AIM Vaccine (6660) H2 2023 earnings summary

Executive summary

• FY23 revenue fell 6.1% YoY to RMB1,187.5m; gross profit declined 12.3% to RMB901.0m, while loss attributable to owners widened to RMB1,301.0m.

• Total loss reached RMB1,950.2m, including RMB1,723.7m of goodwill and intangible-asset impairments; R&D spending rose 27.2% to RMB636.4m.

• Pipeline progress included PCV13 Phase III completion and a pre-application for marketing registration; management expects three products to register for marketing in 2024.

Financial highlights

• Revenue was RMB1,187.5m, down 6.1% YoY; gross profit was RMB901.0m, down 12.3%, and gross margin was 75.9% versus 81.3%.

• Cost of sales rose 21.2% to RMB286.5m, reflecting lower production volume and higher labor and manufacturing costs per unit.

• Total loss was RMB1,950.2m versus RMB230.6m; loss attributable to owners was RMB1,301.0m versus RMB319.6m.

• Basic and diluted loss per share were both RMB1.07, versus RMB0.27 in FY22.

• R&D costs increased 27.2% to RMB636.4m; selling and distribution expenses were RMB494.0m, while administrative expenses fell 43.6% to RMB254.3m.

Outlook and guidance

• Management expects three products to register for marketing and plans to submit clinical-trial applications for seven products in 2024.

• PCV13 completed Phase III vaccination and has a pre-application for marketing registration with the NMPA; marketing application completion is planned for 2024.

• PPSV23 and iterative serum-free rabies vaccine completed Phase III vaccination; marketing-registration applications for both are planned for 2024.

• 2024 pipeline plans include CTA submissions for PCV20, Hib, tetanus and MDCK-cell quadrivalent influenza vaccines, among others.

• Overseas registration is underway in Southeast Asia, Africa, South America and the Middle East; rabies vaccine has registration licenses in Pakistan.