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According to Cailian Press, on August 29th, due to the decrease in sales volume of its main products, Chongqing Zhifei Biological Products (300122.SZ) has released a semi-annual report with declines in revenue and net income. The company's net income attributable to shareholders in Q2 was only 0.777 billion yuan.

From the perspective of the quantity of batch release, the quantity of Merck's quadrivalent HPV vaccine represented by Chongqing Zhifei Biological Products has decreased by over 90% compared to the same period last year. In addition, the gross margin of the agency products' business sector has decreased year-on-year. With the accelerated development of domestic nine-valent HPV vaccines, the pressure on Chongqing Zhifei Biological Products will further increase.

Tonight, Chongqing Zhifei Biological Products disclosed its semi-annual report for 2024. The company achieved a total revenue of 18.258 billion yuan in the first half of the year, a decrease of 25.31% year-on-year, and a net income attributable to shareholders of 2.234 billion yuan, a decrease of 47.55% year-on-year.

Looking at the quarterly results, Chongqing Zhifei Biological Products achieved a revenue of 11.396 billion yuan in Q1, an increase of 2% year-on-year, with a net income attributable to shareholders of 1.458 billion yuan, a decrease of 28.26% year-on-year. The company's revenue decreased to 6.863 billion yuan in Q2, a decrease of 48.29% year-on-year, with a net income attributable to shareholders of 0.777 billion yuan, a decrease of 65.14% year-on-year.

In the semi-annual report, Chongqing Zhifei Biological Products stated that the market promotion in certain regions and for certain products did not meet expectations, and the sales volume of its main products decreased compared to the same period last year.

In the semi-annual report, Merck stated that the growth rate of its HPV vaccine was far below expectations, mainly due to the decline in sales in the Chinese market.

And today, Zhifei Biological's semi-annual report also confirmed this. From the perspective of batch issuance, the company's quadrivalent HPV vaccine in H1 was only 0.466 million doses, a decrease of 5.8 million doses compared to the same period last year, a decrease of 92.56% year-on-year; the batch issuance of the nine-valent HPV vaccine increased by 3.5936 million doses, an increase of 24.48% year-on-year.

In addition to the HPV vaccine, among Zhifei Biological's agent products, the batch issuance of the pentavalent rotavirus vaccine decreased by 65.83% year-on-year, and the batch issuance of the inactivated hepatitis A vaccine decreased by 45.14% year-on-year.

In October last year, Zhifei Biological signed an agreement with GSK. GSK will exclusively supply recombinant herpes zoster vaccine to Zhifei Biological, and authorize Zhifei Biological to market, promote, import and distribute related products in the cooperation area according to the agreement. The vaccine obtained the first batch of batch issuance certification in March this year, with a batch issuance of 1.6069 million doses in H1.

During the reporting period, agent products still remained the main source of revenue for Zhifei Biological, accounting for 96.35% of total revenue. However, the revenue of this business sector decreased by 25.40% year-on-year, and the gross margin decreased by 9.91 percentage points year-on-year.

With the recent acceptance of the listing application for the domestic nine-valent HPV vaccine by Wantai Biological, the domestic nine-valent HPV vaccine is about to be launched. According to the PharmCloud data, the nine-valent HPV vaccines of domestic companies such as Walvax Biotechnology (300142.SZ), KangLeWeiShi (833575.BJ), Ruikang Biology (02179.HK), Bowei Biology, etc. are already in phase III clinical trials. The pressure on Zhifei Biological further increases.