In 2024, Jindik achieved operating income of 80.8027 million yuan, a year-on-year decrease of 39.96%, and lost money for the second consecutive year.

At present, Jindik has only one product on the market, namely the quadrivalent influenza virus split vaccine. In 2024, the price of this product was reduced by 30%, directly falling below 100 yuan. Profitability was weakened and sales expenses accounted for too high a proportion, both dragging down the company's performance.

In order to get rid of dependence on a single product, Jindik has increased its R&D investment. At present, the rabies vaccine product has completed Phase III clinical trials and is in the process of product registration and declaration.

Flu vaccine followed the trend of price reduction, and sales volume and price fell in one year

In 2024, Jindik not only failed to reverse the loss, but fell deeper and deeper.

On April 17, the company released its 2024 annual report. During the reporting period, it achieved operating income of 80.8027 million yuan, a year-on-year decrease of 39.96%; the net profit attributable to shareholders of the listed company was a loss of 93.5028 million yuan.

Jindik landed on the Science and Technology Innovation Board in August 2021. Wind data showed that from 2021 to 2023, Jindik's performance has declined for three consecutive years. In 2023, due to the temporary suspension of production caused by sudden heavy rainstorms in Taizhou, where the company is located, Jindik suffered its first loss since its listing. The net loss attributable to shareholders of the listed company during the year was 70.9903 million yuan.

The expansion of losses is not unrelated to the price reduction of core products. Since May 2024, quadrivalent influenza vaccine products have set off a wave of price cuts. On May 20 of that year, the Jiangsu Provincial Public Resources Trading Center issued the "Notice on Adjusting the Supply Prices of Some Vaccines". The winning bid price of the quadrivalent influenza virus split vaccine of Changchun Institute of Biological Products, Wuhan Institute of Biological Products, and Shanghai Institute of Biological Products under Sinopharm Group dropped from 128 yuan/piece to 88 yuan/piece, a price reduction of 31.25%.

Since then, Hualan Vaccine, Beijing Kexing, and Jindik have followed suit, and many quadrivalent influenza virus split vaccines have dropped to less than 100 yuan.

On June 12, 2024, Jindik issued an announcement announcing the price adjustment of the company's quadrivalent influenza vaccine. The quadrivalent influenza virus split vaccine (adult dosage form, prefilled 0.5ml/piece) was adjusted from 128 yuan/piece to 88 yuan/piece; the quadrivalent influenza virus split vaccine (adult dosage form, vial 0.5ml/bottle) was adjusted from 125 yuan/bottle to 85 yuan/bottle.

With the price reduction, Jindik's profit margin for this product has been greatly compressed. In 2024, the gross profit margin of Jindik's quadrivalent influenza virus split vaccine was 62.61%, a year-on-year decrease of 15.2 percentage points.

While the product price was reduced by 30% year-on-year, Jindik's sales of this product also performed poorly in 2024. During the reporting period, the company's sales of quadrivalent influenza virus split vaccine were 1.1697 million, a year-on-year decrease of 15.32%.

Hualan Vaccine, which also uses influenza vaccine as its main product, also saw a decline in performance in 2024. The 2024 annual report shows that the company's operating income during the reporting period was approximately 1.128 billion yuan, a year-on-year decrease of 53.21%; the net profit attributable to shareholders of listed companies was approximately 206 million yuan, a year-on-year decrease of 76.1%.

Regarding the reasons for the decline in sales, Jindik stated in its annual report that in the first quarter of 2023, there was a high incidence of influenza A in many places in China, and some unmet influenza vaccination needs in the autumn and winter of 2022 were vaccinated in the first quarter of 2023, but the domestic influenza epidemic was relatively stable in the same period of 2024, and the year-on-year decline in vaccination scale led to a decline in sales.

At the same time, Jindik said that in order to ensure the stable and high-quality operation of the production line, the production line was carefully tested before production, resulting in the delay of commercial production of the flu season vaccine in 2024-2025 compared with previous years. The flu vaccine produced that year obtained the batch release certificate and was put on the market later, which had an adverse impact on sales.

R&D investment accounted for more than 50% of revenue, accelerating the launch of rabies vaccine

Sales were sluggish, and Jindik's sales expenses also declined year-on-year.

In 2024, the company's sales expenses were 45.4941 million yuan, a year-on-year decrease of 40.97%. However, despite the year-on-year decline in sales expenses, its proportion of revenue is still not low. In 2024, Jindik's sales expenses accounted for 56.3% of revenue. During the same period, the sales expense rates of Watson Bio, Hualan Bio, CanSino, and Wantai Bio were 34.69%, 44.58%, 43.61%, and 19.52%, respectively. In contrast, Jindik's sales expense rate is higher, which invisibly drags down the company's profitability.

In the past year, Jindik's R&D investment accounted for a high proportion, about 41.8629 million yuan during the period, accounting for 51.81% of operating income.

At present, the quadrivalent influenza virus split vaccine is the only product Jindik has launched for sale. In order to get rid of the situation of single product layout, Jindik has increased its investment in R&D. During the reporting period, the company's R&D investment increased by 33.06% year-on-year.

The company stated in its annual report that in 2025, the company will focus on promoting the R&D progress of some key projects and accelerate the application of the freeze-dried human rabies vaccine (Vero cell) project. After the product is approved, it will solve the problem of the company's single product.

In terms of R&D progress, the company's freeze-dried human rabies vaccine (Vero cell) has completed Phase III clinical trials, and during the reporting period, it is applying for product registration to the National Medical Products Administration in accordance with procedures.

Jindik also focuses on the prevention and treatment of major infectious diseases such as varicella vaccine, herpes zoster vaccine and pneumococcal vaccine, optimizing and expanding the product pipeline layout. At present, its quadrivalent influenza virus split vaccine (children) has completed Phase I clinical trials, and during the reporting period, it carried out preparations for Phase III clinical trials, and Phase III clinical trials have officially started in 2025.

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