Recently, the Ruifeng Balanced Value Three-Year Holding disclosed its first quarter report managed by Ruifeng Fund's Zhao Feng. In terms of performance, as of the end of the reporting period, the net asset value of Ruifeng Balanced Value Three-Year Holding Hybrid A Fund was 1.6438 yuan, with a net asset value growth rate of -3.67% during the reporting period. The benchmark return rate for the same period was -3.41%; as of the end of the reporting period, the net asset value of Ruifeng Balanced Value Three-Year Holding Hybrid C Fund was 1.6140 yuan, with a net asset value growth rate of -3.74% during the reporting period. The benchmark return rate for the same period was -3.41%. Specifically, the top ten heavily weighted stocks held by Ruifeng Balanced Value Three-Year include: Ningde Times (300750.SZ), Tencent Holdings (00700), Midea Group (000333.SZ), Weiming Environmental Protection (603568.SH), Luxshare Precision (002475.SZ), China Life Insurance (02601), ZTO Express-W (02057), TCL Technology (000100.SZ), CR Vanguard Lifestyle (01209), and Gree Electric Appliances (000651.SZ). Among them, ZTO Express and TCL Technology entered the top ten holdings for the first time. Compared to the end of 2025, Zhao Feng increased his holdings of ZTO Express by 600,000 shares during the first quarter of 2026; and after initiating a position in TCL Technology in the second half of 2025, he further increased his holdings by 43 million shares in the first quarter of 2026. In addition, Zhao Feng also increased his holdings of Tencent, Midea, and Luxshare Precision; and reduced his holdings of companies like Ningde Times, Weiming Environmental Protection, and China Life Insurance to varying degrees. Regarding the specific operations of adjusting holdings, Zhao Feng analyzed in the quarterly report that the main industries he reduced holdings in are insurance, media, and local services; while the industries he increased holdings in are display panels, white goods, and pharmaceuticals. After a significant increase in insurance stocks last year, the PB ratio of major insurance companies has returned to above 1, and the fluctuation in quarterly financial profitability has increased significantly, making the risk-return level less attractive. The struggle for market share in local services, although the intensity has decreased, has not ended, and with changes in market share, the long-term profitability level of industry participants may decline, requiring reevaluation. Zhao Feng believes that after years of intense competition in the display panel industry, the global industry concentration has significantly increased, with the top two companies in China having a market share of nearly 60%, and the top four companies having a market share of over 70%. In addition, the increase in supply has basically stalled, and with the process of TV screen enlargement, the supply-demand relationship continues to improve; from the perspective of free cash flow level of TFT-LCD assets, the valuation level is in a very attractive position. Furthermore, Zhao Feng stated that the competition in the white goods industry has been relatively stable, with industry players demonstrating strong profitability. Although domestic demand growth is slowing down and there is a risk of subsidy overspending, the overseas self-owned brand business is in the early stages of rapid growth, which may bring faster revenue growth in the coming years. Combined with low valuation levels and attractive levels of dividends and buybacks, it is a good long-term holding variety. The geopolitical disturbances and oil price fluctuations caused by the US-Iran conflict in the first quarter put significant pressure on the Hong Kong market. External disturbances are risks that are almost impossible to predict in the investment process, and fund managers can only try to minimize the impact on net asset value from these disturbances in two ways. First, maintaining a relatively low portfolio valuation level with a certain safety margin. When external risks come, low valuation may provide some protection, especially in markets dominated by domestic funds, even in the event of sudden risks, capital has hedging needs, and low valuation standards may benefit relatively. Second, making efforts to evaluate the long-term and deterministic impact of unexpected events and adjusting the portfolio accordingly. The market reacts quickly in the short term, and the impact of events often immediately reflects on the rise and fall of different industries and sectors, but this includes a mix of short-term and long-term, real and narrative influences, and the market usually overreacts to short-term and narrative factors, and underreacts to long-term and real factors, therefore, conducting analysis and research afterwards, distinguishing between different factors will help improve the future performance of the portfolio. After the US-Iran conflict, they believe that the resilience shown in the fundamentals of the Chinese economy will increase the attractiveness of global funds, and the future global energy supply will be more diversified in terms of sources and geography. The advantages of industry chain integrity will become more apparent, and China is in a very favorable position in these aspects. They still maintain a long-term optimistic view on the Chinese equity market. After adjustments in the first quarter, the valuation level has fallen, and the attractiveness of potential long-term returns has increased. After the short-term impact of recent events, the equity market will return to consideration of long-term fundamentals.