A medical worker takes a swab sample from a resident for nucleic acid test at a testing site in Chaoyang District, Beijing, capital of China, April 25, 2022. Starting from Monday, people who live and work in the Chaoyang District have to take nucleic acid test every two days till April 29 to curb the recent resurgence of COVID-19 here. (Xinhua）

 
Chinese Covid antigen detection reagent producers have enjoyed record business recently, with share prices surging against a backdrop of general market slump and profits largely surpassing last year’s level, as a resurgence of Covid across China supercharges demand for rapid test reagents. 

Many of those companies’ business performance have seen, or are expecting revenue to rocket up in the first quarter. For example, Wondfo, a Guangzhou-based manufacturer and seller of in vitro diagnostic products, saw revenue and profit grow by  276.87 percent and 481.32 percent, respectively, to 2.63 billion yuan ($401 million) and 904 million yuan on a yearly basis in the first quarter, according to financial data released by the company on Sunday. 

Based on the company’s business performance last year, Wondfo revenues in the first quarter were equivalent to nearly 80 percent of 2021 performance , while the company’s first-quarter net profits also  surpassed 2021 figures. 

Surging market demands for Covid detection products are a major reason behind the companies’ business surge. According to Wondfo, the firm had assisted in Hong Kong’s coronavirus prevention work since 2022 to provide Covid detection reagents, resulting in a massive boost to sales.  

Some other Covid detection reagent firm also reported strong forecasts for near term business. In-vitro diagnostics reagents company Wuhan EasyDiagnosis Biomedicine Co expected its profits to surge between 295.61 percent to 324.9 percent in the first quarter, the company disclosed recently, while the Hangzhou Alltest Biotech Co also expected its first-quarter profits to surge by 585 to 692 percent on a yearly basis. 

Surging business aside, many antigen detection reagent producers also saw their share price rocket up recently despite a general stock slump. On Monday, shares of China Everbest Machinery Industry Co surged to the trading limit of 10 percent on Monday. The company’s Covid antigen rapid test kit recently received certification from the EU. 

China is engaged in a lengthy and complex battle with a resurgent Omicron variant . On Sunday, the country’s financial hub Shanghai reported 2,472 confirmed local COVID-19 cases, while its capital Beijing also reported 14 newly confirmed local coronavirus cases.

As of Sunday, China had reported 29,178 confirmed Covid cases. 

But some experts also stressed that since the Covid antigen rapid test is not compulsory, it’s unlikely that the sector will be able to maintain the current rate of growth over the medium term. 

Global Times