AIM Vaccine (6660) H1 2023 earnings summary

Executive summary

• H1 revenue fell 8.6% YoY to RMB540.5m; gross profit declined 10.2% to RMB432.6m, and results shifted to a RMB257.4m loss from RMB50.9m profit.

• Higher R&D spending, a smaller tax credit and softer rabies vaccine sales drove the loss and revenue decline.

Financial highlights

• Revenue was RMB540.5m versus RMB591.6m; cost of sales fell to RMB107.8m from RMB109.9m, and gross profit was RMB432.6m versus RMB481.6m.

• R&D expense rose 105.4% to RMB398.5m, reflecting higher clinical-trial and professional-service costs, overseas mRNA trials, and progress on flu and rabies vaccines.

• Selling and distribution expense fell 3.5% to RMB224.9m; administrative expense fell 37.7% to RMB115.7m, partly due to lower share-based compensation and listing fees.

• Net loss was RMB257.4m versus net profit of RMB50.9m; income tax credit was RMB52.4m, down from RMB183.3m, which included a prior-year one-time deferred tax benefit.

Outlook and guidance

• PCV13 completed Phase III vaccination and blood collection; NDA filing was planned for Q1 2024, with approval expected in H2 2024.

• The bivalent Delta-Omicron BA.5 mRNA vaccine’s overseas Phase III trial was nearing completion; domestic registration plans relied on domestic Phase I/II and Pakistan Phase III data.

• PPSV23 had started Phase III by August 2023; serum-free Vero rabies vaccine entered Phase III in July, and MCV4 was expected to start Phase III in 2024.

• New production facilities were planned; rabies and pneumococcal-related workshops were completed or undergoing equipment debugging and validation.