FAST NEWS: Joinn Lab profit slumps on falling lab monkey prices
The latest: Joinn Laboratories (China) Co. Ltd. (6127.HK; 603127.SH), China’s leading non-clinical contract research organization (CRO), announced on Monday its revenue rose 15.1% to 575 million yuan ($78.6 million) in the third quarter, while its net profit dropped 9.2% to 237 million yuan.
Looking up: The company’s laboratory services business maintained steady growth, contributing a net profit of 309 million yuan, up 16% year-on-year.
Take Note: The company’s overall net profit decline owed to a 101 million yuan loss related to fair value changes for its biological assets.
Digging Deeper: During the Covid pandemic, lab monkeys that are one of Joinn’s main businesses were in short supply as companies rushed to develop Covid vaccines and drugs. The average price per monkey spiked from 15,000 yuan in the latter half of 2019 to nearly 200,000 yuan at the end of 2022, helping to pump up the value of Joinn’s biological assets. But the pandemic’s decline, combined with shifting policies for the use of wild animals, caused the value of Joinn’s biological assets to fall, negatively affecting its results.
Market Reaction: Joinn’s shares closed down 1.6% at HK$14.82 by the midday break on Tuesday. The stock now trades at the lower end of its 52-week range.
Translation by A. Au
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