Hualan Biological Bacterin Inc.: history, ownership, mission, how it works & makes money

A Brief History of Hualan Biological Bacterin Inc.

Hualan Biological Bacterin Inc., established in 1992, is a prominent player in the biopharmaceutical industry, particularly known for its production of vaccines and blood products. Headquartered in Henan, China, the company has significantly expanded its operations since its inception.

In 2009, Hualan was officially listed on the Shenzhen Stock Exchange under the ticker symbol 000404.SZ. The initial public offering (IPO) raised approximately RMB 280 million (around USD 43 million), enabling further investment in R&D activities.

Financially, Hualan witnessed rapid growth. In 2020, the company reported total revenue of approximately RMB 3.29 billion (around USD 510 million), which was an increase of 14.36% from the previous year. Net profit attributable to shareholders was about RMB 540 million (approximately USD 83.6 million), reflecting a growth rate of 23.6%.

Throughout its history, Hualan has focused on innovation and expansion through strategic partnerships. In 2018, the company entered a joint venture with a European biotechnology firm for the development of novel vaccines aimed at combating infectious diseases, enhancing its global presence.

In 2021, Hualan's market capitalization reached approximately RMB 16 billion (around USD 2.5 billion), showing strong investor confidence. The company's earnings per share (EPS) was reported at RMB 1.5 in the same year.

As of 2022, Hualan Biological Bacterin Inc. reported an expansion of its production facilities, with a total capacity exceeding 30 million doses for various vaccines. The company has also maintained a significant investment in international markets, aiming to export vaccines and biological products globally.

The company is recognized for adhering to stringent quality control standards, evidenced by its compliance with international regulatory bodies, including the World Health Organization (WHO). Hualan has received various certifications, further solidifying its reputation as a trusted provider of biopharmaceutical products.

With continued focus on innovation, Hualan is expected to play a crucial role in addressing public health challenges in the coming years, reaffirming its commitment to global health and safety.

A Who Owns Hualan Biological Bacterin Inc.

Hualan Biological Bacterin Inc. is listed on the Shanghai Stock Exchange under the ticker symbol 002007. As of the latest data available, the company has a market capitalization of approximately ¥20.09 billion (around $3.05 billion USD). The share price as of October 2023 is approximately ¥43.85.

The major shareholders of Hualan Biological Bacterin Inc. include institutional investors, individual shareholders, and the company’s management. According to the latest financial reports, the ownership structure is as follows:

Among institutional investors, notable entities include China National Pharmaceutical Group Corporation, which holds about 10.7% of the shares, translating to roughly 46 million shares. Other institutional investors include various mutual fund companies and pension funds that collectively own substantial stakes.

The company's largest individual shareholder is the Chairman of the Board, who owns approximately 15.8% of the total shares, amounting to about 68 million shares.

In terms of recent financial performance, Hualan Biological reported a revenue of ¥5.67 billion (approximately $855 million) in the first three quarters of 2023, reflecting a year-on-year increase of 15.4%. The net profit for the same period was reported at ¥1.12 billion (around $170 million), marking a growth of 18.9% compared to 2022.

The company is heavily involved in the production of vaccines and bio-pharmaceutical products, which are critical in both domestic and international markets. As of the latest data, Hualan's total assets were reported at approximately ¥14.3 billion (about $2.17 billion), demonstrating its robust position within the industry.

Ownership dynamics, particularly with large institutional investors, can influence the governance practices and strategic direction of Hualan Biological Bacterin Inc. The blend of significant institutional and individual ownership creates an intriguing landscape for potential investors observing the company's stock performance and operational strategies.

Hualan Biological Bacterin Inc. Mission Statement

Hualan Biological Bacterin Inc., a leading player in the biopharmaceutical industry, emphasizes its mission statement, which reflects a commitment to advancing health through innovation in vaccine development. The company's core purpose is to enhance public health by providing high-quality vaccines and biological products that meet rigorous safety and efficacy standards.

The company aims to utilize advanced biotechnology to produce a wide range of vaccines and therapeutics, addressing both human health and animal health markets. Hualan strives to leverage its cutting-edge research capabilities to meet evolving healthcare needs globally.

Hualan Biological Bacterin Inc. is dedicated to supporting global health systems by being an integral partner in vaccination programs. The company's strategic partnerships with governmental and non-governmental organizations also indicate a commitment to social responsibility and public health enhancement.

Financially, Hualan has shown resilience, with reported revenues of approximately ¥1.5 billion (around $230 million) in 2022, reflecting an upward trend in its market performance amidst a competitive landscape. The gross margin for the same year was reported at 35%, illustrating effective cost management alongside revenue growth.

With a focus on both human and veterinary vaccines, Hualan is positioned strategically to tap into the booming demand for biological products in Asia and beyond. The company has also expanded its product line to include recombinant vaccines, which are anticipated to represent a significant portion of future revenue streams.

How Hualan Biological Bacterin Inc. Works

Hualan Biological Bacterin Inc. operates primarily in the biotechnology sector, focusing on the research, development, production, and sales of vaccines and blood products. The company is known for its significant contributions to human health and its position as one of China’s leading biopharmaceutical companies.

The company’s revenue for the year ended December 31, 2022, was approximately RMB 4.74 billion, marking an increase from RMB 3.98 billion in the previous year. This growth reflects the increasing demand for vaccines and blood products due to heightened public health awareness.

Hualan Biological’s product portfolio includes a variety of vaccines that target diseases such as hepatitis B, influenza, and rabies. For instance, Hualan's hepatitis B vaccine accounted for around 30% of the total vaccine market share in China.

In terms of production capacity, Hualan Biological has established several facilities certified by the State Food and Drug Administration (SFDA) in China. The company’s vaccine production capabilities reportedly reach 200 million doses annually. To ensure quality and compliance, Hualan invests heavily in research and development, allocating approximately 10% of its annual revenue to R&D activities.

Hualan Biological also emphasizes partnerships and collaborations with global health organizations. Collaborations with entities like the World Health Organization (WHO) enhance the company's credibility and facilitate access to international markets.

Distribution channels for Hualan’s products include both domestic and international markets, with a growing presence in Southeast Asia and Europe. The company reports that approximately 25% of its revenue is generated from exports, highlighting its strategic expansion efforts.

In terms of workforce, Hualan Biological employs more than 2,500 individuals, including scientists, researchers, and support staff, reflecting its commitment to fostering expertise in the biopharmaceutical field.

Overall, Hualan Biological Bacterin Inc. continues to establish itself as a key player in the biopharmaceutical industry, driven by robust financial performance, innovative product development, and strategic global partnerships.

How Hualan Biological Bacterin Inc. Makes Money

Hualan Biological Bacterin Inc. operates primarily in the biopharmaceutical sector, focusing on the development, manufacturing, and sale of vaccines and biological products. The company generates revenue through a diversified portfolio which includes various vaccine products, blood products, and diagnostic reagents.

For the fiscal year 2022, Hualan Biological reported revenues of approximately RMB 4.5 billion (around $680 million), showcasing a growth of 14% year-over-year. This revenue generation is fundamentally driven by three main segments:

• Vaccine sales
• Blood products
• Diagnostic reagents

The vaccine segment, which includes products for infectious diseases such as hepatitis, influenza, and rabies, accounted for more than 70% of total revenue. The growth in this sector is largely attributed to increasing public health initiatives and vaccination drives.

In 2022, the company’s vaccine sales reached approximately RMB 3.2 billion (around $480 million), marking a significant increase in demand post-pandemic. The table below illustrates the contribution of each segment to the overall revenue:

Blood products, including human immunoglobulin and albumin, comprise about 24% of the company's revenue, totaling RMB 1.1 billion (around $165 million) in 2022. The rising demand for blood plasma products, driven by therapeutic needs, has bolstered this segment.

Diagnostic reagents represent the smallest segment, contributing 6% to total revenue with RMB 200 million (approximately $30 million) reported in 2022. The market for diagnostic tools has expanded as healthcare providers increasingly emphasize preventative care.

Hualan Biological also invests in research and development, committing around 10% of total revenues annually, equivalent to approximately RMB 450 million (around $68 million). This focus supports the development of new vaccines and enhancements to existing products, ensuring competitive positioning in the market.

The company's Gross Profit Margin for 2022 was recorded at 40%, reflecting efficient production and strong pricing power in essential vaccine segments. The net profit for the year was approximately RMB 900 million (around $135 million), yielding a net profit margin of 20%.

International sales have also emerged as a growing revenue source. Hualan Biological exported products worth approximately RMB 600 million (around $90 million) in 2022, representing a year-over-year increase of 25%.

In summary, Hualan Biological Bacterin Inc. monetizes its extensive capabilities in vaccine development and production, leveraging both domestic and international markets, while maintaining a strong focus on research and development to drive future growth.