Recently, Guotou UBS Fund Management Co., Ltd. disclosed the second quarter reports of some of its public funds, and the famous fund manager Shi Cheng's products under its management have successively suffered losses. It is reported that, during the market boom of the new energy sector from 2020 to 2021, he had heavily bet on new energy and gained fame. According to statistics, the profits of the 6 funds managed by Shi Cheng are all negative, with a total loss of nearly 1.749 billion yuan in the second quarter of 2024; combined with the nearly 1.086 billion yuan loss in the previous quarter, in the first half of this year, the total profit of these 6 funds is as high as 2.835 billion yuan. Among them, Guotou UBS New Energy performed the worst, with a cumulative loss of -961 million yuan in the first half of the year. After 2022, the market style changed and new energy stocks continued to plummet, entering a long adjustment period, resulting in severe losses for related thematic funds. Looking at the performance report of the Guotou UBS New Energy Hybrid Fund under its products, as of the end of the reporting period, the net asset value of Class A shares of the fund was 1.2737 yuan, and the net asset value of Class C shares was 1.2504 yuan. The net asset value growth rate of Class A shares in this reporting period was -15.45%, and the net asset value growth rate of Class C shares was -15.53%; the benchmark return rate for the same period in this reporting period was -7.08%. The report mentioned that in the new energy vehicle sector, the destocking cycle has ended, and the steep drop in prices will stimulate demand in the next 1-2 years. Domestic demand still has potential, and there is a large demand space overseas, but it needs good market logic to guide. The mismatch between supply and demand may occur as early as the third quarter of this year. Due to the halt in growth in some links of supply, and even a decrease in production capacity, the probability of price increases in the next year is high. With the recovery of demand, the industry leaders will continue to perform well in the future. Currently, the outlook for the magnitude of this upturn cycle remains relatively optimistic. With significant price declines and continuous technological advancements, the cost-effectiveness of products has also significantly improved. The average use of end-products is likely to show systemic growth, and new application areas have begun to emerge. However, the biggest risk comes from the impact of overseas political factors on the global market. In addition, the new energy generation industry has seen an increase in demand due to policy support. However, the slowdown in supply will not occur until the end of 2023, so the process of reducing overcapacity will be a long one, and profitability is difficult to expect. The profitability of components is expected to reach its lowest point this year. Grid parity for solar energy has begun to appear in other regions around the world, so the acceleration of photovoltaic substitution for traditional energy sources is occurring, and the integration issue will bring about an explosion in energy storage. It is believed that in the second half of the year, opportunities for investment in photovoltaics and energy storage will emerge first. In the performance report, Shi Cheng mentioned that in the growing industries represented by new energy, some links have already shown a rebound in profitability in 2024. The acceleration of new demands such as energy storage and heavy-duty trucks is also on the way, and he is optimistic that companies will realize growth in 2024-2025. As of the end of the reporting period, its top ten holdings are as follows: In addition, another fund product under its management, Guotou UBS Advanced Manufacturing Hybrid, had a net asset value of 1.6255 yuan in the second quarter, with a net asset value growth rate of -15.58%, a profit of approximately -340 million yuan for this period, and a net asset value of approximately 1.83 billion yuan at the end of the period. The top three holdings of this product are also similar to those of the Guotou UBS New Energy Hybrid, including CATL (300750.SZ), EVE Energy (300014.SZ), and Kodali (002850.SZ).