1. The leader of automobile distribution industry and the steady development of related business.

Guanghui Automobile is a leading car dealer in China, leading in sales and revenue industry. the company mainly provides vehicle sales services, passenger car after-sales service and derivative business. Guanghui has been at the top of the list of China Automobile Dealers Group issued by China Automobile Circulation Association for seven consecutive years. At present, the company's vehicle sales revenue accounts for 87%, and the rescue rate of follow-up business such as maintenance service and commission agency is very low. However, the company contributed more than 60% of its gross profit, the whole book revenue laid the company's customer base, and the follow-up business provided effective support. From 2016 to 2019, the company's operating income increased from 136.4 billion yuan to 170.5 billion yuan, and its net profit increased from 3.043 billion yuan to 315 million yuan. The company's revenue and net profit decreased in 2020, and the three degrees resumed growth in the first three years of 2021. The police academy and net profit increased by 12% and 24% respectively compared with the same period last year. 2, the automobile industry will continue to pick up. According to the data of the China Automobile Association, the sales volume of passenger cars reached 2.192 million in November 2021, and the sales growth rate in November was 18.1%, 12.5%, 12.2%, respectively, and the growth rate of production and sales returned to the upward range. In the subdivision of the automobile industry, the growth rate of Roohua brand cars is higher than that of the overall car market, and the prosperity is good. The brand of Hefei has declined due to the lack of core, and there is more room for four liters: the incremental market penetration of new energy passenger vehicles is close to 20%, and the market space is vast. Guanghui has a municipal bureau in these segments, and its rise will lead to the rise of Guanghui business. at the same time, the automotive aftermarket industry resumes growth with the recovery of the automobile industry, and the trillion-level livelihood economic market is beginning to grow. There is a lot of room for the growth of car ownership, and the aging of cars will help the development of the automobile aftermarket. Guanghui as a leading company has advantages in post-market service, high customer recognition and strong competitiveness.

3. The layout of brand stores is optimized, and there is more room for business rebound.

Affected by the epidemic and lack of core, the company has greatly adjusted and upgraded its stores in the past two years. Guanghui Motor shut down and acquired a total of 14 stores and closed 35 unprofitable stores in the first three quarters of 2021.

After the upgrading and optimization of the store structure, Guanghui Automobile's economic capacity and overall profit margin are expected to be improved. The company as a whole has increased the proportion of luxury brands and independent brands, added new new energy brand sales and service centers, and is expected to continue to upgrade 20 "30 stores every year. After the adjustment of 2020 stores, the company's net profit in the first half of 2021 increased significantly compared with the same period last year. The net profit affected by chip supply fell in the third quarter, and it is expected that with the continuous adjustment of stores and the impact of chips on the industry. The company's net profit is expected to rise in 2022. 4. The financial situation has declined due to the epidemic in 2020. After the decline of the epidemic in 2020, revenue and gross profit will resume growth in 2021, the net interest rate will pick up, and the three fees will generally show a downward trend. the rate of financial expenses has declined after the optimization of the financing structure, and the company's financing diversification in recent years has optimized the structure of the company's debt, keeping liquidity good. The company's inventory turnover has accelerated, and the average store production capacity and per capita production capacity have increased step by step. Profit forecast: the net profit of returning to the mother in 2022 and 2023 is expected to be 2.72 billion yuan and 3.29 billion yuan respectively.

Risk hints: the recovery of the automobile industry is not as expected, the recovery of the chip industry is not as expected, the risk of repeated epidemic, asset impairment risk