Guangdong Syntrust GK Testing and Certification Tech Service Center Co., Ltd. (SYNTRUST GK, 08629) reported strong unaudited results for the six months to 30 June 2026, powered by recent acquisitions and steady demand across construction, hydraulic and motor-vehicle testing segments.
Financial highlights (YoY): • Revenue jumped 88.4% to RMB 46.99 million. • Gross profit nearly doubled to RMB 25.51 million; gross margin improved to 54.3% from 51.4%. • Profit before tax rose 81.3% to RMB 5.95 million. • Net profit attributable to shareholders surged 133.1% to RMB 3.15 million; basic EPS advanced to RMB 0.09 from RMB 0.04. • Net cash position stood at RMB 51.15 million; cash and equivalents totalled RMB 90.52 million. • No interim dividend declared; a final 2025 dividend of RMB 0.18 per share (RMB 6.11 million) was paid in July 2026.
Segment performance: • Construction-engineering testing remained core, contributing 71.5% of revenue and expanding 101.4% to RMB 33.60 million. • Hydraulic‐engineering testing revenue more than doubled to RMB 3.69 million following the consolidation of Yueshui Testing. • Motor-vehicle testing, added via the September 2025 acquisition of Rongli Testing, delivered RMB 3.22 million. • Food & agricultural testing revenue eased 15.4% to RMB 4.34 million amid project scheduling shifts.
Cost and margins: Cost of sales grew 77.3% to RMB 21.49 million, below the pace of revenue growth, lifting the gross margin by 2.9 percentage points. Administrative expenses rose to RMB 14.86 million, reflecting integration and operating costs of newly consolidated entities.
Balance sheet: Total assets reached RMB 317.39 million, with a current ratio of 4.1. Trade receivables increased to RMB 90.72 million, extending days-sales-outstanding to 323 from 281. Capital commitments amounted to RMB 2.55 million, while no assets were pledged and no material post-period events were reported.
Strategic developments: During the period Syntrust GK completed majority stakes in Maoming Juzhou Engineering Testing and Gaozhou Gaoxin Engineering Testing, augmenting its presence in Western Guangdong. The Group now holds 49 accredited qualifications covering 7,320 testing parameters and continues to pursue additional specialised credentials in building curtain wall and bridge & underground works. Diversification initiatives include expansion into food & agricultural testing, highway and waterway engineering, fire-protection inspections and safety assessments.
Governance & compliance: The company remained in overall compliance with Hong Kong’s Corporate Governance Code, except for the continued combination of chairman and general manager roles held by Mr Lai Feng, a structure the Board considers effective for operational efficiency.
Outlook: Management will focus on completing its qualification roadmap, deepening penetration in Western Guangdong’s tier-three to tier-five cities, and scaling newly entered segments to sustain revenue momentum while mitigating regional concentration and integration risks.
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