Company Overview - Shanghai Guolian Testing Co., Ltd. is a state-controlled enterprise established in 1983, recognized as one of the earliest cable testing institutions in China [1] - The company specializes in testing and inspection services for wires, cables, and optical fibers, with over 90% of its business in testing and inspection [1] - It holds more than 1,200 recognized domestic and international testing standards [1] Financial Performance - In 2024, the company achieved a revenue of CNY 296 million and a net profit of CNY 75 million [2] - The company has established long-term stable relationships with major clients, including top cable manufacturers and significant users like State Grid and China National Petroleum [2] Client Base and Market Position - The company is recognized as one of the top 20 most competitive enterprises in the Chinese cable industry, serving clients such as Hengtong Group and Zhongtian Technology [2] - The client base includes cable manufacturers, users, certification bodies, and government quality supervision departments, indicating a diverse and stable customer portfolio [2] Business Expansion and Future Directions - The company is expanding into the field of electrochemical energy storage testing, focusing on flow batteries [2] - A wholly-owned subsidiary in Guangdong is being established to enhance market share in southern China, targeting consumer electronics and medium-low voltage cables [2] - The company aims to optimize its business layout and structure, expanding beyond cable testing into other testing services [3] Profitability and Investment - The net profit margin decreased in 2024 due to ongoing investments in testing capabilities and new business expansions, which require time to yield returns [2] - The company maintains a low dependency on single large clients, with the top five clients accounting for a small percentage of total revenue [3] International Market Engagement - The company is actively exploring international testing markets, providing services for domestic products exported abroad and foreign engineering clients [3] - It has not established overseas operational entities but sends testing reports to international clients, contributing to its global presence [3]