MicroPort NeuroScientific (2172) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 36.4% YoY to RMB408.2m; net profit increased 141.5% to RMB140.1m and adjusted net profit reached RMB159.2m.

• Growth was driven by overseas expansion, cerebral stenosis products, coil VBP wins and broader adoption of acute ischemic stroke and access devices.

• Commercial reach expanded by ~300 hospitals to ~3,300 nationwide; products had supported ~190,000 procedures by period-end.

Financial highlights

• Revenue was RMB408.225m versus RMB299.193m YoY; gross profit rose 26.8% to RMB295.019m.

• Net profit was RMB140.085m versus RMB57.999m; basic and diluted EPS each rose to RMB0.25 from RMB0.11.

• Adjusted net profit, excluding share-based payment expenses and associate losses, was RMB159.231m versus RMB73.468m.

• Overseas revenue reached RMB28.118m, up 87% YoY; PRC revenue was RMB380.107m.

• Operating cash flow was RMB98.5m; cash and cash equivalents were RMB679.9m at 30 June 2024, down from RMB721.2m at year-end 2023.

Outlook and guidance

• Priorities include expanding product coverage through R&D and partnerships, improving manufacturing efficiency and affordability, and extending global reach into markets ranked among the top 30 for procedure volumes.

• Plans include scaling production and sales teams, building a global supply chain, and strengthening clinical training and grassroots-market access.

• Five products received NMPA marketing approvals from the start of 2024 through the report date; registration applications for three more products were submitted.