The 2021 annual report shows that the gross profit margin of the cooling system in 2021 is 25.56%, but the 2022 annual report shows that the gross profit margin of the cooling system in 2022 is 16.35%, which is only 0.61% lower than the same period last year. What is the actual change in gross profit margin? What is the main reason for the change?

Zhongding Co., Ltd.: Hello, the company acquired Schmitter Group GmbH in 2022. According to relevant regulations, the 2021 data has been retroactively adjusted. For details, please pay attention to the company's 2022 annual report; the gross profit margin of the company's cooling business is affected by factors such as fluctuations in domestic and foreign raw material prices. In recent years, the company has continued to promote the cost control and refined management of overseas factories, and further optimized the expenses of overseas enterprises and divested non-core businesses. A series of measures have been taken to increase the speed and certainty of the recovery of overseas business. Through continuous management improvement, domestic and foreign businesses have maintained a continuous positive growth trend. Thank you for your attention, thank you!