On June 14th, Goldman Sachs released a research report stating that the EU announced a tariff increase on electric vehicles imported from China, which is expected to be implemented from July 4th. Byd Company Limited, Geely, and Saic Motor Corporation's products will be subject to tariffs of 17.4%, 20%, and 38.1% respectively. It is reported that relevant companies have already received a notice of proposed tariff increase. The bank estimates that the tariff increase will have a negative impact of 2% and 6% on Byd's net profit in the next two years respectively, and a negative impact of 11% and 21% on Saic's net profit in the next two years respectively. However, Goldman Sachs pointed out that the actual situation before July 4th has not been determined, and that automakers may take measures, including adjusting the prices of overseas market products and producing them in overseas factories, such as Byd's Hungarian factory, which is expected to start production in the second half of this year at the earliest. The potential impact is still controllable. Considering the recent progress of Byd's Hungarian factory, the bank reiterates its "buy" rating on Byd with a target price of HKD 295.