LEPU ScienTech Medical Technology (2291) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 49.7% YoY to RMB249.1m and net profit attributable to shareholders increased 85.6% to RMB140.2m, led by biodegradable PFO occluder sales.

• Operating cash flow increased 67.8% YoY to RMB103.5m; total assets reached RMB2,149.5m, up 8.2% from year-end 2023.

Financial highlights

• Gross profit increased 53.4% YoY to RMB226.7m; operating cost rose 20.5% to RMB22.4m.

• Operating profit was RMB163.9m versus RMB85.8m; net profit was RMB140.2m versus RMB75.6m.

• Basic and diluted EPS were RMB0.4044, compared with RMB0.2179 in H1 2023.

• Selling expenses rose 58.3% to RMB31.5m; administrative expenses fell 11.0% to RMB18.4m and R&D expenses fell 21.3% to RMB21.7m.

• Financial expenses were negative RMB14.1m versus negative RMB2.8m, reflecting higher interest income and lower exchange losses; credit impairment loss increased to RMB7.1m from RMB0.3m.

Outlook and guidance

• ScienCrown TAVR system was expected to receive marketing approval in Q4 2024; the aortic regurgitation TAVR candidate is planned to enter clinical trials in 2025.

• Management planned to submit the transapical mitral valve clip registration application in H2 2024 and advance TMVr-F and TMVR development.

• Biodegradable PFO occluder commercialization, marketing activity and sales-channel expansion are priorities for H2 2024 and coming years.

• Listing proceeds are expected to be fully utilized by Dec. 31, 2027, subject to business needs and market conditions.