Why has Weifang State-Owned Capital Holding Green Testing, which has been listed on the board for 12 years, sought to exit the New Third Board?

On March 19, Shandong Green Testing Co., Ltd. (stock code: 830846, stock abbreviation: Green Testing) issued a notice stating that it intends to apply for the termination of its stock listing on the National Equities Exchange and Quotations system. The relevant proposal has been approved by the company’s board of directors and still needs to be submitted for approval at the third extraordinary shareholders’ meeting in 2026. The specific termination date will be subject to the approval of the National Equities Exchange and Quotations company.

Regarding the reasons for this proposed termination of listing, Green Testing stated in the notice that it mainly considers the company’s current operating situation, in conjunction with the current market environment and the company’s long-term strategy and development plan. This decision was made after careful consideration to further improve operational decision-making efficiency and reduce operating costs. After the termination of the listing, the company will focus on the development of core businesses, concentrating resources to enhance its operational management capabilities and market competitiveness to achieve long-term sustainable development.

To protect the legitimate rights and interests of dissenting shareholders, Green Testing has developed comprehensive dissenting shareholder protection measures and committed to repurchasing the shares held by dissenting shareholders who meet the conditions.

Regarding the arrangement for the suspension and resumption of trading of the stock, the company will apply for the suspension of its stock from the next trading day after the shareholders’ meeting’s equity registration date for the resolution to terminate the listing. If the termination resolution is not approved by the shareholders’ meeting, the company will apply for the resumption of trading within two trading days from the announcement date of the shareholders’ meeting resolution.

The notice also reminds that this termination of listing may not be approved by the shareholders’ meeting or the National Equities Exchange and Quotations company.

Public information shows that Green Testing was established in 2010 and has previously been named Shandong Green Testing Co., Ltd. and Weifang Green Testing Co., Ltd., among others. It is headquartered in the Weifang High-tech Zone of Shandong Province, with a registered capital of 50.356267 million yuan, and its legal representative is Cheng Hui. The company has multiple branches in Dongying, Yantai, Jinan, and other locations. In August 2014, it was listed on the National Equities Exchange and Quotations system.

Green Testing’s main business covers multiple fields including environmental testing, food testing, consistency evaluation of generic drugs, and medical testing. It is a nationally recognized high-tech enterprise and a specialized and innovative small and medium-sized enterprise. The company holds multiple patent technologies and software copyrights and possesses CMA measurement certification qualifications.

In terms of its equity structure, the controlling shareholder of Green Testing is Shandong Gaochuang Construction Investment Group Co., Ltd., which holds 61.86%, while the actual controller is the Finance and Financial Bureau of the Weifang High-tech Industrial Development Zone. Additionally, shareholder Wang Bin holds 16.82% and serves as the company’s director and general manager.

From the perspective of operating performance, according to financial report data, in 2024, Green Testing achieved total operating revenue of 19.8502 million yuan, operating profit of 427,500 yuan, and a net profit of -3.2114 million yuan, with the net profit attributable to the parent also being -3.2114 million yuan, resulting in basic earnings per share of -0.06 yuan.

In the first half of 2025, Green Testing’s total operating revenue was 10.3301 million yuan, a decrease of 9.32% compared to the same period last year, with a gross profit margin dropping to 7.86% (31.47% in the same period last year). However, the net profit attributable to the parent achieved a turnaround to a profit of 32,200 yuan, with a weighted average return on net assets of 0.02%. The net cash flow from operating activities reached 10.5409 million yuan, a significant improvement compared to the same period last year.

Economic reporters noted that the testing service industry, in which Green Testing operates, is currently in a “reduction in quantity and increase in quality” development stage, showing a trend of diversified development, with increasing competition in the industry. In particular, the consistency evaluation of generic drugs is heavily impacted by national drug procurement policy reforms, leading to intense price competition among enterprises and a continuous compression of profit margins. Additionally, the lowering of industry entry barriers has resulted in a contraction of market share in this field. Simultaneously, the overall homogenization of competition in the testing industry has intensified, putting pressure on small and medium-sized enterprises in terms of technological upgrades, talent reserves, and brand building, with a gradual trend of industry consolidation becoming evident. Furthermore, some testing companies are accelerating their layout in emerging fields such as AI, low-altitude economy, and semiconductors to seize new business growth points.

[Source: Dazhong Net]