On November 28, according to the Financial Associated Press (Reporter Zhang Chenjing), the high degree of product homogeneity and low stock price competition have long troubled the animal husbandry industry. How companies find new performance growth points has become a common focus for investors. In today's 2024 Q3 performance briefing, jinyu bio-technology (600201.SH) chairman Zhang Chongyu admitted that the industry is currently at its lowest point in history. The company will maintain the existing market, and multiple new vaccines will be launched in the next two years, with new products expected to contribute to revenue growth next year.

In the first three quarters of this year, jinyu bio-technology's revenue and net income both decreased. Revenue was approximately 0.971 billion yuan, a year-on-year decrease of 20.36%; net income attributable to shareholders of the listed company was approximately 0.17 billion yuan, a year-on-year decrease of 41.19%.

As an upstream player in the breeding industry, jinyu bio-technology's performance fluctuates with the changes in the downstream breeding market. In 2023, the breeding industry was overall in a downturn, which directly put pressure on the animal husbandry industry. Since the beginning of this year, despite the recovery in the profits of the breeding industry, breeding companies have actively taken cost reduction and efficiency enhancement measures due to long-term heavy losses, leading to intensified competition in the animal husbandry industry. Especially in the field of traditional pig vaccines for foot-and-mouth disease and other governmental procurement, competition has intensified due to the continuous decline in national procurement scale.

The company's secretary of the board, Peng Min, told investors that the competition for pig vaccines is currently fierce. The company is adjusting its competition strategy, integrating group resources, establishing product lines for some key products, and connecting front, middle, and back operations. Through solution marketing, customer loyalty will be increased, and the overall competitiveness of pig vaccines will continue to enhance.

Zhang Chongyu told the Financial Associated Press reporter that the competition in the pig foot-and-mouth vaccine market is fierce, and the company is matching high-quality resources to maintain the existing market. In the future, through technological innovation, we will continuously promote the iteration of vaccines and the introduction of multi-valent vaccines to enhance the market competitiveness of our products.

Regarding the upcoming new product plans, Zhang Chongyu further stated that in the next two years, multiple new vaccines for pig diarrhea, swine fever E2, bovine nodular skin disease, small ruminant plague, brucella S19, bovine mycoplasma, and feline triple vaccines will be launched. It is expected that new products will contribute to a certain revenue increase next year, relieving the competitive pressure of existing products and balancing the company’s product revenue structure.

It is worth mentioning that the African swine fever vaccine is expected to become the next industry hit product. Currently, several listed companies have already made arrangements for it, and its progress is receiving high market attention.

Zhang Chongyu stated that the company relies on the P3 laboratory to establish an integrated R&D platform for African swine fever vaccines. At the same time, it conducts research and development along multiple technological routes including gene deletion vaccines, subunit vaccines, adenovirus vaccines, and mRNA vaccines. The African swine fever subunit vaccine developed in collaboration with the Institute of Biophysics of the Chinese Academy of Sciences is currently undergoing emergency evaluation experiments in accordance with the unified arrangement of the Ministry of Agriculture and Rural Affairs. The African swine fever mRNA vaccine has been validated in various aspects such as efficacy antigen screening, structural optimization, production process optimization, equipment selection, raw and auxiliary material screening, and quality control. The next step will continue to optimize in terms of antigen structure, delivery systems, and adjuvants.