Core Insights - Vaccine hesitancy is impacting the acceptance and vaccination rates, which may reverse progress in disease prevention and lower the vaccine industry's performance [1] - Domestic vaccine companies, including Zhifei Biological Products (300122), are experiencing significant declines in performance due to policy adjustments, decreased public willingness to vaccinate, and changing market demands [1] Financial Performance - Zhifei Biological reported a revenue of 26.07 billion yuan in 2024, a decrease of 50.74% year-on-year - The net profit was 2.018 billion yuan, down 74.99% compared to the previous year - Revenue from self-developed products reached 1.182 billion yuan, an increase of 14.93%, accounting for 4.53% of total revenue, up from 1.94% the previous year [1] Strategic Measures - In December 2024, Zhifei Biological and GSK adjusted their strategic cooperation, signing a supplementary agreement to optimize the exclusive distribution and joint promotion agreement [2] - The companies will restructure the procurement and supply of the shingles vaccine and explore a 10-year commercialization cooperation for the RSV vaccine in mainland China [2] - Zhifei Biological is optimizing resource allocation, adjusting marketing strategies, and managing accounts receivable effectively, reducing accounts receivable from 27.059 billion yuan at the beginning of 2024 to 14.645 billion yuan in Q1 2025 [2] Research and Development - Zhifei Biological increased R&D investment to 1.391 billion yuan in 2024, with the R&D team growing to 1,072 members, totaling over 5.1 billion yuan in R&D investment over the past five years [3] - The company has made significant progress in its pipeline, with multiple products entering the commercialization phase, enhancing its resilience against risks [3] - As of the report date, Zhifei Biological has 34 self-developed projects, with 19 in clinical trials or registration stages [3] Product Development - Several products are in various stages of clinical trials, including the rabies vaccine and influenza vaccine, with others completing clinical trials or in Phase III trials [4] - The company has established a nationwide marketing network covering 31 provinces and over 30,000 grassroots health service points [4] - Zhifei Biological's self-developed tuberculosis diagnostic reagent has been renewed in the 2024 National Medical Insurance Directory, supporting early detection and treatment of tuberculosis [4] Market Expansion - The core products are expanding indications, with the approval of male indications for Merck's quadrivalent and nine-valent HPV vaccines in 2025 [5]