Huashang Fund, a steadfast advocate of active management, launched its latest floating management fee product on August 24 — the Huashang Era Select Mixed Fund (A: 028605, C: 028606). This fund adopts an innovative floating management fee structure, underpinned by fund manager Ye Feng's investment philosophy of "holding firm to value while embracing change," and further reinforced by Huashang Fund's two decades of active management expertise, aiming to deliver sustainable long-term returns for holders amid market uncertainty and genuinely enhance investor experience.

Focusing on improving investor experience, the floating management fee design of the Huashang Era Select Mixed Fund determines its fee rate based on both the investor's holding period and investment return level. This model emphasizes shared responsibility with investors and prioritizes their sense of gain. Through market-oriented adjustment mechanisms, it seeks to guide the fund manager to concentrate on enhancing investment returns while encouraging investors to maintain long-term holdings and enjoy the benefits of compounding. Specifically, per the fund's legal documents, the performance benchmark is "CSI 800 Index Return x 60% + CSI Hong Kong Stock Connect Composite Index (RMB) Return x 20% + ChinaBond Composite Full Value (Total) Index Return x 20%". When the holding period is less than 1 year (365 days), the management fee is charged at an annual rate of 1.20%. When the holding period is at least 1 year, the fee is determined in three tiers based on the difference between the investor's annualized return (R) during the holding period and the benchmark's annualized return (Rb) over the same period. If the annualized excess return relative to the benchmark (after deducting the excess management fee) exceeds 6% and the holding return (after deducting the excess management fee) is positive, the fee is set at 1.50% annually; if the annualized excess return is at or below -3%, the fee is confirmed at 0.60% annually; in other cases, the fee is 1.20% annually. Notably, when the holding period reaches one year or more, and R is greater than Rb+6% with R greater than 0, if the annualized return after deducting the excess management fee is less than or equal to Rb+6%, or less than or equal to 0, the 1.20% annual fee still applies to that share class, ensuring the post-deduction annualized return meets the criteria for charging the excess fee. Detailed investment objectives, allocation ratios, strategies, and fee information are available in the fund's legal documents.

Ye Feng, the proposed fund manager, holds a master's degree from Peking University and serves as Assistant General Manager of Huashang Fund's Research and Development Department, while also managing funds such as Huashang Core Gravity Mixed. With nearly nine years of securities industry experience (including four years of securities investment), Ye Feng has developed an investment philosophy centered on "holding firm to value and embracing change," and excels at managing portfolios with a "dynamic balance approach". In his view, the starting point of investing is to hold firm to value — that is, maintaining deep research into fundamentals and a thorough understanding of valuations. Simultaneously, he maintains heightened sensitivity and appropriate openness toward industries undergoing or about to undergo positive transformations. When it comes to portfolio management, he consistently applies the dynamic balance approach. When growth stocks are relatively inexpensive, he seeks to capture quality growth opportunities; when value stocks are relatively cheap, he focuses on reliable value prospects. He firmly believes that all choices ultimately return to fundamentals, value judgment, and valuation itself. Looking ahead, Ye Feng suggests that a calmer response to market volatility, closer tracking of industry trends and shifts in individual stock fundamentals, and careful assessment of valuation levels may represent a superior strategy. Overall, he remains optimistic about the industry directions currently configured in his portfolio while closely evaluating valuation changes in target investments. By making certain judgments on the macro environment, conducting industry comparisons and in-depth research, and incorporating stock pricing, he aims to build a cost-effective portfolio while controlling drawdowns, striving to deliver reasonable returns to holders.

Behind this product lies Huashang Fund's more than 20 years of active management accumulation and investment research strength. Thanks to its outstanding medium- and long-term performance, in December 2025, Huashang Fund was awarded the "Active Equity Investment Golden Bull Fund Company Award" by China Securities Journal, a prestigious honor that underscores industry recognition. According to data from fund evaluation institutions, as of June 30, 2026, the absolute returns of Huashang Fund's active equity funds over the past 7 years and 5 years ranked in the top four among 128 and 140 comparable companies respectively, placing its medium- and long-term investment strength firmly at the industry's forefront. In TX Investment Consulting's Q2 2026 rating, Huashang Fund received the highest "Three-Year Fund Manager Comprehensive Rating" of 5A, along with top 5A ratings in both the three-year active equity and hybrid funds and active bond fund segments.

With "dynamic balance" as the investment anchor and "floating fees" as the bridge of trust, complemented by Huashang Fund's deep investment research heritage, the Huashang Era Select Mixed Fund began its grand offering on August 24. Moving forward with the times and arriving for value, we invite your attention. Data notes: The subscription period for the Huashang Era 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 interval. As of June 30, 2026, Ye Feng has 8.9 years of securities industry experience, including 4.4 years in securities research and 4.0 years in securities investment. His fund management history includes: Huashang Core Gravity Mixed Securities Investment Fund (since May 27, 2025), Huashang Wanzhong Innovation Flexible Allocation Mixed Securities Investment Fund (since May 27, 2025), and Huashang Quality Select Mixed Securities Investment Fund (since January 27, 2026). The information herein reflects only the fund manager's investment philosophy; the fund's investment strategy is detailed in the legal documents. The fund manager's views are drawn from the Q2 2026 quarterly report of the funds he manages. The investment directions mentioned by the fund manager are judgments based on current market conditions and may adjust as markets evolve; specific investment strategies are outlined in the legal documents. Fund company rankings and absolute return data were published by fund evaluation institution Guotai Haitong Securities in July 2026; as of June 30, 2026, Huashang Fund's active equity funds ranked 4/128 and 4/140 for absolute returns over the past 7 and 5 years respectively, evaluated per the Interim Measures for the Administration of Securities Investment Fund Evaluation Business. Public fund net values are published after verification by custodians. The absolute return of a fund management company refers to the weighted net value growth rate of actively managed funds calculated by period-average assets under management. Active equity funds include active equity open-end, strong equity hybrid, partial equity hybrid, balanced hybrid, flexible hybrid, flexible strategy hybrid, and active equity closed-end hybrid funds, excluding index, life-cycle hybrid, partial debt hybrid, Hong Kong stock flexible strategy hybrid, Hong Kong stock partial equity hybrid, Hong Kong stock strong equity hybrid, and QDII funds. The AAAAA rating data was published by fund evaluation institution TX Investment Consulting in July 2026, with three-year ratings as of June 30, 2026, evaluated per the Interim Measures. TX's comprehensive fund manager rating is based on analysis of three aspects: basic strength, investment management capability, and company stability (including compliance), ranked from AAAAA to A by overall score. Active equity and hybrid funds include five secondary categories: equity funds - aggressive equity investment, hybrid funds - partial equity hybrid, hybrid funds - flexible allocation hybrid, hybrid funds - balanced allocation hybrid, and hybrid funds - partial debt hybrid. Active bond funds include three secondary categories: bond funds - pure bond, bond funds - mixed bond, and bond funds - convertible bond. Subscriptions/purchases of Class A shares through direct sales channels incur no subscription/purchase fees. Subscriptions/purchases through agency channels require such fees. Class A shares carry no sales service fee, while Class C shares have an annual sales service fee rate of 0.4%. Class C shares subscribed/purchased through direct sales channels incur no sales service fee. For Class C shares held through agency channels for more than one year (365 days), the ongoing sales service fee is refunded to investors upon redemption, conversion, or fund contract termination along with the redemption, conversion, or liquidation proceeds.

Risk disclosure: The fund manager promises to manage fund assets with honesty, integrity, diligence, and prudence, but does not guarantee profitability or minimum returns. Past performance and net value levels do not indicate future performance; the performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance, and the fund manager's prior track record does not guarantee the performance of newly issued funds. The management fee consists of a fixed management fee, a contingent management fee, and an excess management fee, where the contingent and excess fees depend on each share's holding duration and annualized return during the holding period; therefore, investors cannot predetermine the overall management fee level when subscribing/purchasing. The fund calculates net asset value using a 1.20% annual management fee rate, which may be higher or lower than the rate ultimately applicable to investors. Actual redemption or liquidation proceeds may differ from amounts calculated based on disclosed net asset values; please refer to data confirmed by the registrar. The floating management fee model does not constitute a guarantee of fund returns. If the fund invests in Hong Kong Stock Connect securities, it also bears exchange rate risks and overseas market risks. Before purchasing, investors should carefully read the fund contract, prospectus, fund product summary, and other legal documents. Market risk exists; fund investment requires caution. Investors are advised to select products matching their risk tolerance and investment objectives.