Jenscare Scientific (9877) H1 2023 earnings summary

Executive summary

• H1 2023 loss widened to RMB178.2m from RMB73.5m YoY, as R&D and administrative expenses increased.

• The 12-candidate pipeline advanced, with LuX-Valve entering NMPA review and LuX-Valve Plus clinical activity expanding overseas.

• Commercial readiness expanded to a team of more than 60 and coverage of over 200 hospitals across 30-plus Chinese provinces, municipalities and autonomous regions.

Financial highlights

• Loss attributable to owners was RMB175.8m versus RMB72.9m; basic and diluted loss per share was RMB0.42 versus RMB0.20.

• R&D expenses rose to RMB137.6m from RMB84.5m, and administrative expenses increased to RMB82.1m from RMB40.5m, reflecting higher share-based compensation and staff costs.

• Other income and gains declined to RMB34.1m from RMB38.3m, mainly due to lower foreign-exchange gains; share of associate profit was RMB7.8m versus RMB13.5m.

• Share-based compensation expense was RMB122.1m, including RMB61.8m in key management compensation.

Outlook and guidance

• LuX-Valve NMPA approval was expected in Q4 2023; LuX-Valve Plus and Ken-Valve registration submissions were expected in September 2023, with Ken-Valve approval expected in H2 2024.

• LuX-Valve Plus was expected to enter U.S. EFS and IDE clinical trial stages in 2023; manufacturing capacity was targeted to reach ~10,000 sets by end-2024.

• Growth priorities included LuX-Valve product commercialization, pipeline expansion, R&D collaboration and international expansion.

• More than 50 independent surgeons and 15 teaching experts were targeted for training in 2023.

• Liquidity needs for R&D, commercialization and expansion were expected to be met through cash and bank balances, Global Offering proceeds and other funding sources.