CHNAGCHENG CONSUMER FUND NAV (CHANGCHENG CONSUMER FUND REVALUATION)

I. INTRODUCTION

1.01 CHANGCHENG CONSUMER FUND IS A MUTUAL FUND THAT ALLOWS INVESTORS TO INVEST IN CONSUMER-RELATED COMPANIES IN CHINA. THE FUND IS MANAGED BY THE CHANGCHENG FUND MANAGEMENT CO., LTD.

1.02 ON JUNE 30, 2021, THE NAV OF THE CHANGCHENG CONSUMER FUND WAS ESTIMATED TO BE CNY 2.81 PER SHARE. THIS NAV ESTIMATE REFLECTS A REVALUATION OF THE FUND'S HOLDINGS AS OF JUNE 30, 2021.

II. FUND PERFORMANCE

2.01 THE CHANGCHENG CONSUMER FUND PERFORMED WELL IN THE FIRST HALF OF 2021, WITH A YTD RETURN OF 9.21% AS OF JUNE 30, 2021. THIS PERFORMANCE WAS DRIVEN BY STRONG PERFORMANCE FROM THE CHINESE CONSUMER SECTOR, WHICH EXPERIENCED A STRONG RECOVERY IN 2020 AND CONTINUED TO GROW IN 2021.

2.02 THE FUND'S TOP HOLDINGS AS OF JUNE 30, 2021, INCLUDED COMPANIES SUCH AS KWEICHOW MOUTAI CO., LTD., ALIBABA GROUP HOLDING LTD., AND PINDUODUO INC. THESE COMPANIES HAVE BEEN DRIVING THE GROWTH OF THE CHINESE CONSUMER SECTOR AND ARE EXPECTED TO CONTINUE TO PERFORM WELL IN THE FUTURE.

III. RISKS AND CONSIDERATIONS

3.01 INVESTING IN THE CHANGCHENG CONSUMER FUND INVOLVES CERTAIN RISKS AND CONSIDERATIONS. ONE OF THE MAIN RISKS IS THE VOLATILITY OF THE CHINESE STOCK MARKET, WHICH CAN BE PRONE TO SHARP FLUCTUATIONS. ADDITIONALLY, THE FUND'S PERFORMANCE DEPENDS ON THE OVERALL PERFORMANCE OF THE CHINESE CONSUMER SECTOR, WHICH CAN BE IMPACTED BY ECONOMIC EVENTS AND POLITICAL UNCERTAINTY.

3.02 INVESTORS SHOULD ALSO CONSIDER THE FUND'S INVESTMENT STRATEGY. THE FUND FOCUSES ON INVESTING IN CONSUMER-RELATED COMPANIES, WHICH CAN BE PRONE TO FADS AND TRENDS. FURTHERMORE, THE FUND MAY BE IMPACTED BY CHANGES IN GOVERNMENT POLICY, SUCH AS CHANGES IN TAX LAWS OR REGULATIONS.

IV. CONCLUSION

4.01 THE CHANGCHENG CONSUMER FUND NAV ESTIMATE REFLECTS THE STRONG PERFORMANCE OF THE CHINESE CONSUMER SECTOR IN THE FIRST HALF OF 2021. HOWEVER, INVESTORS SHOULD CONSIDER THE RISKS AND CONSIDERATIONS INVOLVED IN INVESTING IN THIS FUND BEFORE MAKING AN INVESTMENT DECISION.