Venus Medtech sells industrial park, repays loans, refocuses on heart valves

Venus Medtech (Hangzhou) Inc. has entered into a disposal agreement to sell its industrial park property, comprising construction in progress on Parcel 1 and Parcel 2, along with associated land use rights, for a total consideration of RMB374,563,969. The transaction, classified as a major transaction, is subject to shareholder approval. The sale aims to improve financial liquidity and credibility, allowing the company to reduce future construction expenditures estimated at RMB700 million.

The proceeds from the disposal, amounting to approximately RMB343.6 million after tax, will be primarily used to repay outstanding bank loans of RMB265 million, secured by the property, and to supplement general working capital with the remaining RMB78.6 million. This strategic move aligns with the company's focus on heart valve technologies, scaling back investments in non-core and capital-intensive projects like the industrial park.

Additionally, Venus Medtech announced a change in the use of RMB73.03 million in unutilized proceeds from its initial global offering. These funds, originally allocated for R&D and marketing activities for the CEP device and VenusA-Pilot, will now be redirected to working capital and other general corporate purposes by December 31, 2025, reflecting a strategic realignment to optimize operational efficiency.