[Incident introduction] Jingwei Co., Ltd. (002662.CH/RMB 15.55, purchase) is a Sino-German joint venture auto parts supplier and a leading enterprise in the domestic high-end passenger car exterior parts industry. The company previously acquired 48% of Shenzhen Wuzhoulong's shares, subscribed for 35% shares in Changchun New Energy, 35% shares in Jiangsu Kawei, and the controlling shareholder Zhonghuan Investment acquired 75% of the shares of Germany's Stuttgart Electric Vehicle Co., Ltd., and the layout of the NEV industry gradually improved. The company recently announced that it plans to issue no more than 250 million additional shares and raise no more than 7 billion yuan to invest in the construction of a high-end electric vehicle R&D and production base in Germany. The company recently held an investor conference to conduct in-depth communication and exchanges with investors on the company's business development status and future development plans. [Core view] To build a high-end electric vehicle R&D and production base in Germany, the development prospects are promising. The company plans to issue no more than 250 million additional shares and raise no more than 7 billion yuan to invest in the construction of a high-end electric vehicle R&D and production base in Germany. China currently does not have the resources for D-class vehicles such as the Mercedes-Benz S-Class. The company is expected to rely on the German automobile manufacturing industry base and the advanced technological advantages of the NEV industry to develop and produce high-end electric vehicles and achieve transcendence in new energy vehicles. The company plans to build a production capacity of 100,000 vehicles in the high-end market in Germany, 400,000 vehicles in the domestic mid-range market, and develop the high-end electric vehicle market at home and abroad using Germany's leading automotive R&D technology. It is expected to replicate the Tesla model, with broad development prospects. The business links between China and Germany, and the comprehensive layout of new energy vehicles. The company's EFA-S in Stuttgart, Germany, is an electric commercial vehicle base and R&D base; Erfurt BWKW is a high-end electric passenger vehicle base. The layout in China mainly includes Changchun New Energy, Wuzhoulong, and Jiangsu Kawei. In the future, the company plans to introduce commercial vehicle technology into Germany and passenger car technology to China. In the German market, the development of electric vehicles is still relatively slow; companies can transport Chinese car bodies to Germany equipped with electric systems. Passenger cars mainly rely on Germany's advanced automobile manufacturing technology to position themselves in the high-end market, and will be introduced domestically to develop the mid-range market in the future. Through business linkage and integration between China and Germany, the company is expected to join forces for rapid development in the field of new energy vehicles. New energy vehicles are the future development direction, and the company's improved layout will bring good returns. Electric distribution vehicles are expected to enter the promotion catalogue, driving significant improvements in the company's performance. In the first half of the year, electric distribution vehicles failed to enter the promotion catalogue due to industrial policy adjustments and other reasons, leading to a slump in terminal sales. It is expected that electronic distribution vehicles will enter the promotion catalogue in the second half of the year, and sales are expected to explode. Both Wuzhoulong and Jiangsu Kawei, which the company has a stake in, have a variety of electric logistics models, and are expected to receive a large number of orders. At the same time, compensation for the two shareholders will also be gradually put in place. The company is expected to achieve significant growth in the third quarter, and the annual profit is expected to reach 7-800 million yuan. The company is currently the target for new energy vehicles with the lowest market valuation.