On March 29, Hualan Bio and its subsidiary Hualan Vaccine simultaneously disclosed the 2021 annual report: the performance of the "father and son company" was the same frequency.
In 2021, The operating income of Hualan Bio was 4.436 billion yuan, a year-on-year decrease of 11.69%; the net profit reached 1.299 billion yuan, a year-on-year decrease of 19.48%. The performance of the newly split and listed Hualan Vaccine fell even more severely, with revenue falling by 24.59% and net profit falling by 32.86%.
In 10 years, this is the first time that Hualan Bio's annual revenue and net profit have both declined. In the past 10 years, Hualan Bio has been a white horse stock in the pharmaceutical industry, and the dual leading position of blood products and vaccines has not been shaken for many years.
However, after experiencing a rapid breakthrough during the epidemic in 2020, Hualan Bio has not been able to maintain performance growth. Especially after absorbing Hillhouse's investment and splitting Hualan Vaccine, the two listed companies showed a 1+1
The capital markets have voted with their feet in advance. Since the middle of 2021, the share price of Hualan Bio has fallen by 48.95%. Now that the lack of revenue and profitability has become a fact, the market is more concerned about when the two father-son companies will be able to run again.
Blood products have reached the "ceiling"?
At the beginning of 2022, the news of the collection of blood products of the Guangdong Alliance made Hualan Bio a false alarm.
Hualan Biologics' business segment is mainly blood products and vaccines, and in recent years, it has also added the development of biomedical monoclonal antibodies. Among them, blood products are the pillar plate of Hualan Biology.
Blood is the raw material, and conventional blood products include human blood albumin, gamma globulin, coagulation factors, etc. There are two major indicators of blood products, one is the amount of plasma collected, and the other is the type of production variety. The more plasma is collected, the more products the same plasma can produce, and the higher the natural return.
Hualan Biology's 2021 annual report shows that the company can produce a total of 11 kinds of blood products, ranking one of the top two in the country; last year's pulp collection volume was 1000+ tons, although it did not rank first in the industry, it could also rank in the top three in the industry; in addition, Hualan Biology has other vaccine businesses that are generally not available in blood products enterprises, of which quadrivalent influenza vaccine is unique.
With such a foundation, it is difficult for Hualan Bio not to become a white horse stock. But in 2021, these businesses have folded.
In 2021, The two businesses of Hualan Bio's intravenous injection gamma globulin and influenza vaccine declined significantly. Among them, the revenue of Jing C, which has a high gross profit, decreased by 13.98% year-on-year, and the sales of influenza vaccines fell by more than 24%.
Hualan Biology itself explained that the year-on-year decrease in Jing C is due to the new crown epidemic in 2020, and the use of Jing C has increased significantly, and correspondingly this year it will be less. But from the data of the past five years, except for 2019, The static income of Hualan Bio has decreased almost every year compared with the previous year, including the 2020 of the epidemic.
In recent years, Hualan Bio's white horse status has actually been affected by opponents. Since the state strictly grasped the quality control of blood products in 2001, the approval of the new single plasma collection station was once very difficult, but it has changed in recent years. On March 28 this year, Boya Bio revealed in an institutional survey that about 70 single plasma collection stations were newly approved nationwide during the 13th Five-Year Plan period, and it is expected that there will be an increase during the 14th Five-Year Plan period.
In this round of pulp station expansion, Hualan Bio slowed down. Since 2016, Hualan Biotech has been determined to "actively apply for a new single plasma collection station" every year. From the perspective of actual implementation, during the 13th Five-Year Plan period, Hualan Bio only added 2 single plasma collection stations, and there are currently 25 in total. According to the data of the 2021 semi-annual report, there are 41 and 55 plasma stations of Shanghai Laoshi and Tiantan Biology, respectively.
In addition to its seniority, Hualan Bio has slowly lost its advantages in business layout.
In the past 5 years, The blood products of Hualan Bio have been 11 kinds, and this number can be proud of the industry before. However, in recent years, new varieties of competition have been approved, and the approvals of Tiantan Biology, Shanghai Laixi and Boya Biology have been 14, 11 and 8 respectively.
Poor performance in 2021 is just the beginning. After the Guangdong Alliance collects and collects this year, more provinces may include blood products in the scope of collection. In Guangdong collection, blood products actually did not bargain, and some varieties actually increased in price. But there is still a lot of uncertainty about whether other regions will treat blood products so favorably.
The fastest face-turning report
Vaccines, another major revenue-generating weapon of Hualan Biology, also suffered a "small year" in the market in 2021.
In April 2020, with the help of Hillhouse Capital Zhang Lei and Liu Xiaodan's Morning One Fund, Hualan Bio planned to spin off its vaccine business and put high hopes on the vaccine business. As a result, from the start of the split to the successful listing, in the past two years, Hualan vaccine revenue has still relied on several influenza vaccines that have been approved before the split, and the new crown vaccine is still in phase II clinical trials.
On February 18 this year, Hualan Vaccine was finally listed on the Gem, and then submitted the annual report card of 2021 - the statement that was jokingly called "the fastest face turned" by investors.
In the first 3 years of listing, the revenue and profit of Hualan Vaccine have been growing rapidly. Moreover, during the prospectus period, Hualan Vaccine disclosed the revenue data from January to September 2021, and the revenue and net profit were also double-increased year-on-year.
As a result, only a few months later, the annual report was released, and the annual performance directly "turned the face": in 2021, Hualan Vaccine revenue was 1.83 billion yuan, a year-on-year decrease of 24.59%; net profit was 621 million yuan, a year-on-year decrease of 32.86%.
As soon as it goes public, the performance changes its face. In this regard, Hualan Vaccine explained: The vaccine was sold intensively in the fourth quarter, and the result was not sold well in the fourth quarter.
Influenza vaccine is currently the most important source of revenue for Hualan vaccine, accounting for more than 99%. As we all know, in the second half of 2021, everyone is vaccinating against the new crown, the prevention and control of respiratory infectious diseases is doing well, and the sales of influenza vaccines have dropped sharply.
Affected by this "seesaw factor", not only hualan vaccine, but also 100 grams of organisms that are also heavy on influenza vaccines. In 2021, 100 grams of revenue fell by 16.6% year-on-year, and net profit fell by 41.77% year-on-year; in the same period, another influenza vaccine manufacturer, Kindick, saw its revenue drop by 32.85% year-on-year and net profit by 46.91% year-on-year.
At the moment of the epidemic, the current situation of China's vaccine industry is that "the industry has fallen, and Kexing has eaten enough".
Hualan vaccine is actively self-help. In February this year, Hualan Vaccine disclosed that its quadrivalent influenza vaccine (pediatric dosage form) had been approved for production. The quadrivalent influenza vaccine on the market is for people over 3 years old, and Hualan's influenza vaccine is currently the only one for children under 3 years old in China. It is estimated that there are about 40 million school-age children, and the market is not small.
In addition, the rabies vaccine and adsorbed tetanus vaccine developed by Hualan Vaccine are also expected to contribute new revenue growth points to the subsequent development, these two new vaccines have completed clinical trials and on-site inspections, and are expected to be listed this year, and the follow-up market performance needs to be verified.
If there is no breakthrough in the pipeline, whether it is blood products or vaccines, Hualan's 2022 is still the hard model.