Recently, the quarterly report of the E Fund Consumer Industry managed by Xiao Nan and Wang Yuanchun was disclosed. Compared to the previous quarter, the top ten heavy-weighted stocks of the fund added Dongpeng Beverage and Sailun Tire, with Fuyao Glass being the top heavy-weighted stock of the fund. Xiao Nan pointed out in the report that this quarter's main focus was on reducing portfolio valuation and enhancing portfolio growth potential, striving to retain high-quality companies with the best business models and strongest cash generation capabilities during counter-cyclical stages in certain sub-industries, reducing holdings in companies with significant losses and weak competitiveness, and increasing investments in essential products and high-growth niche markets. Specifically, as of the end of the fourth quarter of 2024, the top ten heavy-weighted stocks of the E Fund Consumer Industry were Fuyao Glass (600660.SH), Midea Group (000333.SZ), Kweichow Moutai (600519.SH), Wuliangye (000858.SZ), Shanxi Fenjiu (600809.SH), Gujing Gong Jiu (000596.SZ), Great Wall Motors (601633.SH), Dongpeng Beverage (605499.SH), Haier Smart Home (600690.SH), and Sailun Tire (601058.SH). Compared to the end of the third quarter, the fund added Dongpeng Beverage and Sailun Tire to the top ten heavy-weighted stocks, with Fuyao Glass holding a 9.6% position, making it the top heavy-weighted stock of the fund; companies like Shunxin Agriculture exited the top ten heavy-weighted stocks. As of the end of the reporting period, the net asset value of the fund units was 3.593 yuan, with a growth rate of -6.68% for the reporting period, while the benchmark return rate for the same period was -5.82%. Xiao Nan stated in the report that in the fourth quarter of 2024, after a reversal in the market at the end of September, the market gradually began to consolidate. The current policy signals are very clear, which is a source of investor confidence, but there are still inherent risks present in the market in the short term. In this quarter, the Shanghai Composite Index rose by 0.46%, the Shanghai 50 Index, representing the market style, dropped by 2.56%, and the ChiNext Index, representing the growth style of small and medium-sized enterprises, fell by 1.54%. Driven by incremental funds in the market, trading activity also significantly increased, with growth stocks performing significantly better than cyclically related stocks tied to the real economy. The CSI Mainland Consumer Index dropped by 7.37%, and after the market rally at the end of September, it was one of the weaker performing sectors. Looking at the various sub-industries within the consumer industry, trade, media, and automobile sectors performed well, while sectors like liquor, agriculture, and food performed poorly. Currently, the entire consumer sector benefits from policies but is constrained by late-stage factors. It will take some time for the fundamentals to recover, especially for discretionary consumer goods, which are more sensitive to macroeconomic conditions. This quarter's main focus was on reducing portfolio valuation and enhancing portfolio growth potential, striving to retain high-quality companies with the best business models and strongest cash generation capabilities during counter-cyclical stages in certain sub-industries, reducing holdings in companies with significant losses and weak competitiveness, and increasing investments in essential products and high-growth niche markets.