Hongyuan Recently, we visited the company for research and communication with relevant company personnel about the company's production and operation conditions, industry prospects, and the current situation and future development of Tianjin FAW Toyota. The new engine base will increase the proportion of internal support. The Xiali headquarters are supplied internally by the company with 1.1 L, 1.1 L, and 1.4 L engines. The 1.3 L and 1.5 L engines are purchased from Tianjin FAW Toyota Engine Co., Ltd. At present, the first phase of the company's new engine base has been completed. The first phase of the TA1 series engines was initially equipped with the Xiali N5 and Vizi V1, and the supporting models will be gradually expanded in the future, which is expected to replace the Toyota engine to achieve internal support. Self-assembly of engines can reduce engine costs by more than 10%. The automotive spare parts business is expected to continue to improve. As car owners recognize the professional capabilities of 4S stores and original parts, more and more car owners choose 4S stores for maintenance, thus boosting the company's demand for spare parts. However, the gross margin of the spare parts business is much higher than that of the vehicle business, and the development of the spare parts business is expected to raise the company's profit level. Tianjin FAW Toyota will come out of the shadow of the recall. Affected by the recall incident, sales volume of Tianjin FAW and Toyota declined in April and May of this year. FAW Toyota has taken relevant measures to reduce the impact of the recall, and it is expected that Tianjin FAW Toyota will gradually move out of the recall shadow.