#TAVR #Venus Medtech #Cardiovalve

Venus MedTech's Annual Results for 2024: A Year of Thriving Innovations and Growth

Venus MedTech (Hangzhou) Inc., a leader in structural heart therapies, recently announced its financial performance for the year ending December 31, 2024. Despite various market challenges, the company reported a robust increase in profitability substantiated by strategic operational improvements and impactful innovations.

Key Financial Highlights

Venus MedTech achieved remarkable results in several key areas:

• - Revenue: The total revenue reached 471 million RMB, showcasing a 13.53% increase in overseas sales which amounted to 82.5 million RMB compared to the previous year.
• - Adjusted Non-IFRS EBITDA Loss: A substantial decrease of 45.56% from last year, reported at 254 million RMB, reflecting stringent cost-control measures.
• - Commercial Profit: The commercial gain soared to 97.7 million RMB, up 112.60% from last year, as the profit margin improved from 9.35% in 2023 to a striking 20.74%.
• - Gross Margin: Remained steady at 78.11%, indicating price stability within the sector.

In a dynamic and challenging market, Venus MedTech has reinforced its leadership position in the Chinese transcatheter aortic valve replacement (TAVR) space, while simultaneously enhancing operational efficiencies and commercial profitability. This advancement is mainly attributed to their comprehensive cost optimization strategies.

Cost Optimization Focus

The company made significant progress in reducing costs across its operations:
1. Sales Expenses: Reduced by 18.44% year-over-year, totaling 245 million RMB, with a sales expense ratio drop from 61.15% in 2023 to 52.05%.
2. Research and Development Expenditure: Saw a robust 35% reduction compared to the previous year, standing at 341 million RMB, prioritizing high-quality pipeline projects and diminishing the R&D expenditure ratio from 106.83% to 72.46%.

Profitability First Strategy

The