Incident: The company issued a sales announcement for January 2024. The total sales volume of the company was 12,300 vehicles, an increase of 977.9% over the previous year.

The Zero Sport C10 began pre-sale, and the self-developed LEAP 3.0 architecture pioneered domestic pioneers: On January 10, 2024, the Zero Sport C10 officially began pre-sale. As the first smart electric model equipped with LEAP 3.0 architecture, the model integrates multiple functions including Clover central integrated electronic and electrical architecture, 8295 chip technology, rare lidar hardware in the same class, and CTC 2.0 battery+oil-cooled electric drive transmission technology, which enhances the user driving experience in all aspects under the premise of saving costs. The model also reserves 500+ surplus interfaces, providing a broad space for functional upgrades and user personalization.

The overseas layout is advancing at an accelerated pace, and the European market is expected to be the first to break through: the company's global capabilities have been recognized by well-known institutions. Recently, the results of the first Forbes China Global Brands TOP30 were unveiled. The company became the only selected brand among the new car builders, demonstrating the company's leading technical strength and strong market influence. As the company's first global model, the Zero Run C10 is scheduled to enter the European market in the third quarter of 2024, helping the company achieve a global layout.

Investment advice: We expect the company to achieve net profit attributable to mother in 2023-2025 of -49.63/-24.22/2,406 billion yuan, corresponding to a PE of 10.83 times in 2025, maintaining the “increase in wealth” rating.

Risk warning: Product sales fall short of expectations, risk of macroeconomic fluctuations, overseas progress falls short of expectations.