Financial Performance - The company's revenue for Q3 2022 reached ¥10,638,303,791.29, representing a 77.76% increase compared to the same period last year[5] - Net profit attributable to shareholders was ¥2,742,164,675.92, a significant increase of 209.11% year-over-year[5] - The net profit after deducting non-recurring gains and losses was ¥2,382,204,909.91, reflecting a 143.31% increase compared to the previous year[5] - The company's revenue for the first three quarters of 2022 reached RMB 28,394.56 million, representing a year-on-year growth of 71.9%[11] - The net profit attributable to shareholders for the current reporting period was RMB 2,091.1 million, with a year-to-date net profit of RMB 1,071.2 million, reflecting improved capacity utilization and operational efficiency[11] - Total revenue for the first three quarters of 2022 reached ¥28.39 billion, a significant increase of 72% compared to ¥16.52 billion in the same period of 2021[27] - Net profit attributable to shareholders for the first three quarters of 2022 was ¥7.38 billion, up 74% from ¥3.56 billion in the same period of 2021[28] - Operating profit for the first three quarters of 2022 was ¥8.84 billion, an increase of 105% compared to ¥4.30 billion in the same period of 2021[27] - The company reported a significant increase in contract liabilities, which rose to RMB 3,959,048,700.05 from RMB 2,986,378,875.46, reflecting a growth of about 32.5%[26] Earnings and Shareholder Returns - The basic earnings per share for the quarter was ¥0.93, an increase of 210.00% year-over-year[6] - The diluted earnings per share was ¥0.81, reflecting a 170.00% increase compared to the same period last year[6] - The diluted earnings per share for the current reporting period was RMB 1.70, up from RMB 0.90 in the same period last year[11] - Basic earnings per share for the first three quarters of 2022 were ¥2.52, up from ¥1.22 in the same period of 2021[28] - The adjusted profit attributable to shareholders of the parent company for Q3 2022 was CNY 2,742,165 thousand, compared to CNY 887,126 thousand in Q3 2021, marking a growth of around 208.5%[37] - The company paid dividends amounting to CNY 1,529,442 thousand in the first three quarters of 2022, compared to CNY 892,980 thousand in the same period of 2021, representing an increase of about 71.4%[36] Cash Flow and Investments - The company reported a net cash flow from operating activities of ¥7,709,650,548.49, which is a 142.38% increase year-over-year[5] - The cash flow from operating activities for the year-to-date period was RMB 14,238 million, indicating strong cash generation capabilities[11] - The net cash generated from operating activities for the first three quarters of 2022 was CNY 7,430,657 thousand, a significant increase from CNY 3,069,256 thousand in the same period of 2021, representing a growth of approximately 142.5%[35] - The company reported a net cash outflow from investing activities of ¥6.11 billion for the first three quarters of 2022, compared to a net outflow of ¥4.27 billion in the same period of 2021[29] - The company reported a net cash outflow from investing activities of CNY 5,846,717 thousand for the first three quarters of 2022, compared to CNY 4,161,234 thousand in the same period of 2021, indicating an increase in investment expenditures[35] - The company’s cash flow from financing activities showed a net outflow of CNY 688,415 thousand in the first three quarters of 2022, compared to a net outflow of CNY 1,601,146 thousand in the same period of 2021, reflecting an improvement in financing cash flow[36] Assets and Liabilities - The total assets at the end of the reporting period amounted to ¥65,749,216,761.50, which is a 19.27% increase from the end of the previous year[6] - As of September 30, 2022, the total assets of the company reached RMB 65,749,216,761.50, an increase from RMB 55,127,388,384.03 at the end of 2021, representing a growth of approximately 19.0%[25] - The company's current assets totaled RMB 25,455,729,627.61, up from RMB 21,985,648,602.33 in the previous year, indicating a year-over-year increase of about 15.4%[25] - The total liabilities of the company were RMB 20,612,129,366.80, up from RMB 16,369,925,768.22, representing an increase of around 26.5%[26] - The equity attributable to shareholders reached RMB 44,810,034,664.07, compared to RMB 38,491,509,630.60, indicating a growth of approximately 16.5%[26] - The company’s long-term liabilities decreased to CNY 3,138,273 thousand as of September 30, 2022, from CNY 3,385,332 thousand at the end of 2021, showing a decline of approximately 7.3%[34] Business Operations and Growth - The company had 45,646 employees, with 13,488 holding a master's degree or higher, and 1,379 holding a doctoral degree or equivalent[4] - The company operates 32 operational bases globally, serving over 5,900 active clients from more than 30 countries[4] - The number of new customers exceeded 1,000, with active customers surpassing 5,900, indicating strong demand for the company's services globally[10] - Revenue from U.S. customers was RMB 18,991 million, a 110% increase year-on-year, while revenue from Chinese customers grew by 30% to RMB 5,318 million[10] - The chemical business segment generated RMB 20,816.66 million in revenue, a 106.6% increase compared to the same period last year, driven by significant growth in process development and production services[11] - The testing business segment achieved revenue of RMB 4,177.08 million, reflecting a year-on-year growth of 25.3%, with laboratory analysis and testing services growing by 35.2%[13] - The company continues to implement a "long-tail customer" strategy, with significant growth in long-tail customer performance observed in the first three quarters of 2022[11] - The company announced plans for a new base in Singapore and commenced construction of a new production facility in Middletown, Delaware, to better meet global partner needs[12] Research and Development - Research and development expenses increased to ¥1.09 billion, up 69% from ¥644 million in the same period of 2021[27] - Research and development expenses for Q3 2022 were RMB 432,068 thousand, up from RMB 239,775 thousand in Q3 2021[31] - The biology segment (WuXi Biology) achieved revenue of RMB 1,779.38 million, a year-on-year increase of 24.9% compared to RMB 1,424.33 million in the same period of 2021[14] - The cell and gene therapy CTDMO business (WuXi ATU) reported revenue of RMB 921.65 million, up 25.2% from RMB 735.93 million in 2021, with testing business revenue growing by 44% and process development revenue increasing by 54%[15] - The domestic new drug development services unit (WuXi DDSU) generated revenue of RMB 671.80 million, a decline of 27.9% from RMB 931.80 million in the same period last year, primarily due to business upgrades to meet higher client demands[17] - The company completed 15 IND applications and received 26 clinical trial approvals in 2022, with a total of 159 IND applications and 136 clinical trial approvals by the end of Q3 2022[17] - The biology segment's revenue from new molecular types and biopharmaceuticals grew by 76% year-on-year, increasing its contribution to total biology revenue from 14.6% in 2021 to 20.5% in the first three quarters of 2022[14] - The company is currently working on 15 new molecular type preclinical projects, with several expected to submit IND applications by the end of 2022 or early 2023[17] - The company has 38 TESSA™ projects under client evaluation, including collaborations with six major biotech/pharmaceutical companies[16] - The TESSA™ technology, launched in March 2022, allows for the production of AAV at a scale of 200L, which is over ten times more efficient than traditional plasmid-based methods[15]

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 - The company reported a total revenue of RMB 3.5 billion for the first half of 2022, representing a year-on-year increase of 15%[1]. - The gross profit margin for the first half of 2022 was 30%, compared to 28% in the same period last year[1]. - The company achieved operating revenue of RMB 17,756,257,999.12 in the first half of 2022, representing a year-on-year increase of 68.52%[17]. - Net profit attributable to shareholders reached RMB 4,635,749,253.06, up 73.29% compared to the same period last year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 81.00%, amounting to RMB 3,849,967,805.01[19]. - The net cash flow from operating activities was RMB 3,995,746,917.71, reflecting an 86.48% increase year-on-year[20]. - Basic earnings per share rose to RMB 1.59, a growth of 72.83% compared to the previous year[18]. - Diluted earnings per share increased to RMB 1.48, representing a 62.64% rise year-on-year[18]. - The company announced an increase in its full-year revenue growth target from 65-70% to 68-72% due to strong confidence in future growth[47]. Client and Market Expansion - The number of active clients increased by 12% year-on-year, reaching 1,200 clients by June 30, 2022[1]. - The company plans to expand its service offerings in the Asia-Pacific region, targeting a 20% market share by 2025[1]. - Revenue from US clients reached RMB 11.909 billion, up 104% year-on-year, while revenue from Chinese clients was RMB 3.175 billion, growing by 27%[36]. - The company added over 650 new clients in the first half of 2022, serving a total of over 5,850 clients from more than 30 countries, with the top 20 global pharmaceutical companies accounting for approximately 44.2% of total revenue[32]. - The company has effectively implemented business continuity plans in response to COVID-19 measures, ensuring the achievement of overall performance targets[17]. Research and Development - Research and development expenses increased by 25% year-on-year, totaling RMB 500 million, reflecting the company's commitment to innovation[1]. - The company has launched two new drug development platforms, which are expected to enhance service efficiency by 30%[1]. - The company focuses on high-quality and efficient R&D services to enhance client development efficiency across various sectors, including chemical drug development and production, cell and gene therapy, and medical device testing[23]. - The company completed 9 IND applications and received 19 clinical trial approvals in the first half of 2022[45]. - The company has 30 TESSA™ projects under client evaluation, with TESSA™ technology enabling the production of AAV at a scale 10 times greater than traditional methods[44]. Financial Health and Assets - The company's total assets reached RMB 61,913,467,431.70, a 12.31% increase from the end of the previous year[17]. - The net assets attributable to shareholders were RMB 42,080,433,441.88, reflecting a 9.32% increase compared to the end of the previous year[17]. - The company's investment income decreased by 77.86% to RMB 23,297.90 million, primarily due to reduced disposals of non-current financial assets[56]. - Other income increased by 40.83% to RMB 161,157,968.22, mainly due to higher government subsidies related to daily operations[55]. - The company’s total operating costs rose in line with revenue growth, with operating costs amounting to RMB 11,319,309,054.66, a 70.49% increase year-on-year[52]. Environmental Compliance and Management - The company has a total emission of SO₂ at 0.078 tons and NOx at 3.21 tons, with the approved emission limits being 0.2000 tons/year for SO₂ and 6.570 tons/year for NOx, indicating compliance with environmental standards[97]. - The company reported a total of 2.452 tons of non-methane total hydrocarbons (NMHC) and 0.593 tons of COD, with annual emissions of 3.142 tons for NMHC and 131.13 tons for COD, demonstrating effective waste management practices[97]. - The company has established a robust environmental management system, ensuring compliance with pollution discharge standards across its various subsidiaries[97]. - The company is actively monitoring and managing its emissions, with a focus on reducing environmental impact and adhering to regulatory requirements[99]. - The company has implemented a monitoring plan for TRVOC and NMHC emissions, with a compliance limit of 40 mg/m³, ensuring adherence to environmental regulations[99]. Risk Management - The company has no significant risks that could materially affect its operations during the reporting period[1]. - The company faces risks from potential declines in demand for pharmaceutical R&D services, which could adversely affect business operations[76]. - Regulatory changes in the pharmaceutical R&D services industry may impact the company's operations if it fails to adapt its strategies accordingly[77]. - Increased competition in the global pharmaceutical R&D services market poses a risk to the company's market position and profitability[78]. - The company has established a robust internal control system to mitigate compliance risks, but challenges remain due to the number of subsidiaries[79]. Employee and Governance - The company has a total of 39,716 employees, with 11,441 holding master's degrees or higher, and 1,294 holding doctoral degrees[25]. - The company has implemented a stock incentive plan, with several announcements regarding stock options and restricted stock grants made throughout 2022[94]. - The company continues to provide updates on the performance and changes related to its stock incentive plans, ensuring transparency for stakeholders[94]. - The actual controllers of the company, including Ge Li and Ning Zhao, have committed to avoid any unfair transfer of benefits to other entities or individuals, ensuring no harm to the company's interests[194]. - The company emphasizes compliance with legal regulations and internal governance to prevent any unauthorized interference in its management activities[196].

Financial Performance - The company's revenue for Q1 2022 reached ¥8,474,419,333.59, representing a year-on-year increase of 71.18%[6] - Net profit attributable to shareholders was ¥1,642,947,345.12, reflecting a growth of 9.54% compared to the same period last year[6] - The net profit after deducting non-recurring gains and losses was ¥1,714,144,938.66, which is an increase of 106.52% year-on-year[6] - Adjusted net profit under non-IFRS standards was ¥2,052,645,414.94, up by 85.82% from the previous year[6] - Total revenue for Q1 2022 reached ¥8,474,419,333.59, a 71.5% increase from ¥4,950,479,646.73 in Q1 2021[22] - Net profit for Q1 2022 was ¥1,655,950,521.89, up 9.8% from ¥1,507,104,723.57 in Q1 2021[22] - Operating profit for Q1 2022 was ¥2,004,959,729.24, compared to ¥1,697,539,566.19 in Q1 2021, reflecting a growth of 18.1%[22] - Basic earnings per share for Q1 2022 was ¥0.56, up from ¥0.52 in Q1 2021[23] Revenue Breakdown by Segment - The chemistry segment (WuXi Chemistry) generated revenue of RMB 611,796.51 million, up 102.11% from RMB 302,699.57 million in Q1 2021, with small molecule drug discovery services contributing RMB 174,486.09 million, a 46.62% increase[11][12] - The testing segment (WuXi Testing) reported revenue of RMB 127,938.81 million, a 31.70% increase from RMB 97,144.43 million in the same period last year, with laboratory analysis and testing services growing by 39.85%[12] - The biology segment (WuXi Biology) achieved revenue of RMB 53,261.22 million, reflecting a 26.17% increase from RMB 42,213.50 million in Q1 2021, with new molecular types and biopharmaceutical-related revenue growing by 110%[12] - The CTDMO business (WuXi ATU) generated revenue of RMB 29,864.80 million, a 36.99% increase from RMB 21,800.16 million in Q1 2021, with 74 projects receiving development and production services[12][13] - The domestic new drug development services (WuXi DDSU) reported revenue of RMB 24,062.85 million, down 21.57% from RMB 30,680.69 million in the previous year, due to business upgrades to meet higher client demands[13] Cash Flow and Assets - The net cash flow from operating activities was ¥497,469,053.50, showing a decrease of 25.62% compared to the same period last year[6] - The total assets as of March 31, 2022, amounted to ¥57,582,930,874.69, a 4.45% increase from the previous year[7] - The total current assets as of March 31, 2022, amount to ¥23,039,625,152.46, an increase from ¥21,985,648,602.33 in the previous year[20] - The company's cash and cash equivalents decreased to ¥7,026,897,217.80 from ¥8,238,772,782.53 year-over-year[19] - The total liabilities as of March 31, 2022, are ¥16,935,154,066.16, compared to ¥16,369,925,768.22 in the previous year[20] - The company reported a significant increase in accounts receivable, rising to ¥6,389,675,898.80 from ¥4,619,550,091.65[19] - The inventory as of March 31, 2022, is ¥6,414,769,393.91, compared to ¥5,905,005,712.92 in the previous year[19] Operational Efficiency and Strategy - The company continues to enhance its CRDMO and CTDMO business strategies to improve operational efficiency and capacity utilization[9] - The increase in revenue is attributed to the optimization of operational efficiency and the realization of scale effects[9] - The company completed over 90,000 custom compound syntheses in Q1 2022, enhancing early-stage small molecule drug development for clients[12] - The company expects to achieve a revenue growth of 63-65% in Q2 2022, contingent on the control of the COVID-19 situation in Shanghai and stable global pharmaceutical industry conditions[13] - The company launched the TESSA™ technology for scalable production of adeno-associated viruses (AAV), which is reported to produce AAV at ten times the efficiency of plasmid methods[13] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 206,649[14] - HKSCC NOMINEES LIMITED holds 392,128,463 shares, representing 13.27% of total shares[14] Research and Development - Research and development expenses increased to ¥280,042,477.39 in Q1 2022, up 37% from ¥204,576,017.34 in Q1 2021[22] - The company has a total of 1,808 new drug molecules in its chemistry service projects, with 49 in Phase III, 271 in Phase II, and 1,446 in Phase I and preclinical stages[12]

[Company Overview](index=4&type=section&id=Item%20II.%20Company%20Overview) The company provides integrated new drug discovery, development, and manufacturing services globally through its unique CRDMO and CTDMO models [Company Overview](index=4&type=section&id=Item%20II.%20Company%20Overview) WuXi AppTec offers integrated, end-to-end new drug discovery, development, and manufacturing services globally via its unique CRDMO and CTDMO models, serving over 5,800 clients - The company provides integrated, end-to-end new drug R&D and manufacturing services to the global biopharmaceutical industry through its unique CRDMO (Contract Research, Development, and Manufacturing) and CTDMO (Contract Testing, Research, Development, and Manufacturing) business models[4](index=4&type=chunk) - As of the end of the reporting period, the company served over **5,800 active clients** from more than **30 countries** through **31 global operating bases** and branches[4](index=4&type=chunk) Employee Composition as of Q1 2022 | Position | Asia | US | Europe | Total | | :--- | :--- | :--- | :--- | :--- | | R&D | 29,022 | 1,014 | 154 | 30,190 | | Production | 3,660 | 254 | 75 | 3,989 | | Sales | 39 | 89 | 31 | 159 | | Management & Admin | 2,181 | 410 | 68 | 2,659 | | **Total** | **34,902** | **1,767** | **328** | **36,997** | [Financial and Operating Performance](index=5&type=section&id=Item%20III.%20Key%20Financial%20Data) The company reported strong revenue and adjusted net profit growth in Q1 2022, driven by core business expansion, despite a decline in operating cash flow [Key Financial Data for Q1 2022](index=5&type=section&id=1.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In Q1 2022, the company achieved 8.47 billion CNY in revenue, a 71.18% YoY increase, with net profit attributable to shareholders growing 9.54% due to non-recurring items, while adjusted non-IFRS net profit saw strong growth Key Financial Indicators for Q1 2022 | Indicator | Amount for Reporting Period (CNY) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 8,474,419,333.59 | 71.18% | | Net Profit Attributable to Shareholders of Listed Company | 1,642,947,345.12 | 9.54% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | 1,714,144,938.66 | 106.52% | | Adjusted Non-IFRS Net Profit Attributable to Shareholders of Listed Company | 2,052,645,414.94 | 85.82% | | Net Cash Flow from Operating Activities | 497,469,053.50 | -25.62% | | Basic Earnings Per Share (CNY/share) | 0.56 | 7.69% | Reasons for Key Financial Indicator Changes | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | 106.52 | Continuous optimization of operational efficiency led to increased capacity utilization and enhanced economies of scale | | Adjusted Non-IFRS Net Profit Attributable to Shareholders of Listed Company | 85.82 | Continuous optimization of operational efficiency led to increased capacity utilization and enhanced economies of scale | | Net Cash Flow from Operating Activities | -25.62 | Growth in main business collections, coupled with increased customer orders and inventory stocking due to business expansion, led to a significant increase in current period procurement expenditures | - Total non-recurring gains and losses for the reporting period amounted to **-71.2 million CNY**, primarily due to fair value changes and disposal gains/losses from financial assets held for trading[7](index=7&type=chunk) [Operating Analysis by Business Segment](index=8&type=section&id=Analysis%20Notes) In Q1 2022, all business segments experienced growth, with total revenue up 71.2% YoY, primarily driven by WuXi Chemistry's 102.1% growth, while WuXi DDSU saw a 21.6% decline due to business upgrades Operating Revenue by Business Segment for Q1 2022 (Million CNY) | Business Segment | Q1 2022 | Q1 2021 | Change (%) | | :--- | :--- | :--- | :--- | | WuXi Chemistry | 6,118.0 | 3,027.0 | 102.1 | | WuXi Testing | 1,279.4 | 971.4 | 31.7 | | WuXi Biology | 532.6 | 422.1 | 26.2 | | Cell & Gene Therapy CTDMO (WuXi ATU) | 298.6 | 218.0 | 37.0 | | Domestic New Drug Discovery Services (WuXi DDSU) | 240.6 | 306.8 | -21.6 | | **Total** | **8,474.4** | **4,950.5** | **71.2** | [WuXi Chemistry](index=9&type=section&id=化學業務(WuXi%20Chemistry)) WuXi Chemistry revenue grew 102.1% to **6.118 billion CNY**, driven by a 138.1% increase in Process R&D and Manufacturing (D&M) services, with 1,808 new drug molecules served - Small molecule drug discovery (R) services revenue reached **1.745 billion CNY**, a **46.6% YoY increase**; Process R&D and Manufacturing (D&M) services revenue was **4.373 billion CNY**, up **138.1% YoY**[13](index=13&type=chunk) - As of Q1 2022, WuXi Chemistry served a total of **1,808 new drug molecules**, including **49 in Phase III**, **271 in Phase II**, **1,446 in Phase I/pre-clinical**, and **42 approved for launch**[13](index=13&type=chunk) [WuXi Testing](index=10&type=section&id=測試業務(WuXi%20Testing)) WuXi Testing revenue grew **31.7%** to **1.279 billion CNY**, with laboratory analysis and testing services up 39.9%, and drug safety assessment business showing strong 53% YoY growth - Laboratory analysis and testing services revenue was **909 million CNY**, up **39.9% YoY**; Clinical CRO and SMO services revenue was **370 million CNY**, up **15.2% YoY**[14](index=14&type=chunk) - Drug safety assessment business sales revenue increased by **53% YoY**, maintaining its leading position in the Asia-Pacific region, with the WIND integrated service platform signing **47 projects** this quarter[14](index=14&type=chunk) [WuXi Biology](index=11&type=section&id=生物學業務(WuXi%20Biology)) WuXi Biology revenue increased **26.2%** to **533 million CNY**, driven by a **110% YoY growth** in new modalities and biologics-related revenue, which now accounts for 17.6% of segment revenue - New modalities and biologics-related revenue grew **110% YoY**, increasing its proportion of WuXi Biology revenue from **14.6% in 2021 to 17.6% in Q1 2022**[15](index=15&type=chunk) [Cell & Gene Therapy CTDMO (WuXi ATU)](index=11&type=section&id=細胞及基因療法CTDMO業務(WuXi%20ATU)) Cell & Gene Therapy CTDMO (WuXi ATU) revenue grew **37.0%** to **299 million CNY**, providing development and manufacturing services for **74 projects**, including **8 in Phase III clinical trials** - Provided development and manufacturing services for **74 projects**, including **59 pre-clinical/Phase I**, **7 Phase II**, and **8 Phase III projects** (with **4 preparing for NDA submission**)[15](index=15&type=chunk) - In March 2022, the revolutionary TESSA™ technology was officially launched for large-scale production of transfection-free adeno-associated virus (AAV), reportedly achieving **10 times the yield** of traditional plasmid methods[15](index=15&type=chunk) [Domestic New Drug Discovery Services (WuXi DDSU)](index=12&type=section&id=國內新藥研發服務部(WuXi%20DDSU)) Domestic New Drug Discovery Services (WuXi DDSU) revenue decreased **21.6%** to **241 million CNY**, primarily due to proactive business upgrades to meet higher client demands - The revenue decline was primarily due to proactive business upgrades to meet higher client demands for new drug R&D services in China, which had some impact on current period performance[16](index=16&type=chunk) [Performance Outlook](index=12&type=section&id=Performance%20Outlook) Despite the Shanghai outbreak, the company projects **63-65% revenue growth** for Q2 2022 and **65-70% for the full year**, leveraging its global presence and business continuity plans, contingent on pandemic control - If the Shanghai pandemic is effectively controlled by the end of April 2022, the company anticipates **63-65% high-speed revenue growth** in Q2 2022[16](index=16&type=chunk) - The company is confident in achieving **65-70% revenue growth** for the full year 2022, though realization depends on internal and external environmental changes, posing uncertainties[16](index=16&type=chunk) [Shareholder Information](index=13&type=section&id=Item%20IV.%20Shareholder%20Information) This section details the company's shareholder structure, including the total number of shareholders and the top ten holders as of March 31, 2022 [Major Shareholder Holdings](index=13&type=section&id=1.%20Total%20Number%20of%20Common%20Shareholders%20and%20Preferred%20Shareholders%20with%20Restored%20Voting%20Rights%20and%20Top%20Ten%20Shareholders%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of March 31, 2022, the company had **206,649 common shareholders**, with HKSCC NOMINEES LIMITED being the largest holder at **13.27%** among the top ten - The total number of common shareholders as of the end of the reporting period was **206,649**[17](index=17&type=chunk) Top Ten Shareholder Holdings | Shareholder Name | Shareholder Nature | Number of Shares Held | Percentage (%) | | :--- | :--- | :--- | :--- | | HKSCC NOMINEES LIMITED | Overseas Legal Entity | 392,128,463 | 13.2663 | | G&C VI Limited | Overseas Legal Entity | 190,512,000 | 6.4453 | | HONG KONG SECURITIES CLEARING COMPANY NOMINEES LIMITED | Overseas Legal Entity | 175,555,519 | 5.9393 | | SUMMER BLOOM INVESTMENTS (I) PTE. LTD. | Overseas Legal Entity | 159,160,073 | 5.3846 | | G&C IV Hong Kong Limited | Overseas Legal Entity | 139,319,309 | 4.7134 | | G&C V Limited | Overseas Legal Entity | 97,349,515 | 3.2935 | | Jiaxing Yuxiang Investment Partnership (Limited Partnership) | Other | 87,074,568 | 2.9459 | | CICC Healthcare Mixed Securities Investment Fund | Other | 59,327,580 | 2.0071 | | G&C VII Limited | Overseas Legal Entity | 50,415,120 | 1.7056 | | Shanghai Houshen Investment Center (Limited Partnership) | Other | 45,735,228 | 1.5473 | [Quarterly Financial Statements](index=15&type=section&id=Item%20VI.%20Quarterly%20Financial%20Statements) This section presents the company's unaudited quarterly financial statements, including consolidated balance sheets, income statements, and cash flow statements [Consolidated Financial Statements (PRC GAAP)](index=16&type=section&id=Consolidated%20Financial%20Statements) This section provides unaudited consolidated balance sheets, income statements, and cash flow statements prepared under PRC GAAP, showing total assets of **57.58 billion CNY** and revenue of **8.47 billion CNY** for Q1 2022 Key Consolidated Balance Sheet Items (March 31, 2022) | Item | Amount (CNY) | | :--- | :--- | | Total Assets | 57,582,930,874.69 | | Total Liabilities | 16,935,154,066.16 | | Owners' Equity Attributable to Shareholders of Listed Company | 40,364,486,821.13 | Key Consolidated Income Statement Items (Q1 2022) | Item | Amount (CNY) | | :--- | :--- | | Total Operating Revenue | 8,474,419,333.59 | | Operating Profit | 2,004,959,729.24 | | Net Profit | 1,655,950,521.89 | | Net Profit Attributable to Parent Company Shareholders | 1,642,947,345.12 | Key Consolidated Cash Flow Statement Items (Q1 2022) | Item | Amount (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 497,469,053.50 | | Net Cash Flow from Investing Activities | -1,990,058,578.52 | | Net Cash Flow from Financing Activities | 387,302,550.67 | | Net Increase in Cash and Cash Equivalents | -1,148,811,394.45 | [IFRS Financial Statements and Adjustments](index=25&type=section&id=Condensed%20Quarterly%20Consolidated%20Financial%20Statements%20Prepared%20in%20Accordance%20with%20IFRS) This section presents unaudited condensed quarterly consolidated financial statements prepared under IFRS, detailing the reconciliation from IFRS net profit to adjusted non-IFRS net profit, which was **2.053 billion CNY** in Q1 2022 Reconciliation of Adjusted Non-IFRS Net Profit Attributable to Shareholders of Listed Company (Thousand CNY) | Item | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Net Profit Attributable to Shareholders of Listed Company** | **1,642,947** | **1,499,806** | | Add: Share-based compensation expenses | 180,469 | 126,281 | | Add: Amortization of intangible assets acquired through business combinations | 14,463 | 11,245 | | Add: Fair value changes (gains)/losses on derivative financial instruments related to convertible bonds | (82,795) | 451,091 | | Add: Realized and unrealized losses/(gains) on equity investments | 293,660 | (1,024,326) | | Other adjustments | 3,901 | 36,518 | | **Adjusted Non-IFRS Net Profit Attributable to Shareholders of Listed Company** | **2,052,645** | **1,104,668** |

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]

Financial Performance - The company's revenue for 2021 was approximately ¥22.90 billion, representing a 38.50% increase compared to ¥16.54 billion in 2020[19]. - The net profit attributable to shareholders for 2021 was approximately ¥5.10 billion, a 72.19% increase from ¥2.96 billion in 2020[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥4.06 billion, reflecting a 70.38% increase from ¥2.39 billion in 2020[19]. - The company's total assets at the end of 2021 were approximately ¥55.13 billion, a 19.09% increase from ¥46.29 billion at the end of 2020[19]. - The net assets attributable to shareholders at the end of 2021 were approximately ¥38.49 billion, an 18.46% increase from ¥32.49 billion at the end of 2020[19]. - The net cash flow from operating activities for 2021 was approximately ¥4.59 billion, a 15.49% increase from ¥3.97 billion in 2020[19]. - The company achieved operating revenue of RMB 22,902.39 million in 2021, representing a year-on-year growth of 38.50%[21]. - Basic earnings per share rose by 65.09% to RMB 1.75, and diluted earnings per share increased by 64.76% to RMB 1.73[23]. - The weighted average return on equity was 14.05%, an increase of 1.14 percentage points compared to the previous year[22]. - The company reported a total of RMB 152,675.06 million in investment income, fair value changes, and asset disposal income, which increased by RMB 87,593.77 million compared to the previous year[22]. Dividend Policy - The company plans to distribute a cash dividend of RMB 5.1740 per 10 shares, totaling approximately RMB 1.53 billion (including tax) based on the current total share capital[3]. - The cash dividend policy stipulates that during a mature development stage with no major capital expenditure, at least 80% of the profit distribution should be in cash dividends[166]. - The company aims to ensure that cash dividends in any three consecutive years are no less than 30% of the average distributable profit for those years[166]. Business Strategy and Growth - The company has been focusing on precision medicine and the development of new drug formulations, leveraging advancements in genomic sequencing and big data[19]. - The company is actively expanding its market presence and enhancing its research capabilities through strategic partnerships and acquisitions[19]. - The company issued $300 million of zero-coupon convertible bonds due in 2024, indicating a strategy to raise capital for future growth[19]. - The company plans to establish a new production base in Delaware, USA, expected to be operational by 2025, marking its second base in the U.S.[41]. - The acquisition of OXGENE in the UK will enhance the company's capabilities in cell and gene therapy, improving production efficiency and reducing costs[42]. - The company is investing in new technologies such as AI and automation to enhance operational efficiency and reduce drug development barriers[40]. - The company aims to enhance its CRDMO and CTDMO service capabilities through acquisitions and internal innovation, focusing on cutting-edge technology fields[99]. Market Performance - Revenue from US customers reached RMB 12.146 billion, a year-on-year increase of 37.1%[29]. - Revenue from European customers was RMB 3.719 billion, growing 40.3% year-on-year[29]. - Revenue from Chinese customers amounted to RMB 5.802 billion, reflecting a 40.0% year-on-year growth[29]. - Revenue from other regions reached RMB 1.234 billion, with a year-on-year increase of 40.7%[29]. - Revenue from existing customers totaled RMB 21.295 billion, up 28.8% year-on-year[29]. - Revenue from the top 20 global pharmaceutical companies was RMB 6.733 billion, a 24.1% increase year-on-year[29]. - Revenue from global other customers reached RMB 16.170 billion, growing 45.6% year-on-year[29]. Research and Development - The company completed the synthesis of over 310,000 new compounds in 2021, enhancing early-stage small molecule drug development[47]. - The company’s CRDMO service revenue experienced rapid growth, with small molecule compound discovery service long-tail customer revenue increasing by 71% year-on-year, contributing to a total of 1,666 new drug molecules in the D&M service projects[48]. - The company is committed to improving customer satisfaction through high-quality services and expanding its customer base, particularly targeting long-tail customers[101]. - The company plans to expand its R&D service platform capabilities, including new laboratories and production bases in various locations, such as Nantong and Wuhan[100]. Environmental Responsibility - The company is committed to environmental responsibility and compliance with pollution discharge standards across all its facilities[181]. - The company has implemented a comprehensive waste management strategy, ensuring all hazardous waste is handled by qualified third-party disposal services[183]. - The company has established monitoring plans for emissions, with annual assessments scheduled for various pollutants[182]. - The wastewater treatment facility has a combined capacity of 1,300 m³/d, with a design capacity of 500 m³/d and 800 m³/d for its two systems[186]. - The company has upgraded its wastewater treatment process to include MBR membrane technology, enhancing treatment capacity and effectiveness[198]. Corporate Governance - The company has established a complete governance structure ensuring independence from the actual controller in terms of assets, personnel, finance, and operations[115]. - The company has implemented a long-term mechanism to prevent the controlling shareholder from occupying company funds, ensuring financial independence[115]. - The company has a robust internal control system to ensure independent financial decision-making[115]. - The company is committed to enhancing its corporate governance structure in compliance with relevant laws and regulations, ensuring the protection of shareholder rights[114]. Employee Development - The company has established a competitive compensation management and incentive mechanism to promote employee development and growth[159]. - The training program includes a structured training system for employees at all levels, focusing on leadership development and professional skills enhancement[160]. - The Potential Leaders Development Program (PLDP) includes over 10 courses aimed at enhancing leadership skills for high-potential employees[162]. - The company emphasizes continuous updates and iterations of training and selection content to align with business development strategies[165]. Risks and Challenges - The company faces risks from intensified competition in the pharmaceutical research service market, particularly from large pharmaceutical companies and new market entrants[107]. - The company is exposed to risks from international operations, including potential adverse effects from changes in laws, policies, or political environments in foreign markets[109]. - The company acknowledges the potential impact of unforeseen events, such as public health crises or natural disasters, on its operations and has developed a business continuity plan[112].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 10,536.6 million, representing a 45.7% increase from RMB 7,231.4 million in 2020[8] - Gross profit for the same period was RMB 3,883.7 million, up 46.1% from RMB 2,658.6 million in 2020, with a gross margin of 36.9%[8] - Adjusted net profit attributable to shareholders was RMB 2,447.9 million, a 67.8% increase from RMB 1,458.8 million in 2020[8] - The net profit for the reporting period increased from RMB 1,727.5 million to RMB 2,692.2 million, a year-on-year increase of 55.8%, with a net profit margin rising from 23.9% to 25.6%[31] - The company reported a total comprehensive income of RMB 2,415,051 thousand, an increase of 36.0% from RMB 1,775,383 thousand in the prior year[179] Customer and Market Growth - The number of active customers exceeded 5,220, with approximately 1,020 new active customers added during the reporting period[9] - Revenue from the top 20 global pharmaceutical companies accounted for 28.2% of total revenue, a 29% year-on-year increase, while revenue from long-tail customers grew by 54%[9] - Revenue from overseas customers was RMB 8,035 million, up 45% year-on-year, while revenue from Chinese customers was RMB 2,501 million, reflecting a 48% increase[11] - The company signed 81 service contracts through the WIND platform, with an average project revenue of USD 1.1 to 1.5 million[12] Assets and Liabilities - Total assets as of June 30, 2021, were RMB 52,177.4 million, a 12.7% increase from RMB 46,291.2 million at the end of 2020[8] - The total liabilities amounted to RMB 15,193.8 million, reflecting an 11.9% increase from RMB 13,572.7 million in 2020[8] - The company's total borrowings as of June 30, 2021, were RMB 2,271.2 million, all due within one year, with floating rate borrowings at RMB 962.6 million and fixed rate borrowings at RMB 1,308.6 million[35] - The debt-to-asset ratio as of June 30, 2021, was 29.1%, slightly down from 29.3% as of December 31, 2020, due to increased retained earnings and net assets[34] Research and Development - Research and development expenses rose from RMB 333.4 million to RMB 404.4 million, reflecting a year-on-year increase of 21.3%, as the company focused on enhancing capabilities in biocatalysis and automated chemistry[26] - The company submitted 7 IND applications and received 8 clinical trial approvals during the reporting period, with a total of 126 IND submissions and 99 CTAs to date[13] - The company continues to invest in R&D, with R&D expenses amounting to RMB 404.4 million during the reporting period[195] Operational Efficiency - The adjusted net profit margin for the reporting period was 23.2%, compared to 20.2% in the previous year[8] - The company achieved total revenue of RMB 10,536.6 million for the six months ended June 30, 2021, representing a year-on-year growth of 45.7%[11] - The adjusted EBITDA for the six months ended June 30, 2021, was RMB 3,942.4 million, compared to RMB 2,600.3 million for the same period in 2020, reflecting a growth in operational performance[39] Employee and Management - The company has a workforce of 28,542 employees, including 9,179 with master's degrees and 1,149 with doctoral degrees[10] - The management team, led by Dr. Li Ge, possesses extensive industry experience and is committed to transforming the drug discovery and development industry[60] - The company aims to establish a long-term incentive mechanism to attract and retain talent, ensuring the sustainable development of the company[116] Strategic Initiatives - The acquisition of UK-based Oxgene enhances the company's CTDMO capabilities and provides advanced technologies for high-quality AAV production, supporting better service for global clients[58] - The company is expanding its global footprint with new facilities, including a second API and drug production facility in Delaware, USA, and a new 15,300 square meter cell and gene therapy facility in Shanghai[58] - The company is investing in new capabilities and capacities, including PROTAC, oligonucleotides, peptides, ADCs, bispecific antibodies, and cell and gene therapies to seize new business opportunities[57] Risks and Challenges - The company faces risks from potential declines in market demand for pharmaceutical R&D services, which could negatively impact business if industry trends slow or outsourcing rates decrease[77] - Regulatory changes in the pharmaceutical R&D services industry pose a risk, as the company must adapt to evolving policies and regulations to avoid adverse impacts on operations[78] - International operations expose the company to risks from changes in foreign laws, policies, and geopolitical tensions, which could disrupt business continuity[81] Financial Management - The company plans to maintain a prudent financial management approach to balance guaranteed principal, liquidity, and yield in its investment activities[45] - The company has raised approximately RMB 2,130.3 million from its A-share listing, with RMB 697.2 million remaining unutilized as of June 30, 2021[87] - The company has utilized a total of approximately $7.29 billion for various purposes, including mergers and acquisitions, operational funding, and debt repayment[101]