On July 15, Dongwu Fund's equity investment director and fund manager Liu Yuanhai disclosed the second quarter reports of several products under his management, showing his investment strategy. Among them, Dongwu Mobile Internet Flexible Allocation Hybrid Fund had an equity position of 91.1% by the end of the second quarter, with a net asset value increase of 11.41% for A shares and 11.35% for C shares. Another product managed by him, Dongwu New Energy Vehicle Stock Fund, had its equity position increased to 92.69% by the end of the second quarter, with a net asset value increase of 5.09% for A shares and 4.98% for C shares. Both products outperformed their benchmark returns for the same period. Liu Yuanhai stated that with the Shanghai Composite Index around 3000 points, the A-share market may be at a historically relative bottom area, and the long-term investment value is expected to be more prominent. He is relatively optimistic about the A-share market in the second half of 2024 and believes that there may be structural investment opportunities, focusing on technology and dividend assets. Dongwu Mobile Internet Hybrid Fund's net asset value increased by over 11%. Specifically, the second quarter report showed that the fund's equity position increased from 89.67% at the end of the first quarter to over 90% by the end of the second quarter, reaching 91.1%. Regarding fund performance, by the end of the second quarter, Dongwu Mobile Internet Hybrid A Fund's net asset value was 2.9108 yuan, with a growth rate of 11.41%; C Fund's net asset value was 2.8877 yuan, with a growth rate of 11.35%; outperforming the benchmark returns for the same period. The increase in performance led to a significant increase in scale, with the total scale of Dongwu Mobile Internet Hybrid Fund rapidly increasing from 21.52 billion yuan at the end of the first quarter to 37.05 billion yuan, a surge of 72.17%. In terms of position changes, the top ten heavy-weighted stocks of Dongwu Mobile Internet Hybrid Fund showed significant changes. The top ten holdings by the end of the second quarter were Luxshare Precision (002475.SZ), BYD Semiconductor (603986.SH), GoerTek (002241.SZ), Weir Shares (603501.SH), Injeel Xuchuang (300308.SZ), Shanghai Electric Shares (002463.SZ), New Yi Sheng (300502.SZ), Peng Ding Holdings (002938.SZ), Crystal Optoelectronics (002273.SZ), and Industrial Rich Union (601138.SH). Compared to the first quarter report, there was a substantial increase in holdings of Luxshare Precision, BYD Semiconductor, GoerTek, Weir Shares, Injeel Xuchuang, and Shanghai Electric Shares among individual stocks. Liu Yuanhai believes that in the second half of last year, the global electronic semiconductor industry's prosperity bottomed out and rebounded, which continued in the first quarter of this year. Looking at historical experience, during the upturn in prosperity cycle, it may be a good time to focus on electronic semiconductors. In addition, in the second quarter, overseas technology giants indicated at developer conferences that AI large models are expected to be implemented in smartphones, PCs, and AIOT (Internet of Things devices) and judged that the AI hardware era may be opening up, potentially driving a stronger-than-expected recovery in the global electronic semiconductor industry. He believes that A-share electronic semiconductors may be at a triple bottom: profit bottom, valuation bottom, and position bottom, and that the long-term investment opportunity of electronic semiconductors may be approaching. Looking ahead, Liu Yuanhai points out that as the current round of global technological innovation is driven by AI artificial intelligence, the core point of future technology stocks investment strategy may be embracing AI. Companies with high AI content may have greater investment opportunities. AI computing power has performed relatively strongly from last year till now, and the demand for AI computing power is expected to continue to grow rapidly, with potential investment opportunities still existing. At the current point in time, he is more focused on investment opportunities in AI applications, including: (1) AI large models landing at the edge driving the opening of the AI hardware era, investment opportunities: electronic semiconductors, etc.; (2) the application of AI technology in the intelligent driving field, investment opportunities: the automotive intelligent driving industry chain, etc.; (3) AI humanoid robots; (4) software companies embracing AI. In the medium-term, he is more concerned about the investment opportunities that the first two AI applications may bring. Dongwu New Energy Vehicle Stock Fund increases holdings in CATL and Desai Sevi The second-quarter report shows that Dongwu New Energy Vehicle Stock Fund's equity position is also increasing, from 90.79% at the end of the first quarter to 92.69%. In terms of fund performance, by the end of the second quarter, Dongwu New Energy Vehicle Stock A Fund's net asset value was 1.0485 yuan, with a growth rate of 5.09%; C Fund's net asset value was 1.0383 yuan, with a growth rate of 4.98%; outperforming the benchmark returns for the same period. Regarding the increase and decrease in holdings, four stocks including Injeel Xuchuang, Ideal Car-W (02015), Bertli (603596.SH), and Xiaopeng Car-W (09868) dropped out of the top ten holdings list of Dongwu New Energy Vehicle Stock Fund. In contrast, the newly added top ten heavy-weighted stocks are BYD Semiconductor, BYD Semiconductor, Peng Ding Holdings, and Shanghai Electric Shares. In addition, the fund reduced its holdings of Luxshare Precision and Weir Shares, while increasing holdings in CATL and Desai Sevi. Liu Yuanhai stated that recently, top new energy vehicle companies have begun to scale up their FSDV12 version fully autonomous driving software in North America, with good user experience, and autonomous driving may usher in a chatGPT moment, with autonomous assisted driving functions expected to become a key decision factor for consumers buying new energy vehicles. In the second half of 2024 or 2025, China's intelligent automotive industry trend is expected to transition from the 0-1 incubation stage to the 1-N growth stage, and investment opportunities in the automotive intelligence industry are still relatively optimistic for the second half of this year. He predicts that over the next 3-5 years, intelligence is expected to be a major development direction for major car manufacturers, so companies along the automotive intelligence industry chain are likely to benefit from this industry trend. Therefore, the fund will continue to focus on automotive intelligence as a key area of interest and pay attention to investment opportunities that may arise from the digestion of electrification capacity and the opening up of the European and American markets.