Financial Performance - The company's operating revenue for Q3 2023 was approximately RMB 10.67 billion, representing a year-on-year increase of 0.30%[7] - The net profit attributable to shareholders for the same period was approximately RMB 2.76 billion, reflecting a year-on-year increase of 0.77%[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately RMB 2.95 billion, with a significant year-on-year increase of 23.76%[7] - The cash flow from operating activities for the year-to-date period reached approximately RMB 10.32 billion, showing a substantial increase of 33.82% compared to the previous year[7] - The basic earnings per share for Q3 2023 was RMB 0.94, an increase of 1.08% year-on-year[7] - The diluted earnings per share for the same period was also RMB 0.94, reflecting a significant increase of 16.05% year-on-year[7] - The company achieved operating revenue of RMB 29.54 billion in the first three quarters of 2023, representing a year-on-year growth of 4.0%[12] - Total operating revenue for the first three quarters of 2023 reached RMB 29.54 billion, an increase of 4.03% compared to RMB 28.39 billion in the same period of 2022[27] - Net profit for the first three quarters of 2023 was RMB 8.15 billion, representing a growth of 9.43% from RMB 7.45 billion in the same period of 2022[28] - The company reported a total profit of RMB 9.78 billion, an increase of 10.98% compared to RMB 8.82 billion in the same period of 2022[27] - The total comprehensive income for the first three quarters was RMB 7.60 billion, an increase of 13.63% from RMB 6.69 billion in the same period of 2022[30] Revenue Sources - Revenue from American clients reached RMB 19.4 billion, with a year-on-year growth of 36% after excluding COVID-19 commercialization projects[10] - Revenue from the top 20 global pharmaceutical companies reached RMB 11.82 billion, with a strong year-on-year growth of 43% after excluding COVID-19 projects[10] - The company’s revenue from existing clients accounted for nearly 99%, totaling RMB 29.12 billion, with a year-on-year growth of 26% after excluding COVID-19 projects[10] - Revenue from the testing business was RMB 4.85 billion, reflecting a year-on-year increase of 16.2%[14] - WuXi Biology achieved revenue of RMB 1.89 billion, a year-on-year increase of 6.5%, with an adjusted gross margin of 42.8%, up 1.6 percentage points year-on-year[15] - WuXi ATU's cell and gene therapy CTDMO business generated revenue of RMB 1.03 billion, an increase of 11.6% year-on-year, with an adjusted gross margin of -6.1%[16] - The new molecular biology-related revenue in the biology segment grew strongly by 35% year-on-year, contributing 25.9% to the overall biology business revenue[15] Cash Flow and Assets - The cash flow from operating activities increased by 33.82% year-on-year, attributed to stable revenue collection and optimized working capital management[9] - Cash and cash equivalents reached ¥9,448,561,845.32, up from ¥7,985,741,393.85, reflecting a growth of about 18.3%[24] - Total current assets amounted to ¥29,777,189,611.66, an increase of approximately 24.0% from ¥23,997,226,540.21 on December 31, 2022[24] - Total assets as of September 30, 2023, were ¥71,759,281,237.93, compared to ¥64,690,326,746.96 at the end of 2022, indicating a growth of around 10.0%[26] - The company’s cash balance at the end of the third quarter of 2023 was ¥9,446,351,731.41, compared to ¥9,213,956,461.06 at the end of the third quarter of 2022[33] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 202,845[19] - The company paid dividends amounting to RMB 2,649,084 thousand in 2023, which is an increase of 73.4% compared to RMB 1,529,442 thousand in 2022[39] Future Outlook - The company expects significant growth in TIDES business revenue in Q4 2023, projected to exceed 60% for the full year[13] - The company anticipates that revenue from non-COVID commercial production projects in Q4 2023 will exceed RMB 10 billion for the first time[18] - Excluding COVID-related projects, the company expects Q4 revenue growth of 29-34% and a full-year revenue increase of 25-26%[18] - The adjusted gross margin for the full year 2023 is projected to be between 41.7% and 42.1%, with net profit expected to exceed RMB 10 billion for the first time[18] - The company has adjusted its 2023 revenue growth forecast from 5-7% to 2-3% due to lower-than-expected demand in early drug development stages[18] Employee Information - The company employed a total of 41,148 staff, with 12,877 holding a master's degree or above, and 1,400 holding a doctoral degree or equivalent[5] - The company continues to focus on talent retention through recruitment, training, promotion, and incentives to maintain high service standards and industry leadership[5]

Financial Performance - Revenue for the first half of 2023 reached RMB 18,871.3 million, representing a 6.3% increase from RMB 17,756.3 million in the same period of 2022[8]. - Gross profit increased by 17.6% to RMB 7,555.7 million, with a gross margin of 40.0%, up from 36.2% in the previous year[8]. - Net profit attributable to shareholders rose by 14.6% to RMB 5,313.1 million, with a net profit margin of 28.2%, compared to 26.1% in 2022[8]. - Adjusted net profit attributable to shareholders was RMB 5,094.7 million, an 18.5% increase from RMB 4,300.7 million in the prior year[8]. - The company achieved revenue of RMB 18,871.3 million, a year-on-year increase of 6.3%, and net profit attributable to shareholders of RMB 5,313.1 million, up 14.6% year-on-year[9]. - The company reported a basic earnings per share of RMB 1.81, reflecting a 13.8% increase from RMB 1.59 in the same period last year[8]. - The adjusted basic earnings per share was RMB 1.73, an increase of 17.7% from RMB 1.47 in the previous year[8]. - Net profit for the period increased by 14.6% to RMB 5,356.9 million, with a net profit margin rising from 26.3% to 28.4%[24]. - The total comprehensive income for the period attributable to equity holders was RMB 4,806,967 thousand, an increase of 10.7% from RMB 4,342,460 thousand in the prior year[194]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 69,319.1 million, a 7.2% increase from RMB 64,690.3 million at the end of 2022[8]. - Total liabilities increased by 7.6% to RMB 19,120.4 million, compared to RMB 17,763.7 million in the previous year[8]. - Cash and cash equivalents rose by 20.1% to RMB 9,585.0 million, up from RMB 7,983.9 million at the end of 2022[8]. - The debt-to-asset ratio remained stable at 27.6%, slightly up from 27.5% at the end of 2022[8]. - As of June 30, 2023, total assets amounted to RMB 41,739,069 thousand, an increase from RMB 40,693,101 thousand as of December 31, 2022, representing a growth of approximately 2.57%[195]. - The company's net equity as of June 30, 2023, was RMB 50,198,782 thousand, compared to RMB 46,926,673 thousand at the end of 2022, marking an increase of around 4.83%[196]. - The total liabilities decreased from RMB 14,499,361 thousand to RMB 16,363,159 thousand, indicating a rise of approximately 12.87%[195]. Revenue Sources and Client Growth - The company added over 600 new clients in the first half of 2023, with active clients exceeding 6,000 over the past 12 months, leading to a 25% year-on-year increase in orders excluding COVID-19 commercialization projects[9]. - Revenue from U.S. clients reached RMB 12.37 billion, a 42% year-on-year increase when excluding COVID-19 projects; revenue from European clients was RMB 2.22 billion, up 19%[9]. - The WuXi Chemistry segment generated revenue of RMB 13,467.2 million, a 3.8% increase year-on-year, with a strong growth of 36.1% when excluding COVID-19 projects[10]. - The WuXi Testing segment reported revenue of RMB 3,091.0 million, an 18.7% year-on-year increase, with laboratory analysis and testing services contributing RMB 2,250 million, up 18.8%[12]. - The WuXi Biology segment achieved revenue of RMB 1,232.6 million, a 13.0% increase year-on-year, with new molecular-related revenue growing by 51%[13]. - The company’s D&M (Development and Manufacturing) revenue reached RMB 9.67 billion, a 2.1% increase year-on-year, with a strong growth of 54.5% when excluding COVID-19 projects[11]. - Approximately 99% of the company’s revenue came from existing clients, totaling RMB 18.65 billion, a 30% year-on-year increase when excluding COVID-19 projects[9]. Operational Efficiency and Cost Management - The net cash flow from operating activities for the six months ended June 30, 2023, was RMB 5,340.7 million, an increase of 41.7% compared to RMB 3,767.9 million for the same period in 2022, driven by stable revenue collection and optimized working capital management[25]. - The net cash used in investing activities for the six months ended June 30, 2023, was RMB 1,307.8 million, a decrease of 65.3% from RMB 3,770.1 million in the same period of 2022, primarily due to timing differences in project settlements leading to reduced capital expenditures[26]. - The net cash used in financing activities for the six months ended June 30, 2023, was RMB 2,612.8 million, an increase of 129.7% compared to RMB 1,137.6 million for the same period in 2022, mainly due to increased cash dividend payments during the reporting period[27]. - The company reported a decrease in cash outflow for the purchase of property, plant, and equipment to RMB 2,296,036 thousand in 2023 from RMB 4,359,857 thousand in 2022, indicating improved capital efficiency[199]. Research and Development - Research and development expenses for the period were RMB 667,045 thousand, slightly up from RMB 657,200 thousand in the previous year[193]. - The company is developing multiple potential FIC/BIC molecules for various cancers, with the first clinical trial application for the brain tumor probe BR-02 accepted by CDE and the BR-11 tumor treatment drug set to start IIT clinical trials in Q3 2023[41]. - The company is committed to leveraging cutting-edge technologies, such as medical big data and automated laboratories, to enhance operational efficiency and reduce drug development barriers[44]. Shareholder and Incentive Plans - The company has established a share incentive plan in place to motivate and retain employees[181]. - The 2022 profit distribution plan was approved, with a cash dividend of RMB 8.9266 per 10 shares to shareholders listed on June 13, 2023[52]. - The board approved the 2023 H-share incentive trust plan on April 24, 2023, to enhance the company's compensation policy[164]. - The company aims to enhance its long-term incentive mechanism to attract and retain talent, ensuring sustainable development[116]. Market Outlook and Strategic Goals - The global pharmaceutical market is expected to continue growing due to economic development, population growth, aging, increased healthcare spending, and rising health awareness[60]. - The demand for pharmaceutical R&D services is anticipated to grow rapidly as large pharmaceutical companies increase outsourcing and small to medium-sized companies seek integrated R&D services[60]. - The company aims to become a leading platform in the global pharmaceutical industry, providing comprehensive and integrated drug R&D and production services[61]. - In 2023, the company will focus on building capabilities and scale, enhancing its integrated enabling platform to support innovation for clients[62]. Risks and Challenges - The pharmaceutical R&D services industry is highly regulated, and any failure to adapt to changes in industry policies and regulations could have a negative impact on the company's operations[70]. - The company faces intensified competition in the global pharmaceutical R&D services market, particularly from large pharmaceutical companies and specialized CRO/CDMO institutions, which may possess stronger financial and technical capabilities[71]. - The loss of core technical personnel poses a risk to the company's competitive advantage and ongoing profitability, particularly if compensation and incentive mechanisms are not competitive[74].

Financial Performance - The company achieved revenue of RMB 18,871.3 million for the six months ended June 30, 2023, representing a year-on-year growth of 6.3%[4] - Net profit attributable to the parent company was RMB 5,313.1 million, an increase of 14.6% compared to the same period in 2022[4] - The adjusted net profit attributable to the parent company was RMB 5,094.7 million, reflecting an 18.5% year-on-year growth[4] - The company achieved a gross profit of RMB 7.56 billion, representing a year-on-year increase of 17.6%, with a gross margin of 40.0%[15] - The total comprehensive income for the period was RMB 4,843,228 thousand, compared to RMB 4,377,071 thousand in the same period of 2022, reflecting an increase of approximately 10.6%[90] - The company reported a significant increase in tax payable to RMB 819.1 million, up 58.2% due to increased taxable profits from subsidiaries during the reporting period[34] - The company reported a significant increase in accounts receivable and other receivables, which rose to RMB 9,237,398 thousand from RMB 7,590,361 thousand, reflecting an increase of about 21.7%[91] Revenue Breakdown - Revenue from U.S. clients reached RMB 12.37 billion, a 42% increase year-on-year when excluding COVID-19 commercialization projects[4] - Revenue from the top 20 global pharmaceutical companies was RMB 7.14 billion, showing a strong growth of 47% when excluding COVID-19 commercialization projects[5] - The WuXi Chemistry segment generated revenue of RMB 13,467.2 million, a 3.8% increase year-on-year[6] - The WuXi Testing segment reported revenue of RMB 3,091.0 million, reflecting an 18.7% year-on-year growth[8] - The TIDES business revenue reached RMB 1.33 billion, with a year-on-year growth of 37.9%[7] - Clinical CRO and SMO achieved revenue of RMB 850 million, a year-on-year increase of 18.3%, with SMO business revenue growing by 34.3%[9] - The biology segment generated revenue of RMB 1.23 billion, reflecting a year-on-year growth of 13.0%, with new molecular-related revenue increasing by 51%[10] Client Growth and Market Presence - The company added over 600 new clients in the first half of 2023, with active clients exceeding 6,000 over the past 12 months[4] - The company’s services to the top 20 global pharmaceutical companies accounted for approximately 38% of total revenue during the reporting period[47] - The early discovery platform contributed over 20% of new customers in the first half of 2023, serving over 1,600 clients with a compound library exceeding 90 billion molecules[10] Financial Position and Cash Flow - Net cash generated from operating activities was RMB 5,340.7 million for the six months ended June 30, 2023, an increase of 41.7% compared to RMB 3,767.9 million for the same period in 2022[23] - Net cash used in investing activities decreased by 65.3% to RMB 1,307.8 million for the six months ended June 30, 2023, primarily due to timing differences in capital expenditures[24] - Total liabilities as of June 30, 2023, were RMB 19,120.4 million, up from RMB 17,763.7 million as of December 31, 2022[25] - The company's total borrowings amounted to RMB 4,422.1 million as of June 30, 2023, all of which were fixed-rate borrowings[26] - The debt-to-asset ratio as of June 30, 2023, was 27.6%, compared to 27.5% as of December 31, 2022, indicating a stable and healthy financial position[27] Strategic Investments and R&D - The company is preparing for the commercialization of CAR-T products, with production expected to start in the first half of 2024[11] - The company aims to enhance its service capabilities in new molecular types such as PROTAC, oligonucleotide drugs, and peptide drugs, to seize new business opportunities[44] - The company is committed to continuous investment in global capabilities and scale to empower pharmaceutical innovation[43] - The company continues to focus on research and development in small molecule drugs, cell therapy, and gene therapy, positioning itself for future growth in these sectors[93] Risks and Challenges - The company recognizes potential risks from declining demand in the pharmaceutical R&D service market, which could negatively impact business if outsourcing trends slow down[70] - The pharmaceutical R&D service industry is highly regulated, with potential adverse impacts on the company's operations if it fails to adapt to changes in industry policies and regulations[71] - The global pharmaceutical R&D service market is becoming increasingly competitive, with threats from both established players and new entrants that may possess stronger financial and technical capabilities[72] - The company's main business revenue is primarily denominated in USD, exposing it to risks from significant appreciation of the RMB, which could increase costs and reduce order volumes[78] Shareholder Information - A total of 131,328 restricted A-shares were released from restrictions under the 2018 A-share incentive plan, accounting for approximately 0.005% of the company's total issued A-shares[49] - The 2022 profit distribution plan was approved, with a cash dividend of RMB 8.9266 per 10 shares for shareholders listed on June 13, 2023[52] - The company completed the redemption of all outstanding zero-coupon convertible bonds amounting to $300 million on April 4, 2023[59] - The board did not recommend any interim dividend for the reporting period[82] Operational Enhancements - The company expanded its testing laboratory by 55,000 square meters during the reporting period, enhancing its capabilities and capacity[46] - The company is focused on enhancing its product offerings through continuous innovation and development of new technologies[132] - The company will maintain the highest international quality standards and continuously improve operational processes to ensure compliance and prevent accidents[66]

Financial Performance - The company reported a total revenue of RMB 8,963,741,607.53 for Q1 2023, representing a year-on-year increase of 5.77%[6] - Net profit attributable to shareholders reached RMB 2,168,128,379.15, marking a significant increase of 31.97% compared to the previous year[6] - The adjusted net profit attributable to shareholders, excluding non-recurring gains and losses, was RMB 1,868,816,896.68, reflecting a 9.02% increase year-on-year[6] - Basic earnings per share were RMB 0.74, up by 32.14% year-on-year, while diluted earnings per share were RMB 0.72, increasing by 35.85%[6] - Total comprehensive income for Q1 2023 was RMB 2.17 billion, up from RMB 1.65 billion in Q1 2022, marking a 31.6% increase[28] - Net profit for Q1 2023 was RMB 2.19 billion, up 31.8% from RMB 1.66 billion in Q1 2022[27] - Operating profit for Q1 2023 was RMB 2.62 billion, compared to RMB 2.00 billion in Q1 2022, reflecting a 30.6% increase[26] - The company reported a net profit of 2,168,129 thousand RMB for Q1 2023, compared to 1,642,947 thousand RMB in Q1 2022, which is an increase of about 32%[38] Cash Flow and Assets - The net cash flow from operating activities surged to RMB 3,027,329,258.18, an impressive increase of 508.55% compared to the same period last year[6] - Cash flow from operating activities for Q1 2023 was RMB 3.03 billion, significantly higher than RMB 497.47 million in Q1 2022[30] - The company incurred a net cash outflow from investing activities of RMB 1,222,881,147.89 in Q1 2023, contrasting with a net inflow of RMB 1,474,723,859.12 in Q1 2022[31] - The company’s financing activities generated a net cash inflow of RMB 148,902,292.20 in Q1 2023, down from RMB 387,302,550.67 in Q1 2022[31] - The company’s cash and cash equivalents increased to RMB 9,867,844,029.10 by the end of Q1 2023, up from RMB 7,983,904,283.09 at the beginning of the quarter[34] - The company's cash and cash equivalents increased to 9,867,844 thousand RMB by the end of Q1 2023, compared to 7,026,525 thousand RMB at the end of Q1 2022, marking a growth of about 40%[37] Revenue Breakdown - Revenue from the chemical business reached RMB 6,432.8 million, a 5.1% increase compared to RMB 6,118.0 million in the same period last year[12] - The testing business generated revenue of RMB 1,452.9 million, reflecting a year-on-year growth of 13.6%[13] - The biology business achieved revenue of RMB 577.0 million, an increase of 8.3% compared to RMB 532.6 million in the same period of 2022[14] - The cell and gene therapy CTDMO business generated revenue of RMB 324.5 million, up 8.7% from RMB 298.6 million year-over-year[15] - Revenue from U.S. customers was RMB 5.41 billion, a 3% increase year-on-year, and a 22% increase when excluding COVID-19 commercialization projects[10] - Revenue from European customers grew by 19% year-on-year, reaching RMB 1.44 billion[10] Assets and Liabilities - Total assets as of March 31, 2023, amounted to RMB 68,188,088,624.62, a 5.41% increase from the end of the previous year[6] - The total liabilities as of March 31, 2023, were ¥18,357,086,099.46, compared to ¥17,763,654,011.21 at the end of 2022, representing a rise of approximately 3.3%[24] - The total current liabilities rose from 14,499,361 thousand RMB as of December 31, 2022, to 15,786,216 thousand RMB as of March 31, 2023, indicating an increase of approximately 8.87%[35] - The total equity attributable to shareholders increased to ¥49,474,882,627.12 from ¥46,589,953,393.31, showing a growth of approximately 6.3%[25] Business Operations and Strategy - The company serves over 6,000 active clients from more than 30 countries through 32 operational bases globally[4] - The workforce consists of 43,800 employees, with 13,147 holding master's degrees or higher, and 1,426 holding doctoral degrees[4] - The company continues to focus on talent retention through recruitment, training, and promotion to maintain high service standards and industry leadership[5] - The company added over 310 new customers in Q1 2023, bringing the total active customer count to over 6,000[10] - The company expects a revenue growth of 5-7% for the full year of 2023, based on current order status[17] - The company has completed IND applications for 175 projects and obtained CTA approvals for 150 projects as of the end of Q1 2023[16] - The company has developed a new drug for treating COVID-19, which has been approved for market launch in March 2023[16] - The company anticipates achieving approximately 50% compound growth rate in revenue from drug sales sharing agreements over the next decade[16] Research and Development - R&D expenses increased to RMB 357.30 million in Q1 2023, up from RMB 280.04 million in Q1 2022, representing a 27.6% rise[26] - The company has delivered over 260 ADC drug projects, establishing a comprehensive capability platform from early discovery to preclinical efficacy research[14] - The company is supporting 68 projects in the CTDMO service platform, including 52 preclinical and clinical phase I projects[15] - The new molecular-related revenue in the biology segment grew strongly by 40%, accounting for 25.3% of the total biology business revenue[14]

Financial Performance - In 2022, WuXi AppTec achieved a record revenue growth of 71.8% year-on-year, with total revenue reaching RMB 39,354.8 million compared to RMB 22,902.4 million in 2021[13]. - The adjusted net profit attributable to the parent company increased by 83.2% year-on-year, amounting to RMB 9,399.3 million, up from RMB 5,131.3 million in 2021[13]. - The gross profit margin improved to 36.9% in 2022, compared to 36.1% in the previous year[15]. - The company reported a net profit margin of 22.4% for the parent company, slightly up from 22.3% in 2021[15]. - The company achieved a revenue of RMB 39,354.8 million, representing a year-on-year growth of 71.8%[16]. - The net profit attributable to shareholders reached RMB 8,813.7 million, with a year-on-year increase of 72.9%[16]. - The company reported a net profit of RMB 8,902.6 million for 2022, a 73.3% increase from 2021, with a net profit margin rising from 22.4% to 22.6%[40]. - The company achieved a gross profit of RMB 14,506.5 million in 2022, an increase of 75.5% compared to the same period in 2021, with a main business gross profit of RMB 14,490.8 million and other business gross profit of RMB 15.7 million[26]. - The gross profit margin for the main business was 36.9%, up 0.8 percentage points from 2021[26]. Business Growth and Client Acquisition - WuXi AppTec's CRDMO and CTDMO business models continue to drive growth and meet increasing global customer demands[13]. - The company added over 1,400 new clients, serving more than 5,950 active clients from over 30 countries[16]. - Revenue from US clients was RMB 25,884 million, up 113% year-on-year; revenue from Chinese clients was RMB 7,526 million, up 30%[16]. - The chemical business (WuXi Chemistry) generated RMB 28,849.7 million, a 104.8% increase from RMB 14,087.2 million in 2021[18]. - The TIDES business saw a revenue increase of 337%, reaching RMB 1,578 million, with the number of service molecules growing by 91%[20]. Financial Stability and Assets - Total assets increased to RMB 64,690.3 million in 2022, up from RMB 55,127.4 million in 2021[15]. - The company maintained a debt-to-asset ratio of 27.5%, down from 29.7% in the previous year, indicating improved financial stability[15]. - The company’s cash and cash equivalents stood at RMB 7,983.9 million, compared to RMB 8,175.3 million in 2021[15]. - Total liabilities as of December 31, 2022, were RMB 17,763.7 million, an increase from RMB 16,369.9 million in 2021, with 40.8% attributed to accounts payable and other payables[43]. Research and Development - The company’s R&D expenses rose to RMB 1,614.0 million, a 71.3% increase from 2021, focusing on new molecular types such as PROTAC and gene therapy[35]. - The company aims to enhance its service capabilities for new molecular types such as PROTAC, oligonucleotide drugs, peptide drugs, and gene therapy, capturing new business opportunities[98]. Sustainability and ESG Commitment - The company emphasized its commitment to ESG principles, integrating them into all aspects of its operations[13]. - The company received silver certification from EcoVadis for sustainability ratings across its three bases in Changzhou, Shanghai, and Wuxi[20]. - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by 30% by 2025[120]. Future Outlook and Guidance - For 2023, WuXi Chemistry expects revenue growth of 36-38%, while other segments anticipate a 20-23% increase, with WuXi DDSU projected to decline over 20%[24]. - The company is confident in its future development and maintaining its industry-leading position[13]. - The company expects adjusted non-IFRS gross profit to grow by 12-14% in 2023, contributing to the growth of adjusted non-IFRS profit attributable to equity holders[52]. Corporate Governance and Management - The management team possesses extensive industry experience and a strong international perspective, enabling the company to quickly adapt to market trends and client needs[73]. - The company has established a robust internal control system to ensure compliance with laws and regulations, but risks remain due to the complexity of managing multiple subsidiaries[104]. - The board consists of 13 members, including 6 executive directors, ensuring diverse leadership and strategic oversight[113]. Risks and Challenges - The company faces risks from a potential decline in demand for pharmaceutical R&D services, which could negatively impact business if industry trends slow down[101]. - Regulatory changes in the pharmaceutical R&D services industry pose a risk, requiring the company to adapt its strategies to comply with evolving policies[102]. - Increased competition in the global pharmaceutical R&D services market could threaten the company's competitive advantages if it fails to strengthen its R&D capabilities[103]. Shareholder Communication and Dividends - The company has established a shareholder communication policy to ensure proper responses to shareholder concerns and feedback[172]. - The company proposed a cash dividend of RMB 8.9266 per 10 shares for the year 2022, totaling RMB 2,644,137,750.80, compared to RMB 1,529,441,704.14 in 2021[176].

Financial Performance - The company achieved a revenue of RMB 39,354.8 million for the year ended December 31, 2022, representing a year-on-year growth of 71.8%[4]. - The net profit attributable to shareholders was RMB 8,813.7 million, an increase of 72.9% compared to the previous year[4]. - The gross profit reached RMB 14,506.5 million, with a gross margin of 36.9%, slightly up from 36.1% in 2021[2]. - The adjusted net profit attributable to shareholders was RMB 9,399.3 million, marking an 83.2% increase from the previous year[2]. - The net profit for the year increased by 73.3% to RMB 8,902.6 million, with a net profit margin of 22.6%[28]. - Overall gross profit for the company increased by 75.5% to RMB 14,506.5 million in 2022, with a gross margin of 36.9%[16]. - The total comprehensive income for the year was RMB 9,195,719 thousand, compared to RMB 4,625,059 thousand in the previous year, indicating a growth of approximately 98%[116]. - The company reported a pre-tax profit of RMB 10,618,477 thousand for the year ended December 31, 2022[124]. - The total revenue for the year ended December 31, 2022, was RMB 39,354,778 thousand, representing an increase from RMB 22,902,385 thousand in the previous year, which is a growth of approximately 72%[115]. Revenue Breakdown - Revenue from US clients was RMB 25,884 million, a significant increase of 113% year-on-year[5]. - Revenue from new clients amounted to RMB 1,573 million, contributing to a total revenue from existing clients of RMB 37,781 million, which grew by 77%[5]. - The chemical business segment generated RMB 28,849.7 million, reflecting a remarkable growth of 104.8% year-on-year[7]. - The revenue from the top 20 global pharmaceutical companies was RMB 18,421 million, showing a substantial growth of 174% year-on-year[5]. - The TIDES business achieved a revenue of RMB 1.578 billion, representing a year-on-year growth of 337%, with the number of service molecules increasing by 91% to 189[9]. - The testing business generated revenue of RMB 5.719 billion, a 26.4% increase from RMB 4.525 billion in the same period last year, with laboratory analysis and testing services growing by 36.1%[10]. - The biology segment reported revenue of RMB 2.475 billion, up 24.7% from RMB 1.985 billion, with new molecular-related services growing by 90%[11]. - The cell and gene therapy CTDMO business achieved revenue of RMB 1.308 billion, a 27.4% increase from RMB 1.026 billion, with testing services growing by 36%[12]. Client and Market Expansion - The company added over 1,400 new clients, serving more than 5,950 active clients globally across 30 countries[4]. - The company is expanding its international presence with new bases planned in Singapore and a production facility underway in Middletown, Delaware, USA[62]. - The company hosted 7 online events during the reporting period, with a total registration of over 28,000 participants, including industry leaders and patients, focusing on major challenges and opportunities in the industry[63]. - The company completed 77 live broadcasts covering all five major business segments, reaching over 220,000 views across more than 20 countries and regions, including all 34 provincial-level administrative regions in China[63]. Investment and R&D - Research and development expenses rose by 71.3% to RMB 1,614.0 million in 2022, reflecting increased investment in new molecular types[23]. - The company plans to invest heavily in new molecular types such as PROTAC, oligonucleotide drugs, and gene therapy, aiming to enhance its service capabilities and seize new business opportunities[89]. - The company has established a comprehensive "end-to-end" drug development service platform, benefiting from the rapid growth of the global drug development outsourcing market[59]. - The company reported a total of 973 new molecules in its pipeline, including 1 commercialized molecule, with a cumulative total of 2,341 molecules, comprising 50 commercial projects and 57 in clinical phase III[9]. Financial Management and Liabilities - The company's net cash flow from operating activities for 2022 was RMB 10,229.7 million, an increase of 133.6% compared to 2021, driven by rapid revenue growth and improved operational efficiency[29]. - The net cash used in investing activities for 2022 was RMB 9,311.2 million, up 101.2% from 2021, primarily due to increased capital expenditures for projects in various cities and investments in joint ventures[30]. - The total liabilities as of December 31, 2022, amounted to RMB 17,763.7 million, up from RMB 16,369.9 million in 2021, with 40.8% being accounts payable and other payables[31]. - The debt-to-asset ratio as of December 31, 2022, was 27.5%, down from 29.7% in 2021, reflecting an increase in retained earnings and net assets[34]. - The company has no significant contingent liabilities as of December 31, 2022[34]. Dividend and Shareholder Returns - The company proposed a final dividend of RMB 8.9266 per 10 shares, subject to shareholder approval[3]. - The board proposed a profit distribution plan for the year ending December 31, 2022, with a cash dividend of RMB 8.9266 per 10 shares, totaling RMB 2,644,137,750.80 (including tax)[107]. - The proposed profit distribution plan for 2022 includes a total dividend payout of RMB 2,644,137,750.80, translating to a dividend of RMB 0.89266 per share, an increase from RMB 0.5174 per share in 2021[140]. Risks and Challenges - The company faces risks from potential declines in demand for pharmaceutical R&D services, which could negatively impact its business[92]. - Regulatory changes in the pharmaceutical R&D services industry pose a risk, as the company must adapt to evolving policies and regulations[93]. - Increased competition in the global pharmaceutical R&D services market could threaten the company's competitive advantages if it fails to enhance its R&D capabilities[94]. - The company is exposed to foreign exchange risk, particularly if the RMB appreciates significantly, which could increase costs and lead to a decrease in customer orders[99]. Corporate Governance - The board confirmed adherence to corporate governance codes, although there was a deviation regarding the separation of the roles of Chairman and CEO, which are currently held by the same individual[110]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements and internal controls for the reporting period[112].

Financial Performance - The company's operating revenue for Q3 2022 reached approximately RMB 10.64 billion, representing a year-on-year increase of 77.76%[6] - Net profit attributable to shareholders for the same period was approximately RMB 2.74 billion, reflecting a significant increase of 209.11% year-on-year[6] - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately RMB 2.38 billion, up 143.31% compared to the previous year[6] - The basic earnings per share for Q3 2022 was RMB 0.93, an increase of 210.00% year-on-year[6] - The diluted earnings per share was RMB 0.81, showing a year-on-year increase of 170.00%[6] - The company's operating revenue for the first three quarters of 2022 reached RMB 28,394.56 million, representing a year-on-year increase of 71.9%[13] - The net profit attributable to shareholders of the listed company for the current reporting period was RMB 2,091.10 million, with a year-to-date figure of RMB 1,071.20 million[8] - The company achieved a basic earnings per share of RMB 2.10 for the current reporting period, compared to RMB 1.07 for the year-to-date[9] - Total revenue for the first three quarters of 2022 reached ¥28,394,561,790.41, a significant increase of 72% compared to ¥16,521,369,391.37 in the same period of 2021[30] - Operating profit for the first three quarters of 2022 was ¥8,842,196,326.34, up from ¥4,302,311,952.74 in 2021, reflecting a growth of approximately 105.5%[30] - Net profit attributable to shareholders for the first three quarters of 2022 was ¥7,377,913,928.98, compared to ¥3,562,226,936.53 in 2021, indicating an increase of about 106%[31] Assets and Liabilities - The total assets attributable to shareholders reached approximately RMB 65.75 billion, a year-on-year increase of 19.27%[6] - The equity attributable to shareholders was approximately RMB 44.81 billion, reflecting a year-on-year increase of 16.42%[6] - Total liabilities as of September 30, 2022, amounted to ¥20,612,129,366.80, up from ¥16,369,925,768.22 at the end of 2021, representing a growth of approximately 26.5%[29] - The company's total equity reached ¥45,137,087,394.70 as of September 30, 2022, compared to ¥38,757,462,615.81 at the end of 2021, marking an increase of about 16.3%[29] - The company's total assets reached RMB 65,749,216,761.50 as of September 30, 2022, compared to RMB 55,127,388,384.03 at the end of 2021[27] - The company's total current liabilities increased to ¥17,473,856,415.48 as of September 30, 2022, from ¥12,984,593,869.40 in 2021, representing a growth of about 34.3%[28] Revenue Sources - Revenue from the chemical business (WuXi Chemistry) was RMB 20,816.66 million, up 106.6% from RMB 10,077.19 million in the same period last year[13] - Revenue from U.S. customers was RMB 18,991 million, a year-on-year increase of 110%[12] - Revenue from existing customers was RMB 27,546 million, reflecting an 80% year-on-year growth[12] - The company’s revenue from the top 20 global pharmaceutical companies was RMB 12,918 million, marking a 21% year-on-year increase[12] Customer and Workforce - The company served over 5,900 active clients from more than 30 countries as of the end of the reporting period[5] - The workforce comprised 45,646 employees, with 13,488 holding master's degrees or higher, and 1,379 holding doctoral degrees[5] - The company added over 1,000 new customers in the first three quarters of 2022, with active customer numbers exceeding 5,900[12] Research and Development - Research and development expenses for the first three quarters of 2022 were ¥1,089,268,152.01, compared to ¥644,205,887.55 in 2021, reflecting a rise of approximately 69.2%[30] - The company’s CRDMO service revenue continues to grow rapidly, with a total of 2,123 new drug molecules involved in chemical business services as of Q3 2022, including 53 in Phase III, 288 in Phase II, and 1,738 in preclinical stages[14] - The number of customers for D&M services in the oligonucleotide and peptide drug sector reached 97, a year-on-year increase of 98%, with service revenue reaching RMB 1.1 billion, a year-on-year growth of 406%[14] Cash Flow and Investments - The company reported a net cash flow from operating activities of RMB 14,238 million for the year-to-date[9] - The net cash flow from operating activities for the first three quarters of 2022 was RMB 770,965.05 million, representing a year-on-year increase of 142%[20] - The company reported a net cash outflow from investing activities of RMB 5,846,717 thousand in the first three quarters of 2022, compared to RMB 4,161,234 thousand in the same period of 2021[41] - The company paid dividends totaling RMB 1,529,442 thousand in the first three quarters of 2022, an increase from RMB 892,980 thousand in the same period of 2021[42] Future Outlook and Plans - The company announced plans for a new base in Singapore and commenced construction of a new production base in Middletown, Delaware, to better meet global partner needs[14] - The company adjusted its full-year revenue growth target for 2022 from 68-72% to 70-72%, reflecting confidence in its CRDMO and CTDMO business models[20] - The company emphasizes that its 2022 performance outlook is based on current order status and various external factors, indicating significant uncertainty[20]

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 17,756.3 million, representing a 68.5% increase from RMB 10,536.6 million in the same period of 2021[5] - Gross profit for the same period was RMB 6,426.8 million, up 65.5% from RMB 3,883.7 million year-on-year[5] - The net profit attributable to shareholders for the six months was RMB 4,635.7 million, a 73.3% increase from RMB 2,675.1 million in the prior year[5] - The overall gross profit for the first half of 2022 was RMB 6,426.8 million, a year-on-year increase of 65.5%, with a gross margin of 36.2%, down 0.7 percentage points from the previous year[22] - The company raised its full-year revenue growth target for 2022 from 65-70% to 68-72%, reflecting confidence in achieving strong growth[20] - Adjusted EBITDA for the six months ended June 30, 2022, was RMB 6,483.1 million, up from RMB 3,942.4 million in 2021, representing a growth of 64.5%[44] - The adjusted profit attributable to the parent company for the six months ended June 30, 2022, was RMB 4,635.7 million, compared to RMB 2,675.1 million in 2021, reflecting an increase of 73.1%[45] Customer Base and Revenue Sources - The number of active customers exceeded 5,850, with approximately 650 new active customers added during the reporting period[7] - Revenue from existing clients amounted to RMB 17,366 million, reflecting a year-on-year increase of 79%; revenue from new clients was RMB 391 million[9] - Revenue from US clients reached RMB 11,909 million, up 104% year-on-year; revenue from Chinese clients was RMB 3,175 million, an increase of 27%; revenue from European clients was RMB 1,853 million, growing by 24%[9] - The top 20 global pharmaceutical companies accounted for 44.2% of total revenue, a year-on-year increase of 165%[7] - Long-tail customers contributed 55.8% of total revenue, reflecting a 31% year-on-year growth[7] Segment Performance - WuXi Chemistry segment generated revenue of RMB 12,974.1 million, a 101.9% increase compared to RMB 6,425.8 million in the same period of 2021[11] - WuXi Testing segment reported revenue of RMB 2,605.0 million, up 23.6% from RMB 2,107.2 million year-on-year, with laboratory analysis and testing services growing by 34.6%[15] - WuXi Biology segment's revenue reached RMB 1,090.7 million, an 18.5% increase from RMB 920.2 million in the previous year[11] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 61,913.5 million, a 12.3% increase from RMB 55,127.4 million at the end of 2021[5] - Total liabilities as of June 30, 2022, amounted to RMB 19,520.1 million, up from RMB 16,369.9 million as of December 31, 2021, with a debt-to-asset ratio of 31.5%[36] - The company's cash and cash equivalents decreased by 13.2% to RMB 7,094.2 million from RMB 8,175.3 million[5] Research and Development - R&D expenses grew from RMB 404.4 million to RMB 657.2 million, reflecting a year-on-year increase of 62.5%, as the company continued to invest heavily in R&D capabilities[29] - The company is actively developing new molecular types, with 15 preclinical projects initiated in the first half of 2022, including peptide-drug conjugates and protein degraders[19] - The company completed 9 IND submissions and obtained 19 clinical trial approvals in the first half of 2022, with a cumulative total of 153 IND submissions and 129 clinical trial approvals[19] Operational Efficiency and Investments - Cash generated from operating activities increased by 82.6% to RMB 3,767.9 million, driven by strong revenue growth and improved operational efficiency[33] - Cash used in investing activities rose by 51.7% to RMB 3,770.1 million, primarily due to increased capital expenditures for project construction[35] - The company plans to utilize cash flow from operations, bank loans, and funds raised from convertible bonds and new shares to meet operational and investment needs[42] Financial Risks and Management - The company faced foreign exchange risks due to transactions in multiple currencies, impacting its financial performance[42] - The company reported a significant increase in income tax expenses, rising 77.4% to RMB 865.2 million, attributed to higher taxable profits from subsidiaries[32] - The company has established a robust internal control system to ensure compliance with relevant laws and regulations, although risks remain due to the number of subsidiaries[99][100] Shareholder and Equity Management - A total of 5,916,743 restricted A-shares were released from restrictions, accounting for approximately 0.2001% of the company's total issued share capital at that time[72] - The company approved the repurchase of 4,517 restricted A-shares at a price of RMB 18.17 per share due to the departure of three incentive targets before the lock-up period expired[136] - The company has not conducted any fundraising activities during the reporting period[132] Strategic Initiatives and Future Plans - The company aims to enhance its drug development service platform to meet diverse customer needs and capitalize on the rapid growth of the global drug development outsourcing market[59] - The company plans to invest in new molecular types such as PROTAC, oligonucleotide drugs, and gene therapies to seize new business opportunities[60] - The company is exploring cutting-edge technologies like AI and big data to improve drug development efficiency and reduce barriers[61] Employee Incentives and Management - The company is committed to attracting and retaining top talent through performance-based incentives, training opportunities, and competitive compensation packages[93] - The company has implemented various employee incentive plans since 2015, including stock option plans for different employee categories[172] - The total number of shares granted under the 2015 stock option incentive plan was 16,200,000, with an exercise price of RMB 8.00[173]

Financial Performance - Revenue for 2021 reached RMB 22,902,385 thousand, a 38.5% increase from RMB 16,535,431 thousand in 2020[7] - Gross profit for 2021 was RMB 8,265,515 thousand, with a gross margin of 36.1%, down from 37.8% in 2020[7] - Net profit attributable to shareholders for 2021 was RMB 5,097,155 thousand, representing a 72.1% increase from RMB 2,960,235 thousand in 2020[7] - Adjusted EBITDA for 2021 was RMB 7,623,885 thousand, with an EBITDA margin of 33.3%, up from 28.4% in 2020[7] - Basic earnings per share for 2021 was RMB 1.75, compared to RMB 1.06 in 2020, reflecting a 65.1% increase[7] - The adjusted net profit margin for 2021 was 22.4%, slightly up from 22.0% in 2020[7] - The company reported an adjusted net profit attributable to shareholders of RMB 5,131,309 thousand for 2021, up from RMB 3,637,277 thousand in 2020[7] - The company achieved operating revenue of RMB 22,902.4 million in 2021, representing a year-on-year growth of 38.5%[9] - The net profit attributable to the parent company reached RMB 5,097.2 million, a year-on-year increase of 72.2%[9] - The company reported a significant increase in revenue, achieving a total of 51 billion RMB for the fiscal year 2021, marking a year-on-year growth of 20%[126] Business Expansion and Investments - The company plans to invest RMB 90–100 billion in capital expenditures in 2022 to enhance new molecular research and development capabilities[5] - The company aims to strengthen its global capabilities and scale, continuing to support partners in accelerating new drug development[5] - The company expanded its global operations with 31 operational bases and branches, serving over 5,700 active clients from more than 30 countries[9] - The company is constructing a new formulation and API production base in Delaware, USA, expected to be operational by 2025[11] - The acquisition of UK-based Oxgene was completed, enhancing the company's capabilities in cell and gene therapy production[12] - The company is investing in new capabilities such as PROTAC, oligonucleotides, and antibody-drug conjugates to capture emerging business opportunities[70] - The company completed the acquisition of UK-based Oxgene, enhancing its capabilities in cell and gene therapy with the TESSA™ technology and XLenti solutions, which significantly improve production efficiency and reduce costs[72] - The company is expanding its market presence in Europe and North America, targeting a 30% increase in market share within the next two years[130] Revenue Sources and Client Base - Revenue from US clients was RMB 12,146 million, up 37.1% year-on-year; revenue from European clients was RMB 3,719 million, up 40.3%[10] - Revenue from existing clients amounted to RMB 21,295 million, reflecting a growth of 28.8% year-on-year, while revenue from new clients was RMB 1,608 million[10] - The company achieved revenue from small molecule drug discovery services reached RMB 6,167.5 million, growing by 43.2% year-on-year[15] - The revenue from development and manufacturing (D&M) services was RMB 7,919.7 million, reflecting a 49.9% year-on-year increase[15] - The company added over 1,660 new clients, serving more than 5,700 active clients from over 30 countries, with approximately 29.4% of revenue coming from the top 20 global pharmaceutical companies[73] Operational Efficiency and Cost Management - The company anticipates a certain degree of revenue decline in 2022 due to upgrades in domestic new drug development services[19] - The management team emphasized a focus on operational efficiency, aiming to reduce costs by 15% over the next fiscal year through process optimization[133] - The company is committed to improving customer satisfaction through high-quality, efficient services and strict intellectual property protection[105] - The company aims to enhance its R&D service platform capabilities and scale, with plans to build and expand facilities in various locations, including Nantong, Wuhan, Changzhou, and the United States[103] Research and Development - The company submitted IND applications for 26 drug candidates in 2021, with a total of 144 IND submissions and 110 clinical trial approvals as of December 31, 2021[19] - The company has established a comprehensive pipeline with 13 drug assets targeting rare diseases and rare tumor indications[67] - The company is focused on internal innovation and external acquisitions to enhance its capabilities in cutting-edge technology fields[102] - The company will continue to invest heavily in new drug research and development, focusing on new molecular types such as PROTAC, oligonucleotide drugs, peptides, ADC, bispecific antibodies, and cell and gene therapies[107] Governance and Compliance - The company has a strong governance structure with independent directors overseeing the board's activities[144] - The board consists of 12 members, including 5 executive directors, 2 non-executive directors, and 5 independent non-executive directors[158] - The company has maintained compliance with corporate governance standards, ensuring that at least one independent non-executive director possesses appropriate professional qualifications or expertise in accounting or related financial management[160] - The company has established a compliance department and legal office to oversee internal controls and corporate governance[183] - The board is responsible for guiding and supervising the company's affairs, ensuring effective internal controls and risk management systems are in place[162] Risk Management - The company faces risks from a potential decline in demand for pharmaceutical research services, which could negatively impact business due to reduced client budgets and outsourcing needs[110] - The company is exposed to regulatory risks as the pharmaceutical research service industry is highly regulated, requiring timely adjustments to business strategies in response to policy changes[111] - The company has established a risk management framework to identify, assess, and respond to potential risks impacting operational goals[182] Shareholder Engagement - The company has established effective communication policies with shareholders to ensure proper responses to their opinions and concerns, which are regularly reviewed[195] - The company allows shareholders holding 3% or more of shares to propose temporary resolutions at the annual general meeting, ensuring transparency and engagement[191] - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of business performance and strategies[194]