LEPU ScienTech Medical Technology (2291) H1 2023 earnings summary

Executive summary

• H1 2023 revenue rose 33.0% YoY to RMB165.9m; profit attributable to owners increased 213.7% to RMB76.1m.

• CHD occluders led growth; R&D spending rose 36.5% to RMB26.8m, supporting development across occluders, heart valves and circulatory support.

Financial highlights

• Gross profit increased 34.8% to RMB147.5m; gross margin improved to 88.9% from 87.7%.

• Operating profit was RMB82.0m vs RMB34.4m; profit before tax was RMB87.7m vs RMB25.3m, and profit for the period was RMB76.1m vs RMB24.3m.

• Basic and diluted EPS were RMB0.22 vs RMB0.07; income tax expense rose to RMB11.6m from RMB1.1m.

• Adjusted net profit was RMB86.5m, adding back RMB10.5m of share-based payment expense recognized in profit or loss.

• Net other income was RMB5.0m vs net losses of RMB18.3m; net finance income was RMB5.7m vs costs of RMB9.1m.

Outlook and guidance

• Fourth-generation MemoSorb biodegradable ASD occluder registration was submitted to NMPA in Q2; approval and commercialization are expected in Q2 2024.

• MemoSorb biodegradable PFO occluder approval was expected within 2023; Snare II registration and launch were expected in H2 2023.

• TAVR registration submission was planned by end-2023; transapical mitral valve clip submission was planned for H1 2024.

• Bio-Lefort biodegradable LAA occluder entered multicenter clinical enrollment.

• Priorities include biodegradable technologies, valve and MCS pipeline advancement, wider China sales channels, and overseas clinical, registration and commercialization expansion.