Exchange: HKSE | Sector: Healthcare | Industry: Medical Devices
Q4 2024
Published: Dec 31, 2024
Earnings Highlights
Revenue of $79.01M up 177.3% year-over-year
EPS of $-0.19 increased by 24% from previous year
Gross margin of 24.8%
Net income of -182.62M
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Shanghai MicroPort MedBot Group Co Ltd (2252.HK) QQ4 2024 Financial Results – Revenue Rebound with Narrow Losses as Robotic-Surgery Platform Matures
Executive Summary
Shanghai MicroPort MedBot Group reported a meaningful YoY rebound in Q4 2024 revenue to 79.0 million CNY, lifting gross profit to 19.6 million CNY and delivering a gross margin of 24.8%. Despite the top-line improvement, the quarter remained unprofitable on a bottom-line basis, with EBITDA of -105.4 million CNY and net income of -182.6 million CNY, translating to an EPS of -0.19 CNY. The improvement versus Q4 2023 reflects higher surgical robotics-related sales and favorable product mix, but is offset by substantial operating expenses and non-cash items that continue to pressure profitability in the near term.
Key Performance Indicators
Revenue
79.01M
QoQ: 0.00% | YoY:177.27%
Gross Profit
19.60M
24.81% margin
QoQ: 0.00% | YoY:631.69%
Operating Income
-122.09M
QoQ: 0.00% | YoY:46.44%
Net Income
-182.62M
QoQ: 0.00% | YoY:22.81%
EPS
-0.19
QoQ: 0.00% | YoY:24.00%
Revenue Trend
Margin Analysis
Key Insights
Revenue: 79.00 million CNY in Q4 2024, up 177.3% YoY from 28.49 million CNY in Q4 2023; QoQ growth from Q3 2024 to Q4 2024 was flat at 0.0%.
Gross Profit: 19.60 million CNY, yielding a gross margin of 24.8% (vs. 0.0%-plus margins in the prior-year period given the negative gross profit in Q4 2023). YoY gross profit increased by approximately 631.7%.
Operating Income and EBITDA: Operating loss of 122.09 million CNY with an operating margin of -1.55%; EBITDA of -105.36 million CNY with an EBITDA margin of -1.33. The negative profitability remains, but the margin trajectory shows improvement vs prior-year compounding losses.
Net Income and EPS: Net income of -182.62 million CNY and basic EPS of -0.19 CNY for Q4 2024. YoY net income improved about 22.8%; EPS improved ~24% YoY, reflecting operating leverage gains as revenue scales.
Expenses and profitability drivers: R&D expenses 72.29 million CNY; SG&A (selling, general & administrative) 70.46 million CNY; total operating expenses 141.69 million CNY. Non-cash items reported at 176.24 million CNY contributed to the net loss despite revenue growth. Reported gross margin of 24.8% indicates gross profitability on product sales, but the company remains below break-even on an operating basis.
Financial Highlights
Revenue and profitability dynamics:
- Revenue: 79.00 million CNY in Q4 2024, up 177.3% YoY from 28.49 million CNY in Q4 2023; QoQ growth from Q3 2024 to Q4 2024 was flat at 0.0%.
- Gross Profit: 19.60 million CNY, yielding a gross margin of 24.8% (vs. 0.0%-plus margins in the prior-year period given the negative gross profit in Q4 2023). YoY gross profit increased by approximately 631.7%.
- Operating Income and EBITDA: Operating loss of 122.09 million CNY with an operating margin of -1.55%; EBITDA of -105.36 million CNY with an EBITDA margin of -1.33. The negative profitability remains, but the margin trajectory shows improvement vs prior-year compounding losses.
- Net Income and EPS: Net income of -182.62 million CNY and basic EPS of -0.19 CNY for Q4 2024. YoY net income improved about 22.8%; EPS improved ~24% YoY, reflecting operating leverage gains as revenue scales.
- Expenses and profitability drivers: R&D expenses 72.29 million CNY; SG&A (selling, general & administrative) 70.46 million CNY; total operating expenses 141.69 million CNY. Non-cash items reported at 176.24 million CNY contributed to the net loss despite revenue growth. Reported gross margin of 24.8% indicates gross profitability on product sales, but the company remains below break-even on an operating basis.
- Balance sheet and liquidity: Cash and cash equivalents around 612.23 million CNY. Total debt stands at 691.33 million CNY (short-term 279.73 million; long-term 411.59 million). Net debt of 79.10 million CNY and a cash-to-debt dynamic suggest reasonable liquidity support given the current loss profile. Current ratio 1.701x and quick ratio 1.400x imply solid near-term liquidity.
- Capital structure and equity: Total assets 1,279.04 million CNY; total liabilities 1,021.36 million CNY; total stockholders’ equity 278.20 million CNY. The company carries a relatively high leverage ratio (debt to equity ~2.48x) but maintains a modest net debt position aided by cash reserves. Inventory days are extended (approx. 229.5 days) while receivables days are ~50.6, implying inventory management and working capital are areas to monitor as the business scales.
Observations and implications for investors:
- The Q4 2024 results demonstrate a substantive top-line rebound with a pronounced gross margin, but profitability remains a near-term challenge due to operating costs and non-cash adjustments. The cash position supports ongoing R&D and capacity expansion, yet high leverage and extended inventory cycles warrant close monitoring of cash burn and working capital efficiency.
- The company’s quarterly path to profitability will hinge on sustaining revenue growth while achieving operating leverage and reducing reliance on non-cash adjustments, as well as managing inventories and receivables to stabilize cash flow.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
79.01M
177.27%
0.00%
Gross Profit
19.60M
631.69%
0.00%
Operating Income
-122.09M
46.44%
0.00%
Net Income
-182.62M
22.81%
0.00%
EPS
-0.19
24.00%
0.00%
Key Financial Ratios
currentRatio
1.7
grossProfitMargin
24.8%
operatingProfitMargin
-154.5%
netProfitMargin
-231%
returnOnAssets
-14.3%
returnOnEquity
-65.6%
debtEquityRatio
2.48
priceToBookRatio
31.31
priceEarningsRatio
-11.92
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript data provided in the supplied materials. Consequently, management quotes, themes, and color on strategy, operations, and market conditions could not be incorporated from the QQ4 2024 call. If you provide the transcript, I can extract themes and quotes by topic (strategy, operations, market conditions) with context and significance.
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Forward Guidance
The dataset does not include formal forward guidance from Shanghai MicroPort MedBot for QQ4 2024. The absence of explicit targets means an investor-facing view must rely on trajectory signals from the quarterly results and the company’s product roadmap. Potential drivers that could inform a future guidance framework include: (1) scale of adoption for Toumai, DFVision, and ROne platforms in China and Europe; (2) execution of cost economies in manufacturing and SG&A as volumes rise; (3) gross-margin expansion through price realization, product mix, and better component sourcing; (4) cash flow normalization as non-cash charges diminish with scale and fixed-cost amortization improves margin. Achievability hinges on sustained demand, regulatory approvals, reimbursement dynamics, and successful deployment across targeted hospital networks. Investors should monitor quarterly revenue growth, gross margin stabilization around mid- to high-20s, operating expense cadence, and the trajectory of working capital (notably inventory days around 200+ days).
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
2252.HK Focus
24.81%
-1.55%
-65.60%
-11.92%
0853.HK
51.60%
7.79%
-19.40%
-3.15%
1302.HK
71.60%
-2.41%
0.48%
84.12%
1858.HK
55.20%
21.90%
2.26%
11.57%
2235.HK
50.80%
-12.70%
-1.29%
-23.83%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, the QQ4 2024 results depict a company in the early stages of scaling its robotics platforms with an improving top line but still entrenched in losses due to high operating expenses and non-cash items. The balance sheet remains liquid, and the business benefits from a diversified robotics portfolio with multi-procedure addressable markets in China and Europe. The key to a constructive investment stance is a clear path to operating leverage: improving gross margins, reducing fixed-cost burn, and converting revenue growth into meaningful free cash flow while maintaining prudent working capital. If management can sustain revenue momentum while bringing Opex in line with growth and reducing reliance on non-cash charges, MicroPort MedBot could re-rate as it transitions from development-stage profitability toward sustainable earnings. In the near term, the stock may remain sensitive to quarterly operating performance and market perception of scaling risk. Valuation multiples (e.g., price-to-sales around 110x, negative P/E) reflect high growth expectations; a closer alignment to earnings trajectory and cash flow generation will be needed for a more constructive re-rating.
Key Investment Factors
Growth Potential
Significant long-term growth potential exists in the Chinese and European surgical robotics markets as hospitals expand robotics adoption. MicroPort’s diversified product portfolio (TouMai laparoscopic robot, DFVision 3D endoscope, robotic orthopedics, vascular interventional robotics, and transperineal biopsy systems) positions the company to capture multiple high-value procedures as clinical acceptance broadens.
Profitability Risk
Key risks include: ongoing cash burn with negative EBITDA, high leverage (debt-to-equity ~2.5x), extended working capital cycles (inventory ~229 days), regulatory hurdles for new robotic platforms, competition from established players, and potential reimbursement or pricing pressures in China and abroad. Dependency on hospital capital expenditure cycles and regional health policy changes could impact near-term execution.
Financial Position
Strong liquidity evidenced by ~612.2M CNY of cash, with total debt of ~691.3M and net debt ~79.1M. The balance sheet shows healthy current liquidity (current ratio ~1.70) but elevated leverage and a sizeable non-cash adjustment burden. The company’s ability to translate top-line gains into sustainable free cash flow will be a key determinant of equity yield and leverage trajectory.
SWOT Analysis
Strengths
Diversified robotics platform across multiple surgical disciplines (laparoscopic, orthopedic, vascular, transbronchial, TAVR, and biopsy systems), enabling cross-price realisation and share of wallet with hospitals.
Significant YoY revenue growth in Q4 2024 (177.3% YoY) with a corresponding gross margin of 24.8% and improving profitability signals at the gross level.
Strong liquidity position with 612.23M CNY in cash and cash equivalents, supporting continued R&D and capex needs.
Healthy current and quick ratios (1.701x and 1.400x) indicating functional short-term liquidity.
Weaknesses
Sustained negative EBITDA and net income in Q4 2024, indicating near-term profitability challenges.
High operating expenses (R&D 72.29M CNY; SG&A 70.46M CNY) contributing to operating losses despite revenue gains.
Extended working capital dynamics, notably inventory days around 229.5, suggesting potential stocking and capital tie-up.
Elevated leverage (debt-to-equity ~2.48x) and sizeable total debt (691.33M CNY), which heightens sensitivity to interest and funding costs.
Opportunities
Potential to scale in China and enter/expand in Europe with TouMai, DFVision, and related robotics offerings as clinical acceptance grows.
Cross-selling opportunities within a growing portfolio to address high-value surgical procedures.
R&D intensity may yield high-margin platform upgrades and new monetization channels (services, maintenance, and training) as adoption grows.
Threats
Regulatory approvals and reimbursement dynamics for robotic platforms in China and Europe could impact timing and pricing power.
Competition from both domestic and global players in surgical robotics, potentially affecting market share and pricing.
Macroeconomic and hospital capex cycles impacting spend on new technologies; supply chain risks could affect component costs and availability.
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