Shares of RIGOL Technologies Co.,Ltd. (stock code: 00537), which went public on the Hong Kong stock exchange less than two weeks ago, have been in a sustained downtrend.
Today, the stock finally rebounded. At the close, RIGOL shares were trading at HK$25.7, up 7.44% from the previous day. Based on the closing price, the company's market capitalization stands at HK$5.62 billion.
The company's IPO price was HK$45.98. It issued 24.8 million shares, raising a total of HK$1.14 billion. After deducting listing expenses of HK$99.6 million, the net proceeds from the offering amounted to HK$1.041 billion.
RIGOL shares fell 37% on their first day of trading in Hong Kong. In less than a fortnight, the stock price has now dropped 44% from its IPO price.
Significant Paper Losses for Cornerstone Investors
The cornerstone investors for RIGOL were HHLR Advisors (affiliated with Hillhouse), CPE Hemlock, Suzhou High-Tech Zone, Huayuan, Sungrow Power Supply Hong Kong, CITIC-Prudential Fund, and Pengnian Group. Together, they subscribed for a total of $61.28 million (approximately HK$480 million).
Specifically, HHLR Advisors subscribed for $25 million, CPE Hemlock for $12.5 million, Suzhou High-Tech Zone for $10 million, Huayuan for $7 million, Sungrow Power Supply Hong Kong for $4 million, CITIC-Prudential Fund for $1.78 million, and Pengnian Group for $1 million.
Calculated at today's closing price, Hillhouse (via HHLR) is facing a paper loss of $11 million (approximately 74.42 million yuan), CPE Hemlock a loss of $5.5 million (37.21 million yuan), and Suzhou High-Tech Zone a loss of $4.4 million (29.77 million yuan).
RIGOL had previously listed on Shanghai's STAR Market in April 2022. At that time, it issued 30.327 million shares at an IPO price of 60.88 yuan, raising a total of 1.826 billion yuan. Its shares also plummeted 34.66% on their debut day.
Financial Performance Overview
RIGOL is an electronic measurement instruments company. It has established a comprehensive portfolio based on two pillars: a core technology-driven product matrix covering digital oscilloscopes, RF instruments, DC precision instruments, and modular instruments; and multi-scenario solution suites primarily serving high-growth industries like communications, new energy, semiconductors, education, and research.
According to its prospectus, RIGOL's revenue for 2023, 2024, and 2025 was 671 million yuan, 776 million yuan, and 900 million yuan, respectively. Gross profit for those years was 358 million yuan, 426 million yuan, and 475 million yuan, respectively. Net profit for the periods was 108 million yuan, 92.3 million yuan, and 86.08 million yuan, respectively.
For 2025, revenue increased by 13.8% year-over-year, while net profit decreased by 6.7%.
Adjusted net profit for 2023, 2024, and 2025 was 123 million yuan, 100 million yuan, and 91.79 million yuan, respectively. Adjusted EBITDA for those years was 160 million yuan, 160 million yuan, and 187 million yuan, respectively.
In the first quarter of 2026, revenue was 230 million yuan, a 38% increase from 167 million yuan in the same period the previous year. Net profit was 23.15 million yuan, with adjusted net profit after non-recurring items of 15.41 million yuan.
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