Core Viewpoint - The report highlights the financial performance and operational status of Uni-Trend Technology (China) Co., Ltd. for the first half of 2025, indicating a slight decline in net profit despite an increase in revenue, attributed to rising costs and initial operational expenses of new subsidiaries [1][2]. Financial Performance - The company achieved a revenue of RMB 617.42 million, representing a year-on-year increase of 9.52% compared to RMB 563.73 million in the same period last year [3][4]. - The total profit amounted to RMB 105.29 million, down 8.23% from RMB 114.73 million in the previous year [4]. - The net profit attributable to shareholders was RMB 98.01 million, a decrease of 5.14% from RMB 103.32 million [4][5]. - The operating cash flow net amount was RMB 73.01 million, reflecting a significant decline of 33.25% compared to RMB 109.39 million in the previous year [4][5]. Business Overview - Uni-Trend focuses on the research, development, production, and sales of testing and measurement instruments, including general instruments, professional instruments, temperature and environmental testing instruments, and testing equipment [3][8]. - The company operates in various sectors such as electronics, home appliances, electromechanical equipment, energy conservation, rail transportation, automotive manufacturing, HVAC, construction, 5G infrastructure, new energy, IoT, big data centers, AI, and scientific research [3][8]. Industry Context - The testing and measurement instrument industry is supported by national policies aimed at promoting innovation and development, particularly in high-end scientific instruments [3][12]. - The industry is experiencing growth due to advancements in sensor technology, digital technology, and the increasing demand for high-precision measurement devices [3][12]. - The company is positioned to benefit from the growing market for testing instruments, particularly in the context of environmental monitoring and energy efficiency initiatives [3][12]. Research and Development - The company has increased its R&D investment to RMB 62.34 million, accounting for 10.10% of its revenue, which is an increase of 0.51 percentage points from the previous year [3][16]. - The R&D team has expanded to 354 personnel, representing 23.12% of the total workforce, indicating a strong focus on innovation [3][16]. - The company has obtained several patents, enhancing its competitive edge and facilitating the transformation of research outcomes into marketable products [3][16].

General Provisions - The company aims to protect the legal rights of shareholders and creditors while regulating its organization and behavior according to relevant laws and regulations [2] - The company, Rigol Technologies Co., Ltd., was established as a joint-stock company through the overall change of Rigol Technologies Co., Ltd. and registered in Suzhou [2][3] - The company issued 30,327,389 A-shares to the public on April 8, 2022, after being approved by the Shanghai Stock Exchange and registered by the China Securities Regulatory Commission [3] Business Objectives and Scope - The company's business objective is to enhance economic cooperation, adopt advanced management methods, expand the market, and improve economic efficiency to provide satisfactory economic benefits to investors [5] - The company's registered business scope includes the research, production, and sales of oscilloscopes, multimeters, signal generators, spectrum analyzers, optical instruments, and related products, as well as providing technical and after-sales services [5] Shares - The company's shares are issued in the form of registered stocks, with each share having a par value of RMB 1 [6] - The total number of shares at the time of establishment was 80 million, all of which were subscribed by the founders [6] - After the initial public offering of H-shares, the total number of shares will be adjusted accordingly, with A-shares and H-shares constituting a certain percentage of the total share capital [6] Shareholder Rights and Obligations - Shareholders have the right to receive dividends and participate in shareholder meetings, as well as the obligation to comply with laws and regulations [12][13] - The company must ensure that shareholders' legal rights are protected and that they are treated fairly [14] - Shareholders holding more than 5% of voting shares must report any pledging of their shares to the company [16] Shareholder Meetings - The company holds annual and extraordinary shareholder meetings, with the annual meeting occurring within six months after the end of the previous fiscal year [43] - Shareholder meetings are convened by the board of directors, and shareholders holding more than 10% of shares can request an extraordinary meeting [47][50] - The notice for shareholder meetings must include details such as the time, location, and agenda, and must be communicated in a timely manner [56][57]

Investment Rating - The report maintains a "Recommended" investment rating for the company [1][6][11] Core Views - The company achieved a revenue of 497 million yuan in 2024, representing a year-over-year growth of 2.93%, while the net profit attributable to shareholders decreased by 27.79% to 112 million yuan [3][6] - The company continues to push its high-end development strategy, optimizing its product structure with a balanced development across its four main product lines [6][7] - The company has increased its R&D investment, which reached 108 million yuan in 2024, a year-over-year increase of 26.01%, accounting for 21.81% of its revenue [6][7] Financial Performance Summary - Revenue and Profit Forecasts: - 2024: Revenue of 497 million yuan, net profit of 112 million yuan - 2025: Projected revenue of 597 million yuan, net profit of 143 million yuan - 2026: Projected revenue of 716 million yuan, net profit of 180 million yuan - 2027: Projected revenue of 860 million yuan, net profit of 223 million yuan [5][8][9] - Profitability Ratios: - Gross margin for 2024 is 61.1%, with a net margin of 22.5% - Expected gross margin for 2025-2027 is around 63% [6][9] - Earnings Per Share (EPS): - 2024: 0.70 yuan - 2025: 0.90 yuan - 2026: 1.13 yuan - 2027: 1.40 yuan [5][9] Product Development and Market Strategy - The company launched 10 new high-end products in 2024, contributing to a solid foundation for future revenue growth [6][7] - The revenue distribution among high-end, mid-range, and low-end products is 24%, 54%, and 22% respectively, with high-end product revenue increasing by 13.40% year-over-year [6][7] - Direct sales revenue reached 76 million yuan in 2024, a year-over-year increase of 15.80%, with a direct sales gross margin of 67.76% [7]