Incident: The German high-end electric vehicle R&D and production base project was announced by the Development and Reform Commission. It has received a notice from the National Development and Reform Commission to register its German high-end electric vehicle R&D and production base project. In September of this year, the company submitted filing application materials to the Beijing Municipal Development and Reform Commission to establish a wholly-owned subsidiary in Germany and invest in the construction of a high-end electric vehicle R&D and production base with an annual output of 100,000 vehicles. At present, the company's overseas investment project has been registered by the National Development and Reform Commission, and the new energy high-end vehicle business is about to set sail. Equity investments continued one after another, and the company's NEV sector layout went further. Previously, the company gradually laid out the NEV sector by acquiring 48% of Wuzhoulong's shares, establishing Changchun New Energy, and acquiring 35% of Jiangsu Kawei's shares. This time, the German electric vehicle R&D and production base project was registered by the Development and Reform Commission. The company's NEV sector layout is further advanced, and it is expected to share the dividends brought by the high growth of the NEV industry in the future. The strategic layout is becoming more and more clear. The company has broad room for growth. In addition to the layout in the field of new energy vehicles, the company entered the automotive electronics field through the acquisition of Fulda and acquired 100% of Jilin Huayi's shares to further improve the product line and industrial regional layout of the auto parts business. The strategic layout is becoming more and more clear. We believe that in the future, the company will focus on equity investment+auto parts (automotive interior and exterior parts, functional parts, automotive electronics) +vehicle (new energy vehicle) platform to achieve “three-wheel drive” development. The company has a clear growth path and broad development space. The investment proposal company has made many acquisitions in recent years and is now once again entering the field of new energy vehicles. The strategic layout is already very clear. In the future, the company will focus on “equity investment+auto parts+vehicle platform” to achieve “three-wheel drive” development. We expect the company's 16-18 EPS to be 0.91 yuan, 1.18 yuan, and 1.55 yuan respectively, maintaining a “buy” rating. Risks suggest that macroeconomic growth is lower than expected; industry competition is intensifying; and new energy projects are falling short of expectations.