FAST NEWS: CanSino’s quarterly revenue rises, but loss also widens

The Latest: CanSino Biologics Inc. (6185.HK; 688185.SH) reported Monday its revenue rose 13.7% year-on-year to about 114 million yuan ($15.7 million) in the first quarter, while its net loss widened 21.9% to 170 yuan million.

Looking Up: The company’s R&D spending as a percentage of operating revenue decreased by 41.25 percentage points year-on-year during the period, mainly due to an increase in revenue and reduced investment for its Covid vaccine business.

Take Note: The company recorded an investment loss of 75.4 million yuan during the period as a result of carrying losses on its held investments.

Digging Deeper: Founded in 2009 as a vaccine manufacturer, CanSino was listed on the Hong Kong Stock Exchange in March 2019 and on the Shanghai STAR Market in August 2020. The company has a strong presence in Covid vaccines, with several approved in China, which helped it achieve significant profits in 2021 during the early pandemic years. But as the pandemic receded, demand for its vaccines declined significantly, resulting in a significant drop in revenue and large losses. Since then, the company has shifted its focus to developing other vaccines, and late last year it received more than $2 million in funding from the Gates Foundation to develop its recombinant poliomyelitis vaccine.

Market Reaction: CanSino’s Hong Kong shares fell on Tuesday to close down 5.2% at HK$17.82 by the midday break. The stock now trades at the middle to lower end of its 52-week range.

Translation by A. Au

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