Dear Investors,

I am writing this letter to help you gain a deeper understanding of Zherui Investment, including our philosophy, team, mission, and vision.

Who We Are

Founded in April 2023, Zherui Investment primarily engages in secondary market investments globally. Our initial mission was to manage the founding team’s personal assets and pursue our personal interests in investment. However, as the company and team have grown, we have increasingly aspired to use our capabilities to help more people and make a positive impact on the world.

Our Mission & Vision

• For Ourselves: Through investment, we aim to help others manage their assets effectively, becoming a trustworthy investment firm that stays true to its original aspiration.
• For the World: By investing in high-quality enterprises, we support those that continuously create value for society and contribute to building a better-ordered world.

Guided by this mission and vision, we operate with the core values of Integrity, Sincerity, Humility, Optimism, and Candor:

• Integrity & Sincerity: These are not choices but our fundamental way of engaging with the world. We firmly believe they are the most basic and essential qualities of any individual or organization.
• Humility: We maintain profound reverence for the world. We acknowledge that we cannot know everything and that we will inevitably make mistakes.
• Optimism: We would rather be optimistically wrong than pessimistically inactive—this is our attitude toward life.
• Candor: Candor is indispensable in the pursuit of truth. Titles and hierarchies should never override common sense and logic. A lack of candor essentially sacrifices the truth and vision we strive for in favor of personal convenience.

This is how we engage with the world.

Why We Believe We Can Create Value for Investors

➢ We deeply embrace the principle that “buying stocks is buying businesses”—the surest path to success.

Buying stocks means buying businesses, and buying businesses means buying the discounted value of their future cash flows. If the discounted value of future cash flows exceeds the current price, considering opportunity costs, it constitutes a worthwhile investment. We believe value investing is a logically sound and commonsense approach, not merely a strategy validated by others’ successes.

➢ Our accumulated circle of competence and unwavering focus on research.

Research is the core of Zherui Investment—past, present, and future. We will continue to share our insights on enterprises through our official website and WeChat public account.

➢ Our understanding of investment and reverence for the world.

We recognize that predicting a company’s future cash flows is no easy task. We exercise patience to wait for an appropriate margin of safety, remain honest with ourselves (avoiding investments we do not fully understand), and acknowledge that mistakes are inevitable. Risk often arises from the “unknown unknowns.” Our ability to consistently generate returns for investors stems not only from what we choose to do but also from what we choose not to do.

➢ We treat your money as our own.

The vast majority of our personal assets are invested in nearly the same positions as our investors’ assets. While we cannot guarantee specific outcomes, we commit that as long as you are our investor, your financial assets will grow in near-perfect alignment with ours at all times.

In other words, we will share the joy of profits together, and when we make mistakes, we will find solace in knowing we bear the losses alongside you.

The Future of Zherui Investment

Finally, as the founder, when I close my eyes and envision Zherui Investment’s future, this is what I see:

Zherui Investment will be a team of individuals united by shared values, practicing value investing, curious about the world, and relentlessly pursuing truth and virtue.

We believe profits are like oxygen—essential for survival but never the ultimate purpose of life or the reason for our company’s existence. By staying true to our original aspiration and pursuing our mission and vision, we will fulfill the meaning of our lives, and profits will naturally follow.

Our investors will likely include family, trusted friends, independent foundations dedicated to philanthropy and scientific research, and pension funds safeguarding the livelihoods of tens of thousands of seniors. They will entrust their life savings to us out of trust. Through value investing, we will help these savings compound and reward our investors, while contributing to a better-ordered world.

This will be a deeply fulfilling journey. Through our existence, we will give and receive more beauty and love in the world—something far beyond the value of money and achievements. This is how we choose to live our lives.

May Zherui Investment always stay true to its mission and vision, and make a positive difference in the world.

Sincerely,

Wang Zhe

Founder & Chairman of Zherui Investment