Venus Medtech (2500) H2 2024 earnings summary

Executive summary

• Revenue declined 4.2% year-over-year to RMB470.8 million, mainly due to lower unit prices, while gross profit fell 5.5% to RMB367.7 million.

• Loss for the year narrowed slightly to RMB717.4 million from RMB729.1 million, with basic and diluted loss per share at RMB(1.63).

• Commercialization profit margin more than doubled to 20.7% from 9.3%, reflecting improved operational efficiency.

• The company maintained its leading position in the domestic TAVR market and expanded overseas, with international revenue up 13.5% to RMB82.5 million.

• Significant R&D milestones achieved, including clinical progress for Venus-P Valve, Venus-PowerX, Venus-Vitae, and Cardiovalve products.

Financial highlights

• Gross profit margin remained high at 78.1%, down slightly from 79.2% year-over-year.

• R&D costs decreased 35% to RMB341.2 million, reflecting pipeline optimization.

• Selling and distribution expenses dropped 18.4% to RMB245.1 million, and administrative expenses fell 5.1% to RMB146.0 million.

• Other expenses rose 18.6% to RMB372.4 million, mainly due to asset impairments on investments and intangible assets.

• Adjusted non-IFRS EBITDA improved to RMB(253.7) million from RMB(466.0) million, excluding non-recurring items.

Outlook and guidance

• Focus will remain on core valve business, with plans to divest non-core assets and further reduce losses.

• The company aims to enhance commercialization profits, reprioritize clinical progress, and expand synergistic product pipelines.

• Strategic execution and innovation are expected to drive long-term sustainable development and maintain industry leadership.