New Stock News | Tongao Inspection filed with the Hong Kong Stock Exchange. Ranked second among professional testing institutions in the integrated TIC solutions market in the Chinese oil and gas industry.

According to the disclosure by the Hong Kong Stock Exchange on June 30, Tongao Testing Group Limited (referred to as Tongao Testing) has submitted an application to the main board of the Hong Kong Stock Exchange, with Dongxing (Hong Kong) as its exclusive sponsor. Company Overview According to the prospectus, Tongao Testing is a leading TIC service provider in China with global operations. According to Frost & Sullivan data, Tongao Testing ranks second among specialized testing organizations in China's oil and gas industry TIC integrated solution market in 2025 by revenue, and fifth overall. Tongao Testing is one of the few Chinese members of the TIC Council. The company's core competitiveness lies in its robust qualifications and certification system, as well as proprietary testing and inspection technology that is not limited to any specific industry and can be widely applied across multiple sectors. So far, the company has mainly applied this capability in the oil and gas industry, while actively expanding into new energy businesses and expanding its services to other industries. According to Frost & Sullivan data, Tongao Testing is one of the few Chinese TIC companies with significant business in overseas markets and the ability to provide full industry chain services for oil and gas development projects. Tongao Testing is also one of the main service providers to leading Chinese state-owned oil and gas companies and international energy companies. Tongao Testing's core services include oil and gas and development engineering solutions, infrastructure solutions, which are currently mainly provided to the oil and gas industry, while strategically expanding into new energy businesses and increasing service coverage to other industries. Tongao Testing is committed to providing professional and integrated testing and inspection services, including casing and tubing inspection, gas leak detection, non-destructive testing, pipeline inspection, and metering tests. Tongao Testing also offers high-value-added smart solutions to meet the increasing demand for real-time monitoring from customers. Since its establishment, Tongao Testing has built an extensive national and international service network. The company provides services to China's major oil and gas fields through regional centers. Outside of China, Tongao Testing has established a core operational base in Iraq and expanded its operations to major oil and gas production areas along the Belt and Road Initiative, including the Middle East, Africa, and Central Asia. According to Frost & Sullivan data, Tongao Testing is the only Chinese TIC company recognized by the Iraqi Ministry of Oil as a qualified third-party inspection service provider. Financial Information Revenue In the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 474 million, RMB 447 million, and RMB 497 million, respectively. Gross Profit In the fiscal years 2023, 2024, and 2025, the company recorded gross profits of approximately RMB 198 million, RMB 183 million, and RMB 186 million, respectively. Net Profit In the fiscal years 2023, 2024, and 2025, the company's net profits were approximately RMB 123 million, RMB 103 million, and RMB 100 million, respectively. Industry Overview Driven by the surge in end-to-end supply chain assessment demand, stringent ESG regulatory requirements, and the accelerated adoption of digital quality management, the market is expected to steadily expand in the future. According to Frost & Sullivan data, the global market for integrated testing, inspection, and certification solutions is expected to reach RMB 3,668.9 billion by 2025, an increase from RMB 2,543.3 billion in 2021, with a compound annual growth rate of 9.6% from 2021 to 2025, and is further expected to increase to RMB 5,483.0 billion by 2030, with a compound annual growth rate of 8.3% from 2026 to 2030. Benefiting from the continuous transformation of the manufacturing industry towards advanced manufacturing, increasingly stringent quality control standards, and the growing demand for cross-border compliance as Chinese companies accelerate global expansion, the market is expected to steadily expand in the future. According to Frost & Sullivan data, the market size of integrated testing, inspection, and certification solutions in China is expected to reach RMB 728.1 billion by 2025, an increase from RMB 441.3 billion in 2021, with a compound annual growth rate of 13.3% from 2021 to 2025, and is further expected to increase to RMB 1,265.0 billion by 2030, with a compound annual growth rate of 11.6% from 2026 to 2030. Board Information Tongao Testing's board of directors consists of seven directors, including two executive directors, two non-executive directors, and three independent non-executive directors. Ownership Structure As of the latest practicable date, the company is directly owned 95% by Oilfield Services and approximately 5% by Andon New Energy, with Andon New Energy being wholly owned by Oilfield Services, a direct wholly-owned subsidiary of Andon Group. Therefore, the controlling shareholders of the company will include Andon Group, Oilfield Services, and Andon New Energy. Tongao Testing has entered into several fully exempt, partially exempt, and non-exempt related party transactions with Andon Oilfield Group, including (i) a leasing procurement framework agreement, (ii) a leasing service framework agreement, and (iii) a testing service framework agreement. With respect to these transactions, the directors believe that the company operates independently of its controlling shareholders. Intermediary Team Exclusive Sponsor: Dongxing (Hong Kong) Limited Company Legal Counsel: Zhong Lun Law Firm, Tian Yuan Law Firm, Unicase Law Firm, Vincent Law Firm, Xiaxin Law Firm Exclusive Sponsor Legal Counsel: Zhou Junxuan Law Firm and Beijing Tongshang Law Firm Joint Venture, Haiwen Law Firm Auditors and Reporting Accountants: Deloitte Kwun Hung Chan Fong & Co. Industry Advisor: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Advisor: Dongxing (Hong Kong) Limited