On April 21, Yinhe Fund released the first quarter report of its fund for 2026. The report for the Yinhe Xinyi Flexible Allocation Fund, managed jointly by renowned fund managers Li Xiaoxing and Zhang Ping, showed that as of the end of the first quarter of 2026, the top ten heavy-holdings of the Yinhe Xinyi fund were: Ningde Times (300750.SZ), Tencent Holdings (00700), Alibaba-W (09988), Hikvision (688041.SH), SMIC (00981), Kingsoft Cloud (03896), Jiangsu Hengrui Medicine (600276.SH), Huahong Semiconductor (01347), Industrial Fulian (601138.SH), and Guizhou Maotai (600519.SH). Compared with the end of the fourth quarter of 2025, Ningde Times, Hikvision, Kingsoft Cloud, Hengrui Medicine, Huahong Semiconductor, Industrial Fulian, and Guizhou Maotai have become the top ten heavy-holdings of the fund, as Focus Media, Shenzhou International, Yili Shares, Luzhou Laojiao, and Wuliangye have exited the top ten heavy-holdings. In terms of position, as of the end of the first quarter of 2026, the stock position of the fund was 93.98%, an increase of 5.43 percentage points from the end of the fourth quarter of 2025. In terms of performance, as of the end of the first quarter, the net asset value of Yinhe Xinyi Flexible Allocation Hybrid A Fund was 2.6790 yuan, with a net asset value growth rate of -11.31%; the net asset value of Yinhe Xinyi Flexible Allocation Hybrid C Fund was 2.6121 yuan, with a net asset value growth rate of -11.44%; the benchmark return rate was -2.22%. Li Xiaoxing stated in the quarterly report that at this point, we believe that the overall market risk is not high. Some prosperous sectors contain many investment opportunities. We will maintain a relatively high position and select stocks with reasonable valuation. AI is still the main theme of global technological innovation. Investment in AI computing power in North America is still in an accelerated period, with large companies expected to have a high certainty in computing power construction in the next two years. The iterative development of large models on the training side continues, and the demand for tokens driven by reasoning side represented by Agents has surged, with global computing power demand yet to see a ceiling. The current computing power is in short supply, and we are optimistic about bottleneck links with high performance realization in the supply chain. This year is a year of qualitative change in domestic large-scale model capabilities, with domestic investment in computing power lagging behind overseas, and the computing power gap is continuing to widen. With the trend of domestic super nodes, there are investment opportunities in domestic computing chips, servers, and other supporting facilities. Li Xiaoxing said that the capital expenditure of domestic internet companies is also showing synchronous rapid growth. It is expected that the performance of domestic internet giants will maintain stable growth. With the increasing percentage of income and profit driven by AI, the performance and valuation are expected to achieve a double increase. Currently, the valuation is still in a reasonable range, and Hong Kong-listed tech giants may resonate with industrial trends and fundamental trends. In terms of emerging sectors, robot, commercial aviation, solid-state batteries, low-altitude economy, controllable nuclear fusion, and other new directions are expected in the long term, but the relative stock price positions are high. Therefore, we will choose targets with relatively solid fundamentals and enter when the stock price is relatively low. Li Xiaoxing believes that since the beginning of this year, the consumption industry as a whole has shown a weak recovery. After several years of industry adjustments, many companies are gradually emerging from their own adjustments and showing strong alpha. In our thinking, we will shift our focus from focusing more on the beta of tracks to focusing on the alpha of companies. Looking ahead to 2026, we will have a more diverse investment approach in consumption, reduce reliance on macroeconomic recovery, continue to strengthen our deep exploration of growth directions, such as travel, outbound, innovative medicine, AI+, cost-effectiveness, emotional consumption, etc., supplemented by some dividend and cyclic stocks as core positions.