On January 20, 2025, WALVAX, a leading vaccine company in the A-share market, issued an announcement that its operating income is expected to be about 2.86 billion yuan, a sharp drop from 4.114 billion yuan in the same period last year; it is expected that the net profit attributable to parent company in 2024 will be 140 million to 180 million yuan, a decrease of 57% to 67% from 419 million yuan in the same period last year. Net profit after deducting non-recurring gains and losses is expected to be 110 million to 150 million yuan, a decrease of 74% to 81% from 574 million yuan in the same period last year.

WALVAX disclosed that the main reasons for the performance changes include: the decline in sales revenue due to the decline in the number of newborns in China and the intensification of market competition. At the same time, in response to national policies, the winning bid price of vaccines has dropped, affecting the sales in the self-funded market. In addition, the company has reduced R&D expenses by about 159 million yuan through strengthening cost control, and the proportion of R&D investment in operating income has remained at around 20%. During the reporting period, due to changes in the valuation of held financial assets, the fair value change loss was approximately RMB 97 million, and the asset impairment loss was approximately RMB 159 million. It is estimated that the amount of non-recurring gains and losses in 2024 will be approximately RMB 32 million. In addition, WALVAX's overseas business revenue in 2023 will be approximately RMB 534 million, a year-on-year increase of approximately 96%, which is one of the few bright spots in the fundamentals.

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