Venus Medtech (Hangzhou) Inc. released unaudited interim figures for the six months ended 30 June 2026, showing a sharp contraction in domestic sales and a deeper net loss despite continued overseas growth.
Financial Performance • Revenue dropped 27.6 % year on year to RMB 135.50 million (H1 2025: RMB 187.14 million), driven by lower pricing and volumes in China’s transcatheter aortic valve replacement (TAVR) market following pricing restructurings and intensifying competition. • Gross profit fell 32.2 % to RMB 93.52 million, trimming gross margin to 69.0 % (H1 2025: 73.7 %). • Loss for the period widened 41.9 % to RMB 191.31 million; basic and diluted loss per share expanded to RMB 0.44 from RMB 0.31. • Non-IFRS EBITDA loss rose 71.9 % to RMB 140.96 million. Non-IFRS commercialization profit slid 72.7 % to RMB 8.28 million, shrinking the margin to 6.1 % (H1 2025: 16.2 %). • R&D expenditure increased 6.5 % to RMB 128.66 million as the company advanced next-generation valve programmes; selling and distribution costs fell 20.7 % to RMB 79.70 million.
Balance Sheet & Liquidity • Cash and cash equivalents declined to RMB 71.29 million (31 Dec 2025: RMB 158.34 million). • Net current assets fell to RMB 107.60 million from RMB 426.39 million at year-end. • Total borrowings stood at RMB 162.94 million, including a RMB 157.90 million bridge loan maturing in March 2027. • Management flagged material uncertainties over going-concern status pending completion of a planned share/convertible-bond financing; RMB 100 million earnest money was received on 10 July 2026 toward a potential RMB 500 million capital injection.
Segment Trends • Overseas revenue grew 24.6 % to RMB 50.70 million, lifting its share of group sales to 37.4 %. Overseas valve shipments exceeded 530 units, up 23.3 %, led by TPVR product VenusP-Valve, now commercialised in nearly 70 countries. • Domestic TAVR revenue fell sharply amid price cuts negotiated with China’s National Healthcare Security Administration and heightened competition; cumulative domestic implantations totaled c.1,700 valves in H1.
R&D and Pipeline Progress • Enrollment for the pivotal China trial of self-expanding dry-tissue TAVR device Venus-PowerX is complete; EU MDR CE submission is being prepared. • Balloon-expandable dry-tissue TAVR valve Venus-Vitae recorded its first clinical use in China. • U.S. IDE pivotal trial enrollment for VenusP-Valve passed the halfway mark; completion is targeted for year-end 2026. • Tricuspid replacement device Cardiovalve is under EU MDR CE review following positive two-year data.
Key Risks & Events • A patent-infringement suit has been filed in the U.S. against a competitor over Cardiovalve-related IP; outcome remains uncertain. • Enforcement efforts continue to recover an unauthorized RMB 80 million loan extended to Jiangsu Wuzhong; repayment remains outstanding. • The lapse of a convertible-bond subscription agreement on 30 June 2026 obliges Venus Medtech to repay a RMB 150 million bridge loan with 10 % annual interest by March 2027.
Outlook Management plans to bolster liquidity through the proposed RMB 500 million equity and convertible-bond financing, focus on rapid commercial rollout of next-generation valves, and pursue deeper international penetration to offset domestic pricing pressures.