On April 2, Peijia Healthcare (09996.HK) issued an announcement stating that since the company is discussing the valuation of financial assets with the auditor (initial investment cost is HK$80 million) and is still awaiting certain information and supporting documents, the company will delay issuing the annual results announcement and suspend stock trading from April 2, pending publication of the audited annual results.
It is worth noting that the 2023 annual results release deadline set by the Hong Kong Stock Exchange last Thursday has passed. Pegasus Healthcare is only one of many companies, such as Country Garden, Novartis Health, Hongjiu Fruit, and Yida China, which failed to release the audited results announcements in a timely manner. Furthermore, it was postponed only because the audit of the HK$80 million financial assets was not completed, and unaudited performance announcements were still issued. This situation is not common.
Judging from the unaudited results announcement issued by the company on the evening of March 28, the company's overall business situation is steady, moderate and positive, with no abnormalities. In 2023, the company achieved revenue of 441 million yuan, up 75.9% year on year; gross profit reached 325 million yuan, up 84.7% year on year; gross margin increased 3.5 percentage points year on year to 73.8% year on year, and recorded strong growth in many core indicators. At the same time as the main business grew, the company's cost control also achieved remarkable results. In 2023, the sales expense ratio, management fee rate, and R&D expense ratio decreased by 22.7%, 17.1%, and 82.2%, respectively.
On the product side, the company's TAVR products were released quickly. In 2023, the company's first-generation and second-generation TAVR products were implanted in about 200 new hospitals, covering a total of nearly 500 hospitals. With the promotion and decline of techniques, the company has also achieved a double increase in TAVR product terminal implantation, further consolidating its market position. In 2023, the company installed 2,484 TAVR product terminals, with a market share of more than 20%. According to the unaudited annual results announcement, the company's catheter valve treatment business recorded revenue of 186 million yuan, an increase of 72.9%; segment gross profit increased 86.0% year over year to 159 million yuan, gross margin increased 6.0 percentage points year on year to 85.7% year on year, and segment loss narrowed 13.5% year on year.
At the same time, the neurological intervention business has benefited from the rapid spread and decline of collection and interventional neurosurgery, and the rapid release of hemorrhage, ischemia, and pathway products. According to the unaudited annual results announcement, the company's neurological intervention business achieved revenue of 256 million yuan, an increase of 78.1% year on year; segment gross profit increased 83.4% year over year to 166 million yuan, sales expenses ratio, and R&D expenses ratio decreased by 14.2%, 9.9%, and 15.7% year on year, respectively, and segment losses narrowed to 744,000 yuan.
According to the Hong Kong Stock Exchange's usual resumption guidelines for similar events, there are three main factors that determine whether an enterprise can resume trading: one is to publish all unpublished financial results and handle any review revisions as stipulated in the listing rules; the second is to prove that the company has the ability to continue to operate; and the third is to release all important information to the market so that shareholders and other investors can evaluate the company's situation.
Judging from the unaudited balance sheet issued by the company, the valuation of this unresolved financial asset accounted for about 2.16% of its total assets at the end of 2023. It is expected that it will not have much impact on the company's overall performance. Currently, the company has the ability to operate continuously. It is hoped that the relevant audit work of the company will be completed as soon as possible, and that trading will resume as soon as possible.