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Financial Association News, August 28th (Reporter He Fan) Kangtai Biological (300601.SZ) saw a decline in revenue and net profit in H1 due to market competition and inventory reduction.

Among them, the sales revenue of the non-immunization planning vaccine product, which accounts for the largest proportion of revenue, decreased by more than 30% year-on-year. On the other hand, Kangtai Biological's accounts receivable continued to rise, and cash flow decreased significantly.

Tonight, Kangtai Biological disclosed its semi-annual report. The company achieved operating revenue of 1.202 billion yuan in H1, a year-on-year decrease of 30.54%; net profit attributable to shareholders of the listed company was 0.165 billion yuan, a year-on-year decrease of 67.61%.

Kangtai Biological stated that the decline in revenue was due to market competition and inventory reduction. In addition, factors such as the amortization of stock-based incentives and the increase in fixed asset depreciation expenses caused a year-on-year decrease in net income.

Looking at the quarters, the company achieved revenue of 0.452 billion yuan in Q1, a year-on-year decrease of 39.65%, and net income attributable to the parent of 54.0659 million yuan, a year-on-year decrease of 73.69%; in Q2, revenue was 0.75 billion yuan, a year-on-year decrease of 23.60%, and net income attributable to the parent was 0.111 billion yuan, a year-on-year decrease of 63.51%.

Looking at the products, non-immunization planning vaccines are the category that accounts for the largest proportion of Kangtai Biological's revenue, accounting for 95.76% of total revenue, with a gross margin of 85.80%, a decrease of 2.65 percentage points compared to the same period last year. In addition, this category of products achieved revenue of 1.151 billion yuan in H1, a year-on-year decrease of 33.76%; immunization planning vaccines achieved revenue of 26.8273 million yuan, a year-on-year increase of 406.74%, but the gross margin of this category of products was only 32.49%.

From the volume of batch issuance obtained from the company's main listed products, the human diploid cell rabies vaccine (freeze-dried) for sale in April this year has obtained the qualification for admission in 26 provinces, autonomous regions, and municipalities directly under the Central Government. The batch issuance in the first half of the year is 0.9049 million doses, achieving sales revenue of 0.117 billion yuan.

It is worth noting that the accounts receivable of Shenzhen Kangtai Biological Products have risen to 2.803 billion yuan, accounting for 19.40% of the total assets. At the same time, the company's cash balance is not sufficient. As of June 30, the balance of cash and cash equivalents is only 0.297 billion yuan, a decrease of 0.872 billion yuan compared to the same period last year. The net cash flow generated from operating activities decreased by 83.04% year-on-year. The company attributed this to the decrease in sales receipts and the increase in the expenditure on purchasing raw and auxiliary materials.

At the same time, during the reporting period, the research and development expenses of Shenzhen Kangtai Biological Products decreased by 56.36% compared to the previous year. At present, the company has nearly 30 ongoing research projects, including the Sabin strain of inactivated polio vaccine (Vero cells), ACYW135 meningococcal conjugate vaccine, and inactivated hepatitis A vaccine.