Core Viewpoint - The Chinese Vaccine Industry Association has issued an initiative to combat chaotic price competition in the vaccine industry, advocating for self-discipline and innovation to promote high-quality development in the sector [4][5]. Group 1: Industry Challenges - The vaccine industry is experiencing intense price wars, with the price of the bivalent HPV vaccine dropping to as low as 27.5 yuan per dose, and flu vaccines reaching as low as 5.5 yuan per dose [7][9]. - In the first three quarters of this year, 71.43% of A-share vaccine companies reported a decline in net profit, with notable losses from companies like Wantai Biological Pharmacy and BCG Biological [8][9]. Group 2: Association's Initiative - The initiative calls for all members of the association to adhere to the Vaccine Administration Law and the Price Law, ensuring fair and legal pricing based on production costs and market demand [4][5]. - The association emphasizes the need to resist disorderly low-price competition and prohibits bidding below cost, aiming to stabilize market prices and improve product quality [4][6]. Group 3: Long-term Outlook - If effectively implemented, the initiative could lead to a more orderly competitive landscape, enhancing the industry's sustainable development and improving the safety and efficacy of vaccine products [5][6]. - Companies are encouraged to increase R&D investment to develop differentiated products, optimize production processes, and explore international markets to mitigate risks and enhance competitiveness [10].

Core Viewpoint - The Chinese Vaccine Industry Association has issued an initiative to combat "involution" competition in the vaccine sector, aiming to promote high-quality development and establish a healthy competitive environment in the industry [1][2]. Group 1: Initiative Details - The initiative mandates all members of the Chinese Vaccine Industry Association to adhere to the Vaccine Administration Law and the Price Law of the People's Republic of China, ensuring fair and legal pricing based on production costs and market demand [1]. - Members are required to resist disorderly low-price competition and are prohibited from participating in bidding with prices below cost, thereby ensuring product and service quality standards [1][2]. Group 2: Industry Context - The association currently has over 330 member units and 35 branches, encompassing major vaccine and biological product companies, as well as upstream and downstream service providers in the biopharmaceutical industry [4]. - A price war has emerged in the public market, with significant price drops observed. For instance, the bid price for a trivalent flu vaccine from Shanghai Biological Products Research Institute was set at 5.5 yuan per dose in September, marking a new low in the public flu vaccine market [4]. - The price of a bivalent HPV vaccine from Watson Bio was reduced to 27.5 yuan per dose in a procurement project, humorously compared to the cost of a cup of milk tea [4]. Group 3: Financial Impact - The price war reflects a phenomenon of homogenized competition within the industry, leading to financial pressure on vaccine companies. In the first three quarters of this year, 10 out of 14 listed vaccine companies reported a year-on-year decline in net profit [5]. - Notably, five companies, including Zhifei Biological Products and Kanglaite, reported significant losses, totaling over 12 billion yuan for Zhifei alone [5]. - Industry insiders have expressed concerns that some companies are engaging in price wars to survive or capture market share, hoping for further national measures to address the issue of "involution" [5].

【导读】中国疫苗行业协会：严禁以低于成本的报价参与竞标 中国基金报记者 卢鸰 疫苗行业利好来了。 11月19日下午，中国疫苗行业协会发布《关于反对"内卷式"竞争 促进疫苗及其相关生物制品 行业高质量发展的倡议》。 中国疫苗行业协会是全国性、行业性、非营利性的国家一级行业协会，具有社团法人资格， 现有会员单位330余家、分支机构35个，涵盖我国主要疫苗企业与生物制品企业 。 智飞生物 董事长蒋仁生、华兰疫苗董事长安康、科兴控股CEO尹卫东等国内知名疫苗公司负责人是该 协会的副会长。 近两三年来，受经济下行、新生儿数量下降、疫苗接种意愿降低等多方面因素影响，国内疫 苗行业集体承压，疫苗企业间的价格战时有发生。 在HPV疫苗领域，自2022年起，沃森生物和万泰生物就二价HPV疫苗互打价格战。沃森生物 于2022年率先发起价格战，2024年江苏等地的二价HPV疫苗价格首次跌破百元，最低价格甚 至降至27.5元/支。 倡议提出，中国疫苗行业协会全体会员须严格遵循《中华人民共和国疫苗管理法》《中华人 民共和国价格法》，以生产经营成本与市场供求状况为定价基本依据，依法自主合理定价， 自觉维护市场价格稳定，共同营造公平有序的 ...

Core Viewpoint - Chongqing Zhifei Biological Products Co., Ltd. reported significant declines in revenue and net profit for 2024, indicating severe challenges in its business operations and market conditions [1][2][3]. Financial Performance - In 2024, the company achieved operating revenue of 26.07 billion yuan, a decrease of 50.74% year-on-year [2][3]. - The net profit attributable to shareholders was 2.02 billion yuan, down 74.99% compared to the previous year [2][3]. - The net cash flow from operating activities was -4.41 billion yuan, reflecting a drastic decline of 149.06% [3]. - The basic and diluted earnings per share fell by 74.94% to 0.8427 yuan [2][3]. Quarterly Performance - In the first quarter of 2025, the company reported an operating revenue of 2.37 billion yuan, a year-on-year decline of 79.16% [3]. - The net profit for the first quarter was -305 million yuan, indicating a shift from profit to loss [3]. - The net cash flow from operating activities for the first quarter was -4.27 billion yuan [4]. Product Performance - The company faced a significant drop in the issuance volume of key products, particularly the Merck HPV vaccines, with the four-valent HPV vaccine issuance down 95.49% and the nine-valent HPV vaccine down 14.80% [7][10]. - The overall market demand for vaccines has decreased due to reduced public willingness to get vaccinated and changing market conditions [4][10]. Strategic Adjustments - In response to market challenges, the company is increasing its product promotion efforts and accelerating the development and launch of self-researched products [4]. - The company has extended its exclusive promotion agreement for the shingles vaccine with GSK for an additional eight years [8]. Industry Context - The competitive landscape in the vaccine market has intensified, particularly with the entry of new players leading to price wars, which has adversely affected Zhifei's performance [10]. - The company is also exploring opportunities in the metabolic disease sector through acquisitions, aiming to diversify its product pipeline [12]. Leadership Changes - The company has seen a transition in leadership, with the founder's son, Jiang Lingfeng, taking on the role of president, indicating a potential generational shift in management [12]. Global Expansion - Zhifei has made progress in its global expansion efforts, including the renewal of its diagnostic reagent's inclusion in the national medical insurance catalog and obtaining approvals for its products in Indonesia and Macau [13].