MicroPort NeuroScientific (2172) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 21.6% YoY to RMB665.6m; net profit was RMB134.6m versus a RMB24.7m loss, while adjusted net profit increased 49.5% to RMB195.4m.

• Growth reflected higher sales of hemorrhagic stroke products, new-product adoption, lower-tier hospital expansion and overseas revenue growth.

Financial highlights

• Gross profit rose 30.2% to RMB511.8m; operating profit increased to RMB219.8m from RMB121.7m.

• Revenue increased 21.6% to RMB665.6m; cost of sales edged down 0.3% to RMB153.8m.

• Net profit was RMB134.6m versus a RMB24.7m loss; basic and diluted EPS was RMB0.25 versus a RMB0.04 loss.

• Adjusted net profit was RMB195.4m, up 49.5% YoY; adjustments included share-based payment costs, associate losses and the Rapid Medical impairment in 2023, and listing costs and preferred-share interest in 2022.

Outlook and guidance

• Priorities include broadening the cerebrovascular product portfolio, scaling production and lowering costs, expanding grassroots access, and growing overseas registration, sales and operations.

• Plans include increasing production capacity through expanded facilities and teams, and considering overseas R&D and production centers and deeper international partnerships.

• Five products gained NMPA marketing approval from early 2023 through the announcement date; 12 pipeline products were at different development stages.