China has been nearly three years into the pandemic, and the communist regime still upholds a draconian zero-COVID policy that has worsened the economic slowdown and caused widespread frustration across the nation.
While most businesses in China are struggling to survive or even on the verge of bankruptcy, some have made huge profits during the pandemic.
According to a recent Xin Tang Ren report, those are vaccine and COVID-19 testing companies.
Last year, while the market value of the internet sector fell sharply due to Beijing’s brutal tech crackdown, vaccine firms’ revenues went through the roof.
Among them, Kexing Biotech was the most profitable, with revenue reaching nearly $18 billion (128 billion yuan) and a net profit of about $13.3 billion (95.5 billion yuan). This indicates a 37 times surge in revenues from 2020.
Meanwhile, other firms — Zhifei Biological, CanSino Biologics, and Kangtai Biological — posted revenues of $4.2 billion (30 billion yuan), $600 million (4.3 billion yuan), and $502 million (3.6 billion yuan), respectively.
The outlet noted that COVID-testing companies performed even better. In the first semester of this year, while the vaccine sector saw a significant drop in sales, ten COVID-testing listed companies logged a total revenue of nearly $6.8 billion (48.5 billion yuan) and a net profit of about $2.8 billion (16.3 billion yuan).
Of which, Daan Gene registered the highest net profit of $600 million (4.3 billion yuan).
In addition, Dian Diagnostics, which had the most revenue, has performed PCR tests in 30 provinces, including Zhejiang , Tianjin , Jiangsu , Inner Mongolia, Shanghai, and Beijing.
Getein Biotech, the smallest lab on the list, claims they have developed PCR kits for pet testing.
Regarding PCR test pricing, China’s Healthcare Security Administration announced in May that prices should be $2.2 (16 yuan) or less for a single test and not higher than 70 cents (5 yuan) per individual for a group test.
Li Hengqing , a U.S.-based economist, commented that COVID testing is a lucrative business. Li pointed out that the total costs of nucleic acid testing for all employees in the city of Suzhou alone reached about $14 million (100 million yuan).
Li added that when COVID cases resurged this month, the Chinese regime ordered mass testing in many cities and districts. This, in turn, continued to weigh on the country’s ailing medical insurance system.
According to Li , Chinese citizens can take PCR tests for free as the government pays for all the costs. But the country is already in an economic downturn, with government expenditure exceeding fiscal revenue; Beijing can no longer afford this.
As a result, earlier this month, China News reported that a COVID testing agency in Henan Province stopped receiving COVID testing samples as of November 11 because the local government wasn’t paying the bills on time. This is a new sign of a financial crunch affecting Chinese local governments.
Some cities and counties even decided not to provide free COVID testing anymore.
According to Sixth Tone, those include Longnan in Gansu province, Guiyang in Guizhou province, Yueyang in Hunan province, Yibin in Sichuan province, and Huizhou in Guangdong province.
Under the continuous large-scale COVID testing to adhere to the zero-tolerance policy, the communist regime’s coffers have been strained. As a result, these testing firms have no choice but to pass on the cost of the tests to Chinese citizens instead of their government.