U.S. technology stocks experienced a sharp risk unwind in July as the market moved rapidly from high-level consolidation into concentrated selling pressure. Semiconductors were among the most heavily affected areas, while liquidity shocks, crowded-trade reversals and concentrated stop-loss selling caused volatility to be released over a relatively short period. The Fund continued to operate within its established risk-control framework and maintained a consistent investment style, while its QQQ trading module still provided some positive contribution during the month. However, the speed and persistence of the sell-off also highlighted areas where the model's trend identification and position adjustment can be further improved. We do not believe that one month of extreme volatility changes the long-term AI investment thesis, although near-term market volatility may remain elevated and the path of recovery may be uneven. Going forward, we will continue to refine the model's ability to identify extreme downside risk, improve price-signal recognition and strengthen execution mechanisms, with the objective of enhancing the Fund's resilience and adaptability across different market environments.

Risk disclosure: Market fluctuations may cause investment outcomes to vary. Investors should make rational decisions based on their own risk tolerance. This article is for general information only and does not constitute investment advice, an offer, or a solicitation. Past performance is not indicative of future results.