Please tell me about the company's American subsidiary dill. Its main products are purchased from global tier 1 and Baofu Germany. I would like to ask whether the additional tariffs imposed by the United States on Canada, Mexico and China will significantly affect the revenue and profit levels of the subsidiaries. Thank you.

Baolong Technology: Hello, investors, thank you for your attention. DILL, the US subsidiary, is mainly engaged in the external sales of automotive parts products such as valves and TPMS, mainly facing the AM market in North America. The gross profit margin of AM market products is higher than that of the OEM market. DILL's main customer group is large chain retail and service terminals in North America. This customer group, represented by Discount Tire, attaches importance to product quality and product responsibility. DILL Manufacturing, the predecessor of the US subsidiary, was established in Ohio, USA in 1909. Since 1915, it has begun to manufacture tire valve caps for Ford Model T and other cars. The DILL brand has been used to this day and has a high reputation in the industry and a strong market influence. Although DILL currently has fewer self-made products in the United States, it still retains product design and testing capabilities and attaches importance to training customers. Its technical capabilities and manufacturer image are widely recognized by the market and maintain a long-term and stable cooperative relationship with customers. After the trade war in 2018, DILL has better digested the cost impact of additional tariffs by increasing local assembly business in the United States and friendly negotiations with downstream customers. In recent years, DILL's gross profit margin has always remained at a high level. In the first three quarters of 2024, DILL's unaudited sales revenue was RMB 641 million, of which the sales revenue of valves and accessories was RMB 405 million, and the sales revenue of TPMS, accessories and tools was RMB 193 million. Valve products are mainly manufactured by Baolong Technology's domestic subsidiary and the parts are exported to the United States and then assembled at the DILL factory. TPMS products are mainly purchased from the Mexican and French factories of Continental, a major global TPMS supplier, and the German factory of BHSens (a subsidiary of Baolong Technology) and sold to the North American aftermarket. Considering that the cost changes in the AM market are relatively easy to transmit between upstream and downstream, the company expects that DILL's revenue and profit levels will not be significantly affected by the possible imposition of additional tariffs. The company will closely monitor changes in US trade policies and formulate countermeasures.