MicroPort NeuroScientific (2172) H2 2024 earnings summary

Executive summary

• FY2024 revenue reached RMB761.8m, up 14.4% YoY; net profit was RMB248.9m, up 84.9%, and adjusted net profit was RMB281.7m, up 44.2%.

• Domestic sales leadership and overseas expansion supported growth; overseas revenue rose 137.6% to RMB75.3m, and international business achieved earnings for the first time.

Financial highlights

• Gross profit increased 8.6% to RMB555.9m; operating profit rose to RMB326.8m from RMB219.8m, while profit before tax reached RMB302.7m versus RMB162.1m.

• Cost of sales rose 33.8% to RMB205.8m; gross margin was 73.0%, down 3.9 percentage points YoY, mainly due to product sales mix.

• Basic and diluted EPS was RMB0.44 versus RMB0.25; total comprehensive income was RMB256.9m versus RMB145.8m.

Outlook and guidance

• Priorities include expanding product coverage through R&D and partnerships, improving manufacturing and operating efficiency, and scaling affordable solutions in grassroots hospitals.

• Plans include expanding into countries ranked among the top 30 for neuro-interventional procedures, advancing overseas product registrations, and growing the international team and partnerships.

• Nine products gained NMPA marketing approval from early 2024 through the announcement date; two additional products had registration applications submitted for approval.