Venture(US:VEMLY) Ge Long Hui·2025-10-14 10:17Core Viewpoint - Shenzhen Tian Su Measurement Testing Co., Ltd. (Tian Su Measurement) is preparing for its IPO after a challenging review process, with significant involvement from major clients across various industries [1][12]. Company Overview - Tian Su Measurement was established in June 2009 and is headquartered in Longgang District, Shenzhen. It was listed on the New Third Board in October 2015 and delisted in February 2019 [2]. - The company is primarily engaged in measurement calibration, testing, and certification services, serving sectors such as biomedicine, automotive, new energy, rail transportation, and power energy [2][3]. Financial Performance - The company's revenue for the years 2022, 2023, 2024, and the first half of 2025 was CNY 597 million, CNY 726 million, CNY 800 million, and CNY 409 million, respectively. Net profits for the same periods were CNY 84.39 million, CNY 101 million, CNY 111 million, and CNY 55.58 million [5]. - The projected revenue for the first nine months of 2025 is estimated to be between CNY 635 million and CNY 650 million, reflecting a year-on-year growth of approximately 9.89% to 12.49% [5]. Revenue Composition - In 2024, the revenue composition was as follows: measurement calibration services accounted for over 85%, testing services (primarily for new energy batteries) made up less than 15%, and certification services contributed a minimal 0.13% [3][4]. Financial Ratios - The company's total assets as of June 30, 2025, were CNY 729.19 million, with equity attributable to the parent company at CNY 576.12 million. The asset-liability ratio was 18.45% for the parent company and 20.99% for the consolidated entity [6]. - The gross profit margins for the main business during the reporting periods were 52.67%, 53.86%, 53.40%, and 51.56%, indicating a relatively stable but slightly declining trend [6][7]. Industry Context - The measurement and testing industry in China has seen a market size increase from CNY 206.5 billion in 2016 to CNY 487.6 billion in 2024, with a compound annual growth rate (CAGR) of 11.34%. However, the growth rate has slowed down recently, with a year-on-year increase of only 4.41% expected in 2024 [9][10]. - The revenue of calibration institutions has grown from CNY 5.668 billion in 2016 to CNY 11.604 billion in 2024, with a CAGR of 9.37% [10]. Competitive Landscape - Tian Su Measurement's main competitors include Guodian Measurement and the China National Institute of Metrology. In 2024, Tian Su Measurement achieved a market share of approximately 5.91% in the calibration segment, slightly below Guodian Measurement's revenue of CNY 7.45 billion [12]. - The industry is experiencing a trend towards consolidation, with larger institutions gaining market share and revenue [11].