Centre Testing International Group (300012) Q4 2023 earnings summary

Executive summary

• Achieved operating income of CNY 5.605 billion in 2023, up 9.24% year-over-year; net profit attributable to shareholders reached CNY 910 million, up 0.83% year-over-year; net cash flow from operating activities was CNY 1.122 billion, up 1.99% year-over-year.

• Maintained leading position in domestic private testing institutions, with about 160 laboratories and over 260 service networks in more than 90 cities worldwide.

• Continued investment in strategic tracks such as new energy vehicles, chip semiconductor testing, metrology, carbon neutrality, and medicine, driving new growth.

• Enhanced brand influence, internationalization, and digital transformation, with significant progress in automation and lean management.

Financial highlights

• Operating income: CNY 5,604,624,525.83 (+9.24% YoY); net profit attributable to shareholders: CNY 910,203,484.57 (+0.83% YoY); EBITDA: CNY 1,521,161,965 (+1.67% YoY).

• Basic and diluted EPS: CNY 0.5474 (+1.31% YoY); ROE: 15.55% (down 2.63 percentage points YoY).

• Total assets: CNY 8,749,114,094.50 (+11.70% YoY); net assets attributable to shareholders: CNY 6,205,345,102.90 (+13.33% YoY).

• Non-recurring profit and loss items contributed CNY 126.47 million to net profit.

Outlook and guidance

• Will focus on strategic investment in value tracks, deepen lean management, and accelerate international expansion, especially in Southeast Asia.

• Plans to further improve operating quality and efficiency, continue M&A integration, and enhance talent empowerment and digitalization in 2024.

• Maintains commitment to annual cash dividends and share repurchase plans to enhance shareholder returns.