China Post Zhongzheng 500 Index Enhancement Annual Report Interpretation: Share Contraction of 26.77%, Net Profit Surges 80.43%, Management Fee Slightly Decreases

Key Financial Indicators: Significant Increase in Net Profit, Slight Decrease in Net Assets

In 2025, China Postal CSI 500 Index Enhanced A/C Shares achieved a total net profit of ¥13,178,792.56, up 80.43% from ¥7,304,286.24 in 2024. The total net assets at year-end were ¥54,780,259.43, a decrease of 6.45% from ¥58,558,292.42 at the end of 2024. The total fund shares decreased from 49,032,345.11 shares at the end of 2024 to 35,907,456.12 shares, a reduction of 26.77%.

Net Asset Value Performance: Underperforming Benchmark Annually, Long-term Excess Returns Notable

Annual Performance: Both A and C Shares Underperform Benchmark

In 2025, the net asset value growth rate of China Postal CSI 500 Index Enhanced A shares was 27.79%, compared to a benchmark return of 28.81%, underperforming by 1.02 percentage points; C shares grew 27.40%, underperforming by 1.41 percentage points. The standard deviation of net asset value growth rates for both share classes was 1.05%, below the benchmark’s 1.20%, indicating good volatility control.

Long-term Performance: Clear Excess Returns Over Three Years

Over the past three years, Class A shares achieved a NAV growth rate of 32.02%, versus 26.25% for the benchmark, exceeding by 5.77 percentage points; Class C shares grew 30.82%, exceeding the benchmark by 4.57 percentage points. Since the fund’s inception (December 25, 2019), Class A’s cumulative NAV growth was 54.68%, compared to 43.05% for the benchmark, an excess of 11.63 percentage points; Class C’s cumulative growth was 52.08%, exceeding by 9.03 percentage points.

Investment Strategy and Operations: Quantitative Model Optimization, Focus on Prosperous Sectors

Annual Operation Analysis

In 2025, the market showed a “rise-fall-rise” pattern, with growth sectors (computing power, non-ferrous metals, pharmaceuticals, etc.) leading gains, while value styles lagged. The fund continued using a multi-factor quantitative stock selection model, optimizing factor choices and weightings, diversifying holdings to control style exposure, and reducing tracking error. The daily tracking deviation never exceeded 0.5, with annualized tracking error kept within 7.75%, in line with contractual requirements.

Future Strategy Adjustments

The manager plans to further improve the quantitative model, expand the stock universe, enhance multi-factor stock selection effectiveness, and focus on sectors like computing power, non-ferrous metals, and commercial aerospace, aiming for excess returns while controlling tracking error.

Cost Analysis: Slight Decrease in Management Fees, Reduced Trading Costs Year-over-Year

Management and Custodian Fees

In 2025, management fees amounted to ¥334,838.62, a decrease of 2.21% from ¥342,389.12 in 2024; custodian fees were ¥111,612.91, down 2.20% from ¥114,129.57. Fee rates remained stable: Class A management fee at 0.60% annually, custodian fee at 0.20% annually, with an additional 0.30% annual sales service fee for Class C.

Trading Costs

In 2025, stock trading costs totaled ¥249,709.35, a significant decrease of 57.14% from ¥582,576.71 in 2024, mainly due to lower trading volume (total stock sale amount in 2025 was ¥275,180,308.72, compared to ¥360,904,734.91 in 2024).

Stock Investment: Manufacturing Sector Over 50%, Top 10 Holdings Concentration at 14.7%

Industry Allocation

The fund’s stock investments are diversified: manufacturing accounts for 52.55% (¥28,787,952.00), mining 4.84% (¥2,652,790.00), wholesale and retail 4.85% (¥2,657,740.00), information transmission, software, and IT services 5.58% (¥3,058,115.00), financials 6.23% (¥3,410,300.00).

Top 10 Holdings

The top ten stocks in the index investment have a total fair value of ¥7,954,353.00, accounting for 14.52% of the fund’s net assets, indicating low concentration. The largest holding is Aerospace Electronics (600879) with 45,000 shares, valued at ¥959,400, representing 1.75%; Yongxing Materials (002756) and Keda Manufacturing (600499) are second and third with 1.49% and 1.47%, respectively.

Holder Structure: Individual Investors Over 80%, Single Investor Once Held Over 20%

Number and Structure of Holders

At the end of the period, the fund had 5,952 total holders, with an average holding of 6,032.84 shares per account. Institutional investors held 6,204,154.55 shares (17.28%), individual investors held 29,703,301.57 shares (82.72%).

Risk Warning for Single Investors

During the reporting period, some individual investors held over 20% of the fund shares (from June 12 to July 8, and July 30 to August 14, 2025), which may lead to large inflows and outflows, increasing liquidity risk during market shocks.

Share Changes: C Shares Net Redeemed 143 Million Shares, Significant Shrinkage

In 2025, Class A shares saw net subscriptions of 1,187,787.82 shares (subscribed ¥27,640,155.39, redeemed ¥26,452,367.57); Class C shares experienced net redemptions of 14,312,676.81 shares (subscribed ¥10,018,291.80, redeemed ¥24,330,968.61). The large redemption of C shares caused total fund shares to decrease by 26.77%.

Fund Manager Outlook: Volatility in 2026, Focus on Computing Power and Non-Ferrous Metals Sectors

The manager expects that in 2026, global risk appetite remains high, domestic policies boost consumption, the economy remains stable, and equity market liquidity is sufficient, leading to a likely oscillating upward trend in major indices. Investment will focus on sectors like computing power, non-ferrous metals, and commercial aerospace, with ongoing optimization of the quantitative model to strive for excess returns.

Risk Warnings

2. Liquidity Risk: The high redemption ratio of C shares and the previous over 20% holdings by single investors may intensify redemption volatility.
3. Performance Volatility Risk: Underperformance in 2025 indicates the need to monitor the effectiveness of model optimization.
4. Market Risk: Valuation corrections in growth sectors could impact the fund’s net asset value.

Investors should consider their risk tolerance, view short-term fluctuations rationally, and focus on long-term investment value.

Disclaimer: The market involves risks; please invest cautiously. This document is automatically generated by an AI model based on third-party data and does not represent Sina Finance’s views. All information herein is for reference only and does not constitute personal investment advice. For discrepancies, please refer to official announcements. For questions, contact biz@staff.sina.com.cn.