Global layout to help the development of the company, supporting the market layout of the industry leading

1. Steadily promote the globalization layout, and launch new bases to help the company grow

We will steadily advance the "7+5" strategy and accelerate globalization. In order to promote the high-quality layout of the company's global industry and enhance the company's core competitiveness in the international market, the company steadily promotes the "7+5" global strategic layout (that is, 7 production bases in China and 5 overseas production bases). According to the company's 2022 annual report, the company has established five production bases in China, namely Zhaoyuan, Dezhou, Liuzhou, Jingmen and Changchun, and plans to build two other domestic production bases in Shaanxi and Anhui. Overseas, the company has two production bases in Thailand and Serbia (under construction).

The production capacity of each base is steadily expanded to ensure the long-term growth of the company. According to the company's annual report for 2022, the company's design capacity of pre-tire is 120.56 million sets, the production capacity is 84.36 million sets, and the capacity utilization rate reaches 78%. In 2022, the company's production capacity growth mainly comes from the increase of 1 million sets of passenger and light truck tires in Hubei Linglong, an increase of 300,000 sets of truck and bus tires, and an increase of 1 million sets of truck and bus tires in Jilin Linglong. The company's Dezhou base expansion of 1.2 million sets/year truck and bus tire capacity, Hubei base phase III passenger car and light truck half steel tire capacity, Jilin base phase I passenger car and light truck half steel tire capacity is expected to be completed in 2023, Serbia base passenger car and light truck tire is expected to start trial production in 2023. In the future, as the new production capacity of the company's bases continues to be released, the company's long-term growth is guaranteed.

2. The market share of supporting fields is leading in the country, and the layout of new energy fields is consolidating its advantages

The company's market share in China's supporting fields ranks first in the industry. With the excellent product performance of the company, the company has provided supporting services for more than 200 production bases of more than 60 Oems in the world such as Volkswagen, Audi, BMW, GM, Ford, Honda, etc., and entered the supporting system of 7 of the 10 largest car companies in the world. The total supporting number of car companies has exceeded 200 million, ranking first in domestic tire supporting for many consecutive years. The company has a forward-looking layout in the field of new energy, and the market share of new energy tires exceeds 22%. According to the company's 2022 annual report, the company also occupies a leading position in the field of new energy, and has successfully supported the four major series of GM Wuling, BYD Qin, Yuan, Song, Ocean, Nissan, Honda, Red Flag, Geely and other new energy vehicle enterprises. The company is China's leading new energy vehicles SAIC General Wuling, BYD's largest tire supplier. According to the company's annual report data, in 2022, the company's new energy automobile tire supporting exceeded 6 million, and the overall market share of new energy tire supporting exceeded 22%, ranking first in China's tire enterprises.

3. The new retail strategy continues to upgrade and deepen the brand value

The company proposed Linglong New Retail 3.0 and continued to enhance brand value through innovation in marketing means. Based on the marketing theme of "product + service + value", the company has upgraded its business model and mode of operation. It has built a full-life cycle operation service system integrating eight modules of store operation, market investment, certification and incubation, customer locking, market management, store management, product supply and digital system. Specific measures include: 1) Jointly develop a smart marketing cloud platform with Tencent and Huatai Intelligence, create a Linglong new retail that combines online and offline, warehousing and logistics, tires and non-tire categories, sales and services, precision marketing and brand drainage, create a half-hour distribution circle, and build a virtuous cycle of ecological chain for partners. 2) Set up Linglong car maintenance station to provide professional maintenance services for owners. 3) Establish the Atrasca Friends' Home project, with the middle and long-distance trunk logistics drivers running around the country as the core users, establish a service system to provide drivers and owners with warm hearts, and provide 30 million freight drivers with tire, oil and other related products and wheel care, maintenance, national road rescue and other comprehensive services.