Shin Guan vaccine is free for all Chinese people to distribute, so how does it make 50 billion? Does it rely on exports, or does it come from subsidies?
China Biopharmaceuticals is one of the equity owners of Beijing Kexing, and people have projected Beijing Kexing's first-half earnings to be about 50 billion yuan, based on China Biopharms' first-half earnings. Isn't the new crown vaccine free? Why did Beijing Kexing make so much profit?
It is a national policy that the new crown vaccine is free of charge, but the cost of the vaccine as a necessary cost, such as the research and development costs of the researchers, the cost of raw materials for the new crown vaccine, and the cost of the production costs, are all amortized into the vaccine, and the agreed price is set by the state authorities. After that, the cost of the vaccine and the subsequent costs of vaccination, etc., were integrated together and borne by the medical insurance fund and the state finance **** together. In other words, all the vaccine supply companies, including Beijing Coxing and Beijing State Pharmaceuticals, are not losing money to make money, they have money to make, only that they won't make a lot of money, after all, as a Chinese company, they are also doing their share of what they should do. On top of that, due to the rebound of the second wave of delta virus, the demand from abroad has increased. There are also some manufacturers whose vaccines are licensed for sale and use in other countries, which means they can take orders from abroad, and China's vaccines are now recognized by many countries, so the number of foreign orders is also very large.
In the first half of 2021, Beijing Sinoguan Vaccine of Beijing State Pharmaceutical and Beijing Kexing Sinoguan Vaccine entered the emergency use list of the World Health Organization respectively, and these two companies, while selling Sinoguan Vaccine to many countries around the globe, also cooperated with some countries to run factories to locally produce vaccines and sell vaccines. Therefore, it is not surprising that Beijing Sinopharm and Beijing Kexing have made a lot of money because these enterprises have earned a lot of foreign exchange. In any case, they have relied on their scientific and technological strength to seize such opportunities. On the other hand, the health insurance fund is paid by those who take part in the health insurance scheme, and bears the responsibility of reimbursing medical expenses for the insured. Therefore, universal vaccination may result in insufficient health insurance funds in some areas. At this time, the state finance will allocate funds to subsidize. From this point of view, part of the revenue and profit of KXCW also comes from financial resources.