Jenscare Scientific (9877) H2 2023 earnings summary

Executive summary

• Net loss narrowed to RMB379.1m in 2023 from RMB440.9m; loss per share improved to RMB0.89 from RMB1.20.

• Development focus centered on LuX-Valve series and accelerating global commercialization, while concentrating resources on core products.

Financial highlights

• Loss attributable to owners of the parent was RMB371.7m versus RMB439.3m in 2022; total comprehensive loss was RMB371.0m versus RMB432.6m.

• R&D expense was RMB288.2m versus RMB291.6m; administrative expense declined to RMB150.3m from RMB219.7m, mainly on lower share-based compensation and professional fees.

• Other income and gains fell to RMB43.8m from RMB54.4m, mainly due to lower foreign-exchange gains; income tax expense was nil.

• Net operating cash used was RMB222.4m; capital expenditure rose to RMB78.6m from RMB49.6m.

Outlook and guidance

• Ken-Valve's NMPA registration entered priority review; commercialization approval was expected in H2 2024.

• LuX-Valve Plus EFS clinical study in the U.S. was expected to complete in Q4 2024; pivotal-trial preparation to follow.

• Manufacturing capacity was expected to reach approximately 10,000 sets by end-2024, from current capacity of approximately 4,000–5,000 sets.

• 2024 capital expenditure funding was expected from bank loans, Global Offering proceeds and shareholder contributions.