Centre Testing International Group (300012) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥3.43 billion, up 15.86% year-over-year; net profit attributable to shareholders was ¥563.68 million, up 20.63% year-over-year.

• Operating cash flow increased 150.34% year-over-year to ¥437.60 million, reflecting improved collection and operational efficiency.

• All five major business segments—life sciences, industrial testing, consumer products, trade assurance, and medical—achieved growth, with international expansion and digital transformation as key drivers.

• Strategic investments in AI, digitalization, and laboratory capacity, as well as successful overseas acquisitions, contributed to performance.

Financial highlights

• EBITDA for H1 2026 was ¥935.28 million, up 17.54% year-over-year.

• Gross margin across main business lines remained stable, with trade assurance segment maintaining a high margin of 71.68%.

• R&D investment reached ¥286.67 million, up 22.38% year-over-year, representing 8.36% of revenue.

• Basic and diluted EPS were both ¥0.3363, up 20.41% year-over-year.

• Total assets at period end were ¥10.66 billion, up 2.66% from year-end 2025.

Outlook and guidance

• Management expects continued growth driven by digital transformation, AI-enabled services, and international expansion.

• Strategic focus remains on high-value sectors such as pharmaceuticals, semiconductors, new energy vehicles, and ESG/low-carbon services.

• Ongoing investments in laboratory capacity and overseas M&A are expected to further enhance global competitiveness.