China Test responds to gross profit margin decline challenge system adjustment business structure

In response to the former researchers questioned the company's gross margin, CTI China testing deputy Guo to Sina Finance, said, margin or decline is the surface phenomenon, the company's main competitors are foreign-funded enterprises, will not play price war.　　He believes that the IPO after the raising of funds to build two large base, will greatly enhance the detection capacity. Previous institutional researchers have predicted a 8%-10% per cent decline in corporate profits as a result of increased equipment, labor costs and a price reduction strategy to expand market share.　　In this respect, China testing Guo Senior vice president in the dialogue with the Sina financial response, a slight decline is because enterprises actively open up channels and business, rather than cling to a few high profit business. "Testing industry involves higher laboratory construction, equipment input and other costs, so performance or decline is temporary, superficial phenomenon." And said that more than 70% of the gross margin I am afraid this is not normal phenomenon, the decline is also a return to rationality.　　"According to company earnings reports, the end of 06 sales gross profit margin of 81.85%, 07 end of 76.96%, and then according to Guo, the company was affected by the financial crisis and expansion of business, gross profit margin has slipped, from the end of 08 to 68.1%, and the 09 and 09 three quarters of data are kept at around 65%.　　For the testing industry will be the issue of price war, Guo Response, the test is not by the low price, some services than foreign-funded enterprises, the industry is to stress the credibility and quality of service, but not so sensitive to price. Although domestic testing enterprises a wide range of domestic and other single industry, a single field of detection agencies, testing the integration of the high level, easy to all walks of life to complete a one-stop testing services.　　For testing industry within the competition of private enterprises, Guo answer.　　At the same time, he also stressed that the main competitor of China Test is foreign-funded enterprises, in contrast, the company as a local enterprise policy response faster and more sensitive.　　According to another research report, the establishment of the company's new testing base will increase the detection capacity by 1 time times, effectively alleviating the current problem of inadequate detection capacity. Guo said that the completion of the new base will increase the actual detection capacity of more than 1 time times. Testing enterprises need a number of specific laboratories, the site and building requirements are relatively high, involving building layer high, seismic, floor and other issues. The completion of the new base will be able to provide enterprises with better laboratory and testing environment. (A merry from Shanghai)