Jenscare Scientific (9877) H1 2024 earnings summary

Executive summary

• H1 2024 net loss narrowed to RMB105.8m from RMB178.2m YoY as R&D and administrative expenses fell; development advanced across valve products and global clinical programs.

• Priorities included global promotion of the LuX-Valve series, concentration on Core Products, and commercialization toward breakeven and growth.

Financial highlights

• Net loss was RMB105.8m versus RMB178.2m YoY; loss attributable to owners was RMB102.3m versus RMB175.8m.

• Basic and diluted loss per share was RMB0.25 versus RMB0.42; no income tax expense was recorded in H1 2024.

• R&D expenses fell to RMB82.2m from RMB137.6m and administrative expenses to RMB35.3m from RMB82.1m, mainly reflecting lower share-based compensation and staff costs.

• Other income and gains declined to RMB17.0m from RMB34.1m, mainly due to lower government grants and foreign-exchange gains.

• Other expenses rose to RMB5.1m from RMB0.2m, mainly due to asset impairment and inventory write-downs.

Outlook and guidance

• LuX-Valve Plus completed one-year registration-trial follow-up; NMPA submission was targeted for Q3 2024, with commercialization expected in H2 2025 subject to product registration.

• Ken-Valve NMPA approval and commercialization were expected in Q4 2024; its application had entered the priority approval process.

• LuX-Valve registration submission and JensClip registration submission were targeted for H1 2025; LuX-Valve Plus U.S. EFS enrollment was expected to finish in Q4 2024.

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