Rigol Technologies (688337) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue was RMB 30,714.02万元, down 1.24% YoY; net income was RMB 764.53万元, down 83.40%, while adjusted net loss was RMB 1,824.74万元.

• Gross margin rose 1.06 percentage points to 56.67%; higher R&D and management expenses weighed on earnings.

Financial highlights

• Management expenses reached RMB 4,736.46万元, up 45.99% YoY, reflecting higher staff costs and depreciation.

• R&D expenses were RMB 8,793.95万元, up 35.24% YoY; operating cash flow was RMB 4,104.46万元, versus RMB 210.79万元 a year earlier.

• Total assets were RMB 348,429.06万元 at June 30, up 6.69% from year-end; net assets attributable to shareholders were RMB 278,773.27万元, down 3.51%.

Outlook and guidance

• Development priorities include oscilloscope chipsets, high-bandwidth digital oscilloscopes and high-end microwave/RF instruments; successful R&D commercialization and sales expansion remain important to recovery.

• Xi’an and Shanghai R&D centers are being built to increase investment and accelerate product development, with expected positive effects on future performance.