Event: August 1st announcement, the company signed a cooperation agreement with WAL-MART, providing food, cosmetics, toys, textiles, electrical appliances, environmental testing services for its detection, provide related training, supply chain management solutions and consulting services, supplier audit recommendations. Inspection fees paid monthly, the agreement for a period of 2 years.
WAL-MART test inputs or continued growth, the future performance of a significant benefit: China is an important market for WAL-MART, by the end of 2015, WAL-MART opened 433 stores in China, with more than 7000 suppliers. According to global network reported that WAL-MART China President Ke Xianjun announced at the new year's meeting in Zhuhai, 2016 WAL-MART plans to add 30 new stores in China, the introduction of cross-border electricity supplier services, increase investment in various businesses. According to the chief compliance officer Gao Lei Bo interview was informed that WAL-MART 2013-2015 China's food safety testing investment 300 million yuan, with the expansion of business in China, is expected to accelerate the growth of the next test inputs. Cooperation agreement with WAL-MART executive at the end of July 2016, the company expects performance will significantly benefit from the increase in WAL-MART orders.
Giant effect in the middle and long term market development space, enhance profitability. The cooperation with WAL-MART, the company is a major breakthrough in the integrated retail market. In view of WAL-MART's retail scale and market influence, is expected in the next two years, the cooperation will bring positive influence to the performance of the company, and will be conducive to the life science and consumer testing business in the comprehensive retail market long-term development, at the same time, giant effect will help the company to accelerate the expansion of business scale and business resources, enhance service the level and market influence.
Private comprehensive testing services leading, epitaxial accelerate the development of diversified business layout. According to the National Commission for accreditation, inspection and testing service industry in 2015 179 billion 900 million yuan, an increase of 10.37%, the average annual growth rate of nearly three years. According to Chinese industry information network statistics, the market share of private test in China is only 10%, according to the 2015 income of 1 billion 288 million yuan in the company estimates, private testing firms in the market accounted for 7.16%, with the detection of industry regulation and system reform to accelerate, private sector is expected to achieve greater development space. At the same time, to speed up the layout of diversified strategic business areas, including environmental monitoring, life science detection, food detection, consumer goods and industrial products test, July announcement of auction to get Henan certificate of Zhengzhou grain wholesale market and the subsidiary holds 71.26% stake in a limited liability company, public infrastructure technology digital certificate authentication system based on it, to build the service in Henan, the radiation surrounding the e-government, e-commerce and network application of public security digital authentication platform, conform to the trend of the future industry and the Internet combined detection.