Recently, Shi Cheng, a fund manager under Guotou UBS, released the first quarter report of 6 products under management. The first quarter data showed that the net asset value of the 6 funds in the first quarter all fell by more than 7%, with Guotou UBS Industrial Upgrading Fund, held for two years, experiencing a net asset value decline of 9.71%, resulting in a total profit loss of 1.086 billion yuan. The first quarter data also showed that the scale of funds managed by Shi Cheng had decreased compared to the end of 2023, with the total scale of the 6 products mentioned being 11.565 billion yuan. As of the end of last year, the total scale of these 6 products was 12.917 billion yuan, a decrease of 13.52% overall. The largest product in terms of scale at the end of the quarter was Guotou UBS New Energy. In terms of holdings, as of the end of the first quarter, the top ten holdings of the 6 products under Shi Cheng's management were mainly in leading new energy stocks. The top ten holdings of the 6 products were highly similar, with stocks such as Contemporary Amperex Technology (CATL), Tianqi Lithium, Ganfeng Lithium, EVE Energy, TCMI, China Molybdenum, and Kstar New Energy frequently appearing in the top ten positions. In addition, there were significant changes in the top ten holdings of Guotou UBS Industrial Upgrading Fund, with 4 stocks being replaced. The first quarter report showed that Biwei Storage, Acole, LPRouting Auto, and Systest Electronics all entered the top ten holdings of the product. Among the new top ten holdings, Biwei Storage and Systest Electronics are both semiconductor stocks. In the first quarter report, Shi Cheng stated that industries with performance growth, represented by new energy, had reached the end of their overall profit decline after experiencing a revaluation in 2022 and a decrease in profits in 2023. The speeding up of demand is also on the way, and he is optimistic that companies will be able to fulfill their growth potential in 2024-2025. Shi Cheng believes that in the second quarter, with the stabilization of upstream resources and midstream chemical prices, the lithium battery industry is expected to enter a restocking cycle, with the sector's valuation and profit expected to rise; the supply-demand pattern of the photovoltaic sector is expected to see a systematic reversal later than the lithium battery sector, with investment opportunities mainly concentrated on certain segments with good growth potential and cost advantages in leading auxiliary materials and new technologies entering the volume stage. Long-term growth potential is also seen in post-cycle sectors such as charging piles, energy storage, hydrogen energy, and the power grid, which are also more likely to receive policy support. After the overall correction of small and medium market values in January, some companies with good growth logic have become more attractive from an investment perspective; the new energy generation industry, supported by government policies, is seeing an increase in demand expectations, leading to a repair in supply at certain links such as glass, film, and tracking brackets, which are expected to have a good outlook; the inventory of new energy vehicles has been significantly digested, combined with a significant price decline, which is expected to significantly stimulate market demand in the next 1-2 years. In addition, Shi Cheng also expressed optimism about the TMT industry in the first quarter report. The current infrastructure construction for AI is progressing rapidly, and applications are expected to erupt after the peak of capital expenditure in the past two years. He sees great potential in new intelligent terminals in the TMT industry, with mixed reality (MR) likely to become a notable new product. The electronic industry will also see new capital expenditure and profit enhancement as a result, and he is also paying attention to the progress of smart cars and new developments in robotics.