Recently, Ruoyuan Fund's star fund managers Fu Pengbo and Zhu Lin disclosed the first quarter report of Ruoyuan Growth Value Hybrid Fund for 2026. During the reporting period, the fund increased its positions in PCB, chip, and optical communication stocks benefiting from the rapid development of artificial intelligence. Zhongjixuchuang received a large increase in holdings, and the fund also repurchased the intelligent manufacturing equipment services provider, DaZu Laser. Overall, in the first quarter, the fund maintained a high position operation, with the portfolio reflecting the characteristics of "focusing on cyclical sectors and industry leaders". As of the end of the reporting period, the net asset value of Ruoyuan Growth Value Mixed A Fund was 1.9177 yuan, with a net asset value growth rate of -2.58% during the reporting period. The benchmark return rate for the same period was -2.43%. In terms of holdings, the top ten heavy-weight stocks in the fund include NINGDE TIMES (300750.SZ), EASTERN PRECISION (002384.SZ), NEW ESHENG (300502.SZ), ZHONGJIXUCHUANG (300308.SZ), SHENGHONG TECHNOLOGY (300476.SZ), MAWEI TECHNOLOGY (300751.SZ), LUXUN PRECISION (002475.SZ), TENCENT HOLDINGS (00700), JUXING TECHNOLOGY (002444.SZ), DAZU LASER (002008.SZ). Among them, Zhongjixuchuang entered the top ten holdings of Ruoyuan Growth Value Hybrid Fund for the first time. In terms of adjustments, Ruoyuan Growth Value Hybrid Fund reduced its holdings in NEW ESHENG, EASTERN PRECISION, NINGDE TIMES, and SHENGHONG TECHNOLOGY, with reduction ratios exceeding 10%; TENCENT HOLDINGS, LUXUN PRECISION, JUXING TECHNOLOGY, and MAWEI TECHNOLOGY were also reduced. Looking at the top ten holdings, there have been some changes in the composition of stocks, with the fund increasing its positions in PCB, chip, and optical communication stocks benefiting from the rapid development of artificial intelligence. The weight allocation has increased significantly, reflecting the investment strategy and direction mentioned in the fund's annual report. Fu Pengbo stated that the fund has also focused on core hardware stocks of PCB and optical modules, showing strong product and customer synergy. The rapid growth in AI demand has led to an increase in upstream product output, and the company's technology continues to upgrade to meet customer needs. Some stocks benefit from the high-end multi-layer PCB demand driven by AI, and the expansion of the latter brings improvement in the company's product structure and performance growth beyond expectations. For other stocks with relatively high net asset value, their main business either responds to the demand for high-speed computing servers and high-speed network switches, or they are in the expansion of the optical communication segment and optical interconnection. The sectors that the fund focuses on also include new energy photovoltaics, biomedicine, and manufacturing, which are mainly the "faces" of the previous year. Regarding the allocation in Hong Kong stocks, the focus is on internet technology and innovative pharmaceutical stocks, with optimism towards the business barriers of key companies. After market adjustments, the overall valuation has returned to the level early last year, with the disappearance of some negative factors from the previous period, the risk-return ratio is good. During the portfolio adjustment process, some old stocks were also reduced, mainly based on the future growth potential of the individual stocks and the horizontal comparison of fundamentals, making the portfolio more focused on cyclical sectors and high-growth stocks, with positive effects seen. Fu Pengbo mentioned that in the attribution of the market's rise in 2025, valuation contributions accounted for a large proportion, while profit growth of listed companies accounted for a small part, with the net profit growth of non-financial enterprises being slightly negative. It is expected that the valuation increase in 2026 is likely not as significant as that in 2025, so company performance growth and shareholder return are the core considerations in choosing stocks. As we enter April, whether the market and the value style can rise again, and whether the market can gradually shift towards pricing based on performance and cash flow, requires observation and contemplation. By referring to the annual reports of listed companies for 2025 and the first quarter report of 2026, the fund will continue to explore companies with good fundamentals and positive economic conditions.