On May 8th, ZHIFEI-BIOL (300122.SZ) faced sharp questions from investors during its 2025 performance briefing: In recent years, investors in your company have lost over 95%, with 1 million reduced to just a few tens of thousands. Such severe losses cannot be compensated by a few words and apologies. Please provide a detailed response on what aspects the company will invest in, including mergers and acquisitions, buybacks, restructuring, etc. We want to hear the truth because we have heard empty words for 6 years, and there is nothing left.

In response to the long-standing anger of investors, ZHIFEI-BIOL Chairman Jiang Rensheng expressed, "I deeply understand the feelings of shareholders," attributing the continued pressure on the stock price to external factors such as deep industry adjustments. He promised to take multiple measures to fully mitigate risks, accelerate product innovation, and gradually promote the stabilization and improvement of the company's operations.

It is worth mentioning that ZHIFEI-BIOL stated that due to significant pressure on performance, to express confidence in the company's future development and a willingness to share risks with the company, Chairman Jiang Rensheng and Vice Chairman and President Jiang Lingfeng voluntarily waived their performance bonuses for 2025, while other non-independent directors and senior management voluntarily waived part of their annual salaries. In 2025, the average salary of ZHIFEI-BIOL's directors and senior management decreased by 3.78 million yuan compared to the previous year, with an average reduction of 21%.

This company, which once had a market value exceeding 360 billion yuan and was hailed as the "king of vaccine agents," is experiencing the most difficult time since its listing.

A massive loss of 14.7 billion in 2025

The 2025 annual report shows that ZHIFEI-BIOL achieved revenue of 8.958 billion yuan for the year, a significant decrease of 65.61% year-on-year; the net profit attributable to shareholders was a staggering loss of 14.723 billion yuan, a year-on-year plunge of 846.42%. This is also the company's first annual loss since its listing, marking the worst performance since going public.

In the annual report, ZHIFEI-BIOL attributed the losses to three main reasons: deep industry adjustments, shrinking market demand, and a reshaping of the competitive landscape. In the face of market challenges, ZHIFEI-BIOL has three major tasks for 2025: destocking, promoting collections, and reducing liabilities. ZHIFEI-BIOL also specifically mentioned two major risks:

First is the risk of bad debts. ZHIFEI-BIOL's accounts receivable are mainly from various local disease control centers, with long collection periods, and its accounts receivable account for a high proportion of total assets.

Second is the risk of vaccine hesitancy. "The spread of vaccine hesitancy is significantly weakening the public's willingness to vaccinate and trust in vaccines. This behavior of refusing or delaying vaccination not only lowers individual and herd immunity levels, increasing the risk of infectious disease outbreaks, but also directly leads to downward pressure on the vaccine industry's prosperity."

A deeper analysis of the annual report data reveals that ZHIFEI-BIOL's massive losses are essentially a dual blow from the collapse of its agency business and asset impairment.

In 2025, ZHIFEI-BIOL's agency products achieved revenue of 7.681 billion yuan, a year-on-year decrease of 68.84%, accounting for 85.74% of total revenue. Although self-developed products achieved revenue of 1.187 billion yuan, a slight increase of 1.23% year-on-year, the scale is insufficient to compete with agency products, far from making up for the gap in the agency business From the perspective of batch issuance, among self-developed products, except for a slight increase in the batch issuance of the newly added quadrivalent influenza vaccine and ACYW135 vaccine, the batch issuance of AC combined vaccine, Hib vaccine, AC polysaccharide vaccine, and 23-valent pneumonia vaccine decreased by 64.18%, 71.3%, 3.37%, and 63.39% respectively.

Among agency products, Merck's quadrivalent HPV vaccine has no batch issuance; the batch issuance of the nine-valent HPV vaccine dropped by 86.39%, only reaching 4.2388 million doses; GSK's recombinant shingles vaccine had a total batch issuance of 2.4607 million doses for the year, a year-on-year decline of 34.83%.

At the same time, due to previous overly optimistic market demand, the large inventory hoarded by ZHIFEI-BIOL has become a huge financial black hole.

In 2025, ZHIFEI-BIOL recognized a total asset impairment loss of 14.128 billion yuan, of which the inventory write-down provision and contract performance cost impairment provision amounted to 13.618 billion yuan, with the agency product HPV vaccine alone accounting for 12.766 billion yuan of the impairment.

In the opening letter to shareholders in the annual report, ZHIFEI-BIOL admitted that the company is facing "multiple pressures from industrial cycles, rebuilding public trust, and demand contraction," and emphasized that although the company is "actively promoting a fundamental shift from commercial-driven to innovation-driven," the short-term impact of business model restructuring was concentrated in this year... "2025 marks the first loss since the company went public." ZHIFEI-BIOL stated that it will deeply learn from this crisis and accelerate the transition from commercial-driven to innovation-driven.

In 2025, ZHIFEI-BIOL invested 1.436 billion yuan in R&D expenses, accounting for 16.03% of operating income, with 41 projects in the pipeline during the period, covering various fields including preventive vaccines and therapeutic biological products, of which five products have been submitted for listing.

However, from the performance in the first quarter of 2026, the pain of transformation is far from over.

The Q1 2026 report shows that ZHIFEI-BIOL achieved revenue of 2.15 billion yuan in a single quarter, a year-on-year decrease of 8.64%; the net profit attributable to shareholders was a loss of 388 million yuan, an increase in loss of 18.79% compared to the same period last year; the net profit after deducting non-recurring items was a loss of 391 million yuan, with a year-on-year increase in loss of 15.62%.

Inaccurate financial data received regulatory letter

On the same day as the performance briefing, the Shenzhen Stock Exchange's Growth Enterprise Market Company Management Department issued a regulatory letter to ZHIFEI-BIOL and related parties.

The regulatory letter pointed out that on April 28, 2026, ZHIFEI-BIOL disclosed the "Announcement on Retrospective Adjustments and Corrections of Annual Reports Involving Prior Period Accounting Errors," correcting and retrospectively adjusting certain financial statements and notes from the accounting periods of 2020 to the third quarter of 2025, with specific adjustments involving inaccurate recognition of service fee income, failure to consider the impact of post-period returns on relevant annual reports, and adjustments to the supplementary information of the cash flow statement related accounts

The Shenzhen Stock Exchange believes that the aforementioned actions of ZHIFEI-BIOL violate Articles 1.4 and 5.1.1 of the "Rules for the Listing of Stocks on the Growth Enterprise Market." The actions of the company's chairman Jiang Rensheng, president Jiang Lingfeng, and chief financial officer Li Zhenjing also violate relevant regulations.

The Shenzhen Stock Exchange requires ZHIFEI-BIOL and the relevant parties to fully recognize the above issues, learn from the lessons, rectify in a timely manner, and prevent such problems from occurring again.

The occurrence of accounting errors in multiple financial reports undoubtedly further undermines the already fragile investor confidence.

As of the close on May 8, ZHIFEI-BIOL's stock price was reported at 15.47 yuan per share, with a market value of 37.032 billion yuan, and a cumulative decline of 18.02% since 2026.

The apology in the annual report and the collective salary reduction of the executive team... these gestures are certainly commendable, but for those investors who have already lost more than 95%, it is far from enough.

For ZHIFEI-BIOL, it urgently needs to prove through actions and performance that it is not just a "middleman" that only acts as an agent, but a biopharmaceutical company with real core technological capabilities. After all, the patience of those investors who have already lost "everything" may be running out.

# **# Source: Manager Network Editor: Cao Nan__ Proofreader: Zhi Yan___**_