证券代码：603392 证券简称：万泰生物 公告编号：2025-041 北京万泰生物药业股份有限公司 第六届监事会第九次会议决议公告 本公司监事会及全体监事保证本公告内容不存在任何虚假记载、误导性 陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 一、监事会会议召开情况 表决结果：同意3票、反对0票、弃权0票。 2、审议通过了《关于公司2025年半年度募集资金存放与实际使用情况的专 项报告的议案》 具体内容详见公司于指定信息披露媒体披露的《北京万泰生物药业股份有限 公司关于2025年半年度募集资金存放与实际使用情况的专项报告》（公告编号： 2025-042）。 1、审议通过了《2025年半年度报告全文及其摘要》 监事会认为： （1）公司2025年半年度报告编制和审议程序符合法律、法规、公司章程和 公司内部管理制度的各项规定。 （2）公司2025年半年度报告的内容和格式符合中国证监会和证券交易所的 各项规定，所包含的信息能从各个方面真实、准确、完整地反映出公司2025年半 年度的经营管理和财务状况。 （3）在提出本意见前，未发现参与2025年半年度报告编制和审议的人员有 违反保密规定的行为。 ...

证券代码：603392 证券简称：万泰生物 公告编号：2025-040 北京万泰生物药业股份有限公司 第六届董事会第九次会议决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性 陈述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 表决结果：同意7票、反对0票、弃权0票。 该议案已经第六届董事会审计委员会审议通过。 2、审议通过了《关于公司2025年半年度募集资金存放与实际使用情况的专 项报告的议案》 具体内容详见公司于指定信息披露媒体披露的《北京万泰生物药业股份有限 公司关于2025年半年度募集资金存放与实际使用情况的专项报告》（公告编号： 2025-042）。 表决结果：同意7票、反对0票、弃权0票。 特此公告。 一、董事会会议召开情况 北京万泰生物药业股份有限公司（以下简称"公司"）于2025年8月10日以 电子邮件方式向全体董事发出第六届董事会第九次会议召开通知和会议材料。本 次会议于2025年8月20日以通讯方式召开。本次会议由公司董事长邱子欣先生主 持，应出席董事7人，实际出席董事7人。本次会议的出席人数、召开和表决方式 符合《公司法》等法律、法规及《公司章程》的 ...

Section I Definitions [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This section defines common terms, including company entities, shareholders, and specific biomedical industry terminology like IVD and HPV vaccines, crucial for understanding the report - Company full name: "Beijing Wantai Biological Pharmacy Enterprise Co., Ltd.", abbreviated as **"Wantai Bio"**[12](index=12&type=chunk) - Reporting period refers to **January 1, 2025 to June 30, 2025**[12](index=12&type=chunk) - In vitro diagnostics (IVD) refers to in vitro testing of human samples for disease prevention, diagnosis, treatment monitoring, etc[12](index=12&type=chunk) - HPV vaccine, also known as cervical cancer vaccine, is used to prevent human papillomavirus infection[13](index=13&type=chunk) Section II Company Profile and Key Financial Indicators [I. Company Information](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section outlines the company's basic registration information, including its Chinese name, abbreviation, foreign name, and legal representative - Company's Chinese name is Beijing Wantai Biological Pharmacy Enterprise Co., Ltd., abbreviated as **Wantai Bio**[16](index=16&type=chunk) - The company's legal representative is **Qiu Zixin**[16](index=16&type=chunk) [II. Contact Person and Information](index=6&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section provides contact information for the company's Board Secretary Yu Tao and Securities Affairs Representative Zhao Shuling, facilitating communication for investors and relevant parties - Board Secretary is **Yu Tao**, Securities Affairs Representative is **Zhao Shuling**[17](index=17&type=chunk) - Company contact address is No. 31, Science Park Road, Changping District, Beijing, phone **010-59528820**[17](index=17&type=chunk) [III. Brief Introduction to Changes in Basic Information](index=6&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) This section states that the company's registered and office addresses remain unchanged at No. 31, Science Park Road, Changping District, Beijing, and provides the company's website and email address - Company's registered and office addresses remain unchanged, both at **No. 31, Science Park Road, Changping District, Beijing**[18](index=18&type=chunk) - Company website is **https://www.ystwt.com**[18](index=18&type=chunk) [IV. Brief Introduction to Changes in Information Disclosure and Document Placement Locations](index=6&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) This section lists the company's designated information disclosure newspapers and the website address for semi-annual reports, ensuring transparency and accessibility of information disclosure - Company's designated information disclosure newspapers include **"China Securities Journal"**, **"Shanghai Securities News"**, **"Securities Daily"**, **"Securities Times"**[19](index=19&type=chunk) - Semi-annual report website address is **http://www.sse.com.cn**[19](index=19&type=chunk) [V. Company Stock Overview](index=6&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) This section provides basic information about the company's stock, including stock type, listing exchange, stock abbreviation, and stock code - Company stock type is **A-shares**, listed on the **Shanghai Stock Exchange**[20](index=20&type=chunk) - Stock abbreviation is **Wantai Bio**, stock code is **603392**[20](index=20&type=chunk) [VII. Key Accounting Data and Financial Indicators](index=7&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In H1 2025, the company's key financial indicators significantly declined, with operating revenue down **38.25%** and net profit turning to loss, primarily due to lower-than-expected vaccine sales 2025 H1 Key Accounting Data | Major Accounting Data | This Reporting Period (Jan-Jun) (Yuan) | Prior Year Period (Yuan) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 843,561,860.09 | 1,366,045,101.74 | -38.25 | | Total Profit | -145,682,857.91 | 258,148,383.72 | -156.43 | | Net Profit Attributable to Shareholders of Listed Company | -144,038,127.02 | 260,480,462.16 | -155.30 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses | -242,605,985.91 | 63,520,625.14 | -481.93 | | Net Cash Flow from Operating Activities | -66,553,405.56 | 128,547,517.42 | -151.77 | | Net Assets Attributable to Shareholders of Listed Company (Period End) | 12,118,763,891.64 | 12,262,802,018.66 | -1.17 | | Total Assets (Period End) | 14,240,506,057.02 | 14,689,396,309.47 | -3.06 | 2025 H1 Key Financial Indicators | Major Financial Indicators | This Reporting Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | -0.11 | 0.21 | -152.38 | | Diluted Earnings Per Share (Yuan/share) | -0.11 | 0.21 | -152.38 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (Yuan/share) | -0.19 | 0.05 | -480.00 | | Weighted Average Return on Net Assets (%) | -1.18 | 2.05 | Decreased by 3.23 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | -1.99 | 0.50 | Decreased by 2.49 percentage points | - Operating revenue and net profit decline primarily due to the vaccine segment being affected by market adjustments, government centralized procurement, and the expanded age range for the nine-valent HPV vaccine, leading to lower-than-expected sales[23](index=23&type=chunk) - Net cash flow from operating activities decreased, mainly due to reduced cash received from product sales[24](index=24&type=chunk) [IX. Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=%E4%B9%9D%E3%80%81%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) This section details the non-recurring gains and losses items and their amounts for the reporting period, totaling **98.57 million yuan**, primarily including government subsidies and fair value changes from financial assets and liabilities 2025 H1 Non-Recurring Gains and Losses Items and Amounts | Item | Amount (Yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets | -950,957.47 | | Government grants included in current profit or loss | 52,650,778.92 | | Gains and losses from changes in fair value of financial assets and financial liabilities held by non-financial enterprises, and disposal gains and losses | 61,948,902.43 | | Other non-operating income and expenses apart from the above | -5,535,035.74 | | Less: Income tax impact | 7,608,686.20 | | Impact on minority interests (after tax) | 1,937,143.05 | | Total | 98,567,858.89 | Section III Management Discussion and Analysis [I. Explanation of the Company's Industry and Main Business Operations During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) This section details the market development, main business, products, operating model, and industry position of the company's in vitro diagnostics and vaccine segments [(I) Industry Development](index=9&type=section&id=(%E4%B8%80)%20%E8%A1%8C%E4%B8%9A%E5%8F%91%E5%B1%95%E6%83%85%E5%86%B5) The global in vitro diagnostics market exceeds **$100 billion**, with China's IVD sector experiencing golden growth driven by policy, technology, and demographic shifts, while the vaccine industry sees accelerated development but faces geopolitical and economic challenges - Global in vitro diagnostics market size has exceeded **$100 billion**, with immunodiagnostics and molecular diagnostics leading innovation[31](index=31&type=chunk) - China's IVD industry is entering a golden development period under "Healthy China 2030" and "innovation-driven development" strategies, with policies focusing on resource optimization, cost reduction, and efficiency improvement, technology driving import substitution and AI applications, and the market benefiting from expanded grassroots medical care and aging population demand[32](index=32&type=chunk) - The vaccine industry has entered a fast lane since 2020, with China achieving breakthroughs in R&D innovation, a diversified market structure, and increased public vaccination willingness, but facing geopolitical, regulatory, and global economic challenges[33](index=33&type=chunk)[34](index=34&type=chunk) [(II) Company's Main Business and Products](index=10&type=section&id=(%E4%BA%8C)%20%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%92%8C%E4%BA%A7%E5%93%81) The company's main business spans in vitro diagnostics and vaccines, offering a rich product portfolio including various diagnostic reagents and instruments, and core vaccines like the world's only hepatitis E vaccine and China's first bivalent and nine-valent HPV vaccines - Company's main business is divided into two major areas: in vitro diagnostics and vaccines, providing integrated health solutions[35](index=35&type=chunk) - In vitro diagnostic products cover chemiluminescence, enzyme-linked immunoassay, biochemistry, colloidal gold, nucleic acid diagnostic reagents, and fully automatic diagnostic instruments, with advantageous products in AIDS, liver disease, thyroid function, cardiovascular and cerebrovascular, tuberculosis, and tumor marker diagnostics[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) - The vaccine segment is centered on HPV vaccines, possessing the world's only hepatitis E vaccine, China's first bivalent and nine-valent HPV vaccines, and multiple new pipelines under development, such as the 20-valent pneumococcal conjugate vaccine[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - During the reporting period, the company's nine-valent HPV vaccine, Xinkening®9, received approval for market launch from the National Medical Products Administration, becoming the **first domestic and second global approved nine-valent HPV vaccine**[43](index=43&type=chunk) [(III) Operating Model](index=17&type=section&id=(%E4%B8%89)%20%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F) The company employs a full-chain "R&D-procurement-production-sales" model for in vitro diagnostics, emphasizing innovation and efficiency, while the vaccine segment focuses on strategic R&D, stringent production, and market expansion through public procurement and international partnerships - The R&D model in the in vitro diagnostics sector focuses on product innovation, quality improvement, full-chain R&D, and building smart laboratories[47](index=47&type=chunk) - The in vitro diagnostics sales model adopts a **"combination of distribution and direct sales"**, with international markets expanded through an agent network[51](index=51&type=chunk) - The vaccine R&D model is based on national strategy, building a diversified R&D system through independent R&D, external cooperation, and technology introduction, integrating artificial intelligence technology[52](index=52&type=chunk)[53](index=53&type=chunk) - The vaccine sales model primarily involves procurement through provincial public resource trading platforms, direct supply to disease control agencies, and cooperation with promotion service providers; international markets are expanded through GAVI and PQ certification[56](index=56&type=chunk) [(IV) Industry Position](index=20&type=section&id=(%E5%9B%9B)%20%E8%A1%8C%E4%B8%9A%E5%9C%B0%E4%BD%8D) As a high-tech enterprise, the company has become a leading domestic and internationally renowned R&D enterprise in in vitro diagnostic reagents and vaccines, establishing leadership in infectious disease diagnostics and breaking international monopolies with its innovative HPV vaccines - The company has established a **leading position in infectious disease diagnostics** in the in vitro diagnostics field, with internationally pioneering products such as hepatitis E urine antigen detection technology and hepatitis D chemiluminescence immunoassay reagents[58](index=58&type=chunk) - The company's globally first-launched P85-Ab detection kit significantly changed nasopharyngeal carcinoma screening and early diagnosis pathways, solidifying the company's **leading position in nasopharyngeal carcinoma early screening**[58](index=58&type=chunk) - In the vaccine field, the company, relying on its independently developed E. coli prokaryotic expression virus-like particle vaccine technology system, successfully launched the **world's first hepatitis E vaccine** and **China's first bivalent and nine-valent HPV vaccines**, breaking international monopolies[60](index=60&type=chunk) - The company's bivalent HPV vaccine has passed WHO-PQ certification and gained market access in **23 overseas countries**; the nine-valent HPV vaccine was approved for market launch, becoming the **first domestic and second global product**[60](index=60&type=chunk) [II. Discussion and Analysis of Operations](index=21&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) Management discusses the reporting period's operations, emphasizing quality and innovation, driving nine-valent HPV vaccine market entry and internationalization, and accelerating IVD domestic substitution [(I) In Vitro Diagnostics Segment](index=21&type=section&id=(%E4%B8%80)%20%E4%BD%93%E5%A4%96%E8%AF%8A%E6%96%AD%E9%A2%86%E5%9F%9F) In the in vitro diagnostics segment, the company prioritizes innovation, building a "raw materials, reagents, and instruments" driven product development chain, launching new high-speed analyzers and diagnostic reagents, and enhancing market competitiveness - The company has built a **"raw materials, reagents, and instruments" triple-driven** product development and production chain in the in vitro diagnostics segment[63](index=63&type=chunk)[64](index=64&type=chunk) - The high-speed chemiluminescence immunoassay analyzer **Wan600** has obtained a medical device registration certificate, with a constant speed of **600 tests per hour**, capable of seamless integration into smart laboratory systems[65](index=65&type=chunk) - During the reporting period, diagnostic reagents for myocardial series (Hs-cTnI II), thrombosis series (D-Dimer, FDP), liver fibrosis series (CHI3L1), and TORCH series obtained medical device registration certificates[65](index=65&type=chunk) - The company improved operational efficiency through lean management, conducting nearly **40 lean training sessions** covering over **800 person-times** and implementing **18 cross-departmental lean improvement projects** during the reporting period[69](index=69&type=chunk) [(II) Vaccine Segment](index=25&type=section&id=(%E4%BA%8C)%20%E7%96%AB%E8%8B%97%E9%A2%86%E5%9F%9F) In the vaccine segment, the company focuses on the nine-valent HPV vaccine, which received market approval and began male clinical trials, while advancing other high-value vaccine pipelines, expanding market access internationally, and deepening lean and quality management - The nine-valent HPV vaccine received market approval and initiated male Phase III clinical trials[76](index=76&type=chunk) - The 20-valent pneumococcal conjugate vaccine Phase III clinical trials are progressing as planned, and the lyophilized attenuated varicella vaccine Phase III clinical study has completed its primary endpoint and is preparing for market application[76](index=76&type=chunk) - The bivalent HPV vaccine has gained market access in **23 countries and regions**, including Nepal and Pakistan, and has been included in the immunization programs of **8 countries**[77](index=77&type=chunk)[78](index=78&type=chunk) - The hepatitis E vaccine was officially approved for market launch in India on February 28, 2025, and received its **first batch of procurement orders in June 2025**[79](index=79&type=chunk) - The company actively participates in national key R&D programs, such as "New Strategies for Clinical Cure of Chronic Hepatitis B and Key Diagnostic Technology Development", and screening projects in high-incidence areas of nasopharyngeal carcinoma[89](index=89&type=chunk) [III. Analysis of Core Competitiveness During the Reporting Period](index=30&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness stems from innovation, product excellence, brand strength, marketing prowess, stringent quality control, and a robust talent strategy [(I) Innovation Advantage](index=30&type=section&id=(%E4%B8%80)%20%E5%88%9B%E6%96%B0%E4%BC%98%E5%8A%BF) The company's innovation advantage lies in its continuous investment in raw material R&D and multi-technology platform construction, achieving breakthroughs in AIDS, tuberculosis, thyroid function diagnostics, and vaccine development, leveraging proprietary technology and AI integration - The company continuously improves prokaryotic/eukaryotic expression, various animal antibody, and raw material application platforms, achieving stable supply of core raw materials for AIDS, syphilis, hepatitis C, hepatitis B, tuberculosis, etc., with over **40 raw material projects under development**[94](index=94&type=chunk) - In the in vitro diagnostics field, the company globally pioneered AIDS urine diagnostic reagents, WHO-certified high-throughput tuberculosis diagnostic reagents, and TRAb conformational antigen technology developed jointly with Xiamen University[96](index=96&type=chunk) - In the vaccine field, the company has established a front-end evaluation and design platform covering the entire R&D cycle of candidate molecule screening, as well as a cluster of mainstream and cutting-edge R&D platforms for virus-like particle assembly, eukaryotic cell expression, attenuated/inactivated vaccines, polysaccharide conjugate vaccines, and mRNA vaccines[97](index=97&type=chunk)[98](index=98&type=chunk) [(II) Product Advantage](index=32&type=section&id=(%E4%BA%8C)%20%E4%BA%A7%E5%93%81%E4%BC%98%E5%8A%BF) The company boasts significant product advantages, including a full range of TORCH series chemiluminescence products, the globally pioneering EB virus P85-Ab serum biomarker, and new high-sensitivity cardiac troponin I products, alongside the newly launched Wan600 and WanBC2800 analyzers, and a robust vaccine pipeline featuring China's first bivalent and nine-valent HPV vaccines - In the in vitro diagnostics field, the TORCH series chemiluminescence products are fully launched, and the globally pioneering EB virus BNLF2b antibody detection reagent (P85-Ab) serum biomarker has been included in the expert consensus for clinical application of nasopharyngeal carcinoma biomarkers[100](index=100&type=chunk) - The newly launched **Wan600** fully automatic chemiluminescence immunoassay analyzer achieves a stable output of **600 tests/hour**, and the **WanBC2800** fully automatic biochemical analyzer single module can reach a throughput of **2000+900 tests/hour**[100](index=100&type=chunk) - In the vaccine field, China's first bivalent HPV vaccine "Xinkening®" has gained market access in **23 countries**, and the nine-valent HPV vaccine has been successfully launched, making the company the **first domestic and second global producer**[101](index=101&type=chunk) - The lyophilized attenuated varicella vaccine (VZV-7D) has been upgraded from traditional varicella vaccines and is expected to be applied to immunocompromised populations, with Phase III clinical trials already initiated[102](index=102&type=chunk) [(III) Brand Advantage](index=33&type=section&id=(%E4%B8%89)%20%E5%93%81%E7%89%8C%E4%BC%98%E5%8A%BF) With over thirty years of development, the company has established a strong brand through innovative R&D, industry-academia collaboration, and resource integration, enhancing its influence via product promotion, a "prevention+diagnosis+service" model, and active participation in global health initiatives - The company's independently developed HIV urine antibody detection kit (colloidal gold method) passed WHO pre-qualification, becoming the **world's first HIV antibody urine self-test product** to receive this certification[105](index=105&type=chunk) - The bivalent HPV vaccine Xinkening® was selected as one of the "Top Ten Advances in China's Pharmaceutical Biotechnology", and the nine-valent HPV vaccine Xinkening®9 was approved for market launch, breaking the monopoly of foreign products[105](index=105&type=chunk)[108](index=108&type=chunk) - The company actively participates in global cervical cancer elimination efforts, delivering approximately **2.13 million doses of HPV vaccine to Angola** and collaborating with the Nepalese Ministry of Health to provide HPV immunization protection for **1.6 million eligible girls**[106](index=106&type=chunk)[107](index=107&type=chunk) - The globally pioneering nasopharyngeal carcinoma P85 antibody detection kit received the **National Science and Technology Progress Second Prize** and was selected as one of the Top Ten Advances in China's Pharmaceutical Biotechnology in 2024[108](index=108&type=chunk) [(IV) Marketing Advantage](index=34&type=section&id=(%E5%9B%9B)%20%E8%90%A5%E9%94%80%E4%BC%98%E5%8A%BF) With over 30 years of experience, the company has built a robust marketing network covering most of China and over 80 overseas countries, optimizing distribution, leveraging data analytics for precise decisions, and expanding market penetration for its bivalent and nine-valent HPV vaccines globally - The company has a marketing channel network in the in vitro diagnostics field covering most provinces and cities nationwide and over **80 countries and regions overseas**[109](index=109&type=chunk) - The company's Wind ESG rating improved from BBB to **AA (second in the Biotechnology III industry)**, and its Huazheng ESG rating improved from BB to **AA**[110](index=110&type=chunk) - The bivalent HPV vaccine has successfully entered bidding and supplementary bidding procedures in all provinces, autonomous regions, and municipalities nationwide, achieving full coverage in **31 provinces**[111](index=111&type=chunk) - After passing WHO PQ certification, the bivalent HPV vaccine has gained market access in **23 countries**, with registration applications underway in **7 additional countries**[112](index=112&type=chunk) [(V) Quality Advantage](index=35&type=section&id=(%E4%BA%94)%20%E8%B4%A8%E9%87%8F%E4%BC%98%E5%8A%BF) The company maintains a stringent, continuously improving quality management system across R&D, production, and market launch, integrating international best practices, lean methodologies, and smart manufacturing to ensure compliance and data-driven quality decisions - The company continuously improves its full-process quality management system from R&D, production to product launch, and introduces international advanced concepts and methods to deepen its quality culture[113](index=113&type=chunk) - The company's quality system successfully passed multiple international official audits by WHO, Congo (DRC), Kazakhstan, etc[84](index=84&type=chunk) - During the reporting period, the company successfully completed the market authorization for the nine-valent HPV vaccine, obtaining the drug registration certificate and the GMP compliance inspection notice[85](index=85&type=chunk) [(VI) Talent Advantage](index=35&type=section&id=(%E5%85%AD)%20%E4%BA%BA%E6%89%8D%E4%BC%98%E5%8A%BF) The company views talent as a core asset, implementing a full-cycle "attract, cultivate, utilize, retain" management strategy to build high-performing teams, fostering R&D and marketing professionals through academic partnerships and diverse career development paths - The company widely recruits talent through multiple channels, attracting fresh graduates and PhDs from renowned universities such as Zhejiang University, Sichuan University, and Xiamen University to join its R&D team[73](index=73&type=chunk) - The company focuses on building a professional marketing team and establishes diversified career development paths through cross-departmental rotations, cultivating versatile talents[73](index=73&type=chunk) - The company co-established the National Engineering Research Center for Infectious Disease Diagnostic Reagents and Vaccines with Xiamen University, promoting industry-academia collaborative innovation and high-end talent cultivation[114](index=114&type=chunk) [IV. Main Operating Conditions During the Reporting Period](index=36&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) In H1 2025, the company reported operating revenue of **844 million yuan**, a **38.25% year-on-year decrease**, and a net loss of **144 million yuan**, primarily due to lower-than-expected vaccine sales [(I) Analysis of Main Business](index=36&type=section&id=(%E4%B8%80)%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, the company's operating revenue decreased by **38.25% to 844 million yuan**, mainly due to lower-than-expected vaccine sales, with R&D expenses also declining by **42.39%** and net cash flow from operating activities decreasing by **151.77%** 2025 H1 Major Financial Statement Item Changes | Item | Current Period Amount (Yuan) | Prior Year Period Amount (Yuan) | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 843,561,860.09 | 1,366,045,101.74 | -38.25 | | Operating Cost | 334,452,600.67 | 416,843,030.57 | -19.77 | | Selling Expenses | 217,080,093.66 | 264,672,680.05 | -17.98 | | Administrative Expenses | 192,690,508.21 | 153,840,741.76 | 25.25 | | Financial Expenses | -11,025,688.19 | -37,407,283.12 | Not applicable | | R&D Expenses | 276,466,361.42 | 479,931,276.60 | -42.39 | | Net Cash Flow from Operating Activities | -66,553,405.56 | 128,547,517.42 | -151.77 | | Net Cash Flow from Investing Activities | -499,358,952.29 | -440,394,112.81 | Not applicable | | Net Cash Flow from Financing Activities | -46,782,572.16 | -489,357,417.34 | Not applicable | - Operating revenue decline primarily due to the vaccine segment being affected by market adjustments, government centralized procurement, and the expanded age range for the nine-valent HPV vaccine, leading to lower-than-expected sales[117](index=117&type=chunk) - R&D expenses decreased mainly due to reduced R&D expenses related to the transfer of production for the nine-valent HPV vaccine[118](index=118&type=chunk) - Net cash flow from operating activities decreased mainly due to reduced cash received from product sales[118](index=118&type=chunk) [(III) Analysis of Assets and Liabilities](index=36&type=section&id=(%E4%B8%89)%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, total assets decreased by **3.06% to 14.24 billion yuan**, and net assets attributable to shareholders decreased by **1.17% to 12.12 billion yuan**, with significant increases in prepayments and other receivables, and a decrease in development expenditures due to capitalization 2025 H1 Asset and Liability Status Changes | Item | Amount at End of Current Reporting Period (Yuan) | Amount at End of Prior Year (Yuan) | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Monetary Funds | 1,781,206,799.02 | 2,387,852,812.94 | -25.41 | | Trading Financial Assets | 2,067,138,504.90 | 2,510,052,256.14 | -17.65 | | Prepayments | 27,681,701.66 | 13,182,655.91 | 109.99 | | Other Receivables | 65,677,004.84 | 13,366,972.40 | 391.34 | | Non-Current Assets Due Within One Year | 1,160,000,000.00 | 480,000,000.00 | 141.67 | | Intangible Assets | 819,946,906.13 | 512,463,495.36 | 60.00 | | Development Expenditures | 16,712,601.32 | 200,400,327.54 | -91.66 | | Taxes Payable | 15,687,636.06 | 23,504,473.32 | -33.26 | | Other Current Liabilities | 2,772,570.12 | 847,377.79 | 227.19 | - Prepayments increased mainly due to increased prepayments for raw and auxiliary materials procurement[121](index=121&type=chunk) - Development expenditures decreased mainly due to capitalization of expenditures into intangible assets[123](index=123&type=chunk) Restricted Assets at Period End | Item | Book Value at Period End (Yuan) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 15,346,843.88 | Letter of guarantee deposits, letter of credit deposits | | Fixed Assets | 42,238,797.28 | Due to loan collateral and maximum amount mortgage contracts | | Intangible Assets | 62,093,076.34 | Due to loan collateral and maximum amount mortgage contracts | | Total | 119,678,717.50 | / | [(IV) Analysis of Investment Status](index=38&type=section&id=(%E5%9B%9B)%20%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company had no significant equity investments during the reporting period, but non-equity investment projects, including the nine-valent HPV vaccine second-phase expansion and diagnostic base construction, progressed as planned with cumulative investments totaling **2.16 billion yuan**, while financial assets measured at fair value amounted to **2.10 billion yuan** 2025 H1 Major Non-Equity Investment Projects | Project Name | Total Project Amount (10,000 Yuan) | Actual Investment Amount in Reporting Period (10,000 Yuan) | Cumulative Actual Investment Amount (10,000 Yuan) | Source of Funds | Project Progress | | :--- | :--- | :--- | :--- | :--- | :--- | | Nine-valent HPV Vaccine Phase II Expansion Project | 124,918.85 | 4,571.35 | 63,316.92 | Own funds, raised funds | Progressing as planned | | 20-valent Pneumococcal Conjugate Vaccine Industrialization Project | 157,762.66 | 4,200.31 | 42,609.56 | Own funds, raised funds | Progressing as planned | | Yangshengtang Xiamen Wantai Diagnostic Base Construction Project | 131,620.55 | 10,494.98 | 70,863.98 | Own funds, raised funds | Progressing as planned | | Hangzhou Vaccine Base Construction | 52,787.00 | 758.60 | 38,858.04 | Own funds | Progressing as planned | | Total | 467,089.06 | 20,025.24 | 215,648.50 | / | / | 2025 H1 Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (Yuan) | Fair Value Change Gains/Losses in Current Period (Yuan) | Purchase Amount in Current Period (Yuan) | Sale/Redemption Amount in Current Period (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Funds | 71,806,665.70 | 779,286.96 | 50,000,000.00 | 51,494,120.09 | 71,091,832.57 | | Equity Instrument Investments | 11,295,433.26 | - | - | - | 11,295,433.26 | | Bank-issued Wealth Management Products | 2,438,245,590.44 | 16,811,986.82 | 4,096,500,000.00 | 4,555,510,904.93 | 1,996,046,672.33 | | Accounts Receivable Financing | 18,997,056.30 | - | 145,639,446.70 | 145,201,430.26 | 19,435,072.74 | | Total | 2,540,344,745.70 | 17,591,273.78 | 4,292,139,446.70 | 4,752,206,455.28 | 2,097,869,010.90 | [(VI) Analysis of Major Holding and Participating Companies](index=40&type=section&id=(%E5%85%AD)%20%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section lists the financial status of the company's major holding subsidiaries, noting that Xiamen Wantai Canghai Bio-pharmaceutical Technology Co., Ltd. and Hangzhou Wantai Bio-pharmaceutical Technology Co., Ltd. incurred losses, negatively impacting the company's overall net profit, while other diagnostic subsidiaries remained profitable 2025 H1 Financial Performance of Major Holding Subsidiaries | Company Name | Main Business | Registered Capital (Yuan) | Total Assets (Yuan) | Net Assets (Yuan) | Operating Revenue (Yuan) | Operating Profit (Yuan) | Net Profit (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Wantai Derui Diagnostic Technology Co., Ltd. | R&D, production, and sales of diagnostic reagents | 20,000,000.00 | 119,826,679.72 | 109,631,929.97 | 27,530,024.29 | 1,812,544.45 | 2,132,905.98 | | Beijing Kangchesitan Biotechnology Co., Ltd. | R&D, production, and sales of diagnostic reagents | 10,000,000.00 | 267,018,522.34 | 255,254,905.48 | 58,284,522.35 | 38,111,230.46 | 33,106,105.50 | | Xiamen Wantai Canghai Bio-pharmaceutical Technology Co., Ltd. | R&D, production, and sales of vaccines | 1,200,000,000.00 | 6,807,608,091.78 | 5,823,600,258.26 | 172,973,364.12 | -134,039,529.88 | -111,011,228.61 | | Xiamen Wantai Kairui Biotechnology Co., Ltd. | R&D, production, and sales of diagnostic reagents | 500,000,000.00 | 1,511,111,115.79 | 1,063,027,999.58 | 307,759,974.75 | 54,916,677.38 | 54,538,216.41 | | Hangzhou Wantai Biotechnology Co., Ltd. | R&D, production, and sales of vaccines | 10,000,000.00 | 185,213,746.91 | -271,058,793.48 | - | -13,970,143.52 | -13,970,143.52 | - Xiamen Wantai Canghai Bio-pharmaceutical Technology Co., Ltd. and Hangzhou Wantai Bio-pharmaceutical Technology Co., Ltd. both incurred losses during the reporting period, negatively impacting the company's overall net profit[131](index=131&type=chunk) [V. Other Disclosure Matters](index=41&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) This section details the company's potential policy, competition, R&D, talent, and financial risks, along with mitigation strategies, and outlines its "Quality Improvement, Efficiency Enhancement, and High Returns" action plan [(I) Potential Risks](index=41&type=section&id=(%E4%B8%80)%20%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces policy risks from evolving regulations, intense competition in IVD and vaccine markets, R&D risks due to long cycles and low success rates, talent competition, and financial risks from unrecoverable R&D investments and accounts receivable - Policy risks: Intensive release of pharmaceutical industry policies, continuous improvement of regulations, and strengthened supervision to combat illegal activities[133](index=133&type=chunk)[134](index=134&type=chunk) - Competition risks: Intensified competition in the in vitro diagnostics and vaccine industries, product homogenization, price wars, and international competition[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - R&D risks: Long development cycles, high technical difficulty, low success rates for vaccines, pathogen mutation, regulatory policy adjustments, and lower-than-expected commercialization[139](index=139&type=chunk) - Financial risks: Asset loss risk due to unrecoverable R&D investments, accounts receivable risk, and impairment risk of inventory and fixed assets[144](index=144&type=chunk)[145](index=145&type=chunk) [(II) Other Disclosure Matters](index=45&type=section&id=(%E4%BA%8C)%20%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company actively implements its "Quality Improvement, Efficiency Enhancement, and High Returns" action plan through share buybacks and cash dividends, totaling **1.51 billion yuan** from 2022-2024, while enhancing investor relations, establishing a market value management system, and improving its ESG ratings to AA - The company completed two share buybacks in December 2022 and September 2024, with **3,084,225 shares** repurchased and cancelled in September 2024[146](index=146&type=chunk) - From 2022 to 2024, the company's cumulative cash dividends and share buybacks totaled **1.51 billion yuan**, accounting for **74.43%** of the average net profit over these three years[148](index=148&type=chunk) - The company strengthens investor relations management through diversified channels such as information disclosure, performance briefings, shareholder meetings, and the SSE E-interaction platform[149](index=149&type=chunk) - The company formulated and approved the "Market Value Management System" to strengthen market value management efforts[150](index=150&type=chunk) - The company adjusted its "Board Strategy Committee" to the "Board Strategy and Sustainable Development Committee" and released its first ESG report, with Wind ESG and Huazheng ESG ratings both improving to **AA**[151](index=151&type=chunk)[152](index=152&type=chunk) Section IV Corporate Governance, Environment, and Society [I. Changes in Directors, Supervisors, and Senior Management](index=48&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, there were changes in the company's directors and senior management, with independent director Mr. Zhao Zhigang resigning and Mr. Wang Yutao taking over, and Mr. Pan Huirong being appointed as Vice General Manager - Independent director Mr. Zhao Zhigang resigned, and Mr. Wang Yutao was elected as an independent director of the company's Sixth Board of Directors[154](index=154&type=chunk)[155](index=155&type=chunk) - Mr. Pan Huirong was appointed as the company's Vice General Manager[155](index=155&type=chunk) [II. Profit Distribution or Capital Reserve to Share Capital Plan](index=48&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company's board of directors resolved that there would be no profit distribution or capital reserve to share capital plan for this semi-annual period - There is no profit distribution plan or capital reserve to share capital plan for this reporting period[156](index=156&type=chunk) Section V Significant Matters [I. Fulfillment of Commitments](index=50&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company's controlling shareholder, actual controller, directors, supervisors, and senior management all timely and strictly fulfilled their commitments during the reporting period, including avoiding horizontal competition, shareholding intentions, and measures to mitigate dilution of immediate returns - Controlling shareholder Yangshengtang and actual controller Zhong Shanshan have issued a "Commitment Letter to Avoid Horizontal Competition", pledging not to engage in business activities that compete with the company's main business[162](index=162&type=chunk) - Shareholders holding **over 5%** of shares, Yangshengtang and Zhong Shanshan, committed that any share reductions would comply with laws and regulations, with prices not lower than the initial public offering price, and would be announced in advance[164](index=164&type=chunk)[165](index=165&type=chunk) - The company's controlling shareholder, actual controller, directors, and senior management committed not to overstep their authority in intervening in company operations, not to infringe upon company interests, and to restrain job-related consumption, ensuring the effective implementation of measures to mitigate dilution of immediate returns[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[171](index=171&type=chunk) [IX. Explanation of the Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the Reporting Period](index=55&type=section&id=%E4%B9%9D%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, the company, its controlling shareholder, and actual controller maintained a good integrity record, with no unfulfilled court judgments or significant overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller had no unfulfilled court judgments or significant overdue debts, maintaining a good integrity status[173](index=173&type=chunk) [XI. Significant Contracts and Their Fulfillment](index=56&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E5%90%88%E5%90%8C%E5%8F%8A%E5%85%B6%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company had no significant litigation or arbitration matters, with external guarantees primarily for subsidiaries totaling **85.19 million yuan**, and the board approved a **2.24 billion yuan** guarantee limit for subsidiaries - The company had no significant litigation or arbitration matters during the reporting period[173](index=173&type=chunk) Total Company Guarantees at Period End | Indicator | Amount (10,000 Yuan) | | :--- | :--- | | Total guarantees to subsidiaries at period end (B) | 8,519.16 | | Total guarantees (A+B) | 8,519.16 | | Ratio of total guarantees to company's net assets (%) | 0.69 | - The company has approved a resolution to provide a guarantee limit of up to **RMB 2.24 billion** for its subsidiaries in 2025[178](index=178&type=chunk) [XII. Explanation of Progress in the Use of Raised Funds](index=58&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E8%BF%9B%E5%B1%95%E8%AF%B4%E6%98%8E) As of the end of the reporting period, the company had cumulatively invested **2.107 billion yuan**, or **60.90%** of the net raised funds, into projects like the nine-valent HPV vaccine expansion and diagnostic base construction, with the nasal spray vaccine project terminated and remaining funds used for working capital or debt repayment Overall Use of Raised Funds | Source of Raised Funds | Net Raised Funds (1) (10,000 Yuan) | Total Committed Investment of Raised Funds in Prospectus or Offering Memorandum (2) (10,000 Yuan) | Cumulative Raised Funds Invested at End of Reporting Period (4) (10,000 Yuan) | Cumulative Investment Progress of Raised Funds at End of Reporting Period (%) (6) | | :--- | :--- | :--- | :--- | :--- | | Issuance of shares to specific objects | 346,015.57 | 346,015.57 | 210,732.34 | 60.90 | Details of Raised Fund Investment Projects | Project Name | Planned Investment Amount of Raised Funds (1) (10,000 Yuan) | Cumulative Raised Funds Invested at End of Reporting Period (2) (10,000 Yuan) | Cumulative Investment Progress at End of Reporting Period (%) (3) | Date Project Reached Intended Usable State | | :--- | :--- | :--- | :--- | :--- | | Nine-valent HPV Vaccine Phase II Expansion Project | 106,015.57 | 62,415.04 | 58.87 | 2025 | | 20-valent Pneumococcal Conjugate Vaccine Industrialization Project | 70,000.00 | 25,861.29 | 36.94 | 2027 | | Yangshengtang Xiamen Wantai Diagnostic Base Construction Project | 110,000.00 | 62,456.01 | 56.78 | 2025 | | Nasal Spray Vaccine Industrial Base Construction Project | 60,000.00 | - | Terminated | Terminated | - The completion date for the Yangshengtang Xiamen Wantai Diagnostic Base Construction Project has been extended from December 2024 to **December 2025**[181](index=181&type=chunk) - The nasal spray vaccine industrial base construction project has been terminated, and the remaining raised funds of **538 million yuan**, along with accrued interest and income, have been fully used to permanently supplement working capital or repay borrowings[183](index=183&type=chunk) Cash Management of Idle Raised Funds | Board of Directors Review Date | Effective Approved Amount for Cash Management (100 million Yuan) | Cash Management Balance at End of Reporting Period (100 million Yuan) | | :--- | :--- | :--- | | January 14, 2025 | 15.00 | 12.79 | Section VI Changes in Share Capital and Shareholder Information [I. Changes in Share Capital](index=62&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[189](index=189&type=chunk) [II. Shareholder Information](index=62&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had **38,385** common shareholders, with Yangshengtang Co., Ltd. and Zhong Shanshan holding **55.79%** and **17.70%** respectively as the controlling shareholder and actual controller, while some individual shareholders reduced their holdings - As of the end of the reporting period, the total number of common shareholders was **38,385**[190](index=190&type=chunk) Top Ten Shareholders' Shareholding at Period End | Shareholder Name | Number of Shares Held at Period End (Shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Yangshengtang Co., Ltd. | 705,807,928 | 55.79 | Domestic Non-State-Owned Legal Person | | Zhong Shanshan | 223,951,071 | 17.70 | Domestic Natural Person | | Qiu Zixin | 44,846,760 | 3.54 | Domestic Natural Person | | Hong Kong Securities Clearing Company Limited | 22,754,423 | 1.80 | Other | | Hong Weigang | 15,625,716 | 1.24 | Domestic Natural Person | | Ding Jinglin | 10,341,678 | 0.82 | Domestic Natural Person | | Li Shayan | 9,119,563 | 0.72 | Domestic Natural Person | | Li Xia | 8,100,000 | 0.64 | Domestic Natural Person | | Industrial and Commercial Bank of China Co., Ltd. - Huatai-PineBridge CSI 300 ETF | 6,724,396 | 0.53 | Other | | China Construction Bank Co., Ltd. - E Fund CSI 300 Pharmaceutical and Healthcare ETF | 6,222,982 | 0.49 | Other | - Zhong Shanshan directly holds **98.38%** of Yangshengtang's equity, making him the controlling shareholder and actual controller of Yangshengtang[192](index=192&type=chunk) [III. Information on Directors, Supervisors, and Senior Management](index=63&type=section&id=%E4%B8%89%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) During the reporting period, there were changes in the shareholdings of some senior management, with Vice General Managers Ye Xiangzhong and Zhao Lingzhi reducing their company shares by **99,300** and **400,000** respectively Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Beginning of Period (Shares) | Shares Held at End of Period (Shares) | Change in Shares During Reporting Period (Shares) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Ye Xiangzhong | Vice General Manager | 462,079 | 362,779 | -99,300 | Share reduction | | Zhao Lingzhi | Vice General Manager | 1,695,308 | 1,295,308 | -400,000 | Share reduction | Section VII Bond-Related Information [I. Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=64&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments - The company has no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[196](index=196&type=chunk) [II. Convertible Corporate Bonds](index=64&type=section&id=%E4%BA%8C%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E5%86%B5) During the reporting period, the company had no convertible corporate bonds - The company has no convertible corporate bonds[196](index=196&type=chunk) Section VIII Financial Report [I. Audit Report](index=65&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This semi-annual report has not been audited - This semi-annual report has not been audited[5](index=5&type=chunk) [II. Financial Statements](index=65&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's consolidated and parent company financial statements for H1 2025, including the balance sheet, income statement, cash flow statement, and statement of changes in owners' equity, reflecting a net loss and negative operating cash flow Consolidated Balance Sheet (June 30, 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 14,240,506,057.02 | | Total Liabilities | 1,938,038,421.03 | | Total Owners' Equity Attributable to Parent Company | 12,118,763,891.64 | | Minority Interests | 183,703,744.35 | | Total Owners' Equity | 12,302,467,635.99 | Consolidated Income Statement (January-June 2025) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 843,561,860.09 | | Total Operating Costs | 1,020,748,464.07 | | Total Profit | -145,682,857.91 | | Net Profit | -145,492,229.78 | | Net Profit Attributable to Parent Company Shareholders | -144,038,127.02 | | Basic Earnings Per Share (Yuan/share) | -0.11 | Consolidated Cash Flow Statement (January-June 2025) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -66,553,405.56 | | Net Cash Flow from Investing Activities | -499,358,952.29 | | Net Cash Flow from Financing Activities | -46,782,572.16 | | Net Increase in Cash and Cash Equivalents | -613,586,671.36 | [III. Company Basic Information](index=85&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section outlines the company's history, share capital changes, and main business, established in 1991 and listed in 2020, focusing on R&D, production, and sales of in vitro diagnostic reagents, instruments, and vaccines - The company was established in 1991 and first publicly offered A-shares on the Shanghai Stock Exchange in April 2020[228](index=228&type=chunk) - As of June 30, 2025, the company's registered capital was **RMB 1,265,122,774**[231](index=231&type=chunk) - The company's main business is the R&D, production, and sales of in vitro diagnostic reagents, in vitro diagnostic instruments, and vaccines[234](index=234&type=chunk) [IV. Basis of Preparation of Financial Statements](index=86&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The company's financial statements are prepared on a going concern basis, adhering to enterprise accounting standards and relevant disclosure rules, with no identified issues affecting its ability to continue as a going concern for the next 12 months - The company's financial statements are prepared on a going concern basis, adhering to enterprise accounting standards[235](index=235&type=chunk) - The company has assessed its ability to continue as a going concern for the 12 months from the end of the reporting period and found no matters affecting this ability[236](index=236&type=chunk) [V. Significant Accounting Policies and Accounting Estimates](index=86&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the company's significant accounting policies and estimates for financial statement preparation, covering areas like business combinations, financial instruments, revenue recognition, and R&D capitalization, ensuring accurate and complete financial reporting - At initial recognition, the company classifies financial assets as measured at amortized cost, fair value through profit or loss, or fair value through other comprehensive income, based on the business model for managing financial assets and their contractual cash flow characteristics[283](index=283&type=chunk) - The company recognizes loss provisions for financial assets measured at amortized cost and debt investments measured at fair value through other comprehensive income, based on expected credit losses[296](index=296&type=chunk) - The company recognizes revenue when it has satisfied its performance obligations in the contract, i.e., when the customer obtains control of the relevant goods[408](index=408&type=chunk) - All directly attributable R&D expenditures for drug development entering Phase III clinical trial stage are capitalized[376](index=376&type=chunk) [VI. Taxation](index=131&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) This section discloses the company's main tax categories and rates, with most entities, including the parent company, qualifying as high-tech enterprises and applying a **15%** corporate income tax rate, while others apply **25%** or a preferential **20%** rate for small low-profit enterprises Main Tax Categories and Rates | Tax Category | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Value added of taxable products/services | 13%, 6%, 5%, 3%, 0% | | Urban Maintenance and Construction Tax | Based on actual turnover tax paid | 5%, 7% | | Education Surcharge | Based on actual turnover tax paid | 3% | | Local Education Surcharge | Based on actual turnover tax paid | 2% | | Corporate Income Tax | Taxable income | 15% | - Beijing Wantai Biological Pharmacy Enterprise Co., Ltd. and several subsidiaries, as national high-tech enterprises, are subject to a **15%** corporate income tax rate[457](index=457&type=chunk) - Beijing Wantai Biological Pharmacy Co., Ltd. qualifies for preferential corporate income tax policies for small low-profit enterprises, paying corporate income tax at a **20%** rate on **25%** of its taxable income[457](index=457&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=132&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed notes for each item in the consolidated financial statements, explaining the composition and changes in assets, liabilities, equity, revenue, expenses, and cash flows Composition of Monetary Funds (June 30, 2025) | Item | Ending Balance (Yuan) | | :--- | :--- | | Bank Deposits | 1,765,859,955.14 | | Other Monetary Funds | 15,346,843.88 | | Total | 1,781,206,799.02 | - Other monetary funds include **7,596,843.88 yuan** for letter of guarantee deposits and **7,750,000.00 yuan** for letter of credit deposits, which have restrictions on use[459](index=459&type=chunk) Inventory Classification (June 30, 2025) | Item | Book Value (Yuan) | | :--- | :--- | | Raw Materials | 196,279,401.07 | | Goods in Transit | 365,064.08 | | Inventory Goods | 464,130,783.56 | | Revolving Materials | 100,724,107.12 | | Contract Performance Costs | 12,892,017.63 | | Consigned Processing Materials | 667,283.04 | | Semi-finished Products | 171,936,924.88 | | Total | 946,995,581.38 | - The internal R&D amount for the nine-valent HPV vaccine is **321,650,437.89 yuan**, accounting for **32.23%** of the intangible assets balance[531](index=531&type=chunk) Operating Revenue and Operating Costs (January-June 2025) | Item | Revenue (Yuan) | Cost (Yuan) | | :--- | :--- | :--- | | Main Business | 827,683,909.35 | 326,926,233.54 | | Other Businesses | 15,877,950.74 | 7,526,367.13 | | Total | 843,561,860.09 | 334,452,600.67 | Composition of R&D Expenses (January-June 2025) | Item | Amount Incurred in Current Period (Yuan) | | :--- | :--- | | Employee Compensation | 127,110,859.35 | | Material Consumption | 57,997,782.37 | | Entrusted Development Expenses | 20,895,182.47 | | Testing and Laboratory Processing Fees | 8,496,801.00 | | Depreciation and Amortization | 34,216,098.44 | | Expert Consulting Fees | 12,060,659.59 | | Fuel and Power Costs | 8,038,720.22 | | Office Expenses | 6,230,054.21 | | Lease Fees | 47,606.10 | | Maintenance and Repair Fees | 1,372,597.67 | | Total | 276,466,361.42 | [VIII. R&D Expenditures](index=186&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) This section details the company's R&D expenditures, totaling **414 million yuan** for the reporting period, with **276 million yuan** expensed and **138 million yuan** capitalized R&D Expenditures by Nature of Expense (January-June 2025) | Item | Amount Incurred in Current Period (Yuan) | | :--- | :--- | | Employee Compensation | 130,349,658.95 | | Material Consumption | 160,366,366.84 | | Entrusted Development Expenses | 18,895,182.47 | | Testing and Laboratory Processing Fees | 12,988,133.93 | | Depreciation and Amortization | 34,411,051.51 | | Expert Consulting Fees | 46,040,224.51 | | Fuel and Power Costs | 8,223,123.31 | | Office Expenses | 1,459,128.25 | | Lease Fees | 323,573.87 | | Maintenance and Repair Fees | 1,372,629.45 | | Total | 414,429,073.09 | | Of which: Expensed R&D Expenditures | 276,466,361.42 | | Capitalized R&D Expenditures | 137,962,711.67 | Development Expenditures for Capitalized R&D Projects (June 30, 2025) | Project | Beginning Balance (Yuan) | Increase in Current Period (Internal Development Expenditures) (Yuan) | Recognized as Intangible Assets (Yuan) | Ending Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Nine-valent HPV Vaccine Phase III Clinical Trials | 198,783,349.40 | 122,867,088.49 | 321,650,437.89 | - | | Nine-valent HPV Vaccine Male Clinical Trials | 1,616,978.14 | 13,493,375.68 | - | 15,110,353.82 | | Lyophilized Attenuated Varicella Vaccine Phase III Clinical Trials | - | 1,602,247.50 | - | 1,602,247.50 | - All directly attributable R&D expenditures for drug development entering Phase III clinical trial stage are capitalized[376](index=376&type=chunk) [IX. Changes in Consolidation Scope](index=187&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) During the reporting period, the company experienced no changes in its consolidation scope due to non-same control business combinations, same control business combinations, reverse acquisitions, or loss of control over subsidiaries - During the reporting period, the company experienced no non-same control business combinations, same control business combinations, reverse acquisitions, or disposals of subsidiaries leading to loss of control[631](index=631&type=chunk)[632](index=632&type=chunk) [X. Interests in Other Entities](index=188&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section outlines the company's enterprise group structure, comprising various wholly-owned and controlled subsidiaries in diagnostics, vaccines, and technology incubation, over which the company exercises control with varying equity percentages Composition of the Enterprise Group | Subsidiary Name | Main Operating Location | Registered Capital (10,000 Yuan) | Business Nature | Shareholding Ratio (%) (Direct) | | :--- | :--- | :--- | :--- | :--- | | Beijing Wantai Derui Diagnostic Technology Co., Ltd. | Beijing | 2,000.00 | R&D, production, and sales of diagnostic reagents | 100.00 | | Xiamen Youmaike Medical Instrument Co., Ltd. | Xiamen, Fujian | 8,000.00 | R&D, production, and sales of diagnostic instruments | 63.50 | | Xiamen Wantai Canghai Bio-pharmaceutical Technology Co., Ltd. | Xiamen, Fujian | 120,000.00 | R&D, production, and sales of vaccines | 100.00 | | Beijing Tairun Innovation Technology Incubator Co., Ltd. | Beijing | 5,000.00 | Technology enterprise incubation, technology development | 60.00 | | Xiamen Yingbomai Biotechnology Co., Ltd. | Xiamen, Fujian | 2,500.00 | Sales of active raw materials | 60.00 | - The company holds control over all listed subsidiaries, with shareholding percentages ranging from **60% to 100%**[633](index=633&type=chunk) [XI. Government Grants](index=190&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) This section discloses the company's government grants, with deferred income related to income totaling **18.30 million yuan** and asset-related grants totaling **41.91 million yuan** at period-end, and **55.99 million yuan** recognized in current profit or loss Liability Items Involving Government Grants (June 30, 2025) | Financial Statement Item | Beginning Balance (Yuan) | New Grants in Current Period (Yuan) | Transferred to Other Income in Current Period (Yuan) | Ending Balance (Yuan) | Related to Assets/Income | | :--- | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 23,371,620.00 | 790,900.00 | 5,861,663.00 | 18,300,857.00 | Related to income | | Deferred Income | 30,825,048.13 | 14,400,463.60 | 3,317,164.00 | 41,908,347.73 | Related to assets | | Total | 54,196,668.13 | 15,191,363.60 | 9,178,827.00 | 60,209,204.73 | / | Government Grants Recognized in Current Profit or Loss (January-June 2025) | Type | Amount Incurred in Current Period (Yuan) | | :--- | :--- | | Related to income | 52,678,097.92 | | Related to assets | 3,317,164.00 | | Total | 55,995,261.92 | [XII. Risks Related to Financial Instruments](index=191&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) This section analyzes the company's financial instrument risks, including credit risk from various receivables, liquidity risk managed by monitoring cash flows, and market risks such as foreign exchange (USD, EUR, JPY) and interest rate fluctuations, with no current hedging for currency risk - The financial instrument-related risks faced by the company include credit risk, liquidity risk, and market risk[637](index=637&type=chunk) - Credit risk primarily arises from monetary funds, notes receivable, accounts receivable, accounts receivable financing, other receivables, debt investments, and long-term receivables[638](index=638&type=chunk) Maturity of Financial Liabilities (June 30, 2025) | Item | Within 1 Year (Yuan) | 1-2 Years (Yuan) | 2-3 Years (Yuan) | Over 3 Years (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Short-term Borrowings | 120,156,251.84 | - | - | - | | Notes Payable | 28,926,700.83 | - | - | - | | Accounts Payable | 344,873,016.40 | - | - | - | | Other Payables | 968,227,907.20 | - | - | - | | Long-term Borrowings | - | 77,077,803.02 | 11,140,000.00 | - | | Lease Liabilities | 20,885,919.70 | 12,475,951.78 | 30,134,159.82 | - | | Non-current Liabilities Due Within One Year | 61,237,592.20 | - | - | - | | Total | 1,523,421,468.47 | 97,963,722.72 | 23,615,951.78 | 30,134,159.82 | - If the RMB appreciates or depreciates by **10%** against the USD, the company's net profit for the year will increase or decrease by **40.47 million yuan**[650](index=650&type=chunk) - If floating-rate loan interest rates rise or fall by **50 basis points**, the company's net profit for the year will decrease or increase by **0.24 million yuan**[650](index=650&type=chunk) [XIII. Disclosure of Fair Value](index=195&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) This section discloses the fair value of the company's assets and liabilities measured at fair value, totaling **2.10 billion yuan** at period-end, primarily comprising transactional financial assets and accounts receivable financing, with fair value measurements using various input levels Fair Value of Assets and Liabilities Measured at Fair Value at Period End (June 30, 2025) | Item | Level 1 Fair Value Measurement (Yuan) | Level 2 Fair Value Measurement (Yuan) | Level 3 Fair Value Measurement (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 71,091,832.57 | 1,996,046,672.33 | 11,295,433.26 | 2,078,433,938.16 | | Of which: Funds | 71,091,832.57 | - | - | 71,091,832.57 | | Of which: Bank-issued Wealth Management Products | - | 1,996,046,672.33 | - | 1,996,046,672.33 | | Of which: Equity Instrument Investments | - | - | 11,295,433.26 | 11,295,433.26 | | Accounts Receivable Financing | - | - | 19,435,072.74 | 19,435,072.74 | | Total Assets Measured at Fair Value on a Recurring Basis | 71,091,832.57 | 1,996,046,672.33 | 30,730,506.00 | 2,097,869,010.90 | - The carrying amounts of financial assets and liabilities not measured at fair value are very close to their fair values[658](index=658&type=chunk)[659](index=659&type=chunk) [XIV. Related Parties and Related Party Transactions](index=197&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) This section discloses the company's related parties and transactions, with Zhong Shanshan as the ultimate actual controller, detailing purchases and sales of goods/services with various related entities, intercompany loans, and period-end balances of receivables and payables

智通财经APP讯，万泰生物(603392.SH)发布2025年半年度报告，该公司营业收入为8.44亿元，同比减少 38.25%。归属于上市公司股东的净亏损为1.44亿元。归属于上市公司股东的扣除非经常性损益的净亏损 为2.43亿元。基本每股亏损为0.11元。营业收入下降，主要由于公司疫苗板块受市场调整、政府集采及 九价HPV疫苗扩龄等影响，销售不及预期，疫苗板块收入较上年同期回落。 ...

Group 1 - The company WanTai Bio (603392.SH) reported a revenue of 844 million yuan for the first half of 2025, representing a year-on-year decline of 38.25% [1] - The net profit attributable to shareholders of the listed company was a loss of 144 million yuan, indicating a shift from profit to loss compared to the previous year [1] - The decline in revenue is primarily attributed to market competition affecting the sales of the bivalent cervical cancer vaccine, which did not meet expectations [1]

Core Viewpoint - The vaccine industry is currently facing multiple challenges, including weak market demand, declining public vaccination willingness, intensified price competition, and policy adjustments, leading to widespread performance pressure among domestic and international vaccine companies [1][2]. Group 1: Company Performance - Zhifei Biological's mid-year report shows a significant revenue decline, with a net loss of 597 million yuan, a shift from profit to loss year-on-year [1]. - The company has invested over 5.1 billion yuan in R&D over the past five years, with R&D expenditure reaching 635 million yuan in the first half of this year, an increase compared to the previous year [2]. Group 2: Market Dynamics - The competitive landscape is intensifying, particularly among leading companies in popular vaccine categories, with domestic alternatives like Wantai Biological's HPV vaccine priced at 499 yuan, only 40% of the price of Zhifei's previously popular HPV vaccine [1]. - The biopharmaceutical industry is transitioning from a post-pandemic adjustment phase to a structural growth phase, driven by technological breakthroughs, pipeline advancements, and internationalization [2]. Group 3: Innovation and Collaboration - The company is focusing on technological innovation to navigate the current market challenges, with several projects in clinical trials and registration stages, including vaccines for rabies, influenza, and pneumonia [2]. - Zhifei is optimizing its supply chain and collaborating closely with partners like GSK and Merck to adapt to market changes and enhance supply chain resilience [3]. Group 4: Market Outlook - The recent launch of a higher-standard quadrivalent influenza vaccine has begun commercial rollout, with successful entry into multiple provinces, indicating a positive market outlook [3]. - Analysts predict a new wave of data catalysts in China's biopharmaceutical sector, enhancing the global competitiveness of innovative drug products and improving the outlook for innovation-driven companies [3].

Market Overview - Major indices in China opened lower, with the Shanghai Composite Index down 0.28%, Shenzhen Component down 0.61%, and ChiNext down 1.14%, particularly affected by declines in sectors such as computing hardware, CPO, liquid metal, and fiberglass [1] - The Shanghai Composite Index closed at 3716.68, with a decrease of 0.28% and a trading volume of 83.47 billion [2] - The Shenzhen Component Index closed at 11749.99, down 0.61%, with a trading volume of 122.32 billion [2] - The NASDAQ and S&P 500 indices in the US showed mixed results, with the NASDAQ down 1.46% and the S&P 500 down 0.59%, indicating a cautious market ahead of the Federal Reserve Chairman's speech [3] Industry Insights - The embodied robotics cable industry is experiencing rapid growth, with leading manufacturers beginning to recognize the importance of cable mechanical properties and lifespan, suggesting a high market potential and opportunities for domestic cable manufacturers [4] - The Chinese automotive market showed resilience in July, with new energy vehicle penetration rates reaching historical highs, driven by strong end-user demand and the potential reintroduction of replacement subsidies [5] - The vaccine industry is seeing a decline in overall batch approvals, but certain products like rabies and HPV vaccines are experiencing growth, with several new vaccines expected to contribute to revenue in the latter half of 2025 [6] - The solid-state battery industry is advancing, with a focus on solid electrolytes that enhance battery performance metrics; companies with early investments in lithium sulfide and those with cost advantages in oxide electrolytes are recommended for attention [7]

Group 1 - The overall number of vaccine batch approvals in the first half of 2025 is 1,629, representing a year-on-year decrease of 17% [1] - Certain vaccines, such as rabies and HPV vaccines, have seen significant growth in batch approvals, while others like polio, meningitis, and measles-mumps-rubella vaccines have experienced substantial declines [1] - Several key vaccines have received approval for market launch in the first half of the year, including CanSino's PCV13 and Wantai's 9-valent HPV vaccine [1] Group 2 - Multiple products are currently in the review stage for market approval, including Zhifei's PCV15 and MCV4, as well as Kangtai's IPV and quadrivalent influenza vaccines [1] - It is anticipated that sales of certain products in the second half of 2025 may improve year-on-year, driven by new product launches contributing to revenue growth [1] - The ongoing development of innovative vaccine pipelines and expectations for external licensing are areas of interest, along with the implications of recent equity changes in some companies and the potential impact of new shareholders [1]

Core Viewpoint - The domestic vaccine leader, Zhifei Biological, is facing unprecedented challenges, with a significant decline in revenue and profit due to market adjustments and product dependency [1][2][3] Company Summary - Zhifei Biological reported a revenue of 4.919 billion yuan in the first half of 2025, a year-on-year decline of 73.06%, and a net loss of 597 million yuan, marking its first half-year loss since its listing in 2010 [1] - The company’s nine-valent HPV vaccine issuance dropped by 76.8% from 18.2717 million doses to 4.2388 million doses, while the four-valent HPV vaccine issuance fell to zero [1][2] - Revenue from agency products, particularly Merck's products, plummeted from 17.59 billion yuan to 4.37 billion yuan, a decrease of 75.16% [1] - In 2024, Zhifei's revenue was 26.07 billion yuan, down 50.74% year-on-year, with a net profit of 2.018 billion yuan, down 74.99% [2] Industry Summary - The entire domestic vaccine industry is experiencing a collective downturn after a period of rapid growth, with companies like Watson Bio and Wantai Bio also facing significant challenges [4][5] - The industry has been heavily reliant on a few major products, leading to vulnerability when demand shifts or competition increases [5][6] - The market for vaccines is becoming increasingly competitive, with many companies focusing on traditional products, resulting in a lack of innovation and new growth drivers [5][6] Transformation Trends - In response to declining performance, vaccine companies are seeking to diversify their product lines, with Zhifei investing in Chongqing Chen'an Biological Pharmaceutical Co., focusing on GLP-1 drugs [6][7] - The GLP-1 market is projected to grow significantly, with sales expected to exceed $17 billion by 2031, indicating a potential new growth area for companies [6] - Wantai Bio is also diversifying into the collagen medical materials market, with significant revenue growth reported [7] - The shift into new markets presents high risks and challenges, as companies must navigate unfamiliar territories while managing financial pressures [8]

Core Viewpoint - The performance of Zhifei Biological (300122.SZ) has significantly declined in the first half of the year, primarily due to decreased public willingness to receive HPV vaccinations and changing market demands, leading to a substantial drop in revenue and increased losses [3][4]. Financial Performance - Zhifei Biological reported a revenue of 4.919 billion yuan, a year-on-year decrease of 73.06% [3]. - The net profit attributable to shareholders was a loss of 597 million yuan, a year-on-year decline of 126.72% [3]. - In the first quarter, the net profit loss was already 305 million yuan [4]. Revenue Breakdown - The company's revenue sources are divided into self-developed products and agency products, with agency products dominating the revenue stream [4]. - Agency product revenue accounted for approximately 88% of total revenue, amounting to 4.37 billion yuan, which represents a year-on-year decrease of 74.45% [4]. - Self-developed product revenue saw a smaller decline of 9.27% year-on-year [4]. Market Competition - The HPV vaccine market in China has become increasingly competitive, with signs of declining sales for HPV vaccines [7]. - Despite the expansion of eligible populations for Merck's four-valent and nine-valent HPV vaccines, short-term sales performance improvements for Zhifei Biological remain limited [7]. - The approval of a domestic nine-valent HPV vaccine by Wantai Biological has disrupted the market, with its pricing being less than half of Merck's nine-valent HPV vaccine [7]. Inventory and Receivables - As of the half-year report, accounts receivable stood at 13.518 billion yuan, accounting for 29.43% of total assets [8]. - Inventory was reported at 21.015 billion yuan, making up 45.75% of total assets [8]. - The company highlighted the risks associated with high accounts receivable and the importance of effective risk control measures to mitigate potential impacts on operations [8].