The management of China Biopharmaceutical (01177) said at the conference that Kexon Biotech stopped producing the COVID-19 vaccine, which is in low demand, which helps reduce Kexon's losses, and the risk of impairment caused by Zhongsheng Pharmaceuticals is very low.
The Zhitong Finance App learned that Nomura released a research report stating that it gave China Biopharmaceuticals (01177) a “buy” rating, with a target price of HK$6.63. The company's stock price fell by a total of about 10% for three consecutive trading days. After closing yesterday, management held a conference call to resolve possible market concerns. According to reports, Kexon Biotech, which holds about 15% of the Group's shares, has stopped producing the COVID-19 vaccine. Management said at the meeting that stopping production of this vaccine, which is in low demand, will help reduce Kexon's losses, and the risk of impairment caused by Zhongsheng Pharmaceuticals is very low. Furthermore, management continues to interact with multinational companies regarding certain assets, indicating that some transactions may still be valid. At the same time, the company also indicated that it will maintain its fiscal year 2023 performance guidelines, including forecasts of positive revenue growth.