According to the latest financial report, Conciano’s operating revenue in the first half of 2022 was 630 million yuan, down 69.45% year-on-year; net profit attributable to the mother of 12.238 million yuan, down 98.69% year-on-year; deduction of non-net profit loss of 56.769 million yuan, from profit to loss; basic earnings per share of 0.0495 yuan, down 98.69% year-on-year.
As a result, Conxino’s share price plunged continuously, closing at 128.70 yuan/share as of August 30, hitting a new low for the year, with a cumulative drop of over 56%.
As for the reasons for the decline in performance, Conxino indicated that it was mainly due to the slowdown in the growth of the global vaccination rate of New Crown vaccine during the reporting period, the decrease in demand for vaccines, the price adjustment of vaccine products, and the impairment of New Crown vaccine-related inventories with signs of impairment.
According to previous forecasts by Airfinity Ltd. global vaccine production may exceed 9 billion doses in 2022, but vaccine demand may decline to approximately 2.2-4.4 billion doses per year by 2023 and beyond.
In addition to Conciano, other vaccine companies have had a rather dismal recent history.
Germany’s BioNTech’s revenue and net profit both fell about 40% in the second quarter; Britain’s AstraZeneca is considering giving up its vaccine business; Kangtai Bio expects its net profit to drop 70.29-61.37% year-on-year in the first half of the year; China Bio’s net profit attributable to the mother company fell 77.3%, mainly due to the drag of its 15.03% stake in the new crown vaccine maker Kexing Zhongwei.
Even so, Conxino still has three new crown vaccines under development.
Among them, Ad5-nCoV, with a cumulative investment of RMB 1.014 billion and an estimated total investment of RMB 1.13 billion, has received emergency use authorization or conditional listing in several countries both inside and outside China.
Ad5-nCoV for inhalation has invested 95.5 million RMB and the total investment is expected to be 300 million RMB, and has completed clinical phase I/II trials and is conducting sequential immune clinical trials to advance the domestic emergency application.
mRNA has invested RMB 112 million and has started clinical phase II trial.
Founded in 2009, Conxino had made a name for itself by having its new drug registration application for recombinant Ebola virus vaccine approved by the State Food and Drug Administration before the new crown vaccine.
Driven by capital, Kangxino was listed on the Hong Kong stock and Science and Technology Board in March 2019 and August 2020, respectively.
Benefiting from the sales of the new crown vaccine, Conxino turned a loss to profit in 2021, with net profit soaring 5.83 times, and its share price once rose nearly 800 yuan per share, with market value approaching 200 billion yuan, which is now less than 32 billion yuan.