MicroPort Scientific (853) H2 2024 earnings summary

Executive summary

• Revenue rose 9.6% year-over-year (ex-FX) to US$1,031.1M, with non-China sales at 49.5% of total.

• Net loss narrowed 58.6% to US$268.5M; EBITDA turned positive at US$60.4M from a US$370.4M loss.

• Cost controls and resource prioritization led to a 24% drop in total distribution, admin, and R&D expenses.

• Overseas business revenue surged 84.7% year-over-year (ex-FX), driven by global platform expansion.

• No final dividend proposed for 2024.

Financial highlights

• Gross profit increased 7.9% to US$574.1M; gross margin slightly decreased to 55.7%.

• R&D costs fell 42.9% to US$216.5M; admin expenses down 11.3% to US$178.9M.

• Finance costs rose 10.8% to US$106.4M; impairment losses on non-current assets dropped 43.7%.

• Adjusted net loss (non-HKFRS) was US$222.8M, down 48.7% year-over-year.

• Cash and cash equivalents at year-end: US$713.0M (down from US$1,019.6M); net current assets: US$558.3M.

Outlook and guidance

• Global medical device demand expected to rise with aging populations and higher health awareness.

• Short-term risks include macroeconomic uncertainty, intensified competition, and regulatory changes in China.

• Focus remains on core business, cost control, global expansion, and innovation to drive profitability.