[GF Auto] August 2026 View:

English summary

Dear investors, 1. Industry view: At this point, combined with investors' concerns, I briefly share my core thinking for your reference: 1.1. In H2 and even next year, I think the most important variable to watch is 'supply-side' changes (refer to our late-April report for the reasoning). If demand-side tailwinds also emerge at some point, a strong rebound is possible. 1.2. To hedge or compensate for uncertainties/risks in key variables, if some (left-side) positioning is needed, my basic selection approach requires at least 3 of these conditions: 'scale (volume*price, overseas share)', 'efficiency', 'multi (powertrain) types', and 'differentiation (products and business models)'. 2. Given the current market beta and my principle that 'holding equals buying', I continue to recommend in August 2026 (please note the wording evolution): Geely Automobile, Nexteer, Zhongchuang Zhiling (Zhengzhou Coal Mining Machinery), Minth Group.