Core Viewpoint - There is a temporary shortage of flu vaccines in several cities in China, including Guangzhou, Xi'an, Changzhou, and Jinan, due to increased demand as the flu season approaches [2][5][7]. Vaccine Supply Situation - Different community health centers report varying levels of vaccine availability, with some lacking the quadrivalent flu virus split vaccine and others the quadrivalent subunit vaccine [2][4]. - The quadrivalent split flu vaccine is experiencing supply tightness due to increased demand, while the quadrivalent subunit vaccine is also in short supply in certain areas [5][10]. - The overall supply of flu vaccines is expected to improve by mid to late November [5]. Manufacturer Insights - Hualan Biological Engineering, the largest flu vaccine producer in China, has an annual production capacity of 100 million doses and is increasing market supply and promotion efforts [5][6]. - Different regions are experiencing varying supply situations, influenced by local demand and inventory levels [6][10]. Demand Factors - The sudden increase in vaccine demand is attributed to the earlier onset of the flu season [7][10]. - The distribution of vaccines is managed by local disease control centers, which order from manufacturers based on local needs, leading to a mismatch in supply and demand timing [7]. Market Dynamics - The flu vaccine market experiences cyclical demand fluctuations, influenced by factors such as consumer willingness to vaccinate and the prevalence of flu strains [10]. - The annual demand for flu vaccines can vary significantly, with years of high demand followed by lower demand in subsequent years [10]. Vaccination Rates and Projections - China's flu vaccination rate remains low compared to the U.S., with only 3.8% during the 2022-2023 flu season, while the U.S. rate was 49.3% [13][14]. - The number of flu vaccine doses issued in China is projected to increase from 70.5 million in 2023 to over 150 million by 2029, with vaccination rates expected to rise to approximately 9% to 15.5% by 2033 [14].

Core Viewpoint - The article highlights the rapid IPO of Zhonghui Biotech, which achieved a listing on the Hong Kong Stock Exchange in just 10 months, setting a record for the fastest project handled by intermediary institutions [2][4]. Company Overview - Zhonghui Biotech, founded by An Youcai, is a newcomer in the vaccine industry, having been established only 10 years ago and currently offering one vaccine on the market [2][6]. - The company’s flu vaccine is the only quadrivalent subunit vaccine available in the domestic market, priced at 319 yuan per dose, making it the most expensive flu vaccine in China [10][11]. Financial Aspects - The IPO raised approximately 383 million HKD, which will alleviate the company's financial pressure, especially as it faces a bank loan repayment of about 400 million yuan within a year [4]. - As of the end of Q1 2025, Zhonghui Biotech had a cash balance of only 115 million yuan [4]. Market Position and Strategy - Zhonghui Biotech aims to position itself as an international company focused on innovation in the vaccine sector, distinguishing itself from competitors by not participating in the price-cutting trend for flu vaccines [3][10]. - The company is expanding its market reach internationally, particularly targeting Southeast Asia and Latin America, and has formed a strategic partnership with Watson Bio for overseas sales [11]. Product Development - Currently, Zhonghui Biotech has 11 vaccines in its pipeline, with 10 in development and one already on the market [10]. - The company is also working on a human diploid rabies vaccine and other products aimed at replacing imported vaccines and leading globally in vaccine technology [12][13]. Leadership and Expertise - An Youcai, the founder, transitioned into the vaccine industry from a non-biological background, leveraging 15 years of entrepreneurial experience to enhance his expertise in immunology and vaccine development [6][8]. - The company has attracted experienced scientists to its team, including those who have previously worked on significant vaccine projects [7].

Core Viewpoint - Zhonghui Biotech-B (02627.HK) has made a significant debut on the Hong Kong Stock Exchange, with its stock price rising by 158% on the first day, marking the highest first-day gain for a new stock since 2025. The company's market capitalization reached HKD 20.5 billion, ranking fifth among 18 domestic vaccine companies [2][3]. Company Overview - Zhonghui Biotech is a relatively new player in the vaccine industry, having been established only 10 years ago and currently offering just one vaccine on the market, which has been available for less than two years [2]. - The founder, An Youcai, transitioned into the vaccine sector from a non-biological background, emphasizing a commitment to maintaining pricing integrity for its flu vaccine amidst market competition [2][4]. IPO and Financials - The company raised approximately HKD 383 million from its IPO, which will help alleviate its financial pressures, especially considering it had only HKD 115 million in cash at the end of Q1 2025 and needed to repay around HKD 400 million in bank loans within a year [3]. Product and Market Position - Zhonghui Biotech's flu vaccine is the only quadrivalent subunit flu vaccine available in the domestic market, priced at HKD 319 per dose, making it the most expensive flu vaccine in China [8]. - The company has chosen not to participate in the recent price cuts initiated by competitors, focusing instead on a market segment that prioritizes safety and high-quality vaccines [8]. - The flu vaccine generated sales of approximately HKD 259 million in 2024, and the company plans to expand its production capacity from 2 million doses to between 10 million and 15 million doses as it enters international markets [8][9]. Research and Development - Zhonghui Biotech has a pipeline of 11 vaccines, with 10 currently in development. The company is also working on a human diploid rabies vaccine, which is expected to have fewer adverse reactions compared to traditional vaccines [9]. - The company aims to differentiate its products through unique positioning and targeting specific consumer groups, with plans to develop vaccines that can compete with imported products and lead in global technology [10].