#China #Suzhou #TAVR #Peijia Medical #Neurointerventional

Peijia Medical Reports Remarkable Annual Results for 2024

Peijia Medical, listed under 9996.HK, continues to establish itself as a frontrunner in China’s rapidly expanding markets of transcatheter valve therapeutics and neurovascular interventions. On March 25, 2025, the company announced its financial achievements for the year ended December 31, 2024, reflecting a robust strategy and execution.

Financial Highlights

In 2024, Peijia recorded operating revenues of RMB615.5 million, marking a remarkable 39.5% increase compared to the previous year. Several key contributors fueled this growth:

• - Expansion of TAVR Products: The company’s transcatheter aortic valve replacement (TAVR) products enjoyed widespread market adoption, solidifying its competitive position across China.
• - DCwire Micro Guidewire Success: The launch of the DCwire Micro Guidewire exceeded expectations in its debut year, garnering overwhelming positive feedback from users.
• - Market Penetration: Continued growth of products like the Syphonet Stent Retriever and Fastunnel Delivery Balloon Dilatation Catheter fostered further penetration into an increasingly competitive market.
• - Quality and Recognition: Peijia’s coil products remain in demand thanks to consistent quality and substantial brand recognition under volume-based procurement initiatives.

Gross profit for the year stood at RMB433.6 million, resulting in a gross margin of 70.5%, despite challenges posed by volume-based procurement in the Neuro Business sector.

Operational Efficiency Gains

One of the standout achievements for Peijia Medical during 2024 was the improved expense ratios, which saw reductions in sales, administrative, and R&D costs due to enhanced operational efficiencies. Selling expenses decreased by 20.3%, administrative costs by 7.6%, and R&D expenses achieved a phenomenal cut of 33.4% year-on-year.

The net loss for the year was narrowed to RMB228.5 million, reflecting a 41.8% improvement. Notably, the Neuro Business marked a significant milestone by achieving profitability for the first full year with a profit of RMB52.1 million.

Strategic Insights from Leadership

Dr. Yi Zhang, Chairman and CEO of Peijia Medical, emphasized the strategic momentum that characterized 2024. “Our Neuro Business achieved transformative profitability while the Valve Business continues to set industry standards. With our commitment to innovation and quality, Peijia is poised to redefine care in structural heart and neurovascular sectors.”

Segment Performance and Future Directions

Transcatheter Valve Therapeutics Business

Revenue from the Valve Business surged by 40.1% to RMB259.9 million, along with a gross profit increase of 30.3% amounting to RMB207.1 million. The reduction in expenses and refined operational strategies solidified Peijia’s standing.

• - Market Expansion: Peijia capitalized on market share gains by entering over 150 new hospitals, totaling around 650 medical institutions with an increase of 37% in implant volumes, capturing about 25% of China’s transfemoral TAVR market.
• - Pipeline advancements: Peijia completed critical trials for its new TAVR product lines and has made significant progress in acquiring regulatory approvals, which set the stage for future growth.

Neurointerventional Business

The Neuro Business also demonstrated robust growth with a 39.1% rise in revenue to RMB355.5 million. The introduction of innovative products led to widely recognized successes, translating into significant overall performance.

• - First-Year Impact: DCwire Micro Guidewire's debut generated approximately RMB37.5 million, indicating disruption in what was previously a foreign-dominated sector.
• - Strategic Growth Initiatives: The Neuro Business saw products achieve provincial coverage exceeding 90%, reinforcing Peijia's market position and effectiveness.

Company Overview

Founded in 2012 and headquartered in Suzhou, China, Peijia Medical aims to bridge the gap in high-growth medical device markets, focusing on structural heart and neurovascular treatments. Currently, the company offers three TAVR systems and sixteen neurointerventional devices in the Chinese market, highlighting its commitment to innovative solutions in healthcare. For more information about Peijia Medical, visit their official website at peijiamedical.com.