Key takeaway

In 2025, the company achieved revenue of 3.603 billion yuan, a year-on-year increase of 12.37%, with net profit attributable to shareholders of 425 million yuan, up 20.57% year-on-year. The sustained performance growth aligns with our expectations. At the same time, the company continued to optimize its business structure, accelerating its transformation from a traditional comprehensive testing organization into a technology-driven enterprise focused on high-growth sectors. Its business strategy increasingly prioritized national strategic emerging industries such as commercial aerospace, the low-altitude economy, and artificial intelligence. Revenue from high-margin, high-growth businesses showed strong growth, while the net profit margin steadily increased. In addition, the company's private placement has been completed, with increased investment in technological innovation testing services, which is expected to contribute to sustained growth.

Event

The company released its 2025 annual report, reporting annual operating revenue of 3.603 billion yuan, representing a year-onyear increase of 12.37%, with net profit attributable to shareholders of 425 million yuan, up 20.57% year-on-year. In the fourth quarter, operating revenue reached 1.187 billion yuan, a 13.40% year-on-year increase, while net profit attributable to shareholders was 186 million yuan, rising 13.70% year-on-year.

Quick Take

Performance growth continues to deliver, with profitability steadily increasing

In 2025, the company's operating revenue and net profit attributable to shareholders grew steadily, with yearon- year growth rates reaching 12.37% and 20.57%, respectively. At the same time, the company continued to optimize its business structure, accelerating its transformation from a traditional comprehensive testing organization into a technology-driven enterprise focused on high-growth sectors. Its business strategy increasingly prioritized national strategic emerging industries such as commercial aerospace, the low-altitude economy, and artificial intelligence. Revenue from high-margin, high-growth businesses showed strong growth, while the net profit margin steadily increased.

By business segment, in 2025, the company's metrology services, reliability and environmental testing, integrated circuit testing and analysis, electromagnetic compatibility testing, life sciences, data science analysis and evaluation, and EHS evaluation services generated operating revenues of 757 million yuan, 893 million yuan, 309 million yuan, 423 million yuan, 472 million yuan, 272 million yuan, and 133 million yuan, respectively, representing year-on-year growth rates of 1.61%, 14.63%, 20.98%, 16.76%, -5.26%, 126.39%, and -26.58%. Among them, data science analysis and evaluation experienced explosive growth. On one hand, the company clearly defined its development goal of becoming a leading enterprise in physical and digital testing, while actively expanding asset-light businesses such as certification services, simulation testing, data analysis and evaluation, digital trust, and consulting and training. On the other hand, in August 2025, the company successfully acquired a 55% equity stake in Jinyuan Power, obtaining the cybersecurity classified protection certification and thereby accelerating the segment's growth.

In 2025, the company achieved a comprehensive gross profit margin of 46.84%, representing a year-on-year decrease of 0.37 percentage points. The margin fluctuation reflects reasonable performance given multiple influencing factors, including initial investments in innovative operations, price volatility in traditional businesses, and project settlement timelines for key clients in emerging sectors. In 2025, the company's total expense ratio was 33.85%, representing a year-on-year increase of 1.30 percentage points. In addition, in 2025, the company's total asset impairment losses and credit impairment losses amounted to 17 million yuan, a year-on-year decrease of 90 million yuan, primarily due to reduced goodwill impairment, as well as the company's enhanced cash flow management and intensified efforts in accounts receivable collection.

The private placement will increase investment in aviation equipment testing, artificial intelligence chip testing, and other projects, accelerating efforts in scientific and technological innovation testing services.

In February 2026, the company's private placement was officially completed, raising a total of approximately 1.3 billion yuan. The net proceeds will primarily be allocated to the following projects: the aviation equipment (including low-altitude) testing platform, the next-generation artificial intelligence chip testing platform, the satellite internet quality assurance platform, the data intelligence quality and safety inspection platform, the Xi'an metrology and testing laboratory upgrade and construction project, and working capital supplementation.

The fundraising projects highlight the company's commitment to transformation, with continued expansion into high-tech innovative sectors like commercial aerospace and the low-altitude economy, along with increased investment in technology R&D, to enhance future growth potential. Currently, in the commercial aerospace sector, the company has established eight major technology platforms, creating a one-stop testing and certification solution for commercial aerospace. It has developed China's first "4G-IoT satellite communication integrated testing system" to support chip and module R&D for leading communication companies. Additionally, the company has invested in building a satellite internet quality assurance platform and set up laboratories in Beijing, Shanghai, and other locations, positioning itself to fully benefit from industry growth in the future.

Investment recommendation: Since the management reform, the company has consistently delivered strong performance. Currently, it is actively transforming into a technology-driven enterprise focused on high-growth sectors. Going forward, the company is well-positioned to benefit from the development of industries such as commercial aerospace, low-altitude economy, and AI chips, which will continue to drive business growth. We forecast the company's operating revenue to reach RMB4.064 billion, RMB4.541 billion, and RMB5.024 billion in 2026-2028, representing year-on-year growth of 12.79%, 11.73%, and 10.64%, respectively. Net profit attributable to shareholders is projected at RMB499 million, RMB589 million, and RMB678 million, with year-on-year growth rates of 17.55%, 18.11%, and 15.02%, respectively. This corresponds to P/E multiples of 25.58x, 21.66x, and 18.83x. We maintain "Buy" rating.

Risks: ① Risk of adverse events affecting the company’s credibility, brand, and reputation. As an independent third-party provider of metrology, testing, and evaluation consulting services, the company’s credibility, brand, and reputation are fundamental to its survival and growth, and are key factors in securing service orders. Any adverse event damaging these factors could severely impact customer decisions, hinder business development, and even threaten the company’s sustainability.

Risk of intensifying market competition. China’s testing and inspection service sector is fragmented, with low market concentration. As the government gradually opens up the inspection and testing services market, private institutions are presented with favorable development opportunities, while foreign institutions are entering China’s market leveraging their strong capital and extensive operational experience, leading to increasingly intense competition within the industry. In the face of intense market competition, the company may face difficulties in expanding into new markets and risks losing existing market share to competitors, which could negatively impact its business development.