A torrential rain in Taizhou, Jiangsu province, caused a storm at 688670.SH, a listed company on the A-share gem board.
On July 14, Kindick announced that due to the torrential rain in Taizhou Medical High-tech Zone (Gaogang District), where the company is located, the company's factory building was flooded and the production environment of some workshops.Affected by water seepage, after continuous environmental monitoring and comprehensive evaluation, the company decided to temporarily stop production of influenza vaccine workshop from July 15.
Kindick said all of the company's revenue came from tetravalent flu vaccines.The production and sales of influenza vaccine have obvious seasonal characteristics, and September-December is the peak season of influenza vaccine sales.
Because influenza virus strains may mutate every year, influenza vaccination is required every year and the validity period is only one year. During the flu season in the first half of this year, Kindick sold products for 2022, but during the 2023-2024 flu season, Kindick needed to sell products made in 2023.
Kindick said that at present, the company "does not have any inventory available for the sale of the new flu season that begins in the second half of 2023," and it is late to obtain strains and standards for the 2023-2024 flu season, and its production progress lags behind that of previous years.
This means that after the plant was flooded, Kindick faced the dilemma that there was no vaccine to sell during the peak selling season.
Kindick expects revenue to be zero in the third quarter of this year, making it impossible to assess the impact on full-year sales.
In July 2021, 002007.SZ, which works with Kindick, also issued a notice saying that in the rainstorm disaster in Henan, "the company's production and operation have been affected to a certain extent and are not expected to have a significant impact on the company's 2021 operating results."
As Xinxiang City was seriously affected by the flood in 2016, Hualan Biological raised the ground and treated the sewers in the winter of 2020, and it was completed in the spring of 2021, so the plant area is now relatively less affected.
In 2021, Hualan Vaccine (301207.SZ), a subsidiary of Hualan Biological Holdings, recorded revenue of 1.83 billion yuan, down 24.59% from the same period last year, and net profit of 620 million yuan, down 32.86% from the same period last year.
For the decline in performance during the reporting period, Hualan vaccine was attributed to "influenza sales season in the second half of the year."Affected by factors such as COVID-19 's enhanced vaccination and COVID-19 vaccination for children under 12 years old, the market sales of influenza vaccine have been greatly affected. The impact of torrential rains was not mentioned in the annual report.
After midday on July 17, Kindick closed the daily limit at 29.35 yuan per share, down more than 40% from its June 14 high of 52.41 yuan per share. Wind data show that as of the press release Jin Dick nearly five days of net financing outflow of more than 31.26 million yuan.