Core ideas The financing of supporting funds has been completed, and all of them will be used for new energy vehicle development projects to improve the layout of the NEV industry chain. While the company issues shares to buy 100% of Yongkang Zotye Auto's shares, it also includes issuing shares to raise supporting capital. At present, the raising of supporting capital has been completed. A total of 208 million shares have been issued, with a net capital raised of 1,913 million yuan. It will all be used for the company's new energy vehicle development projects, develop and master core technologies in the fields of new energy vehicle reducers, motors and motor controllers, power batteries, vehicle controllers, charging, range extension and power exchange, master new energy vehicle technology, and improve the industrial chain layout, which is conducive to further enhancing the company's NEV R&D capabilities, brand influence and market competitiveness. The company's SUV sales are expected to pick up month on month. The company sold 45,700 SUVs in the first quarter, 23,000 SUVs in the second quarter, and sales in April fell to 8,755 units. With the launch of the T600 model and T700, sales quickly rebounded to 14,000 units and 159,000 units in June and July; it is expected that the sales volume of SUVs in August will continue to rise month-on-month. With the recovery of the passenger car industry in the third quarter and the launch of the company's new cars, it is expected that the company's SUV sales volume will increase quarterly in the third and fourth quarters, and the T600 and T700 are expected to become the main models contributing to profit in the second half of the year. The company is a leader in micro and small electric vehicles, and the improvement of the industrial chain layout will help the company expand the scale of new energy vehicles. In January-July, the company sold a total of 15,700 electric passenger cars, an increase of 56% over the previous year. The company is one of the first domestic car companies to set up the NEV field. It accurately positions the micro and small pure electric vehicle segments. Micro/small electric vehicles are the main models of new energy vehicles and have a cost performance advantage. The company has successively launched various pure electric vehicles such as the E20, Cloud 100, Sesame E30, and E200. With the completion of this fund-raising project and the layout of key powertrains for new energy vehicles, it is expected that the company's NEV sales scale will continue to expand. It is expected that the company's new energy vehicles will become one of the company's main profit growth points. Financial forecasts and investment recommendations forecast EPS of 0.59, 1.03, and 1.32 yuan in 2017-2019. Referring to comparable companies, the company was given 21 times the average PE valuation in 2017. The preparation for the EPS exam was 0.75 yuan for the full year of 2017, and the target price was 15.75 yuan, maintaining the buying rating. Risk warning: Sales of SUVs and other models and new energy vehicles fell short of expectations, and the issuance of shares to raise capital failed.