On December 12, Longxin GM said on an interactive platform that after careful evaluation by the company, the company believes that the direct impact on the company's existing business is very limited with regard to the measures imposed by Mexico. First, the core business model effectively avoids the risk of vehicle tariffs. This time, Mexico raised tariffs on all motorcycles imported from China to 35%. However, the company's exports to the Mexican market have long been using the IKD model, that is, the products are shipped out of customs in the form of all parts to be assembled at a local cooperative factory in Mexico. Therefore, this vehicle tariff measure does not apply to our current export business; second, the impact on other related products is very limited. According to our preliminary analysis of the bill's text, the definitions of other motorcycle-related products mentioned in it generally do not include “parts” or “kits” for the ultimate purpose of assembly. As a result, this section of the provision is also expected to have limited impact on the company's business. In summary, the company's current business structure can more effectively cushion the impact of this tariff policy adjustment.

On December 12, Longxin GM said on an interactive platform that after careful evaluation by the company, the company believes that the direct impact on the company's existing business is very limited with regard to the measures imposed by Mexico. First, the core business model effectively avoids the risk of vehicle tariffs. This time, Mexico raised tariffs on all motorcycles imported from China to 35%. However, the company's exports to the Mexican market have long been using the IKD model, that is, the products are shipped out of customs in the form of all parts to be assembled at a local cooperative factory in Mexico. Therefore, this vehicle tariff measure does not apply to our current export business; second, the impact on other related products is very limited. According to our preliminary analysis of the bill's text, the definitions of other motorcycle-related products mentioned in it generally do not include “parts” or “kits” for the ultimate purpose of assembly. As a result, this section of the provision is also expected to have limited impact on the company's business. In summary, the company's current business structure can more effectively cushion the impact of this tariff policy adjustment.