(Yicai) March 14 -- Shares of Venus Medtech have tanked almost 69 percent since the Chinese maker of heart valve solutions resumed trading after 15 months of suspension due to embezzlement by former executives.

Venus [HKG: 2500] dropped 7.8 percent to close at HKD1.77 (USD 20 cents) in Hong Kong today after tumbling by nearly 66 percent yesterday when the stock started trading again after more than one year of pause. The market cap has shrunk to HKD780.6 million (USD100.4 million).

The Hangzhou-based developer of catheter-based techniques to repair damaged heart valves announced yesterday that it has met the Hong Kong Stock Exchange's requirements to resume stock trading after releasing the results of its investigation and the subsequent rectification.

Venus has dismissed two former executive directors, Zi Zhenjun and Zeng Min, who had used company funds without authorization, and former chief financial officer Ma Haiyue. Moreover, the company has started recovering the funds and strengthened internal control.

Between April 2020 and May 2023, Zi and Zeng used Venus' funds to provide a total of CNY1.9 billion (USD262.3 million) in loans to other entities controlled by the duo. Most of these loans have been repaid with interest, and the guarantees have been released, according to Venus.

The firm said in another release yesterday that the resumption of trading shows that Venus has completely solved its corporate governance problem and re-established its internal control system, which is a key step for the company to respond to market concerns and rebuild industry confidence.

Founded in 2009, Venus is a leading enterprise in minimally invasive procedures used to treat heart valve diseases without the need for open-heart surgery. It was listed on the Hong Kong Stock Exchange in December 2019. The company's flagship product VenusP-Valve has been approved in nearly 70 countries or regions, including Europe, to replace the pulmonary heart valve.

However, in its nearly two-decade journey, Venus has not yet achieved profitability and its cash flow has declined rapidly in recent years. In the first half of last year, Venus recorded a net loss of CNY206 million (USD28.4 million), narrowing by 41 percent from a year ago. Its revenue fell 10 percent to CNY231 million, with cash and cash equivalents plummeting 65 percent to CNY486 million, according to its interim financial report.

Editor: Emmi Laine