Venus Medtech (2500) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025, was RMB187.1 million, down 18.9% year-over-year, mainly due to lower product unit prices from pricing strategy adjustments and a shift to a platform-based sales model.

• Loss attributable to owners decreased by 34.7% year-over-year to RMB134.8 million, reflecting improved cost control and operational efficiency.

• Gross profit margin declined to 73.7% from 78.8% due to lower unit prices, while non-IFRS EBITDA loss narrowed by 43.5% year-over-year.

• Overseas revenue grew 35.3% year-over-year to RMB40.7 million, now representing 21.8% of total revenue, driven by VenusP-Valve product.

• The company advanced clinical trials for Cardiovalve and Venus-PowerX, with Cardiovalve nearing completion of pivotal enrollment in Europe.

Financial highlights

• Gross profit was RMB138.0 million, down 24.1% year-over-year; gross margin declined to 73.7% from 78.8%.

• Non-IFRS EBITDA loss narrowed by 43.5% to RMB82.0 million; non-IFRS commercialization profit margin improved to 16.2% from 14.8%.

• Selling and distribution expenses decreased by 23.3% to RMB100.5 million; R&D costs fell 33.1% to RMB120.9 million; administrative expenses dropped 28.5% to RMB54.8 million.

• Cash and cash equivalents stood at RMB279.0 million, a 6.4% decrease from year-end 2024.

• Gearing ratio increased to 23.9% from 16.7% at year-end 2024; net current assets were RMB329.3 million, down 25.3% from December 31, 2024.

• No interim dividend was declared.

Outlook and guidance

• Focus remains on accelerating clinical progress for Venus-PowerX and Cardiovalve, with European pivotal trial enrollment for Cardiovalve expected to complete in H2 2025.

• Plans to deepen marketing, expand sales channels, and enhance commercialization team capabilities in China.

• Continued global expansion, especially in Europe and emerging markets, with ongoing search for strategic partners and investment in R&D.