HuaShang Fund, which received the "Golden Bull Award for Active Equity Investment Fund Company" in December 2025, will launch its second variable management fee product—the HuaShang Core Preferred Hybrid Fund (A: 026430, C: 026431)—starting February 26. The fund will be managed by Wang Yiwen, Assistant General Manager of the Equity Investment Department at HuaShang Fund. It aims to leverage the company's active management strengths and a new fee mechanism that links management fees to investor returns, striving to help investors share in the benefits of China's high-quality economic development while enhancing their investment experience.

According to the fund's legal documents, the performance benchmark for the HuaShang Core Preferred Hybrid Fund is 60% CSI A500 Index return rate, 20% ChinaBond Composite Total Price Index return rate, and 20% CSI Hong Kong Stock Connect Composite Index return rate. The fund's variable management fee structure ties the management fee to both the investor's holding period and the fund's performance during that period. Specifically, if the holding period is less than one year, the annual management fee is 1.20%. If the holding period reaches one year or more, the management fee will be determined based on the annualized return (R) relative to the benchmark's annualized return (Rb): if the excess annualized return (after deducting excess management fees) exceeds 6% and the holding return (after deducting excess management fees) is positive, the fee is 1.50%; if the annualized excess return is -3% or lower, the fee is 0.60%; in other cases, the fee remains at 1.20%. This design aims to align the interests of the fund manager and investors, enhancing long-term investor satisfaction.

Wang Yiwen, the proposed fund manager for the HuaShang Core Preferred Hybrid Fund, currently serves as Assistant General Manager of the Equity Investment Department at HuaShang Fund, with nearly 13 years of experience in the securities industry (including 7.3 years in securities research and 5.6 years in securities investment). He joined HuaShang Fund in 2013 as a researcher, covering machinery, home appliances, and small to mid-cap stocks, later serving as team leader for industrial and consumer sectors, and gradually growing into an experienced equity fund manager. His diverse industry experience has shaped his value-growth investment strategy centered on mid-level industry research—selecting sectors from an industry evolution perspective and picking stocks with a long-term holding mindset.

Through years of investment practice and reflection, Wang Yiwen has developed his own investment strategy: "using core assets as the foundation and enhancing returns through industry cycles." He believes economic development is driven by successive industry cycles, with different asset return characteristics at each stage. Core assets, as the "sub-optimal choice" over a full cycle, offer quality, controlled risk, high liquidity, and large capacity, providing solid foundational support. Dominant industries within cycles, as the "optimal choice," offer greater elasticity and can enhance returns. Combining both can effectively improve the risk-return profile of a portfolio.

Wang Yiwen indicated that the current market may be in the mid-phase of an upward trend driven by a new industry cycle. In his view, the dominant industry in this cycle is artificial intelligence, encompassing computing power (semiconductor equipment materials, GPU chips, storage, optical communication, liquid cooling, etc.) and AI applications (humanoid robots, autonomous driving, industrial AI, agents, etc.). Core assets focus on non-ferrous metals, basic chemicals, non-bank finance, machinery equipment, and power equipment.

Amid increasingly complex market conditions, the HuaShang Core Preferred Hybrid Fund, backed by HuaShang Fund's solid research capabilities, strong active management, and innovative variable fee structure, offers investors a new pathway to benefit from China's high-quality growth while improving long-term investment satisfaction.

The subscription period for the HuaShang Core Preferred Hybrid Fund runs from February 26, 2026, to March 18, 2026. The fund's Class A shares purchased through direct sales channels incur no subscription fee, while those through agency sales channels require a fee based on amount: 0.8% for amounts under 3 million yuan, 0.6% for 3-5 million yuan, and a flat 1,000 yuan for 5 million yuan or more. Class C shares have no subscription fee. Redemption fees vary by holding period: 1.50% for under 7 days, 1.00% for 7-30 days, 0.50% for 30-180 days, and none for 180 days or more. Class A shares have no service fee; Class C shares have a 0.4% annual service fee, waived for direct sales or refunded after one year.

Investors are reminded that fund performance is not guaranteed, and management fees may vary based on holding period and returns. Investments involve risks, including potential loss of principal. Please review the fund's legal documents before investing.