Chinese Vaccine, Testing Reagent Companies Recorded Massive Profits Amid Lockdowns, Widespread Mandatory Testing

by EditorT


Vials of the CoronaVac vaccine, developed by China’s Sinovac Biotech, are displayed in Bangkok, Thailand on Feb. 24, 2021. (Lillian Suwanrumpha/AFP via Getty Images)

By Sophia Lam

The first quarter financial reports of COVID-19 vaccine and testing reagent manufacturers in China have shown huge profits compared to the same period last year.

China has experienced prolonged lockdowns and mandatory COVID-19 testing and vaccination nationwide since the outbreak of the pandemic. The Chinese regime’s top health body announced in April that China had administered a total of 3.27 billion doses of the COVID-19 vaccines as of March 31, 2022, at a cost of nearly $19 billion.

The Chinese National Health Commission said last month that China has conducted 11.5 billion nucleic acid tests nationwide so far, which means that each resident has been tested eight times.

Sinovac Biotech Ltd., Assure Tech (Hangzhou) Co., Ltd., and Hangzhou Alltest Biotech Co., Ltd. are among the top beneficiaries of all the vaccination and testing.

Sinovac Biotech Ltd: a leading Covid-19 vaccine producer in China, released its 2021 annual financial report in April 2022, recording an operating revenue of $19.37 billion for the year ending on Dec. 31, 2021, an increase 38 times higher than in 2020. Its net income in 2021 was $14.5 billion.

Sinovac’s coronavirus vaccine, CoronaVac, which is an inactivated (or “killed”) COVID-19 virus vaccine, is used in China and many developing countries.

In comparison with its revenue, the company’s R&D expenses for 2021 were $155 million.

Jin Dongyan, a professor at the School of Biomedical Sciences, LKS Faculty of Medicine of the University of Hong Kong, said that Sinovac benefits from policy support. “The state grants you a license, and then you have a chance to do something,”  Jin said, “[and that’s how Sinovac] has made a huge profit out of a small investment.”

The production cost is “very very low,” he told Sing Tao Daily, a pro-Beijing news outlet in Hong Kong, “(The cost of raw materials per dose) is basically a matter of a few yuan [less than a dollar].”

On Dec. 15, 2020, the Jiangsu Provincial Pharmaceutical (Medical Consumables) Sunshine Procurement and Comprehensive Supervision Platform issued a notice about the government procurement of COVID-19 vaccines, showing that Sinovac and Beijing Biological won the bid, at a price of 200 yuan [$30] per dose.

Assure Tech (Hangzhou) Co., Ltd: recorded a net profit of $405 million in the first quarter of 2022, an increase of 3147.87 percent over the first quarter of 2021, as reported by news portal Sina’s finance channel on May 16.

Assure Tech is a biotechnology company established in 2008 in Hangzhou, a city close to Shanghai, specializing in R&D, production, and sales of diagnostic reagents, point of care testing (POCT), and biological materials. Assure Tech is one of the 21 listed nucleic acid testing reagents producers that have reported colossal growth in net profits in the first quarter. According to Sina’s report, the net profits of 11 out of the 21 companies has increased by 100 percent year-on-year.

Epoch Times Photo

A medical worker in protective gear collects a swab sample from a chef for nucleic acid testing, during a lockdown in Shanghai, China, May 13, 2022. (Aly Song/Reuters)

Hangzhou Alltest Biotech Co., Ltd.: a company, specializing in rapid tests as well as POCT, recorded a net profit of $403 million, ranking No. 2 in terms of net profit increase, and a 598.18 percent increase in the first quarter of 2022 over the same period in 2021.

Huge Expense Going Forward

Beijing stated that as of March 31, 2022, China had spent $18.8 billion on Covid-19 vaccines, for 3.27 billion doses.

As of May 22, 2022, the National Health Commission disclosed that a total of 3.37 billion doses have been administered, representing an increase of 100 million doses in less than two months.

With the recent pandemic outbreak in China’s megacities including Shanghai, Beijing, and Tianjian, the regime has announced its plan to normalize the testing practice with fixed and mobile test booths in larger cities, which are within 15-minute walking distance from residential compounds.

If this policy is carried out, 320,000 sites need to be set up nationwide and China’s nucleic acid testing volume will increase to 83 million per day, reported the Chinese language edition of German international broadcaster, Deutsche Welle, on May 13.

“If all first- and second-tier cities in China implement normalized nucleic acid testing, the annual cost of testing will be as high as 1.7 trillion yuan [about $255 billion],” according to Deutsche Welle.

If true, these testing expenses will surpass the regime’s estimated military spending of 1.37 trillion yuan [about $205 billion] for 2021.

China rates cities in tiers based on their level of development, with the first tier being the most developed with a large population. Currently, China has 18 cities with a population of over 10 million and 91 cities with a population of over 5 million.

Chinese Tax Payers Pay for the Vaccines and Tests: Expert

Where will the money come from?

On April 2, the regime’s National Health Care Security Administration said in an interview with the official Chinese TV channel that the vaccines are provided to people for free and that the purchase expenses of COVID-19 vaccines have been shared by the medical insurance fund and public finance.

A China economy expert said the vaccines are not free.

Wei Ran, a financial analyst and YouTuber, said on May 19 in her self-media program “Economics Up and Down” that Chinese taxpayers have to shoulder the expenses.

“The public finance comes from tax collected from taxpayers, and medical insurance funds come from contributions of both employees and employers. In case medical insurance is used up, people have to contribute more,” Wei Ran said.

When the government runs out of money, it either collects more taxes, issues bonds, or prints more money, added Wei. “The ultimate payers are Chinese taxpayers,” she said, “I believe that, behind the zero-COVID constraints and tests, ordinary Chinese people are suffering physically and financially.”

A Chinese blogger with the pen name “zongguan tianxia” wrote in his post on May 15 that Chinese taxpayers saw an increase in their contributions to the medicare care fund and social welfare fund in 2021.

“Who are the controlling shareholders of these profitable vaccine companies? It is too sensitive to talk about,” he wrote, “but the fourth boost is on its way.”

Haizhong Ning contributed to the report.


Sophia Lam


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