Recently, the AI Fund Zhonggeng Value Leading Mixed Fund disclosed its first quarter report for 2026. As of the end of the first quarter, the fund's size was 5.02 billion yuan, with a profit of 249 million yuan and a weighted average fund share profit of 0.2023 yuan for the period. During the reporting period, the fund continued to be optimistic about the logic of profit recovery in the manufacturing industry, as well as sectors such as resources stocks represented by non-ferrous metals, and AI. There were 5 new stocks entering the top ten holdings, including Shanjin International becoming the largest heavy stock, and Zijin Mining rising to fourth place. As of the end of the reporting period, the net asset value per share of the Zhonggeng Value Leading Mixed Fund was 3.6570 yuan, with a net asset value growth rate of 7.41% during the reporting period, while the benchmark return for the same period was -2.48%. In terms of holdings, the fund's top ten largest holdings include: Shanjin International (000975.SZ), Hanlan Environment (600323.SH), Honglu Steel Structure (002541.SZ), Zijin Mining (601899.SH), Jiayou International (603871.SH), Shangtai Technology (001301.SZ), New City Holdings (601155.SH), Tencent Holdings (00700), Alibaba (09988), and China Merchants Bank (600036.SH). Shanjin International, Zijin Mining, Jiayou International, New City Holdings, and China Merchants Bank are the five new stocks entering the top ten. In terms of adjustments, Hanlan Environment and Shangtai Technology almost doubled their holdings, with the former maintaining its position as the second largest stock, while the latter dropped to sixth. In addition, the fund is optimistic about the impact of the AI industry wave, and increased its holdings in Tencent Holdings (00700) and Alibaba. In terms of reductions, the fund slightly reduced its holdings in Honglu Steel Structure. Fund manager Liu Sheng stated that he continues to be optimistic about the logic of profit recovery in the manufacturing industry, focusing on specific areas such as the chemical industry, other midstream industries, the new energy sector, etc. He also sees value in companies capable of harvesting value and growth during high prosperity periods, such as resource stocks represented by non-ferrous metals and AI sectors. He mentioned that the current resource prices are attracting new supplies, but the medium-term production capacity release still needs to see if enough production factors (mineral discoveries, energy, etc.) can be obtained. The current increase in production capacity has not worsened the balance sheet, and growing mining companies still have the opportunity to achieve "both quantity and price increase". In addition, the AI industry wave is still in full swing, and he will closely monitor the impact of industry development on all aspects. The capital market had a good start in 2026, with the resources and technology sectors rising together. However, volatility increased afterwards, with the risk premium of the CSI 800 shares rising to 0.33 standard deviations, the dividend yield of the CSI 800 at 2.4%, and the 10-year government bond yield at 1.82%. The dividend-to-bond ratio is at the 92nd percentile, indicating that the risk compensation level has decreased after the market rally, but equity assets are still advantageous, so active allocation is advised. He stated that the Hang Seng Index's price-to-earnings ratio (TTM) is 12.2 times, and the Hong Kong stock market has seen a significant divergence in recent months, with the Hang Seng Index oscillating at high levels and the Hang Seng Technology Index continuing to decline. The PB valuation of Hang Seng Technology has fallen below the median, indicating that it has potential for allocation value. Liu Sheng also pointed out that the market rose and then fell in the first quarter, and the fund's net asset value also fluctuated after rising. He believes that the impact may be limited, but the uncertainty of war may still bring tail risks, especially the longer the duration, the greater the impact on the macroeconomy and capital markets, requiring dynamic evaluation and adjustment. Even though there is short-term market uncertainty, he remains confident in the long term. In terms of future investment strategy, the fund will focus on value investing strategy, emphasizing fundamentals and valuation, correctly assuming risks, selecting investment opportunities with right-skewed risk-return characteristics and high expected returns, in order to build a portfolio and strive to obtain sustainable excess returns.