Under the Mid-Autumn Moon, Embracing the Age of Intelligence

Dear investors and friends of BEDROCK Investment,

As the Mid-Autumn Festival approaches, on behalf of the BEDROCK Investment team, I would like to extend our sincere greetings to you and your family. Thank you for the trust you have placed in us. It has allowed us to stay focused on research and investing, and to share in the value created as businesses grow.

As of September 11, 2026, the estimated year-to-date returns of most of our products exceeded xxx%. We are encouraged by this interim result, and it makes us value your trust all the more. Market volatility throughout the year has reminded us that investment ability must be tested over a longer horizon; we will continue to focus our efforts on understanding businesses, testing our judgments, and maintaining investment discipline.

Our confidence in the future comes both from the opportunities of the AI era and from the way we are putting AI into practice in our own investment research.

┃ Making Intelligence Widely Accessible Opens Long-Term Investment Opportunities

We remain optimistic about AI over the long term, primarily because the cost of intelligence is falling and because of the resulting gains in productivity. Steam engines and internal-combustion engines enabled machines to take on more physical labor. Electricity brought power more broadly into production and everyday life. The internet lowered the cost of accessing and transmitting information. AI is now beginning to help people perform cognitive tasks such as analysis, reasoning, and creative work. In our view, this gives humanity its first opportunity to make intelligence broadly available through technology at large scale and low cost.

We believe the adoption and application of AI are still at a very early stage. As capabilities improve and costs fall, research, services, and innovation that were previously constrained by labor and expense may become practical. AI can do more than improve the efficiency of existing work; it may also change how companies develop products, deliver services, and organize their operations. The impact of this shift could rival the revolutions brought by electricity and the internet. If AI further accelerates scientific research and the creation of knowledge, the productivity gains could be greater still.

Investment opportunities will also broaden as AI adoption expands. Computing, storage, connectivity, and electricity form the foundation on which AI develops. Models, software, and companies that use AI effectively may benefit as well. Our focus is on identifying the businesses that can sustain a competitive advantage and convert new demand into durable profits and cash flow.

┃ Applying Consistent Standards to Identify Outstanding Companies

In approaching these opportunities, we continue to apply the same investment standards. BEDROCK Investment looks globally for outstanding companies and focuses on three questions: Can the competitive advantage endure? Is there sufficient room for growth? Is the purchase price reasonable?

We consider not only whether revenue can grow, but also how much investment that growth requires, whether the investment can generate an appropriate return, and whether profits can be converted into cash flow. Beyond AI, we apply the same standards when researching and selecting opportunities in emerging markets, fintech, consumer industries, and other areas.

Long-term ownership does not mean that an investment thesis no longer needs to be tested. We continuously monitor the facts that support our reasoning while also looking for evidence that contradicts our original judgment. We examine whether the portfolio is overly concentrated, whether positions can be sold smoothly when necessary, and whether different holdings are exposed to the same risks. Our investment principles remain stable, while our specific judgments adjust as the facts change.

┃ Using AI to Improve Our Investment Research

We are optimistic about the investment opportunities created by AI, and we have also integrated AI extensively into our own research process.

Over the past period, BEDROCK Investment has made extensive use of AI in document review, data organization, financial-model maintenance, company monitoring, and scenario analysis. Building on the research methods, models, and materials our team has developed over many years, we combine analysts' experience with AI's execution capabilities to keep improving the way we conduct day-to-day investment research.

These practices have already produced meaningful progress. We can follow companies and industries more promptly and compare new information with our existing judgments: How does the actual outcome differ from our expectations? What has changed in the market and at the company since our previous assessment? These comparisons help us identify questions that deserve renewed research instead of merely collecting information that supports our prior views. We place greater value on detecting change in time and testing our judgments. This allows us to devote more attention to the questions that matter most for long-term returns.

We are also preserving past research, judgments, and validation results in a systematic way so that the team can continue to use them. Where a judgment proved right, and where it proved wrong, are both worth reviewing together. New research does not have to restart from the beginning each time; it can build on what we already understand. We hope that what accumulates is not simply more material, but a deeper understanding of businesses and a more mature method of judgment.

AI helps us conduct research, but investment decisions remain ours to make, and responsibility to our investors remains ours to bear.

We remain optimistic about the future. That confidence comes from technological progress and the creativity of businesses, as well as from our continued improvement in the way we work. We will keep studying companies seriously, selecting opportunities patiently, and striving to earn long-term returns for our investors.

Long-term investing alongside investors who share our philosophy is something we value deeply. Thank you for your trust and companionship. We will continue to honor that trust through rigorous research and prudent decision-making.

Wishing you and your family a joyful Mid-Autumn Festival, good health, peace, and happiness.

With best wishes from everyone at BEDROCK Investment

Mid-Autumn Festival 2026