Venus Medtech (2500) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB135.5 million, down 27.6% year-over-year, mainly due to domestic market pressures from TAVR price restructuring, price reductions, and increased competition.

• Overseas revenue grew 24.6% year-over-year to RMB50.7 million, now representing 37.4% of total revenue, driven by VenusP-Valve expansion into new markets.

• Net loss widened to RMB191.3 million, a 41.9% increase year-over-year, with basic and diluted loss per share at RMB(0.44).

• Gross profit margin declined to 69.0% from 73.7% in H1 2025 due to lower product unit prices.

• R&D investment increased 6.5% to RMB128.7 million, supporting clinical and registration progress for next-generation products.

Financial highlights

• Gross profit fell 32.2% to RMB93.5 million; cost of sales decreased 14.5% to RMB42.0 million.

• Non-IFRS EBITDA was negative RMB140.96 million, a 71.9% increase in loss year-over-year.

• Non-IFRS commercialization profit margin dropped to 6.1% from 16.2%.

• Cash and cash equivalents at June 30, 2026 were RMB71.3 million, down 55% from December 31, 2025; net current assets decreased 74.8% to RMB107.6 million.

• Total borrowings increased to RMB162.9 million; gearing ratio rose to 13.3%.

Outlook and guidance

• Focus remains on accelerating registration and commercialization of next-generation TAVR and TPVR products, especially Venus-PowerX and Venus-Vitae.

• Strategic emphasis on expanding overseas business to offset domestic market pressures and deepen global market penetration.

• Ongoing efforts to secure up to RMB500 million in new equity and convertible bond financing, with first closing expected in Q3 2026.