Core Viewpoint - Penghua Fund has experienced a significant decline in its performance and market position, attributed to its weak active management capabilities despite its strong marketing and star-making strategies [1][4]. Group 1: Performance Metrics - In 2024, Penghua Fund's non-monetary scale was 443.548 billion, with revenue of 3.594 billion, a year-on-year decline of 8.93%, and net profit of 0.751 billion, down 10.56%, ranking 18th in the industry [1]. - By the end of Q2 2025, Penghua's non-monetary scale had only increased by 37.942 billion, lagging behind leading competitors like Huaxia and E Fund, which saw increases exceeding 100 billion [1]. Group 2: Star-Making Strategy - Penghua Fund has been known for its "star-making" ability, having produced notable fund managers like Wang Zonghe, who managed to attract significant investment during market booms [5]. - However, the performance of these star managers has been disappointing, with Wang Zonghe's funds showing returns of -44.73% and -22.94% during their tenure, leading to a significant reduction in assets under management [6]. Group 3: Active Management Challenges - The fund has seen a decline in its active equity and mixed product scale from 60% to around 20%, with a total loss of 25.923 billion in stock price differences from 2021 to 2024 [7]. - Penghua has had to liquidate 10 products and has 38 others near the liquidation threshold, indicating a struggle in maintaining viable active management products [7]. Group 4: Index Fund Performance - As of June 30, Penghua's ETF scale was 58.3 billion, dropping from 15th to 17th place, while competitors like Huaxia Fund saw an increase of 93.241 billion in ETF scale [11]. - The Penghua CSI 300 ETF had only 2.857 billion in assets, with a net redemption of over 1.5 billion, highlighting a significant gap compared to leading products [11]. Group 5: Fixed Income Stability - Despite challenges in active management and index products, Penghua's fixed income business remains stable, with 12 bond funds in the top 10 of their category as of Q1 2025 [14]. - The fixed income segment generated 10.929 billion for investors in 2024, outperforming the active equity segment [13].