Recent financial reports from leading Chinese vaccine companies in 2025 have shown losses, with Chongqing Zhifei Biologics Co., Ltd. (Zhifei Biologics) expected to see a 630%-780% year-on-year decline in net profit attributable to shareholders, turning from profit to loss. Industry analysts attribute the profit decline of these companies to various factors such as declining demand.
According to a report by “21st Century Business Herald” on February 3, leading Chinese vaccine companies have successively released their performance forecasts for 2025, with companies like Zhifei Biologics, Wantaibio, and Walvax Biotechnology all experiencing losses.
Beijing Wantaibio Pharmaceutical Co., Ltd. (Wantaibio) is expected to incur a net loss of 330 million yuan to 410 million yuan in 2025; Changchun Walvax Biotechnology Co., Ltd. (Walvax Biotechnology) is facing profit losses of 220 million yuan to 280 million yuan due to vaccine returns and price reductions, as well as a decrease in demand for chickenpox vaccines following a decline in birth rates. Both companies have shifted from profit to loss.
In its “2025 Performance Forecast,” Zhifei Biologics stated that “the net profit attributable to the shareholders of the listed company is expected to be a loss of 10,697.9361 million yuan to 13,725.6538 million yuan, a decrease of 630% to 780% compared to the same period of the previous year.” At the same time, “the net profit after deducting non-recurring gains and losses is expected to be a loss of 10,554.3485 million yuan to 13,541.4282 million yuan, a decrease of 630% to 780% compared to the same period of the previous year,” making it the company with the largest decline in net profit.
Rui’eren Shenzhen Kangtai Biologics Co., Ltd. has forecasted maintaining profitability in 2025, but the net profit attributable to shareholders is expected to be 49 million to 73 million yuan, a year-on-year decline of 63.8% to 75.7%.
Regarding the significant decline and even losses in net profit of leading vaccine companies, a report quoted an analyst from a South China brokerage firm who mentioned that multiple pressures such as joint procurement price reductions, shrinking demand, and product homogenization have led to profit losses for companies across the industry.
Firstly, joint procurement and price wars continue to squeeze profit margins, serving as a direct driver for the industry’s declining profitability. The prices of various vaccines have hit historic lows, with the winning bid price for Watson Bio’s bivalent HPV vaccine dropping by over 90% from 2022, and the Beijing government purchasing flu vaccines for as low as 5.5 yuan each. The price decline has significantly reduced companies’ gross profit margins, with some products nearing cost levels.
Secondly, demand has shrunk significantly. On one hand, the continuous decline in birth rates has led to a decrease in the core vaccination population for children’s vaccines, with the proportion of 0-6-year-old vaccination population dropping from 64.6% in 2020 to 43.7% in 2024. On the other hand, the low vaccination rate for adult self-paid vaccines such as flu and shingles has hindered the promotion of adult vaccines.
Furthermore, severe product homogenization has intensified competition in popular vaccine categories, with companies flocking to areas like HPV, shingles, and flu vaccines, leading to oversupply, stockpiling, and fierce price competition.