Introduction: With the “human, vehicles and roads” as three core elements, Duolun Technology deepens its innovation, improves strategic layout, and accelerates its transformation. In 2019, Duolun formally entered the industry of “inspection services for motor vehicles”, and formed the layout for the industrial chain that entirely covered “human (driver training and test), vehicles (vehicle inspection) and roads (intelligent transportation)” in the mass transportation field.

Motor vehicle inspection on is directly and closely related to traffic security and environmental protection, as well as the vital interests of the mass. China implements mandatory inspection on motor vehicles’ safety performance and environmental protection performance, frequency of inspection, and comprehensive performance of the vehicles in use, according to laws, regulations and standards. As a necessity of legal inspection, vehicle inspection benefits from the steady growth of motor vehicle ownership and age in China. According to the statistical data of Traffic Management Bureau of the Ministry of Public Security of PRC, by the end of 2019, the number of motor vehicles in China had reached 348 million, including 260 million cars, among which private cars summed up over 200 million. The number of China’s motor vehicles and drivers as well as the increment ranked the first in the world. Industries of motor vehicle inspection in China has entered a new stage of scale expansion and intensive development. The booming and thriving industries are now forming a market worth trillions of yuan. The domestic market of vehicle inspection began to be privatized in 2015, and as a result, the present market structure is extremely scattered with various defects including low service quality and operation efficiency. With the stricter supervision from the government and the higher emission standards for environmental protection, the market is now facing historic opportunities of the integration of industrial giants and the chain operation of brands.

As a wholly owned subsidiary of Duolun Technology Co., Ltd., Jiangsu Duolun Vehicle Inspection Industry Holding Co., Ltd. (referred to as Duolun Vehicle Inspection) is the first institute for operating and managing chain brands of motor vehicle inspection services in China. By means of marketization, branding, and specialization, Duolun Vehicle Inspection aims to create the operation model for the chain brands with uniform standards, technologies and models. Adhering to the aim of “improving service quality and serving vehicle owners efficiently” and empowered by technology, Duolun Vehicle Inspection focuses on optimizing its infrastructure, testing process, management system and service model to satisfy vehicle owners and meet the needs of the mass for the upgrading of vehicle inspection services. Additionally, demands for inspection on new-energy and second-hand vehicles rise and intensify, equipment for inspection is added and changed, new technologies for inspection are iteratively upgraded, and big data is collected and applied. All these factors gradually increase the value degree of industries of motor vehicle inspection, which will bring more dividends to Duolun Vehicle Inspection in the market.

By the end of June 2020, Duolun Vehicle Inspection had acquired and constructed nearly 20 vehicle inspection stations over the country, and the layout in major provinces had been quickly promoted. The number was expected to exceed 50 by the end of 2020, with a target of 100. Please refer to the attached table for the comprehensive report on the vehicle inspection stations invested by Duolun Vehicle Inspection over the past six months.

Motor vehicle inspection services have enormous potential in the market. Taking advantage of five elements, i.e., “resources, sites, capital, technologies, and brand operation”, Duolun Vehicle Inspection is now accelerating the nationwide layout through both acquisition and self-construction, targeting at the national leader in operation of chain brands of motor vehicle inspection services.