VenusA-Deluxe Joins the Leading TAVR Portfolio as Venus Medical Advances Toward Resumption of Trading

The VenusA product series is the profit pillar of Venus Medtech, contributing more than 80% of its revenue. In the first half of the year, the company's mainThe flagship VenusA series TAVR products continued to maintain their market leadership, with 2,300 terminal implantations in the Chinese market, representing a 15% quarter-on-quarter growth, and cumulatively covering more than 580 hospitals across China.As of the end of October, the cumulative implantation volume of the VenusA series products has exceeded 20,000 units, making it the most implanted product in China's TAVR market.

The successful approval of the new product marks another addition to Venus Medtech’s VenusA series TAVR family, further deepening the company’s strategic layout in the structural heart TAVR field, with promising future market performance.

On February 25, 2024, after a trading suspension lasting 62 trading days, Venus Medtech issued three consecutive announcements, disclosing the outcomes of its handling of irregular loans by former management and corporate information disclosure issues, as well as specific measures to strengthen its internal control system.

This hugeHow to bridge the funding gap has become a focal point of market attention. Recently, Venus Medtech disclosed this matter through several announcements: Mr. Zi and the entities under his control have repaid the relevant bank loans,The RMB 200 million in restricted funds was released on April 14, 2024. As of now, only RMB 80 million in unauthorized transactions remains outstanding.

According to the latest relevant information from Venus MedtechDisclosure shows,As of now, apart from the RMB 80 million loan provided to Jiangsu Wuzhong, the total outstanding amount under unauthorized transactions has been fully repaid or released.The Company is actively pursuing the recovery of such amount and shall continue to reserve all rights to recover theOutstanding balance of unauthorized loans issued by Jiangsu Wuzhong.

The two executives involved were alsoThey resigned in November 2023. Specifically, Mr. Zi stepped down as Executive Director, General Manager, and Authorized Representative of Venus Medtech in November 2023 and no longer holds any position within the Company. Mr. Zeng also resigned from his positions as Executive Director and Chairman of the Board of Directors of Venus Medtech in November 2023 and no longer holds any position within the Company.Both individuals have withdrawn from the company’s management and board of directors, and no longer hold any positions within the company.

The Company has taken a series of legal measures regarding the unauthorized amounts and reserves all rights to pursue recourse.

As disclosed in the financial report released by the Company in September 2024: “The Company’s wholly-owned subsidiary, Venus Medtech (Hong Kong) LimitedThe Company (“Qiming Hong Kong”) on July 18, 2024An arbitration application has been filed with the Hangzhou Arbitration Commission against Xin Nuo Tong Investment Limited (a company wholly owned by Mr. Zi), Tianjin Qizhang Economic Information Consulting Partnership (Limited Partnership), and Mr. Ma Haiyue.Venus Medtech“Venus Medtech received the Notice of Acceptance of Arbitration Application from the Hangzhou Arbitration Commission on August 9, 2024.”

Venus Medtech’s August 2024 resumption announcement provided a detailed response to the question of how far its path to trading resumption has progressed.

Key points are extracted as follows:

Following the completion of the review on the use of proceeds on September 2, 2024, additional internal control measures have been implemented. In accordance with the recommendations proposed by the Special Committee to the Board of Directors as disclosed in the announcement on the review of the use of proceeds, the Company continues to review and strengthen the oversight and implementation of its financial management policies.

A new multi-departmental internal control policy, the “Management System for Raised Funds,” has been implemented. The Board of Directors has approved the new “Management System for Monetary Funds and Negotiable Instruments” and the “Management System for Related-Party Transactions.”

The Management Committee, comprising three directors (including one executive director and two non-executive directors), has been established and authorized by the Board of Directors to oversee and support the Group’s internal control functions.

In addition, the approval systems of several overseas subsidiaries of the Group have been improved.

Mr. Zhu Bing has been appointed as Chief Financial Officer, effective September 9, 2024, to replace Mr. Wang, who resigned from the Company due to other commitments.

Employees involved in unauthorized transactions no longer hold any management positions within the Group.

The Company has been regularly providing updates to its shareholders and potential investors, and promptly disclosing all material information. It will continue to disclose all material information to the market at appropriate times. The Company is working closely with professional advisers on an ongoing basis to take appropriate measures to fulfill the resumption guidance, and will provide updates to its shareholders and potential investors at appropriate times.

The Nomination Committee and the Board of Directors have recommended, and the Board of Directors has resolved to convene the Company’s 2024 Second Extraordinary General Meeting, to consider and, if thought fit, approve the proposed appointment of Mr. Gu Junhua as an independent non-executive director.

Upon completion of the aforementioned appointments, the Company will comply with Rules 3.10(1), 3.10A, 3.21 and 3.27A of the Listing Rules.

The Company has responded to the opinions and enquiries raised by the Stock Exchange of Hong Kong Limited (the “Stock Exchange”) regarding the resumption conditions received to date. A separate announcement will be published in due course to inform the Company’s shareholders and potential investors of, and enable them to assess, the status and any developments in this regard.

Based on the aforementioned developments, Venus Medtech’s resumption of trading is progressing steadily. Of particular concern to the market—the funds involved in unauthorized transactions—have been clearly investigated in terms of their source and amount. Currently, only an unauthorized loan of RMB 80 million remains outstanding. This positive development will undoubtedly further bolster investor confidence.

Heart valve disease ranks as the third leading cause of cardiovascular mortality, following coronary artery disease and hypertension. In China, the number of patients with this condition has reached 30 million, constituting a substantial patient population that signals significant market potential. Notably, this figure is projected to rise to 40.2 million by 2025, underscoring the severity of the issue and the urgency of the challenge. How domestic enterprises strategize their positioning in this high-profile innovation arena has drawn widespread attention and anticipation from the industry.

Despite experiencing setbacks, Venus Medtech currently remains firmly entrenched as the leader in the domestic valve sector. How will the company drive its path toward relisting? Can new products continue to write the myth of growth? VCBeat will continue to monitor the situation.