On March 4, the Shenzhen Stock Exchange adjusted the list of Hong Kong Stock Connect, and Venus Medical, a 18A company known as the "first share of heart valves", was transferred out of Hong Kong Stock Connect.
Venus Medtech's current market capitalization is HK$2.4 billion, and trading has been suspended for nearly four months. The regulatory regime for Hong Kong stocks is different from that of the mainland, and it is rare for trading to be suspended for such a long time, unless there is a major change in the company. Venus Medtech's suspension at that time was due to "waiting for the release of internal information from the company".It is believed that the results of the investigation into the transfer of funds by the company's executives will be disclosed.
Previously, Venus Medical borrowed 6300 million yuan, senior executives cashed out more than 100 million yuan, which attracted the attention of the industry. On February 25, the company issued three announcements in a row, disclosing a number of abnormal capital flows:
Executives Zeng Min and Zi Zhenjun transferred funds without authorization for a total of 18500 million yuan;
Entered into an agreement with China Construction First Bureau 11$8.2 billion in construction contracts understated;
Loan to Jiangsu Wuzhong Real Estate 2300 million yuan, 80 million yuan still outstanding;
For Zi Zhenjun 3A loan of 9.6 billion yuan is guaranteed, and 200 million yuan of pledged deposits are still undue.
Venus Medtech was listed in 2019, the hottest year of the Hong Kong stock market 18A, and was feverishly chased by the capital marketThe peak market capitalization once reached HK$42.7 billion. Now, this star medical device company has been suspended for nearly 4 months, and has been kicked out of the Hong Kong Stock Connect, and the company's operation has not improved much, so it may be very difficult to return to the C position.
On May 8, 2023, Venus Healthcare issued an announcement mentioning that it will be from June 2021 to January 2023Senior executives Zi Zhenjun and Zeng Min have obtained low-interest, unsecured loans from the company 24 times, totaling 1.2 billion yuan.
Zeng Min and Zi Zhenjun once cashed out more than 400 million Hong Kong dollars respectively through ** when Venus Medical** lifted the ban in 2021There should be no shortage of money in hand. What did the two do with borrowing large sums of money from the company, Venus Medical did not give a specific explanation.
Venus Medtech's financial data disclosed that at the end of June 2021, the company's book funds reached an all-time high of 35$800 million, and there are no other large receivables or occupied funds. However, since then, the company's positions have been frequently called, and many large accounts have been returned during the financial year, but they are not reflected in the semi-annual report.
Source: Venus Medical announcement.
Moreover, according to the regulations, even if the founders and major shareholders want to occupy such a large amount of money of the listed company, they must be voted on by the board of directors, and investors need to be informed. But Venus Medical has been quietly lending money to executives without making an announcement. Even most of the transactions are not authorized by the companyThere were not even relevant documents, just verbal instructions from the executives.
This incident shows that Venus MedicalInformation disclosure is extremely non-standardized, the company's internal supervision is virtually non-existent, and it is extremely irresponsible to investors. In this regard, the explanation given by Venus Medical was that it was negligent and forgot to announce it for a while, and saidThe two executives were instrumental in the company's IPO and did so in order to retain key managers.
Zi Zhenjun and Zeng Min are the first and second leaders of Qiming Medical. Zi Zhenjun has successively worked in top domestic medical device companies such as MicroPort Medical, Veken Medical, and Lifetech Technology, and is the main designer of China's first generation of coronary artery balloons, coronary stents, and aortic aneurysm stent grafts.
Unlike other 18A, in 2017, the transcatheter aortic valve replacement (T**R) product developed by Venus was successfully launched, so it was called the "first heart valve stock" after marketing. Qiming Venture Capital, a major investor in Venus Medical, said in an interview with **A large part of the reason for choosing Venus Medtech was based on the optimism of the founder, Zi Zhenjun.
But that's not a reason why founders can take the company's funds at will. On November 20, 2023, Venus Healthcare set up a special committee to conduct an in-depth investigation and found that more than 1.2 billion yuan of funds were misappropriated. From April 2020 to May 2023, there are about 18500 million yuan was transferred from Venus Medical to Zi Zhenjun and Zeng Min.
Due to the unauthorized borrowing of funds by the management, Venus Medtech has been suspended since November 23, 2023.
During this period, Venus Healthcare tried to carry out reforms and adopted a series of remedial measures. Zeng Min, chairman of Venus Medical, Zi Zhenjun, executive director, and Ma Haiyue, CFO, resigned one after anotherAll the management involved was replaced。At the same time, Venus Medtech replaced the third-party auditors and hired new internal control and compliance consultants.
However, these internal adjustments do not improve the competitive position of Venus Medtech's products in the market. The capital market used to be full of imagination about the t**r track, and the annual report data of structural heart disease in China shows that the annual implantation volume of t**r in 2023 will be about 150,000 cases. At present, the average price of T**R valves is about 200,000 yuan, and the domestic T**R market size in 2023 will be about 3 billion yuan.
There are many players on this small trackCardioflow Medical, Peijia Medical, and Jianshi Technology have a variety of products competing on the same stage. Although Venus Medtech has launched a number of T**R products, the company's losses have been expanding, and from 2019 to 2022, Venus Medtech's revenue is about 2300 million yuan, 2800 million yuan, 4200 million yuan, 4100 million yuan; Losses of about 3800 million yuan, 1800 million yuan, 3700 million yuan, 10600 million yuan.
In the fierce competition, it is not easy for Venus Medtech to maintain its current market share. In the first half of 2023, Venus Medtech's revenue will be 2500 million yuan, ranking first among the three giants of T**rHowever, the revenue growth rate of T**R products has slowed to 169%。During the same period, the revenue growth rates of Peijia Medical and Cardioflow Medical valve business were respectively. 4%。
Without the support of southbound funds, Venus Medtech's share price in Hong Kong stocks may fluctuate wildly in the short term after the resumption of trading. If we can do a good job in internal skills and make solid products, this company is still very promising, depending on how determined Venus Medical is.
Written by丨Fang Taozhi.
Editor丨Jiang Yun Jia Ting.
Operated by Twenty-Three.
Illustration by Visual China.
Disclaimer: Original content of the Health Knowledge Bureau, please do not do it without permission**