2. Judging from this acquisition business, it should help to improve the future performance of China Railway. The assets acquired this time have some bright spots, mainly because Qingdao Zhao Ying indirectly holds 0/00% equity of BVV Group and Hong Kong Lihe/KLOC. After the transaction is completed, BVV Group and Li He will become subsidiaries of Huatie. BVV Group is the world's leading rail transit axle manufacturer with a history of nearly 180 years. The company's production base is located in Germany, and Lihegang is the company's sales agent platform in the Asia-Pacific region. Technically, the highlight of BVV lies in the unique and mature technology in forging, heat treatment and finishing, and the special steel formula can meet the production needs of wheels and axles of various rail transit vehicles. This has provided considerable help for China Railway to enhance its market competitiveness in this field.
3. But for the domestic high-speed rail industry, the impact of this acquisition is relatively limited. First of all, China already has a very perfect production system for high-speed rail products, and its overall construction scale is in the forefront of the world, and its industrial chain is relatively perfect. This acquisition can be said to be icing on the cake for domestic related industrial chains, but it will definitely not achieve the effect of rapid development. Secondly, the golden cycle of domestic high-speed rail construction has passed, and high-speed rail production and operation has become a relatively mature business in domestic related industries. Business maturity means that the space for industrial growth is relatively limited, but the stability of operation is guaranteed. This point has already been reflected in the stock price of domestic high-speed rail related industries in the past three years.
4. Therefore, this transaction may be a long-term favorable transaction for China Railway Corporation, but it has limited impact on the domestic high-speed rail industry as a whole.