(Shanghai Securities News www.cnstock.com) According to Duolun Technology, the company has pioneered and successfully initiated the construction of several vehicle inspection stations, and is expected to own 500 vehicle inspection stations through acquisition and in-house construction in the next 3 to 5 years.
Zhang Lei, Reporter of Shanghai Securities News
Undoubtedly, huge car ownership holds the key to the growth potential of the vehicle inspection industry. However, China's vehicle inspection industry is far from ideal, featured by extremely fragmented operation, undesirable service quality, inefficient management and poor customer experience. Vehicle inspection process is time-consuming and complicated, worsened by indifferent service attitude and inexplicable price.
The company pointed out that these pain spots will cause reshuffle of the vehicle inspection industry with wild growth replaced by brand and chain operation. As market plays an ever more important role in regulating automobile inspection industry, competition is bound to intensify. Combined with increasingly stringent government supervision, unqualified participants will die out facilitated by mergers and acquisitions. In the future, the vehicle inspection industry is moving towards a more regulated and standardized development promoted by chain brand service providers.
According to the announcement, the current cases put the growth revenue of acquired vehicle inspection stations at about 20%-30%. In addition, the company has also designed the future exit mechanism for partners. For those who wish to withdraw, the company would offer to repurchase their shares at market price as long as they have operated in compliance with the law within the past three years, giving them a way out. This is why partners are very happy to work with Duolun Technology.