EASA(SZ:300215)2022-12-04 08:56Company Overview - Suzhou Electrical Science Research Institute Co., Ltd. was established in 1965 and has become the largest independent third-party testing and certification institution in China's power transmission and transformation equipment sector [2][3]. - The company currently employs 1,300 staff and has been recognized as a national high-tech enterprise [3]. Testing and Certification Capabilities - The company has established 10 national and industry quality inspection centers, including the National Electrical Product Quality Supervision and Inspection Center and the National Smart Grid High Voltage Equipment Quality Supervision and Inspection Center [3]. - In 2018, the company was approved as a certification body, achieving an integrated testing and certification goal, aligning with international industry trends [3]. Financial Performance - Revenue growth was slow in 2014 and 2015, but rebounded in 2016 and 2017, with a slight slowdown in 2018 [4]. - The company aims to increase its revenue from 800 million yuan in 2019 to 1.45 billion yuan by 2023 [6]. Market Dynamics - The low-voltage electrical testing revenue has not seen significant growth due to a limited market size and intense competition among domestic testing institutions [4]. - The company is strategically positioned in East China, where many low-voltage electrical product manufacturers are located, providing a geographical advantage [4]. Future Development Plans - The company plans to enhance its testing capabilities and aims to build a world-class comprehensive testing institution [6]. - The electrical testing industry is expected to benefit from national policies promoting large-scale investments in distribution networks and smart grids [5]. Investment and Market Strategy - The company is focusing on strategic and financial investments, with the China Inspection Group providing oversight without interfering in daily operations [5]. - Plans are in place to establish three market departments targeting traditional power transmission products, renewable energy products, and system equipment testing [9]. Operational Insights - The average accounts receivable turnover period is approximately 20 days, with clients typically required to pay before testing [7]. - The company is currently not planning to establish laboratories in other locations but is considering acquisitions and market promotion efforts [8].