On April 22, Hu Xinwei, the "Consumption God" of Huatai Fund, revealed the operating situation in the first quarter. As of the first quarter of 2024, the management scale of Hu Xinwei was 36.416 billion yuan, which is 8.11 billion yuan lower compared to the 37.227 billion yuan at the end of the fourth quarter of 2023, a decrease of 2.18%. His representative fund, Huatai Fund Consumer Industry, made a profit of 327 million yuan in the first quarter of 2024, which is 1.702 billion yuan more profitable than the fourth quarter of 2024 (-13.75). Stocks accounted for 92.37% of the total assets of the fund, slightly higher than the 91.48% in the fourth quarter of 2023. During the reporting period, the top ten heavy-weighted stocks in the consumer industry of Huatai Fund include Guizhou Maotai, Luzhou Laojiao, Shanxi Fenjiu, Wuliangye, Haier Smart Home, Gujing Tribute, Jingshengyuan, Anjing Food, Yingji Tribute, and Midea Group. Compared to the fourth quarter of last year, only Midea Group was newly added. Among them, Huatai Fund's mixed consumer industry increased its holdings of Guizhou Maotai, Luzhou Laojiao, Anjing Food, Yingji Tribute, and Midea Group in the first quarter, while reducing holdings of Shanxi Fenjiu, Wuliangye, Haier Smart Home, and Jingshengyuan. The holdings of Gujing Tribute remained unchanged compared to the end of last year. It is worth noting that the consumer industry of Huatai Fund increased its holdings of Midea Group significantly in the first quarter, making it one of the top ten heavy-weighted stocks. Compared to the end of last year, the holdings in the first quarter increased by approximately 1.78 million shares. In the quarterly report, Hu Xinwei stated that in the first quarter of 2024, the domestic consumption industry continued to show a weak recovery trend. Overall, consumer expectations were weak and confidence was lacking. However, there were some bright spots in the domestic consumption industry in the first quarter, such as a good consumption atmosphere during the Spring Festival, impressive performance in certain sectors like tourism, domestic cosmetics, etc. In the first quarter, the overall performance of the consumption sector was a bit subdued. Before the Spring Festival, the market maintained its pessimistic expectations for the Chinese economy and consumption that had continued since the fourth quarter of 2023, but with relatively good consumption data during the Spring Festival, market confidence in the consumption sector was restored. Overall, the consumption industry may need more time to emerge from the bottom. Hu Xinwei believes that the valuation of many consumer companies is attractive. Additionally, with stock price adjustments, more and more consumer companies are increasing dividend payouts or buybacks to reward shareholders, highlighting the value bottom. Therefore, we focus on the medium to long term and maintain a relatively stable holding structure. In the first quarter, we increased the allocation in industries such as food and beverage, household appliances, agriculture, forestry, animal husbandry and fishery.