E Fund Kehui Fund

E Fund Kehui Fund As of 31 December 2019 Investment Objective Product Features The Fund pursues continuous and stable value increase in fund • Based on quantitative and qualitative macro and market analysis, assets through investment in value stocks and fixed income products. the Fund conducts tactical asset allocation and determines the proportion of stocks, bonds, money market instruments and other Benchmark: 60% × CSI 300 Value Index return + 40% × ChinaBond financial instruments in the portfolio for the purpose of pursuing Aggregate Index return higher returns and avoiding market risks.

Cumulative Performance*

Fund Facts Since Launch1 YTD 3 Months 6 Months

Performance 1289.67% 35.78% 7.76% 14.67% Portfolio Manager: Jiawen Yang Benchmark -3.92% 14.84% 4.27% 2.13%

1 Year 2 Years 3 Years Custodian: Bank of Communication Performance 35.78% 9.79% 29.37%

Benchmark 14.84% 4.15% 21.27% Auditor: Ernst & Young

Inception Date: 25 May 2001

Base Currency: RMB Calendar Year Performance* 2019 YTD 2018 2017 2016 Dealing and Trading Daily Performance 35.78% -19.15% 17.84% -24.61% Frequency: Benchmark 14.84% -8.96% 17.69% -3.57% Bloomberg Ticker: EFALBAF CH Equity 2015 2014 2013 2012

Performance 43.71% 6.68% 25.65% 5.20% ISIN / Trading Code: 110012 Benchmark 4.78% 41.09% -9.21% 7.57%

RMB 382.81 million AUM: 2011 2010 2009 2008 (USD 54.87 million) Performance -25.84% 16.83% 73.39% -0.65% NAV: 1.681 Benchmark -9.79% -14.76% 55.79% -4.45%

*Fund: NAV-to-NAV return, net return with dividend (if any) NOT reinvested. 1. The net return of fund since launch is calculated from 25 May 2001.

Note: Past performance information is not indicative of future performance. Investors may not get back the full amount invested.

Risk Reminder and Important Notice: • These materials are solely for communication and exchange within E Fund Management Co., Ltd. and for use by professional investors. These materials shall not be published or disseminated to any external party including but not limited to distribution in printed format or placing of copies at sales counters. • Any information contained in these materials which originates from this Company and this Fund, including the scale of assets under management, basic information on the fund, past performances, and prizes and awards, does not represent any determinative judgment on this Fund, and does not foretell the actual outcome of future operation of this Fund or the actual return it may yield. Nor does such information constitute any investment advice. The investment return of this Fund may vary as a result of changes in the market environment or other factors. • None of the contents of or statements in these materials shall be legally binding, or shall constitute part of any legal agreement, or shall be regarded as constituting an offer or invitation to treat made to any person, or shall constitute any promise. E Fund Management Co., Ltd. and its employees do not give any investment advice or any guarantee on investment return in respect of the contents of these materials, nor shall E Fund Management Co., Ltd. and its employees assume liability for any direct or indirect loss or damage arising from the use of these materials and the contents thereof by any person. • The information contained in these materials is for reference only and does not serve as promotion or marketing materials or legal documents. For specific details regarding this Fund, please refer to the fund contract and prospectus of this Fund. E Fund Kehui Fund As of 31 December 2019 Asset Allocation (% of Total Assets) Market Review In 2019 Q4, most of the major A-share market indexes 0.32% increased, with the CSI 300 Index up by 7.39%, the SSE 50 Equity Index up by 5.71%, the SSE Composite Index up by 4.99%, the CSI 500 Index up by 6.61%, and the ChiNext Composite 15.97% Index up by 9.03%. Bond 1. From the global macroeconomic perspective, the leading indicators of the global economy stabilized in Q4, evidenced 10.54% by slow pickup in the global manufacturing PMI, improvements Bank Deposit and in European economic data, continued rise in US consumer 73.17% Settlement Reserve confidence index and improved expectations of global economic growth. As the US-China relations improved, the two countries reached the phase one deal and prepared for Others signing the agreement. The UK general election ended up with the Conservatives’ win and the Brexit moved on. Global risk appetite was repaired and national indexes fluctuated upward. 2. From the domestic liquidity perspective, the monetary policy was eased marginally in Q4, with LPR, 7-day reverse repo rate and 14-day reverse repo rate all down by 5 bps, indicating the Equities Sector Breakdown (% of Total Net Assets) monetary policy tilting toward ensuring stable growth amid high inflation. The excess hedging by repurchases alongside Manufacturing* with the high probability of loose liquidity before the Chinese 1.87% New Year underpinned the index valuation. In November, new 2.52% 3.88% credit and new aggregate financing beat expectations, and Utilities medium- and long-term credit increased year on year to further 2.85% shore up the real economy. Wholesale and Retail 3. From the real economy perspective, the economic growth stabilized in Q4. In November, the industrial value added grew faster than expected, and fixed asset investment picked up Agriculture, Forestry, slightly and remained resilient. In particular, real estate 12.30% Livestock, Fishery investment and infrastructure investment formed important Finance pillars. The real estate policy showed “city-specific relaxing” in many cities, likely to shore up property sales in the future. The 48.42% special-purpose government bond policy issued earlier helped 1.14% Research and Technological Services boost infrastructure investment. With slow improvement in 0.41% social retailing growth, the e-commerce promotion events in Construction Q4 showed signs of overall stabilization, and the drag effect of 0.52% automobile mitigated. Exports growth further slowed down due to US-China trade frictions. Now the RMB 1 trillion special- Transportation, Warehouse and Postal Services purpose government bonds had been issued ahead of schedule, still a major boost to infrastructure investment, and Leasing and Commercial real estate investment growth was likely to remain resilient. Services Following the CPI acceleration in Q4, the accelerated inflation in pork price was like to be finished, so there was no Top 10 Stock Holdings (% of Total Net Assets) constraints on monetary policy. PPI rebounded temporarily, oil and copper prices benefited from a warm winter with stronger- Wuliangye Yibin Co.,Ltd 7.64% than-expected production demand, and the rally in the prices of production materials was expected to continue over the Gree Electric Appliances Inc. of Zhuhai 6.82% short run. Bank of Ningbo Co.,Ltd. 5.98% Fund Strategy Ping An Insurance (Group) Company of China, Ltd. 4.04% In Q4, the Fund’s stock position stabilized at about 75%, and Cuanon Technology (ShangHai) Co.,Ltd. 3.70% adjusted the weightings of industries and stocks based on the above macroeconomic judgment. First, the Fund increased its Kweichow Moutai Co., Ltd. 3.00% exposure to construction, building materials, chemicals and electric power equipment and allocated smaller weights to Jiangsu Hengrui Medicine Co., Ltd. 3.00% pharmaceuticals and liquors. Second, the Fund increasing the Tianjin Ringpu Bio-Technology Co.,Ltd. 2.97% exposure to agriculture expecting further increase of inflation.

WuXi Apptec Co.,Ltd. 2.85% *Note: according to the CSRC industry classification guideline, Manufacturing consists of 31 subcategories which has including food manufacturing, medical Zhejiang Medicine Co.,Ltd. 2.48% manufacturing, general equipment manufacturing, furniture manufacturing, etc. Manufacturing carries the most subcategories in all industry sectors.