Rainmed Medical (2297) H1 2024 earnings summary

Executive summary

• H1 revenue fell 46.6% YoY to RMB26.868m as caFFR system and transducer sales declined; gross margin eased to 69.5% from 74.0%.

• Net loss narrowed to RMB42.728m from RMB48.015m; adjusted non-HKFRS loss attributable to shareholders was RMB40.2m vs RMB42.1m.

Financial highlights

• Gross profit was RMB18.653m vs RMB37.251m, down 49.9% YoY; operating loss was RMB44.666m vs RMB55.348m.

• Loss attributable to shareholders was RMB41.646m vs RMB47.479m; adjusted non-HKFRS attributable loss excludes share-based payments and other non-cash or non-operating expenses.

• Other income rose to RMB7.250m from RMB1.486m, primarily due to one-off government grants; finance income fell to RMB2.677m from RMB7.540m.

• R&D expenses fell 18.3% to RMB18.469m; selling expenses fell 22.9% to RMB29.607m and G&A fell 37.4% to RMB23.356m.

Outlook and guidance

• H2 priorities: strengthen FFR and IMR positions, expand IVD coverage, develop overseas markets and deepen Mainland China penetration, targeting healthy, high-quality growth in 2024.

• Product pipeline priorities included caFFR indication expansion and robotic intervention products; Flash Robot remained at research-improvement stage at June 30, 2024.

• Product development and market expansion remain priorities; capital expenditure may be funded through internal resources and bank loans, with available credit lines considered adequate.