and active themes [18]

Investment Rating - The report highlights the investment value of the commercial satellite communication industry, particularly focusing on low Earth orbit (LEO) satellite constellations [3][9]. Core Insights - The satellite internet industry is expected to see significant growth, with the LEO satellite market projected to exceed 1 trillion yuan by 2030, driven by advancements in satellite manufacturing and ground equipment [8][54]. - The report emphasizes the importance of the satellite communication industry in achieving global connectivity and its military potential, which is expected to enhance industry prosperity [8][23]. Summary by Sections Satellite Internet: Application Growth - The satellite industry chain is divided into three segments: space segment (satellite manufacturing and rocket launch), ground segment (ground facilities), and user segment (user terminals and related services). Currently, the LEO satellite internet is in the space segment networking phase, while the high orbit satellite internet has entered the user segment growth phase [7][20]. - The user segment holds a higher value distribution compared to the space segment, indicating a greater potential for investment opportunities as LEO satellites continue to be deployed [20][29]. Market Potential and Growth - The LEO satellite market is estimated to reach approximately 400 billion USD in early 2023, accounting for 14% of the total satellite market. By 2030, the market size in China is expected to approach 1 trillion yuan [8][54]. - The report cites that the satellite manufacturing and ground equipment sectors are likely to experience the first wave of growth within the industry chain [8][54]. Investment Value of the National Commercial Satellite Communication Index - As of March 9, 2025, the satellite communication index shows that the communication industry accounts for 50.14%, followed by national defense and military at 28.67%, and electronics at 16.43% [9]. - The top ten constituent stocks of the index have a combined market capitalization of approximately 1,259.118 billion yuan, with a weighted average return on equity (ROE) of about 9.03% and a projected net profit growth rate of 42.34% over the next two years [9][10]. Policy Support and Industry Development - The report discusses the Chinese government's initiatives to promote the satellite internet industry, including the gradual implementation of business access systems and the encouragement of private sector participation [23][25]. - The "New Infrastructure Action Plan" emphasizes the construction of integrated satellite internet systems, which is expected to benefit related industries [25][29]. Military Applications and Strategic Importance - The military potential of LEO satellite constellations is highlighted, with the U.S. military actively exploring the use of Starlink for various applications, demonstrating the strategic importance of satellite communications in modern warfare [36][46]. - The report notes that the LEO satellite constellations can enhance navigation system accuracy and resilience against interference, making them valuable for military operations [36][42].