Core Viewpoint - Liaoning Chengda Biological Co., Ltd. has announced the termination of its "Hib vaccine" development, marking the sixth vaccine project termination this month, amidst increasing competition in the domestic vaccine market and challenges including declining core product revenues, a shrinking R&D pipeline, and three consecutive years of declining performance [1][7]. Strategic Shift - Chengda Biological has terminated six projects in January, shifting its R&D focus towards combination vaccines. The company raised net funds of 4.341 billion yuan during its 2021 IPO, planning to cover 20 sub-projects under "human vaccine R&D." However, as of October 31, 2025, only 482 million yuan has been invested, with recent terminations attributed to intense market competition, insufficient product differentiation, and unclear commercialization prospects for some projects [2][8]. - The company is reallocating resources towards high-value projects such as the "high-dose influenza virus split vaccine" and "high-priced pneumococcal polysaccharide conjugate vaccine," indicating a strategic shift from broad coverage to focused breakthroughs on products with higher market potential [2][8]. Core Product Pressure - Chengda Biological has heavily relied on its human rabies vaccine, which accounted for over 93% of total revenue from 2020 to 2023. However, its market share has plummeted from 73.08% in 2019 to 36.29% in 2024, while the product price has dropped significantly from 215.6 yuan per dose in 2020 to approximately 61.18 yuan in 2024 [3][9]. - The presence of 23 marketed human rabies vaccines and 19 in clinical stages has intensified competition, leading to widespread price-cutting strategies among companies. The risk of a single product structure, previously highlighted in the company's prospectus, is now materializing [3][9]. Financial Performance Decline - Chengda Biological's financial performance has deteriorated since 2022, with revenue dropping from 1.815 billion yuan in 2022 to 1.675 billion yuan in 2024, and net profit shrinking from 714 million yuan to 343 million yuan during the same period [4][10]. - In the first three quarters of 2025, the company reported a 15.88% year-on-year revenue decline and a significant 50.01% drop in net profit, attributing these changes to intensified competition in the domestic vaccine market [4][10]. Conclusion - Chengda Biological is currently facing pressures from stagnant growth of its flagship product, a strategic contraction in its R&D pipeline, and ongoing performance declines. The company's attempts to pivot towards combination vaccines and high-priced products in response to market challenges are fraught with uncertainty, making the success of new product development a key focus for investors [5][11].

Core Viewpoint - Chengda Biological has terminated six vaccine research and development projects since early December, including five under the "Human Vaccine R&D Project" and one under the "Biotechnology Product R&D Production Base Project" due to market dynamics and technical feasibility assessments [1][2]. Group 1: Project Termination - The company announced the termination of the "b-type influenza Haemophilus influenzae type b conjugate vaccine" development project and five other sub-projects, including the pentavalent rotavirus vaccine, due to a lack of commercial viability and feasibility [1][2]. - The total planned investment for the "Human Vaccine R&D Project" was 837 million yuan, fully funded by raised capital, focusing on multi-valent and innovative vaccines [1]. Group 2: Market Competition - The pentavalent rotavirus vaccine, previously a key focus, faces intense competition with the successful launch of the world's first hexavalent rotavirus vaccine by China National Pharmaceutical Group, leading to a reassessment of its commercial potential [2]. - The domestic rabies vaccine market has become increasingly competitive, with 23 marketed products and 19 in clinical development, impacting Chengda Biological's market share significantly [3]. Group 3: Financial Performance - Chengda Biological's revenue has declined over the past three years, with reported revenues of 1.815 billion yuan, 1.750 billion yuan, and 1.675 billion yuan, reflecting year-on-year decreases of 13.08%, 3.58%, and 4.22% respectively [3]. - For the first three quarters of 2025, the company reported revenues of 1.096 billion yuan, a year-on-year decline of 15.88%, and a net profit of 165 million yuan, down 50.01% [4].

Core Viewpoint - The company, Liaoning Chengda Biological Co., Ltd., is convening its second extraordinary general meeting of shareholders in 2025 to discuss adjustments to its fundraising projects and internal investment structure, including the termination of certain research projects and the allocation of funds to new initiatives [1][18]. Meeting Details - The second extraordinary general meeting of shareholders will be held on December 23, 2025, at 9:30 AM in Shenyang, Liaoning Province [4]. - The meeting will utilize a combination of on-site and online voting methods, with specific time slots for voting [2][6]. Fundraising Project Adjustments - The company plans to optimize the internal investment structure of its "Human Vaccine Research Project" by terminating five research sub-projects and reallocating unused funds to other ongoing and new sub-projects, specifically the "High-Value Pneumococcal Polysaccharide Conjugate Vaccine" and "High-Dose Influenza Virus Split Vaccine" [19][30]. - A total of 100 million yuan will be specifically allocated to increase capital in its wholly-owned subsidiary, Chengda Biological (Benxi) Co., Ltd., to support the implementation of the "High-Dose Influenza Virus Split Vaccine" [19][43]. Project Timeline Extensions - The fundraising usage period for the "Human Vaccine Research Project" and "Biotechnology Product R&D Production Base Project" has been extended to December 2028 to adapt to global macroeconomic changes and industry trends [20][46]. - The adjustments made will not affect the total planned investment amount for the "Human Vaccine Research Project" [41]. Financial Management and Compliance - The company has established a special account for the management of the raised funds, ensuring that all funds are used specifically for the designated projects [45]. - The adjustments and extensions have been approved by the company's board and will be submitted for shareholder approval at the upcoming meeting [25][46].