The reporter learned from CSR that Beijing CSR Times Locomotive and Rolling Stock Machinery Co., Ltd. (referred to as "CSR Beijing Times"), a subsidiary of CSR Zhuzhou Institute, recently successfully implemented a cross-border acquisition. It signed an equity purchase and transfer contract with Boramtec Bohr- & Rammtechnik Berlin GmbH (referred to as "Boramtec") in Berlin, Germany, successfully acquiring a 55% controlling stake in E+M Drilling Technologies GmbH (referred to as "E+M Company") held by Boramtec. This acquisition is CSR's third overseas acquisition after the acquisition of UK's Dynex Semiconductor in 2008 and Australia's Delkor in 2011, and is also its first overseas acquisition in the non-rail transit field. It is of great strategic significance for CSR to optimize its industrial structure and advance its internationalization process.

　　E+M Company is a long-established enterprise with nearly a century of history and enjoys a world reputation in drilling engineering and drilling machinery. The target of this acquisition by CSR Beijing Times is its machinery business assets. The newly established company's business scope mainly includes the research and trial production, manufacturing, sales and service of UH series multifunctional truck-mounted drilling rigs and related businesses. The company's fully hydraulic truck-mounted drilling rigs with hook loads ranging from 24 tons to 100 tons can be widely used in deep water wells, geothermal extraction, mine rescue, coalbed methane and shale gas extraction, etc. As global energy development intensifies, experts predict that the truck-mounted drilling rig market will become a new highlight in the construction machinery field.

　　The construction machinery industry is one of the new key industries developed by CSR. As the unit undertaking this strategic goal, CSR Beijing Times has entered the fields of piling machinery and construction machinery since 2004, leveraging CSR's core technical advantages in electromechanical-hydraulic control and mechanical manufacturing, and has become a new force in China's construction machinery sector. The company has successively launched several large-tonnage rotary drilling rigs, including the TR-360C, TR-400C, and TR550. Among them, the TR360C rotary drilling rig successfully drilled a pile hole with a diameter of 2 meters and a depth of 108 meters at the construction site of the extra-large bridge crossing the Longhai Railway on the Zhengzhou-Wuhan Passenger Dedicated Line, becoming the first successful case in China of using a domestic rotary drilling rig for extra-large pile hole construction of over 100 meters; the successful development and use of the TR400C ended China's dependence on foreign large drilling rig products. In 2011, the TR550 rotary drilling rig developed by the company became the rotary drilling rig with the largest torque in Asia and is the most ideal hole-forming equipment for large-diameter pile foundation engineering, breaking the monopoly of foreign companies in the high-torque, high-end product market. Many of the company's products have won industry awards multiple times and filled domestic gaps.

　　Authoritative data shows that during the "12th Five-Year Plan" period, global energy extraction will show a trend of diversification and high growth, and the extraction and utilization of oil and gas resources such as natural gas, coalbed methane, and shale gas will enter a stage of rapid growth. At present, the fully hydraulic truck-mounted drilling rigs used for extracting unconventional natural gas in China are basically all imported. Therefore, developing professional drilling rigs suitable for China's shale gas exploration and development with independent intellectual property rights is the only way to realize China's new energy strategy.

　　Jin Yonggang, General Manager of CSR Beijing Times, told the reporter of China Securities Network that through resource integration, the company aims to create an upgraded version of CSR's construction machinery industry. The company will actively advance its internationalization process, target and grasp high-quality resources that play a key role in cultivating industrial capabilities and have a favorable impact on optimizing the industrial structure, carry out mergers and acquisitions in due course, seek rapid industrial breakthroughs, complete the establishment of a financing platform, achieve the "two-wheel" drive of asset operation and capital operation, and promote industrial development.

　　According to reports, in this acquisition, E+M Company, as CSR Beijing Times' first overseas controlled subsidiary, will become the company's overseas construction machinery assembly base and also a "bridgehead" for entering high-end markets such as Europe. CSR Beijing Times will use E+M Company's UH series truck-mounted drilling products as an incubator to accelerate the research and development of products with "high added value, high technology content, and great market potential," develop a full series of products ranging from 24 tons to 180 tons to meet the needs of different customers, and become the preferred supplier of differentiated products in segmented markets.

　　Industry insiders analyze that this acquisition will help CSR Beijing Times and even CSR quickly connect to the global market, improve CSR's ability to provide system solutions in the global construction machinery market, and at the same time acquire cross-border management experience, core technical capabilities, world-renowned brands, global market networks and services, and leverage the influence of German manufacturing to accelerate CSR's internationalization process.