Rainmed Medical (2297) H1 2023 earnings summary

Executive summary

• H1 revenue was RMB50.374m, down 2.9% YoY; gross margin fell to 74.0% from 86.4%, while reported net loss narrowed as the prior-year preferred-share fair value loss did not recur.

• caIMR received NMPA commercialization approval in April 2023, and the acquisition of a 68.32% stake in Tianjin Yuehekang expanded the portfolio into IVD products.

Financial highlights

• Revenue was RMB50.374m versus RMB51.899m; gross profit fell 16.7% to RMB37.251m from RMB44.828m, mainly due to lower caFFR sales and new-site depreciation and amortization.

• Net loss was RMB48.015m versus RMB1,210.222m, including a prior-year RMB1,166.305m preferred-share fair value loss; loss attributable to shareholders was RMB47.479m, while adjusted non-HKFRS loss rose 89.6% to RMB42.1m.

• Operating loss was RMB55.348m versus RMB55.972m; net finance income was RMB6.834m versus RMB0.928m.

• R&D expense declined 19.1% to RMB22.617m; selling expense rose 18.3% to RMB38.403m, while G&A expense fell 20.9% to RMB37.321m, partly reflecting lower listing costs.

Outlook and guidance

• Priorities include strengthening FFR and IMR positions, expanding overseas markets and pursuing healthy growth and high-quality development in 2023.

• caFFR indication expansion targets acute STEMI, acute NSTEMI and HFpEF; caIMR expansion includes STEMI after successful revascularization.

• Plans include developing a vascular interventional surgical robot to automate PCI by 2024, with launch targeted by 2026.

• Management considered available funds sufficient for the next 12 months, with liquidity needs expected to be met by offering proceeds, cash balances and operating cash generation.