Peijia Medical Announces 2025 Interim Results

HONG KONG, Aug. 25, 2025 /PRNewswire/ -- Peijia Medical (9996.HK), a leading Chinese domestic player in the high-growth transcatheter valve therapeutics and neurovascular interventions markets, announced financial results for the six months ended June 30, 2025 ("the Reporting Period") on August 22, 2025.

The Group reported sustained revenue growth and significantly improved expense ratios, driving a structural enhancement in profitability. Revenue reached RMB353.4 million, up 17.3% period-to-period. Revenue composition remained stable, with TAVR-related products and neurointerventional products accounting for 45.7% and 54.3%, respectively.

Revenue from TAVR-related products increased 24.0% to RMB161.6 million, fueled by market share gains in China's transfemoral TAVR market and a favorable product mix shift toward newer premium products. Neurointerventional product revenue grew 12.2% to RMB191.8 million, supported by deeper penetration of key products and the successful launch of the YonFlow^® Flow Diverting Stent.

Leveraging economies of scale and lean management, the Group substantially improved operational performance. The Neurointerventional Business segment profit increased 42.4% to RMB40.9 million, while the segment loss of the Transcatheter Valve Therapeutic Business narrowed 35.3% to RMB76.1 million. Excluding the total loss of the corresponding entities of the Future Technology Business, the net loss of the Group's core business^[1] narrowed 52.4% period-to-period to RMB30.7 million.

Transcatheter Valve Therapeutic Business Achieved First-ever Commercial Profit

During the Reporting Period, the Group expanded hospital coverage for its TAVR products by over 70, reaching more than 720 medical institutions in China as of June 30, 2025. Total terminal implant volume exceeded 2,050 units, an increase of 18.8% period-to-period, again outpacing market growth.

With the commercial launch of its upgraded TAVR products, the Group now offers a comprehensive portfolio including TaurusOne^®, TaurusElite^®, and TaurusMax™. This tiered product lineup provides complete sizing options and diversified pricing, maintaining stable average ex-factory prices and margins while expanding market accessibility. The premium TaurusMax™ received positive clinical feedback for its breakthrough 3D-steering technology.

Driven by enhanced sales force productivity, rationalized industry competition, and operational refinements, selling and distribution expenses for the segment decreased 8.3% to RMB100.0 million. The segment selling and distribution expense ratio decreased significantly by 21.8 percentage points to 61.9%. The segment achieved its first commercial profit of RMB29.1 million.

R&D expenses decreased 17.2% to RMB54.2 million, mainly due to the completion of three major pivotal trials, partially offset by accelerated progress in the HighLife^® TSMVR system pivotal trial in China. Administrative expenses increased slightly by 2.8% to RMB51.0 million, mainly due to higher depreciation from the new headquarters, partly mitigated by Group-wide cost-saving initiatives.

As a result, the segment loss narrowed 35.3% to RMB76.1 million, demonstrating steady progress toward breakeven.

Three Core Pipeline Products Near Registration; Multiple Innovative Technologies Advanced

The Group successfully completed one-year follow-ups for three key pipeline products: the transfemoral AR TAVR system TaurusTrio™, the durability-enhanced AS TAVR system TaurusNXT^®, and the mitral TEER system GeminiOne^®. All demonstrated excellent safety and efficacy in clinical data presented at major conferences. The NMPA accepted the registration application for TaurusTrio™ in April 2025. Registration applications for TaurusNXT^® and GeminiOne^® will be submitted in the coming months, with approvals expected from late 2025 to mid-2026.

Other clinical-stage products also progressed significantly:

• HighLife^® TSMVR System (Licensed-in): Patient enrollment accelerated; expected to complete in 2026.
• MonarQ TTVR^® System (Global IP): Global Clinical Study initiated; first implant completed at Cedars-Sinai Hospital (Los Angeles, U.S.).
• ReachTactile™ Robotic-Assisted TAVR System (Internally-developed): Completed FIM study (5 patients); registration trial to begin shortly.
• Lithotripsy Valvuloplasty System (Internally-developed): FIM experience in MAC presented at New York Valves 2025, showing promising early results.

Neurointerventional Business Sustained Growth and Expanded Profit Scale

The segment continued its strong performance post full-year profitability in 2024. DCwire^® Micro Guidewire saw sales surge nearly 140% period-to-period. Its 510(k) application was submitted to and accepted by the U.S. FDA in July 2025, with approval expected by year-end. YonFlow^® Flow Diverting Stent received NMPA approval in April 2025 and achieved its first commercial implant in June. It has been listed in over 20 provinces and won bids in several provincial volume-based procurement ("VBP") programs.

The Group's SacSpeed^® Balloon Dilatation Catheter and Fastunnel^® Delivery Balloon Dilatation Catheter successful won bids in the Hebei-led VBP. Their competitive bid positioning resulted in substantially increased contracted volume shares compared to historical actual levels — particularly for Fastunnel^® with a near fourfold growth. Although balloon dilatation catheter revenue was impacted temporarily due to pricing adjustments and delayed volume realization, the Group expects the situation to improve in the second half of 2025 upon full VBP execution. The coil product line renewed its bid in Jiangsu Province and is preparing for renewals in other regions.

Operationally, lean production and supply chain consolidation helped partially offset VBP-related pressures. The segment gross margin was 61.8%, down slightly by 1.9 percentage points from full-year 2024. All major expense ratios experienced period-to-period reductions. Selling and distribution expense ratio, administrative expense ratio and research and development expense ratio, decreased by 1.3, 1.7, and 5.3 percentage points, respectively. Segment profit increased 42.4% to RMB40.9 million.

Dr. Yi Zhang, Chairman and CEO of Peijia, commented, "The first half of 2025 was marked by simultaneous achievement of revenue growth, operational efficiency, and cost reduction. Lean management and operational optimization significantly improved expense ratios across both business segments. Most notably, our Transcatheter Valve Therapeutic Business achieved commercial profit for the first time, representing a major milestone in our path to structural profitability. Our Neurointerventional Business continued to deliver profit expansion amid mature growth.

At the same time, our innovation engine continues to lead the industry. With three core products in the final registration stage and multiple breakthrough technologies advancing globally, we are well-positioned for sustained future growth. Peijia remains committed to innovation, operational excellence, and delivering high-quality therapeutic solutions for patients worldwide, creating sustainable value for shareholders."

About the Company

Peijia Medical (9996.HK) was established in 2012 and is headquartered in Suzhou, China. Peijia Medical focuses on the high-growth interventional procedural medical device market in China and aims to become a world-renowned medical device platform that provides comprehensive treatment solutions for structural heart and neurovascular diseases. The Company now has three TAVR systems and near twenty neurointerventional devices commercialized in China and various innovative product candidates at different stage of development. For more information about Peijia visit peijiamedical.com/about.

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