Core Insights - The article discusses the performance and challenges faced by Penghua Fund in the public fund industry, highlighting its strong returns in both equity and fixed income sectors while also addressing its declining revenue and market share [4][10][12]. Group 1: Performance Highlights - Penghua Fund has achieved significant success in the active equity sector, with multiple products ranking at the top over various time frames, including a 96.93% return for Penghua Medical Technology Stock A over the past year [4][6]. - The fund's fixed income team has also delivered impressive results, with Penghua Yong'an Bond Fund showing a 3.76% return over the past year, ranking 206 out of 2757 funds [7]. - The overall market recovery and the fund's diversified product offerings have contributed to its strong performance, showcasing the expertise of its fund managers [8][10]. Group 2: Revenue and Market Challenges - Despite strong performance, Penghua Fund has faced declining revenues, with a reported revenue of 3.594 billion yuan in 2024, down 8.94% year-on-year, marking the third consecutive year of decline [10][11]. - The fund's management scale has only increased by 11.21% over two and a half years, lagging behind the industry average growth of 31.54% during the same period [11][12]. - The decline in the scale of equity and mixed funds managed by Penghua Fund has resulted in a significant drop in its market position, falling out of the top tier in the public fund industry [12][15]. Group 3: Strategic Shifts and Future Outlook - The article emphasizes the need for the fund industry to shift focus from scale-driven growth to long-term value creation and investor interests, as highlighted by the new floating fee rate fund initiative [18][19]. - Penghua Fund is adapting to these changes by emphasizing professional platform development and focusing on long-term investment strategies, as seen in the performance of its floating fee products [19][20]. - The growth of the ETF market presents an opportunity for Penghua Fund to enhance its competitive position, although it faces challenges with many of its ETF products being underfunded [23][24].

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].