Rigol Technologies Co.,Ltd., which has been listed on A-shares for three years, raised 1.846 billion yuan through IPO in 2022, conducted private placements in both 2023 and 2024, and completed one acquisition through private placement, demonstrating highly frequent capital operations. Despite having abundant cash on hand, Rigol Technologies still plans to list in Hong Kong for fundraising, with annual equity financing or acquisition activities raising concerns about cash grab behavior. The company's fundraising projects also show signs of duplication, such as simultaneously building R&D centers in multiple locations nationwide, particularly constructing two different R&D laboratory centers in Beijing consecutively.
Recently, Rigol Technologies, which went public on A-shares just three years ago, announced plans for a Hong Kong listing, continuing its pattern of major capital operations every year.
In 2022, Rigol Technologies raised 1.846 billion yuan on the A-share STAR Market, with 900 million yuan in over-subscription. In 2023, the company raised 290 million yuan through private placement. In 2024, the company acquired 100% equity of Beijing Naisu Electronics Co., Ltd. with share payment consideration of 252 million yuan and raised 50 million yuan in supporting funds. Over three years since listing, Rigol Technologies' total equity fundraising reached 2.438 billion yuan.
In 2025, Rigol Technologies chose Hong Kong as its fundraising destination. However, as of the end of Q1, the company's broad money funds totaled 2.223 billion yuan. Even excluding approximately 350 million yuan in unused funds from fundraising projects, Rigol Technologies still has nearly 1.9 billion yuan in cash, appearing "not short of money." Moreover, with an asset-liability ratio of only 17.2% and interest-bearing debt of around 400 million yuan, the comprehensive net cash position remains around 1.5 billion yuan. Additionally, the company plans to use up to 780 million yuan in cash for wealth management, making the necessity of Hong Kong fundraising questionable.
**Frequent Fundraising and Capital Operations: High-Premium Acquisitions Facilitate Stock Incentive Realization**
According to information, Rigol Technologies focuses on independent R&D, localization, and industrialization of general electronic measurement instruments from basic chip and algorithm design to customer application-oriented products. In April 2022, Rigol Technologies successfully listed on the STAR Market under Guotai Junan's sponsorship, raising 1.846 billion yuan with 900 million yuan over-subscription.
Rigol Technologies' ability to over-subscribe by 900 million yuan was partly related to its high issue price. On the first trading day, Rigol Technologies closed at 39.78 yuan per share, down 34.66% from the issue price of 60.88 yuan per share. The nearly 35% first-day price decline caused heavy losses for investors who purchased at high prices.
Despite the 900 million yuan over-subscription from IPO, Rigol Technologies raised another 290 million yuan through private placement in October 2023, just 1.5 years after listing.
In 2024, Rigol Technologies continued frequent capital operations, acquiring 100% equity of Naisu Electronics through cash and share issuance, with an acquisition premium of 965.83%, including share payment consideration of 252 million yuan and supporting fund raising of 50 million yuan.
In summary, from April 2022 listing to October 2024 completion of Naisu Electronics acquisition, Rigol Technologies' cumulative equity fundraising reached 2.438 billion yuan (including acquisition-related private placement).
In 2025, Rigol Technologies continues aggressive capital operations. Recently, the company announced plans for Hong Kong Stock Exchange IPO fundraising to further enhance comprehensive competitiveness, improve international brand image, better utilize international capital markets, diversify financing channels, and inject strong capital momentum for global strategic deployment.
Puzzling is that "diversifying financing channels" is one of Rigol Technologies' Hong Kong IPO fundraising purposes, yet since the 2022 A-share IPO, the company's financing channels and frequency have already been diverse and high-frequency.
Rigol Technologies' capital operations include stock incentive plans, with drafts released in both 2024 and 2025 (two independent plans with no correlation). The 2024 and 2025 stock incentive plans' company-level performance targets are: 2024, 2025, and 2026 revenue growth of no less than 30% year-over-year, and net profit growth of no less than 20%.
Notably, Rigol Technologies' stock incentive plans benefit from the company's previous high-premium acquisition. Original Naisu Electronics shareholders committed that the target company would achieve cumulative non-recurring net profit of no less than 87 million yuan over three years (2024-2026), with each year no less than 15 million yuan.
In 2024, Naisu Electronics achieved non-recurring net profit of 46.324 million yuan, up 133% from 2023's 19.8004 million yuan, doubling growth. If Naisu Electronics maintains high growth, it would significantly support Rigol Technologies' stock incentive plan realization.
Investors should note that Rigol Technologies' stock incentive plans cover over one hundred core employees and other personnel deemed necessary by the board, but specific lists were not disclosed.
During IPO application, Rigol Technologies' stock incentive plans faced criticism. In the employee shareholding platform Ruijin Hezhong's list, non-employee Zhu Tiejun held 1.25% property share. The company's massive share-based payment expenses for stock incentives were a key reason for losses in 2020 and 2021.
**"Not Short of Money" Yet Still Pursuing Hong Kong IPO Fundraising While Planning Up to 780 Million Yuan Cash Wealth Management**
As of Q1 2025, Rigol Technologies had 338 million yuan in monetary funds and 1.885 billion yuan in trading financial assets, totaling 2.223 billion yuan in broad money funds.
Excluding approximately 350 million yuan needed for IPO projects, private placement projects, and supporting fund raising, Rigol Technologies still has nearly 1.9 billion yuan in broad money funds.
As of Q1 2025, Rigol Technologies had nearly 400 million yuan in interest-bearing debt (sum of short-term borrowings, non-current liabilities due within one year, long-term borrowings, and bonds payable), leaving approximately 1.5 billion yuan in net cash position. Additionally, Rigol Technologies plans to use up to 780 million yuan in over-subscribed funds and idle raised funds for wealth management.
Q1 2025 asset-liability ratio was only 17.2%, indicating low overall leverage. Given frequent fundraising over three years, abundant cash, and low leverage, the necessity of Hong Kong IPO fundraising remains questionable.
Interestingly, despite frequent fundraising and capital operations, Rigol Technologies hasn't achieved significant performance growth, with revenue up but profit down in 2024, and Q1 2025 non-recurring net profit actually losing 9 million yuan.
**Multiple Simultaneous R&D Center Construction: Two Beijing R&D Laboratory Centers Suggest Duplicate Fundraising**
According to announcements, Rigol Technologies currently has at least four R&D centers under construction: Shanghai R&D Center construction project, Xi'an R&D Center construction project, Malaysia R&D Center project, and Beijing Laboratory Center construction project. The company also has a nearly completed or just-completed IPO project - "Beijing R&D Center Expansion Project."
As of end-2024, planned investments for Shanghai R&D Center, Xi'an R&D Center, Malaysia R&D Center, and Beijing Laboratory Center projects were 98.887 million yuan, 110 million yuan, 70.64 million yuan, and 40.727 million yuan respectively, with progress at 37.49%, 13.5%, 0%, and 0.2% respectively - all relatively slow. The Shanghai R&D Center's scheduled completion date was extended from April 2025 to April 2026.
Puzzling is why Rigol Technologies is building R&D centers everywhere, especially in Malaysia. R&D center projects typically involve land purchase/building construction or leasing/renovation, equipment and consumables procurement, and R&D personnel recruitment. Couldn't the company concentrate R&D at headquarters?
Particularly, Rigol Technologies' IPO project "Beijing R&D Center Expansion Project" had total investment of 289.9286 million yuan, nearly 300 million yuan, with 92.38% completion as of end-2024.
When raising supporting funds in 2024, Rigol Technologies planned to use 40.727 million yuan for "Beijing Laboratory Center Construction Project," very similar to the IPO project "Beijing R&D Center Expansion Project."
Most importantly, with the nearly 300 million yuan IPO project "Beijing R&D Center Expansion Project" nearly or just completed, couldn't it accommodate the 40.727 million yuan "Beijing Laboratory Center Construction Project"? Whether hiring personnel or purchasing equipment to build laboratories, couldn't these two projects be compatible? Must they require two separate fundraising rounds and construction phases? These questions await company answers.
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