Qiming Medical Exits Minority Stake in DeJin Medical: A Strategic Move to Focus on Core Valvular Business

Heart Future

Recently, Venus Medtech announced that it hasKunbo MedicalReach a share transfer agreement to sell its holdingsValgen MedtechApproximately 1.05% of shares, transaction consideration of 15 million US dollarsUpon completion of the transaction, Venus Medtech will no longer hold any equity in Valgen Medtech.

In terms of the amount involved, this is not a particularly large transaction; in terms of disclosure level, it constitutes a "disclosable transaction." However, when viewed within the context of Venus Medtech's ongoing strategic adjustments and asset restructuring over the past year, the significance of this transaction clearly goes beyond a simple financial exit.

It is more like a piece of puzzle, completing a path that is gradually becoming clear:Focus on the valve business, compress non-synergistic assets, and争取 time and capital space for the next stage of clinical and international development.。

# From"Minority Financial Investment" Exit: The Real Position of Valgen Medtech in Relation to Venus Medtech

First, it needs to be clarified that Valgen Medtech is not a core business unit of Venus Medtech.

From the information disclosed in the announcement, Valgen Medtech mainly focuses on systematic solutions for structural heart diseases such as mitral regurgitation and tricuspid regurgitation. In terms of equity structure, as of the announcement date, there are...22Number of shareholders, among which the founding team and early capital collectively hold a relatively high proportion of shares, while Venus Medtech only holds approximately1.05%, which belongs to a typical minority financial investor.

This definition is very critical.

In the medical device industry, especially in the highly capital-intensive and clinically long-validation field of structural heart disease, there is an essential difference in resource allocation priority between strategic synergy-driven investment and financial investment. The former often requires continuous input of management efforts, R&D collaboration, and capital support, while the latter focuses more on realizing value at the appropriate time.

From the explanation given by Venus Medtech's board of directors in the announcement, it can also be seen that the company clearly defined this sale as:

"As a minority financial investor in the invested company, the sale represents an appropriate opportunity for our group to realize its investment."

In other words,This is not"Strategic abandonment" is actually an anticipated financial exit.。

# 1500 "Million USD"OfThe price, whether it is expensive or not, is not the key issue.

The market often tends to focus on"How much did it sell for" "Did it make a profit or not".

From the disclosed data:

• Venus Medtech's original investment cost in Valgen Medtech is approximately1500Million USD;

• The consideration for this sale is also1500Million USD;

• Calculated at book value, an estimated pre-tax net profit of approximately79.5"Million US dollars."

This is aA Small Profit Exit Close to Book Value, not a high multiple return.

But the problem is:Is this a bargain"A good deal" cannot be solely defined byIRR To measure.

For Venus Medtech, the more important thing is not this.1500Million US dollars itself, but three things:

• Certainty of Cash

In the current environment, being able to complete cash recovery within a clear timeframe inherently holds value. The announcement explicitly stipulates...90% The consideration is paid on the closing date, with the remainder...10% Within no more than10 working days, this certainty is particularly important for companies that are optimizing their capital structure.

• Reduction in Management Complexity

Minority equity investments often incur ongoing costs related to information disclosure, valuation fluctuations, and management communication—costs that do not directly benefit the core business.

• The Return of Capital Allocation Logic

At a stage where core products are entering critical clinical milestones, and international registration and commercialization are being advanced simultaneously, any assets with insufficient synergy to the main business may become hidden obstacles.

From this perspective, the deal is more like a"Cleaning up the noise in the balance sheet" rather than a judgment on the value of a single item.

# Placed on a larger timeline: Venus Medtech is systematically"Shrink Non-Core"

If the sale of Valgen Medtech's equity is viewed in isolation, it does indeed appear to be understated; however, when observed alongside a series of actions taken by Venus Medtech over the past period, the logic becomes clear.

1. Continuous divestment of non-core assets

Since the resumption of trading, Venus Medtech has repeatedly emphasized"The strategic direction of 'focusing on the core business'."

Among the most iconic actions, isSale of Binjiang Life Health Industrial Park ProjectAs a heavy asset construction project, it occupies a large amount of capital and debt capacity over the long term.

According to the announcement, after the sale of the industrial park:

• Can be recovered in one lump sum of approximately3.44 Net cash of RMB billion;

• Synchronous Repayment Approximately2.65 Loan for construction in the amount of 100 million yuan;

• Avoid Future Appointment7 Continuous construction investment of billions of yuan;

• Significantly reduce financial leverage and interest expenses.

This is a typical"De-leveraging"+ "Release Cash Flow" Transaction。

The sale of Valgen Medtech's equity is an extension of the same logic:Divest from historical investments with weak synergy along the valve mainline, and reallocate limited capital back to the core curve.

2. Synchronous Optimization of Debt Structure

Notably, while disposing of assets, Venus Medtech is also simultaneously adjusting its debt structure.

The company has1.5 The maturity date of the RMB billion convertible bond from2026 Postponed to2027 Year. This adjustment essentially converts short-term pressure into medium- and long-term liabilities, providing the company with...12–24 Concentrated efforts on key clinical and registration work within the month, securing a more ample time window.

Asset Side"Slimming down" and "lengthening" on the liability side both point to a common goal:Enhance Capital Efficiency and Financial Resilience.

# Why is it more needed now"Contraction," rather than continuing to expand?

A common question is: against the backdrop of increasing procurement pressure and market competition, should companies diversify their portfolios to mitigate risks?

Venus Medtech's answer, obviously, is no.

The reason is not complicated.

1. Structural heart disease is a "long slope and thick snow" track.

Valve intervention is not a quick-in-and-out business.

Whether it isTAVR, or is still accelerating developmentTMVR、TTVR, whose common characteristics are:

• Long clinical validation cycle;

• High regulatory requirements;

• Steep learning curve for doctors;

• Commercial-scale production often lags behind R&D investment by several years.

In such a track, the dispersion of capital will instead amplify execution risks.

2. Centralized procurement does not bring an "endgame," but rather a structural reshaping.

The direct impact of centralized procurement is price reduction, but its deeper changes lie in:

• Improve accessibility;

• Accelerate hospital access;

• Promote the growth of surgical volume;

• Strengthen the scale effect.

This is not purely negative for companies with cost control capabilities and deep product portfolios. The premise is:Resources must be concentrated enough to withstand the short-term fluctuations brought by the downward pressure on prices.

Venus Medtech Chooses to Take the Initiative at This Stage"The 'subtraction operation' is essentially preparing in advance for the scale competition in the era of centralized procurement."

# The innovative value is shifting from"Potential" Towards "Visibility"

If asset disposal and capital adjustment address"The question of 'how to live more steadily,' the true medium- to long-term value of Venus Medtech still depends on its ability to deliver on its product pipeline."

From the recent progress, several of the company's most important innovative projects are simultaneously entering a critical stage.

1. Cardiovalve: From Clinical Validation to Value Release

Cardiovalve As a transcatheter interventional valve replacement system that addresses mitral and tricuspid regurgitation, it has been completed.150 ExampleCE Key Clinical Enrollment Completed and First Released at London Valve Conference125 Interim data.

The significance of this set of data does not lie in a specific indicator, but in:

• Covering multiple countries and centers;

• The clinical pathway is clear;

• Clear registration rhythm.

According to the company's disclosed plans,Cardiovalve The value release will be divided into two phases:

Focus on overseas cooperation and clinical layout in the early stage, and enter the scaled commercialization phase in the later stage.

2. Venus-PowerX：TAVR Revalidation of the Technical Route

Venus-PowerX As the world's first fully deployable and fully retrievable self-expanding dry valve product, its global pivotal clinical trial is currently underway, with expectations for...2026 Completed enrollment in the first half of the year.

The technical value lies in solvingTAVR The long-standing challenges of positioning and retrieval during surgery, which are particularly critical in patients with complex anatomical structures.

Multiple pipelines entering simultaneously"The clinical validation phase" means that Venus Medtech's innovative value is gradually transforming from accounting R&D investment into tangible assets recognized by the market and regulators.

# Back to the deal itself: what signal does it really send?

Overall, the sale of Valgen Medtech's equity is not an isolated event but a small node in the strategic execution of Venus Medtech at its current stage.

It releases 3 main signals:

• The company is actively managing its portfolio rather than passively responding to pressure.

• Capital is being continuously pressed towards the most certain core business direction.

• Short-term financial actions serve medium- and long-term clinical and internationalization goals.

In a high-barrier field like structural heart disease, the differences between companies often do not lie in a single transaction or a single product, but are reflected inWhether one has the ability to make trade-offs at critical junctures and persist on the same path in the long term。

From this perspective, this1500Million-dollar deals are more of a manifestation of "strategic discipline" rather than an evaluation of the prospects of any particular invested company.

# Conclusion

The cycle of the medical device industry is never determined by a single policy or event. What truly decides the fate of enterprises is whether they can continuously deliver results in a complex environment.Correct Direction, Restrained Rhythm, Logical ConsistencyThe choice.

Venus Medtech is on a challenging path. However, from asset restructuring and capital management to clinical advancement, the company is striving to keep uncertainties within a controllable range.

The sale of Valgen Medtech shares is merely a footnote in this process. What truly deserves continued attention are those products approaching clinical outcomes and whether they can carve out a sufficiently long curve in the global market in the future.

GCC2025

Award Review:

21 Items! 2025 Global Cardiovascular Innovation Series Awards

Conference Review:

Review: The First Global Cardiovascular Congress | GCC2025

Full Disease Solutions for Cardiovascular Devices

Structural Heart Disease  → ▌Medtronic

Vascular Disease → ▌Huamai Tech

Heart Failure → ▌Core Medical

Arrhythmia → ▌Aicome Medical

Vascular Puncture and Closure → ▌KeGang Medical

R&D and Clinical Trial Support → ▌HopeMed

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