Beijing Wantai Biological Pharmacy Enterprise Co. (603392) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 1.37 billion, down 67.19% year-over-year, mainly due to lower sales of the bivalent HPV vaccine amid intensified competition and inventory reduction efforts.

• Net profit attributable to shareholders for H1 2024 was RMB 260 million, a decrease of 84.70% year-over-year, with adjusted net profit (excluding non-recurring items) at RMB 63.5 million, down 96.09%.

• Net profit for H1 2024 is expected to be between ¥240 million and ¥290 million, down 85.90% to 82.96% year-over-year.

• The company continues to invest in R&D, production, and international expansion, with a focus on innovative diagnostics and vaccines.

Financial highlights

• Operating income: RMB 1.37 billion, down 67.19% year-over-year.

• Net profit attributable to shareholders: RMB 260 million, down 84.70% year-over-year.

• Adjusted net profit: RMB 63.5 million, down 96.09% year-over-year.

• Basic and diluted EPS: RMB 0.21, down 84.33% year-over-year.

• H1 2023 net profit was ¥1.70 billion; EPS was ¥1.34.

• Operating cash flow: RMB 129 million, down 22.62% year-over-year.

• Gross margin: 73.6% (calculated from segment data).

Outlook and guidance

• The company is advancing the commercialization of its 9-valent HPV vaccine, with clinical trials and regulatory filings progressing as planned.

• Expansion of production capacity for key vaccine products is underway, with major capital projects on schedule.

• International market penetration is a strategic focus, with multiple products gaining regulatory approvals abroad.

• Q2 2024 revenue expected at ¥550 million to ¥680 million, down 56.93% to 46.75% year-over-year, but the decline has narrowed compared to Q1.