Venus Medtech (2500) H2 2025 earnings summary

Executive summary

• Revenue declined 34.8% year-over-year to RMB306.8 million due to intense domestic competition and lower unit prices.

• Loss attributable to owners narrowed by 42.9% to RMB407.7 million, reflecting cost controls and reduced impairments.

• Gross profit margin decreased to 69.0% from 78.1% year-over-year, mainly due to product price declines.

• Overseas revenue grew 19.2% to RMB98.3 million, now 32% of total revenue, driven by VenusP-Valve.

• Strategic shift to platform-based distribution improved accounts receivable turnover and operational efficiency.

Financial highlights

• Gross profit fell 42.4% to RMB211.8 million; cost of sales decreased 7.9% to RMB95.0 million.

• Non-IFRS commercialization profit dropped 98.6% to RMB1.4 million; margin fell to 0.5%.

• Adjusted non-IFRS EBITDA was negative RMB250.5 million, nearly flat year-over-year.

• R&D costs decreased 21.6% to RMB267.4 million, 87.2% of revenue.

• Cash and cash equivalents declined 46.9% to RMB158.3 million; borrowings reduced to RMB159.2 million.

Outlook and guidance

• Focus on advancing clinical trials and regulatory approvals for Venus-PowerX, Venus-Vitae, VenusP-Valve, and Cardiovalve in 2026.

• Plans to deepen commercialization, expand into secondary and overseas markets, and enhance sales force capabilities.

• Continued disposal of non-core assets and flexible use of equity and debt financing to support core valve business.