Core Viewpoint - The company, once valued over 350 billion, is experiencing its most severe downturn since its listing 15 years ago, with a significant drop in revenue and a record net loss [1] Group 1: Financial Performance - The company reported a 73% decline in revenue to 4.919 billion, with a net loss of 597 million, marking its first half-year loss since going public [1] - This is the fourth consecutive quarter of losses for the company, indicating a troubling trend in financial performance [1] Group 2: Inventory and Assets - The company has a staggering inventory of 21 billion, which has increased by 34% year-on-year, accounting for 45.7% of total assets [3] - Inventory items consist of 98.7% vaccines, with the turnover days skyrocketing from 165 days to 1,104 days, posing a risk of expiration as the vaccine shelf life is only 2 years [3] Group 3: Market Dynamics - The company's rise and fall are closely tied to the Merck HPV vaccine, which initially drove revenue growth but has now seen a drastic decline in demand due to reduced public willingness to vaccinate and increased competition [2] - The approval of a domestic nine-valent HPV vaccine at a price less than half of Merck's has disrupted the previously monopolistic market, further exacerbating the company's challenges [4] Group 4: Debt and Liquidity - The company faces liquidity issues, with only 2.566 billion in cash against over 14 billion in short-term debt and 13.5 billion in accounts receivable [3] - To address immediate financial pressures, the company has initiated a plan to issue 6 billion in corporate bonds [3] Group 5: Strategic Outlook - The company's reliance on a single agency model is highlighted as a significant risk, with the current inventory situation likened to a "sword of Damocles" hanging over its future [4] - The ability of the company to navigate through its challenges by focusing on independent research and inventory management will be crucial for its survival [4]