MicroPort Scientific (853) investor relations material

Executive summary

• Achieved a turnaround to profitability with net profit of US$38.4M, compared to a loss of US$268.5M last year, driven by improved operational efficiency and strategic adjustments.

• Revenue grew 6.0% year-over-year (excluding FX impact) to US$1,105.4M, with non-China sales contributing 53.1% of total revenue.

• Non-GAAP operating profit turned positive, increasing by US$123.5M; operating cash flow also turned positive at US$69.1M.

• Gross margin improved by 1.7 percentage points to 57.4% due to supply chain integration and process optimization.

• Strategic integration of structural heart disease and cardiac rhythm management businesses completed, enhancing operational efficiency and financial health.

Financial highlights

• Gross profit rose 10.5% to US$634.6M; cost of sales increased 3.0% to US$470.8M.

• Research and development costs decreased 32.3% to US$146.5M; administrative expenses fell 4.0% to US$169.6M.

• Finance costs increased 4.8% to US$111.5M, mainly due to higher interest on convertible bonds.

• EBITDA surged to US$369.8M from US$60.4M last year.

• Net cash from operating activities was US$69.1M, reversing a negative US$49.7M last year.

Outlook and guidance

• Expects continued global market demand growth for medical devices, especially in China due to demographic and policy trends.

• Plans to consolidate domestic leadership, accelerate global expansion, and focus on innovation and cost control.

• Will continue to invest in R&D and global commercialization, leveraging the GloMatrix platform for international growth.