On July 17th, the second quarter report of several products under Ruiyuan Fund was disclosed. Among them, the second quarter report of Ruiyuan Balanced Value Three Year Holding Fund managed by Zhao Feng showed that China Mobile (00941) is still the largest holding stock, but the number of shares held has decreased to 17.5 million, marking the 5th consecutive quarter of reduction. In addition, Sinopec Electric (002028.SZ) has also been reduced for the second consecutive quarter, with a nearly half decrease in the position. The number of shares held in CATL (300750.SZ), SINNOVA Bio (300298.SZ), Wanhua Chemical (600309.SH), Weiming Environmental Protection (603568.SH), and PICC (02328) have increased compared to the previous period, while Tencent (00700) remains unchanged. Furthermore, China Taiping (02601) has entered the top ten major holding stocks, and CR Beer (00291) has exited. Zhao Feng stated that in the second quarter, we continued to adjust our portfolio structure, reducing holdings in targets with slowing growth, high valuations, weak free cash flow, as well as resource companies with high market expectations and large stock price increases, and increasing holdings in undervalued targets with excellent free cash flow and stable business prospects. China Mobile remains the largest holding stock Specifically, the second quarter report shows that the equity investment position of Ruiyuan Balanced Value Three Year Holding Fund reached 87.21% by the end of the second quarter. In terms of additions and reductions, China Mobile remains the largest holding stock of Ruiyuan Balanced Value Three Year Holding Fund, but the number of shares held has decreased to 17.5 million, marking the 5th consecutive quarter of reduction. In addition, Sinopec Electric has been reduced for the second consecutive quarter, with a nearly half decrease in the position. The number of shares held in CATL, SINNOVA Bio, Wanhua Chemical, Weiming Environmental Protection, and PICC have all increased compared to the previous period, while Tencent's holdings remain unchanged. Additionally, China Taiping has entered the top ten major holding stocks, while CR Beer has exited. In terms of fund net value, by the end of the second quarter, the net asset value of Ruiyuan Balanced Value Three Year Holding Mixed Fund A was 1.1949 yuan, with a net increase rate of 4.12% in the second quarter, compared to a benchmark return rate of 0.69% during the same period. The net asset value of Ruiyuan Balanced Value Three Year Holding Mixed Fund C was 1.1795 yuan, with a net increase rate of 4.06% in the second quarter, compared to a benchmark return rate of 0.69% during the same period. Zhao Feng pointed out that in the second quarter, risk aversion sentiment in the market rose, leading to further differentiation in stock performance. With rising stock prices, the implied returns of state-owned large banks, energy companies in areas such as coal and oil, and telecommunications operators continued to decline, as investors seemed less concerned about the business models and profit stability of related companies, instead focusing on short-term cash returns. Considering the quality of earnings and long-term potential, the current trend of chasing high-dividend companies seems to have some bias towards non-value-oriented perspectives. On the contrary, Zhao Feng believes that some truly leading companies in their industries, with their stock prices stagnant, now have dividend yields that are approaching or exceeding risk-free rates (if current bank financial products and long-term government bond rates are considered as risk-free rates), taking into account the growth potential and excellent business models of some of these companies, their implied long-term return levels may already be significantly higher than some of the high dividend companies currently favored by the market. Due to concerns about future uncertainties, the market currently shows a strong aversion to risk and growth, but in the long term, enterprises with truly global competitiveness are likely to be able to withstand challenges in the future operating environment, navigate through cycles, and continue to create value.