Venus Medtech (2500) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, was RMB230.7 million, down 9.7% year-over-year, mainly due to a slight decrease in unit prices amid a competitive market.

• Loss attributable to owners narrowed by 41% to RMB206.5 million, reflecting improved cost control and operational efficiency.

• Gross profit margin remained stable at 78.8%, with enhanced commercialization efficiency and a focus on profitability.

• Non-IFRS commercialization profit rose 85% to RMB34.1 million, and non-IFRS EBITDA loss improved by 48.7%.

• The company maintained a leading position in the domestic TAVR market and expanded its global presence to 59 countries.

Financial highlights

• Gross profit was RMB181.8 million, down 9.7% year-over-year; gross margin 78.8%.

• Loss before tax: RMB213.6 million (improved 42.3% year-over-year).

• Non-IFRS EBITDA loss narrowed by 48.7% to RMB145.3 million.

• R&D costs dropped 38.6% to RMB180.8 million.

• Cash and cash equivalents: RMB485.8 million, down 37.3% from year-end 2023.

Outlook and guidance

• Focus remains on cost reduction, efficiency improvement, and operational capability enhancement.

• Plans to further improve gross profit margins, control expenses, and optimize resource allocation.

• Measures to prioritize cash flow management and potentially dispose of long-term assets or secure additional financing.

• Continued efforts to resume trading on the Stock Exchange and strengthen internal controls.

• Commitment to innovation and maintaining industry leadership in structural heart diseases.