Analysis of the advantages of Songyuan shares' overseas investment

Songyuan shares expects that the net profit attributable to the parent company in the first half of 2024 will reach 120 million yuan to 132 million yuan, a year-on-year increase of 90%-110%; the non-net profit is expected to be 115 million yuan to 127 million yuan, a year-on-year increase of 103.91%-126.31%. Songyuan shares' wholly-owned subsidiary Hefei Songyuan Automobile Technology Co., Ltd. plans to sign an investment cooperation agreement with the Chaohu Municipal People's Government to invest in the construction of a project with an annual output of 3 million sets of automobile steering wheel assemblies and 40 million sets of key parts in Chaohu City, with a total investment of approximately 1 billion yuan. Since the company's major customers such as BYD, Chery, Volkswagen (Anhui), Weilai, JAC, Geely, Changan, SAIC Maxus, etc. are all located in Anhui Province and surrounding areas, this investment will help improve the company's response speed, enhance customer stickiness, further open up new customers and new markets, and effectively reduce product production and transportation costs.