Since the very first batch of industry pilots, Huashang Fund has been deeply committed to the field of floating management fee products, consistently anchoring its approach in active management capabilities and tightly aligning product design with investor interests. It is understood that the company's newly launched floating management fee product, the Huashang Times Select Mixed Fund (A: 028605, C: 028606), will conclude its subscription period on September 11. The product is set to be managed by Ye Feng, Assistant General Manager of the Research and Development Department at Huashang Fund, who is expected to leverage a long-term investment perspective to select high-quality companies with strong competitiveness, striving to deliver a favorable long-term holding experience for investors.

Three Anchors for Stock Picking, Seeking Balance Amid Change

Ye Feng, the proposed fund manager for Huashang Times Select Mixed Fund, brings nearly nine years of securities industry experience, including four years in securities investment. His core investment philosophy can be summarized as "upholding value, embracing change, and managing portfolios with a dynamic balancing approach." Through years of frontline investment practice, he has focused on expanding his multi-dimensional competence circle, delving into industries such as TMT, consumer, manufacturing, and cyclical sectors. He leans toward a steady, long-term investment style, selecting high-quality targets from the bottom up, aiming to grow alongside quality enterprises based on deep understanding of individual stocks and industries, and create long-term returns for holders.

Ye Feng, holding a master's degree from Peking University, serves as Assistant General Manager of the Research and Development Department at Huashang Fund, fund manager of Huashang Core Gravity Mixed Fund and other products, and is the proposed manager for Huashang Times Select Mixed Fund. When it comes to how to select stocks, Ye Feng elaborated that the approach revolves around three "knowable" anchors. First, assessing the relative position of the industry cycle, starting from a meso-level industry perspective to position ahead of the curve or closely track shifts in prosperity, striving to capture fast-growing niche leaders at the critical tipping point of industry expansion. Second, adhering to long-term, in-depth fundamental research, filtering out short-term market deviations through continuous tracking of outstanding companies, and steadily expanding the pool of quality long-term companies. Third, grounding stock selection in valuation considerations, integrating pricing levels across short, medium, and long-term horizons, and combining different market environments to persistently seek out undervalued assets. These three anchors reinforce each other, collectively forming a replicable and iterative stock selection framework.

Looking ahead to the second half of the year, Ye Feng believes that at the macro level, overseas monetary policy may see some easing in pessimistic rate hike expectations, though the policy direction of the new Fed administration still warrants close observation, and stock prices may already reflect a considerable amount of pessimistic expectations. Domestic policies continue to unfold, and the likelihood of major shifts in pro-cyclical sectors appears limited for now. Many industries are approaching the bottom of natural consolidation, yet no clear reversal or upward trend has emerged. After the extreme market moves in the first half of the year, market volatility is entering a brief rebalancing phase, with both sectors and styles seeing some degree of equilibrium. However, themes centered around industrial mainlines may still be the best choice after this brief period of balance. In this process, AI industry progress, competitive dynamics across various segments of the supply chain, and supply-demand conditions will be the primary directions to watch moving forward.

Floating Management Fee Design, Backed by Active Management Strength

The currently launching Huashang Times Select Mixed Fund is designed with a clear focus on genuinely enhancing investor experience, linking the fee structure to performance returns and holding periods. On one hand, this mechanism helps encourage investors to hold for the long term, avoiding risks from irrational trading, thereby improving the overall investment and holding experience. On the other hand, it strengthens the anchoring role of the performance benchmark on the investment side, continuously honing professional research and investment capabilities, ultimately achieving a deep alignment of interests between fund holders and managers, and fostering a long-term win-win outcome.

Specifically, when investors hold the fund for less than one year (365 days), the fund charges a management fee at an annual rate of 1.20%. When the holding period reaches one year or more, the management fee rate is determined in three tiers based on the difference between the annualized return over the holding period (R) and the annualized return of the performance benchmark over the same period (Rb) (see table below for details).

Floating Management Fee Structure

Notably, thanks to two decades of unwavering dedication to active management, Huashang Fund's medium-to-long-term investment strength has continued to earn recognition from professional evaluation institutions and the market. According to fund evaluation institution data, as of June 30, 2026, the absolute return of Huashang Fund's active equity funds over the past seven years reached 477.49%, ranking 4th among 128 fund companies. In the Tianxiang Investment Consulting AAAAA-rated fund management company report for the second quarter of 2026, Huashang Fund received the highest rating of 5A for "Fund Management Company Three-Year Comprehensive Rating." The floating management fee ties investor interests to those of the manager, and Huashang Fund's consistently leading active management capabilities, combined with fund manager Ye Feng's investment philosophy of "upholding value and embracing change," provide a solid foundation for this mutual benefit.

The Huashang Times Select Mixed Fund concludes its subscription period on September 11, inviting long-term investors to join the journey toward lasting success.

Data Notes: The subscription period for Huashang Times Select Mixed Fund runs from August 24, 2026, to September 11, 2026. Excess return represents the portion of fund returns exceeding the performance benchmark over a specified time period. As of June 30, 2026, Ye Feng has 8.9 years of securities industry experience, including 4.4 years of securities research experience and 4.0 years of securities investment experience. Ye Feng's fund management history includes: Huashang Core Gravity Mixed Securities Investment Fund (from May 27, 2025, to present), Huashang Wanzhong Innovation Flexible Allocation Mixed Securities Investment Fund (from May 27, 2025, to present), and Huashang Quality Select Mixed Securities Investment Fund (from January 27, 2026, to present). The information in this article reflects only the fund manager's investment philosophy; the fund's investment strategy is detailed in the fund's legal documents. The fund manager's views are drawn from the 2026 interim report and semi-annual report of products managed by Ye Feng. The investment directions highlighted by the fund manager in this article are assessments based on current market conditions and may adjust as market conditions evolve; specific investment strategies are outlined in the fund's legal documents. Fund company rankings, ratings, and absolute return data are published by fund evaluation institution Guotai Haitong Securities in July 2026, with data as of June 30, 2026, evaluated in accordance with the Interim Measures for the Evaluation of Securities Investment Fund Business. Public offering fund net values are released after verification by custodians. Huashang Fund's active equity funds rank 4/128 in absolute return over the past seven years. Fund management company absolute return refers to the net value growth rate of active funds managed by the company, weighted by average managed assets during the period. Active equity funds include active stock open-ended, aggressive mixed, partial equity mixed, balanced mixed, flexible mixed, flexible strategy mixed, and active hybrid closed-end funds, excluding index funds, life-cycle mixed, partial bond mixed, Hong Kong stock flexible strategy mixed, Hong Kong stock partial equity mixed, Hong Kong stock aggressive mixed, and QDII funds. The AAAAA rating data is published by fund evaluation institution Tianxiang Investment Consulting in July 2026, with three-year rating data as of June 30, 2026, evaluated in accordance with the Interim Measures for the Evaluation of Securities Investment Fund Business. Tianxiang's comprehensive fund management company rating is based on analysis and assessment of three major aspects: fundamental strength, investment management capability, and company stability (including compliance), ranking fund management companies from highest to lowest based on overall strength composite scores, divided equally into five grades from AAAAA to A. Subscriptions/purchases of Class A fund shares through direct sales channels are exempt from subscription/purchase fees. Subscriptions/purchases of Class A fund shares through agency channels require payment of subscription/purchase fees. Class A fund shares do not incur sales service fees, while Class C fund shares carry a sales service fee rate of 0.4% per year. Subscriptions/purchases of Class C fund shares through direct sales channels are exempt from sales service fees. For subscriptions/purchases of Class C fund shares through agency channels with a continuous holding period exceeding one year (365 days), the ongoing sales service fees are returned to investors along with redemption, conversion, or liquidation proceeds upon redemption, conversion, or fund contract termination.

Risk Disclosure: The fund manager pledges to manage and use fund assets with integrity, diligence, prudence, and diligence, but does not guarantee fund profitability or minimum returns. Past fund performance and net value levels do not indicate future performance. Performance of other funds managed by the fund manager does not constitute a guarantee of fund performance, and the fund manager's past performance does not constitute a guarantee of new fund performance. This fund's management fee consists of a fixed management fee, contingent management fee, and excess management fee. The contingent management fee and excess management fee depend on the holding period and annualized return level of each fund share, so investors cannot predetermine the overall management fee level at the time of subscription/purchase. When calculating fund share net value, the management fee is calculated at an annual rate of 1.20%, which may be higher or lower than the final applicable management fee rate. Actual redemption or liquidation proceeds received by investors may differ from results calculated based on disclosed fund share net values; please refer to data confirmed by the registration institution. The floating management fee model does not represent a guarantee of fund returns. If the fund invests in Hong Kong Stock Connect eligible stocks, it also bears exchange rate risks and risks of overseas markets. When purchasing this fund, investors should carefully read fund legal documents including the fund contract, prospectus, and fund product summary. Markets carry risks, and fund investment requires caution. Investors are advised to choose products that match their risk tolerance and investment objectives.