April 15, 2025
Investment highlights- Achieved rapid business growth, with significant increases in revenue and profit- Actively expand the market and establish a subsidiary with a state-owned enterprise in Gaoming District, Foshan City-Continue to optimize services and grasp market opportunities- Bright industry prospects, with government’s policy supportCompetitive advantages- Benefits on the capital policies to help the Company's business expansion - The transformation of the real estate industry has brought about new business opportunities - Optimize the internal business structure and conform to macroeconomic policy adjustmentsHONG KONG, Apr 14, 2025 - (ACN Newswire via SeaPRwire.com) - Guangdong Syntrust GK Testing and Certification Tech Service Center Co., Ltd. (“SYNTRUST GK”, Stock Code: 8629, hereinafter referred to as the "Company") is pleased to announce its annual financial performance for the year ended December 31, 2024 ("the Review Year"). As a company with strong competitiveness in the testing and certification industry, SYNTRUST GK has demonstrated significant growth momentum and market expansion capabilities in its first annual results after listing, bringing many highlights to investors:1.Rapid Growth in Financial Performance – Recorded Significant Increase in Revenue and ProfitDuring the review year, the Company delivered outstanding performance, with remarkably growth in both revenue and profit. Revenue increased dramatically from RMB41.50 million to approximately RMB55.26 million, representing a 33.16% increase. Net profit for the year increased from RMB13.25 million by 22.96% to approximately RMB16.3 million. This demonstrated the Company's strong competitiveness and excellent market performance in the testing and certification industry. By continuously expanding its business areas and improving service quality and efficiency, the Company has successfully seized market opportunities and achieved a double harvest in revenue and profit.The Company’s basic earnings per share were RMB0.61. To share the Company's success with its shareholders, a final dividend of RMB0.15 per share (inclusive of applicable taxes) was declared for the Review Year. The total dividends for the year amounted to approximately RMB5.09 million, with a dividend payout ratio of approximately 31%.Business ReviewThe Company's revenue primarily comes from providing construction engineering testing and inspection services. Revenue generated from the provision of construction engineering testing services increased by 28.9% to RMB46.45 million (2023: RMB36.03 million), mainly attributable to (i) the overall growth in the construction engineering T&I industry in Maoming; and (ii) the revenue growth is in line with the expansion of scope of testing qualifications which enabled the Company to provide a wider range of inspection and testing services to its customers. Revenue generated from the provision of construction engineering inspection services increased by 3.6% to RMB5.67 million (2023: RMB5.47 million), primarily due to (i) the overall growth in the construction engineering T&I industry in Maoming; and (ii) the revenue growth is in line with the expansion of scope of testing qualifications which enabled the Company to provide a wider range of inspection and testing services to its customers. Since May 2024, the food and agricultural products testing department officially launched its business and generated revenue of RMB3.14 million for the year ended 31 December 2024The following table sets out the Company's revenue details by service category for the years ended December 31, 2024, and 2023: Market SectorRevenues(RMB’000)For the year ended 31 DecemberPercentage(%)For the year ended 31 December20242023Change20242023Construction engineeringtesting services Foundation testing service27,48224,619+11.6%49.7%59.3%Construction materialtesting service4,9733,888+27.9%9.0%9.4%Building structure testing service3,9081,682+132.3%7.1%4.0%Infrastructure and publicroads testing service10,0865,837+72.8%18.3%14.1%Construction engineering inspection services Slope monitoring andfoundation pit monitoring services5,6715,474+3.6%10.3%13.2%Food andagricultural testing services3,140--5.7%-Total55,26041,500+33.2%100%100%2.Expanding Market Reach with a Subsidiary in Cooperation with a State-owned Enterprise in Gaoming, Foshan CityIn terms of business expansion, the Company made significant progress during the year. On December 1, 2024, the Company established a branch office in Gaoming District, Foshan City, Guangdong Province, marking its further expansion of market reach and enhancement of service coverage. Furthermore, the Company also established a joint venture subsidiary with a local state-owned enterprise, aiming to fully seize market opportunities in Gaoming, Foshan, and provide more convenient and efficient testing and certification services to local customers. This move not only helps the Company further consolidate its market position in the testing and certification industry but also lays a solid foundation for its long-term development.3. Continuous Service Optimization to Seize the Market OpportunitiesThe Company has always been committed to providing customers with comprehensive and high-quality testing and certification services, covering multiple fields such as construction engineering testing, product and material testing, environmental testing, and food testing. Driven by national policies such as “Rural Revitalisation Initiative” policy and Guangdong Province “Project for the High-Quality Development of Hundreds of Counties, Thousands of Towns and Tens of Thousands of Villages” , which are boosting demand for T&I services, particularly in tier 3 and below cities. The market size of independent T&I industry in Western Guangdong is projected to grow from RMB3.6 billion in 2023 to RMB6.5 billion by 2028, with a CAGR of 12.7%. As a significant testing and certification service provider in Maoming, the Company is well-positioned to benefit from this industry growth trend. Moreover, the Company has actively expanded its service offerings to adapt to market changes and achieve sustainable development with its diversified service layout and professional capabilities.4. Bright industry prospects, with government’s policy supportThe launch of Administrative Measures for the Quality Inspection of Highway and Waterway Engineering (Jiao Tong Yun Shu Bu Ling [2023] No. 9) and the Administrative Measures for Investment Projects within the Central Budget for Water Conservancy (Fa Gai Nong Jing Gui [2024] No. 1761) create growth opportunities to the transportation, water conservancy and diversified T&I industries. In view of this, the Company closely follows the pace of national policies, and relies on its excellent professional technology, and has recently successfully obtained the quality certificate of "Highway and Water Transportation Engineering Quality Inspection Agency: Highway Engineering - Grade C" issued by the Guangdong Provincial Department of Transportation and Transportation. Taking this opportunity, the company will firmly grasp the opportunities brought about by the capital policy benefits and the transformation of the real estate industry, actively optimize the company's internal structure, comply with macroeconomic policy adjustment, and enhance market competitiveness.(1) Dividends on the capital side to help the company's business expansion According to the recent working report of the Two Sessions and the government, the PRC is expected to issue 130 trillion ultra-long-term special treasury bonds and 440 trillion yuan of special government bonds in 2025. The investment of these funds has not only injected strong vitality into the market, but also brought substantial support to infrastructure-related fields. As a leader in the testing and certification industry, the Company is expected to undertake more testing tasks in infrastructure projects based on its outstanding technical strength, professional qualifications and market reputation. The Company was able to fully grasp this policy benefits and turn the financial support into a driving force for business growth, which would further expand the Company's business scale and thus occupy a favorable position in the market competition.(2) Transformation of real estate industry has brought about new business growth opportunities In the field of real estate, improving the quality of housing, "good houses" and revitalizing the stock of real estate have become important directions for the development of the industry. This transformation not only reflects the market's demand for high-quality residential environments, but also creates new business opportunities for the testing industry. As a professional inspection service provider, the Company covers multiple fields such as construction engineering inspection, product and material inspection, and can provide comprehensive quality inspection services for real estate developers and construction companies. With the transformation of the real estate industry, the Company is expected to gain more business opportunities in building materials inspection, building structure inspection, etc., thereby increasing the Company's revenue contribution in real estate-related businesses and opening up new business growth points.(3) Optimize the internal business structure and conform to macroeconomic policy adjustmentsThe national government's emphasis on and investment in the field of infrastructure has led to a rising demand for municipal inspection related services. The Company adjusted its business structure in a timely manner, increased its investment in municipal inspection, and successfully seized market opportunities. Looking back on the year, the proportion of municipal inspection business of the Company has gradually increased, which is highly consistent with the direction of national macro policy support for infrastructure. This optimization of the business structure not only enhances the Company's market competitiveness, but also strengthens the its ability to cope with market risks, laying a solid foundation for the Company's sustainable development in the future.The Company's insight on national policies enable it to maintain its leading position in the fierce market competition, and provide a solid guarantee for the Company's long-term development and sustainable growth. With the continuous changes in the market environment and the continuous progress of the Company itself, it is expected to achieve more brilliant results in the future and create greater value for shareholders and society."We are pleased to announce the outstanding achievements the Company has made during the review period. Such performance not only reflects our strong competitiveness in the market but also demonstrates the excellent execution of our team. Looking ahead, we will continue to adhere to innovation-driven development and improve service quality to create greater value for shareholders as well as contributing to industry development. To this end, we are actively expanding our market reach by establishing a subsidiary with stated-owned enterprise in Gaoming District, Foshan City, which fully shows that state-owned enterprise has great confidence in the future development of the company, enabling us to better seize regional market opportunities and further consolidate our market position in the testing and certification industry." said Mr. Lai Feng, Chairman and Executive Director of Guangdong Syntrust GK Testing and Certification Tech Service Center Co., Ltd.About Guangdong Syntrust GK Testing and Certification Tech Service Center Co., Ltd.As a professional testing and inspection service provider, Guangdong Syntrust GK Testing and Certification Tech Service Center Co., Ltd. offers a wide range of services, including construction engineering testing and inspection, product and material testing, environmental testing, and food testing. With a diversified service layout, the Company is able to meet the diverse needs of different customer groups, including private and public sector entities such as real estate developers, construction companies, state-owned investment companies, Chinese government agencies, and government departments. The Company has obtained qualifications for 41 categories of testing and inspection services related to construction engineering, product and material testing, environmental testing, food testing, and agricultural-related testing from the Guangdong Provincial Market Supervision Administration. It also provides testing services for over 3,183 parameters under these 41 categories. This demonstrates the Company's high level of professionalism, as well as its good reputation and market competitiveness.This press release is disseminated by Bright Communications International Limited on behalf of Guangdong Syntrust GK Testing and Certification Tech Service Center Co., Ltd.For further enquiries, please contact Bright Communications International Limited:Ms. KungTel: (852) 4637 1627Mob: (852) 6608 9927Email:ir@brightcommns.com Copyright 2025 ACN Newswire via SeaPRwire.com.
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