Global Testing Corporation Limited: FY2025 Financial Results Analysis
Global Testing Corporation Limited (“the Group”) reported its unaudited condensed interim financial statements for the six months and full year ended 31 December 2025. Below is a detailed analysis of the company’s financial performance, significant events, and outlook, designed for investors and financial professionals.
Key Financial Metrics and Performance Table
| Metric |
2H 2025 |
1H 2025 |
2H 2024 |
YoY Change (2H) |
QoQ Change |
| Revenue (US\$’000) |
23,829 |
22,561 |
23,039 |
+3.4% |
+5.6% |
| Net Profit (US\$’000) |
748 |
3,120 |
4,236 |
-82.3% |
-76.0% |
| EPS, Basic (US cents) |
2.25 |
9.32 |
12.34 |
-82.3% |
-75.9% |
| Dividend (Declared/Recommended) |
None |
None |
None |
– |
– |
| Net Asset Value per Share (US\$) |
1.54 |
– |
1.43 |
+7.7% |
– |
Historical Performance and Trends
- Full Year Revenue: Increased by 12% to US\$46.4 million (FY2024: US\$41.5 million), mainly due to increased customer orders.
- Cost of Sales: Rose 13% YoY, reflecting higher sales activity and increased operational expenses (equipment rental, electricity).
- Net Profit: Decreased 25% YoY to US\$3.9 million for FY2025 (FY2024: US\$5.1 million), with a sharp drop in 2H 2025 due to margin compression and higher costs.
- EPS: Fell from 14.96 US cents (FY2024) to 11.57 US cents (FY2025), with a notable decline in 2H 2025.
- Net Asset Value: Improved to US\$1.54 per share (FY2024: US\$1.43), reflecting stronger asset backing despite lower earnings.
- Operating Cash Flow: Strong at US\$11.8 million (FY2024: US\$9.3 million), offset by increased investing and financing outflows.
- Dividend: None declared for FY2025 or FY2024; company is conserving cash for development and growth.
Exceptional Items and Noteworthy Events
- Income Tax Spike: Income tax expense surged by 372% to US\$1.3 million in FY2025 due to higher taxable profits and full utilization of carried-forward tax losses.
- Other Operating Expenses: Increased 43% YoY, mainly from foreign exchange losses.
- Share Capital Reduction & Buybacks: The Group reduced share capital by US\$646k and cancelled 1.32 million treasury shares. US\$272k was spent on share buybacks in 2025, following US\$860k in 2024. Total shares outstanding declined to 33.35 million.
- No Related-Party Transactions: No material related-party transactions or interested person transactions reported for FY2025.
Directors’ Remuneration
| Period |
Directors’ Fees (US\$’000) |
Key Management Compensation (US\$’000) |
| 1 Jan – 31 Dec 2025 |
199 |
397 |
| 1 Jan – 31 Dec 2024 |
194 |
422 |
Remuneration for directors and key management is determined by the Remuneration Committee, considering individual and group performance.
Macroeconomic & Industry Outlook
The company stated:
“The global economic landscape in 2026 remains complex and volatile, with geopolitical tensions, intensifying trade protectionism, cost pressures and supply chain realignments contributing to heightened uncertainty. The semiconductor industry is expected to remain resilient, supported by transformative technology such as artificial intelligence. However, operational and geopolitical challenges are expected to persist.
Against this backdrop, the Group will continue to carefully manage its business operation and exercise prudent capital management, with a focus on operation efficiency, cost rationalisation and enhancing productivity. The Group remains committed to delivering quality testing services and strengthening its long-term partnerships with clients and suppliers.”
The tone is measured and cautious, acknowledging industry resilience but warning of continued volatility and challenges.
Conclusion and Investment Recommendation
Overall Assessment: The Group demonstrated strong top-line growth and increased operating cash flows, but was pressured by rising costs, foreign exchange losses, and a sharp increase in tax expense. The lack of dividends reflects a conservative stance amid operational and macroeconomic uncertainty. While the company is taking steps to strengthen its balance sheet (e.g., share buybacks, capital reduction), the steep drop in 2H 2025 profitability is a concern.
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If you are currently holding this stock:
Consider holding with caution. The company is fundamentally sound, with a strong cash position and prudent capital management, but short-term earnings volatility and lack of dividends may limit upside. Monitor closely for cost containment and margin recovery in 2026.
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If you are not currently holding this stock:
Consider waiting for further clarity on earnings stabilization or a potential improvement in margins before initiating a position. The semiconductor testing sector is attractive long-term, but current headwinds warrant a conservative approach.
Disclaimer: This analysis is based solely on the information contained in the company’s published financial report and does not constitute investment advice. Please consult your financial advisor and consider your own risk tolerance before making any investment decisions.
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