Guangdong Syntrust GK Testing and Certification Tech Service Center (8629) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose to RMB24.96m from RMB22.83m, while profit for the period fell 74.29% to RMB1.89m as costs, expenses and impairment charges increased.

• Expansion added hydraulic engineering testing through a 51% Yueshui acquisition for RMB9.33m; food and agricultural testing also grew strongly.

Financial highlights

• Revenue was RMB24.96m versus RMB22.83m; gross profit declined to RMB12.84m from RMB16.17m, while cost of sales rose to RMB12.12m from RMB6.66m.

• Profit before tax was RMB3.28m versus RMB9.82m; net profit was RMB1.89m versus RMB7.34m, down 74.29% YoY.

• Administrative expenses rose to RMB6.88m from RMB5.49m; impairment losses on financial assets at amortised cost increased to RMB1.64m from RMB0.13m.

• Operating cash flow was an outflow of RMB6.67m versus an inflow of RMB1.64m, amid a RMB15.39m increase in trade receivables.

Outlook and guidance

• Plans target food and agricultural, transportation, hydraulic and fire-protection testing, with wider reach across Western Guangdong and other cities.

• Transportation testing Class C accreditation was passed, with the certificate pending; a fire-protection testing subsidiary was expected in H2 2025.

• Seven specialised construction-testing qualifications were obtained on 22 July 2025, covering materials, structures, steel, foundations, energy-saving, municipal materials and road works.