Financial Performance - The company reported a revenue of RMB 17,240.9 million for the six months ended June 30, 2024, representing a decrease of 8.6% compared to RMB 18,871.3 million in the same period of 2023[2]. - Gross profit for the same period was RMB 6,700.9 million, down 11.3% from RMB 7,555.7 million, resulting in a gross margin of 38.9%[2]. - Net profit attributable to shareholders was RMB 4,239.8 million, a decline of 20.2% from RMB 5,313.1 million, with a net profit margin of 24.6%[2]. - Operating profit decreased to RMB 5,066,848 thousand, a decline of 22.83% from RMB 6,565,058 thousand in the previous year[87]. - The net profit for the period was RMB 4,280,846 thousand, down 20.06% from RMB 5,356,896 thousand in 2023[87]. - Adjusted EBITDA for the six months ended June 30, 2024, was RMB 6,734.9 million, a decrease from RMB 7,458.1 million for the same period in 2023, reflecting a margin of 39.1% compared to 39.5%[25]. - The company reported a pre-tax profit of RMB 5,049.6 million for the six months ended June 30, 2024, down from RMB 6,395.2 million in the same period of 2023[25]. - The total comprehensive income for the period was RMB 4,295,580 thousand, a decrease from RMB 4,843,228 thousand in 2023[88]. Revenue Breakdown - Revenue from the top 20 global pharmaceutical companies amounted to RMB 6,590 million, with an 11.9% increase when excluding COVID-19 commercialization projects[5]. - The WuXi Chemistry segment generated revenue of RMB 12,209.9 million, a decrease of 9.3% from RMB 13,467.2 million[6]. - The WuXi Testing segment reported revenue of RMB 3,018.4 million, down 2.4% from RMB 3,091.0 million[6]. - The WuXi Biology segment generated revenue of RMB 1,168.9 million, a decrease of 5.2% from RMB 1,232.6 million[6]. - Revenue from the high-end CTDMO business was RMB 570 million, which fell short of expectations due to early-stage commercialization, project delays, and insufficient new orders[10]. - Revenue from WuXi Testing was RMB 3,018,356 thousand, slightly down from RMB 3,091,000 thousand, a decrease of 2.36%[101]. - Revenue from WuXi Biology was RMB 1,168,910 thousand, down from RMB 1,232,635 thousand, reflecting a decline of 5.19%[101]. - Revenue from the United States was RMB 10,711,857 thousand, down from RMB 12,355,501 thousand, indicating a decline of 13.29%[98]. Customer Base and Market Position - The company maintained a customer base of over 6,000 and added more than 500 new clients, with total orders on hand reaching RMB 43.1 billion, a year-on-year increase of 33.2% excluding COVID-19 commercialization projects[5]. - The company has a large, loyal, and expanding customer base, covering all of the top 20 global pharmaceutical companies, with a steady increase in both new and existing customers[44]. - The company is actively involved in the development of new technologies, including PROTAC (targeted protein degradation technology)[125]. Financial Health and Liabilities - Total liabilities as of June 30, 2024, were RMB 19,302.6 million, an increase from RMB 18,151.9 million as of December 31, 2023[19]. - The company’s asset-liability ratio increased to 25.9% as of June 30, 2024, compared to 24.6% as of December 31, 2023, due to increased bank borrowings[22]. - The company reported a significant increase in inventory, rising to RMB 3,291,610 thousand from RMB 2,886,094 thousand, which is an increase of about 14.06%[89]. - The company's equity attributable to shareholders decreased to RMB 54,713,937 thousand from RMB 55,122,454 thousand, a decline of approximately 0.74%[90]. - The company’s total liabilities related to derivative financial instruments amounted to RMB 659,741 thousand as of June 30, 2024, compared to RMB 501,871 thousand as of December 31, 2023, indicating an increase of approximately 31.39%[117]. Investments and Acquisitions - The fair value of the company's investment in Genesis Medtech Group Limited is RMB 1,642.5 million, accounting for 2.2% of total assets[33]. - The total investment in joint ventures and associates during the reporting period amounted to RMB 12.2 million, aimed at enhancing synergies and expanding the customer base[30]. - The company has established a joint venture to promote the development of the healthcare ecosystem, focusing on strategic long-term investments and cutting-edge technologies[30]. - The company is expanding its market presence through strategic partnerships and acquisitions in the pharmaceutical sector[126]. Operational Developments - The company is preparing for BLA submissions for a commercial CAR-T product, expected to be filed with the FDA in the second half of 2024[10]. - The company has enhanced its service capabilities in areas such as flow chemistry, enzyme catalysis, and crystallization, expanding its formulation platform from oral to sterile injectable formulations[40]. - The total volume of peptide solid-phase synthesis reactors will increase to 32,000L by January 2024, with a new R&D and production base in Singapore commencing construction in May 2024[42]. - The company aims to strengthen its ability to provide integrated, end-to-end drug development and production services in response to the increasing demand for high-quality capabilities in the pharmaceutical and life sciences sectors[43]. Risk Factors - The company faces risks from a potential decline in demand for pharmaceutical research services, which could negatively impact business if industry trends slow down or outsourcing ratios decrease[63]. - Regulatory changes in the pharmaceutical research services industry pose a risk, as the company must adapt its strategies to comply with evolving policies and regulations[64]. - Increased competition in the global pharmaceutical research services market is a concern, with the company needing to strengthen its research and commercial advantages to maintain its competitive edge[66]. - The company faces risks related to the loss of core technical personnel, which is crucial for maintaining its competitive edge and operational stability[70]. Corporate Governance and Compliance - The board confirmed compliance with corporate governance codes, although there was a deviation regarding the separation of the roles of Chairman and CEO[81]. - The company emphasizes compliance and has established a robust internal control system, but faces risks if oversight of its subsidiaries is insufficient, potentially affecting necessary qualifications and approvals[67]. - The company is actively communicating with U.S. legislative parties to clarify facts and advocate for amendments to the proposed "Biological Safety Act" which has undergone revisions[69]. Employee and Talent Management - As of June 30, 2024, the group employed 38,134 employees, with compensation including base salary, allowances, bonuses, stock options, and other benefits[75]. - The company plans to attract, train, and retain top talent through a results-oriented performance evaluation system, providing competitive compensation and clear promotion opportunities[60]. Shareholder Returns and Dividends - The company did not declare any interim dividend for the six months ended June 30, 2024[2]. - The 2023 profit distribution plan was approved, with a cash dividend of RMB 9.8974 per 10 shares to shareholders listed on June 25, 2024[49]. - The total dividend declared for 2023 was RMB 2,882,050,829.90, an increase from RMB 2,649,083,545.14 in 2022, reflecting a growth of 8.8%[109].

Financial Performance - The company's operating revenue for Q1 2024 was approximately RMB 7.98 billion, representing a decrease of 10.95% compared to the same period last year[6]. - Net profit attributable to shareholders for Q1 2024 was approximately RMB 1.94 billion, a decrease of 10.42% year-on-year, while the net profit after deducting non-recurring items was approximately RMB 2.03 billion, an increase of 7.30%[6]. - The net cash flow from operating activities for Q1 2024 was approximately RMB 2.26 billion, down 25.44% year-on-year, with basic earnings per share at RMB 0.67, a decrease of 9.46%[6]. - Total revenue for Q1 2024 was approximately ¥7.98 billion, a decrease of 11.0% compared to ¥8.96 billion in Q1 2023[23]. - Operating profit for Q1 2024 was approximately ¥2.31 billion, down from ¥2.62 billion in Q1 2023, reflecting a decline of 11.7%[23]. - Total comprehensive income for Q1 2024 was RMB 1,745,132 thousand, a decrease from RMB 2,167,889 thousand in Q1 2023, representing a decline of approximately 19.4%[30]. - The adjusted profit attributable to the parent company for Q1 2024 is RMB 1,942,211 thousand, a decrease from RMB 2,168,129 thousand in Q1 2023, representing a decline of approximately 10.4%[35]. - The non-IFRS profit attributable to the parent company for Q1 2024 is RMB 2,057,967 thousand, down from RMB 2,472,807 thousand in Q1 2023, indicating a decrease of about 16.8%[35]. Assets and Liabilities - Total assets as of March 31, 2024, were approximately RMB 74.94 billion, an increase of 1.72% from the end of the previous year[6]. - Total liabilities as of March 31, 2024, amounted to approximately ¥18.89 billion, an increase of 4.1% from ¥18.15 billion as of December 31, 2023[22]. - Non-current liabilities increased significantly to approximately ¥5.50 billion in Q1 2024, compared to ¥3.40 billion in Q4 2023, marking a rise of 62.0%[22]. - The total current liabilities decreased to approximately ¥13.39 billion as of March 31, 2024, down 9.3% from ¥14.76 billion at the end of 2023[22]. - The total equity attributable to shareholders was approximately ¥55.64 billion as of March 31, 2024, up from ¥55.12 billion at the end of 2023, representing an increase of 0.9%[22]. - The total equity attributable to shareholders of the parent company increased to RMB 55,639,488 thousand from RMB 55,122,454 thousand, an increase of approximately 0.9%[32]. Revenue Breakdown - The chemical business generated revenue of RMB 5.56 billion, a year-on-year decline of 0.6% after excluding COVID-19 commercialization projects[11]. - Revenue from the top 20 global pharmaceutical companies reached RMB 2.70 billion, showing a year-on-year growth of 4.2% after excluding COVID-19 commercialization projects[10]. - The TIDES business (mainly oligonucleotides and peptides) achieved revenue of RMB 780 million, reflecting a strong year-on-year growth of 43.1%[11]. - The company’s revenue from U.S. clients was RMB 4.90 billion, with a year-on-year increase of 0.4% after excluding COVID-19 commercialization projects[10]. - The company’s revenue from the biological business was RMB 560 million, with a year-on-year growth of 12.2% in new molecular-related income[12]. - The high-end therapeutic CTDMO business generated revenue of RMB 280 million, with ongoing projects including CAR-T product preparations for FDA submission in the second half of 2024[13]. - The company’s revenue from clinical CRO and SMO services was RMB 440 million, with SMO business growing by 26.4% year-on-year[12]. Research and Development - The company continues to enhance its CRDMO and CTDMO business models to improve R&D efficiency and provide integrated services from drug discovery to production[5]. - Research and development expenses for Q1 2024 were approximately ¥306.40 million, down 14.2% from ¥357.30 million in Q1 2023[23]. - The company is currently working on 17 new molecular projects, with six projects having entered the clinical stage[15]. - The domestic new drug development service department achieved revenue of RMB 80 million, with three new drugs approved for clients, including two for COVID-19 and one for cancer treatment[14]. - As of the end of Q1 2024, the company has completed IND applications for 196 projects and obtained 175 clinical trial approvals, including three projects that have been approved for market launch[14]. - The company has ongoing projects in various disease areas, with a focus on expanding its portfolio of new drugs[14]. - The company has two additional drugs in the market application stage, indicating a robust pipeline for future revenue[14]. Cash Flow and Liquidity - The company’s cash and cash equivalents increased to RMB 15.73 billion from RMB 13.76 billion, reflecting improved liquidity[21]. - The company reported a net cash outflow from operating activities of RMB (734,554) thousand in Q1 2024, compared to RMB (1,144,916) thousand in Q1 2023, showing an improvement in cash flow management[33]. - The net cash flow from financing activities for Q1 2024 was approximately -¥43.29 million, a significant decline compared to a positive cash flow of ¥148.9 million in Q1 2023[28]. - The company raised new bank loans amounting to RMB 2,920,641 thousand in Q1 2024, compared to RMB 2,503,563 thousand in Q1 2023, reflecting an increase of approximately 16.7%[34]. - The company’s cash and cash equivalents at the end of Q1 2024 amounted to approximately ¥11.52 billion, an increase from ¥9.87 billion at the end of Q1 2023[28]. - The company’s total cash inflow from financing activities in Q1 2024 was approximately ¥2.93 billion, compared to ¥2.51 billion in Q1 2023, showing an increase of 16.9%[28]. Market Position and Strategy - The company operates globally with bases in Asia, Europe, and North America, ensuring compliance with the highest international quality regulatory standards[5]. - The company emphasizes the importance of optimizing cross-sector business synergies to better serve global clients[5]. - The company is committed to maintaining a strong reputation in the global pharmaceutical R&D industry through excellent service records and robust intellectual property protection[5]. - The company is actively pursuing market expansion and new product development strategies to enhance its competitive position[14].

Financial Performance - The company's revenue for the year reached RMB 40,340.8 million, an increase from RMB 39,354.8 million in the previous year, representing a growth of 2.5%[12] - Adjusted net profit attributable to the parent company was RMB 10,854.6 million, up from RMB 9,399.3 million, reflecting a growth of 15.5%[12] - Gross profit margin improved to 40.6%, compared to 36.9% in the previous year, indicating enhanced profitability[12] - The total assets of the company increased to RMB 73,669.3 million from RMB 64,690.3 million, marking a growth of 13.7%[12] - The company achieved a net profit margin of 26.5%, up from 22.4% in the previous year, showcasing improved operational efficiency[12] - Basic earnings per share rose to RMB 3.64 from RMB 3.01, reflecting a growth of 21%[12] - The company achieved a revenue of RMB 40,340.8 million, representing a year-on-year growth of 2.5%, and a net profit attributable to shareholders of RMB 10,690.2 million, up 21.3% year-on-year[14] - Gross profit for 2023 was RMB 16.37 billion, an increase of 12.9% compared to 2022, with a gross margin of 40.6%[27] - Operating profit increased to RMB 13,190,743 thousand in 2023, with an operating margin of 32.7%, compared to 27.5% in 2022[114] - Net profit attributable to shareholders for 2023 was RMB 10,690,153 thousand, reflecting a net profit margin of 26.5%, up from 22.4% in 2022[114] Customer Engagement and Market Expansion - The company added over 1,200 new customers in 2023, with active customers exceeding 6,000, and the order backlog, excluding COVID-19 commercialization projects, grew by 18% year-on-year[15] - Revenue from U.S. customers reached RMB 26.13 billion, a 42% increase year-on-year when excluding COVID-19 projects; revenue from European customers was RMB 4.70 billion, up 12%[15] - The company’s revenue from the top 20 global pharmaceutical companies reached RMB 16.11 billion, a 44% increase year-on-year when excluding COVID-19 projects[15] - The company’s revenue from existing customers accounted for 98% of total revenue, amounting to RMB 39.63 billion, with a 30% increase year-on-year when excluding COVID-19 projects[15] - The company is focused on developing new drug types such as peptides, oligonucleotides, and PROTACs to capture emerging business opportunities[66] Operational Efficiency and Capacity Expansion - The company completed capacity expansion projects in Changzhou and Taixing, with new capacity operational in January 2024, increasing the volume of peptide solid-phase synthesis reactors to 32,000L[18] - The company is expanding its capacity with new facilities totaling 55,000 square meters in Suzhou and Qidong, enhancing operational efficiency[68] - The new raw material drug production base in Taixing officially commenced partial operations in January 2024, supporting ongoing business growth[68] Financial Management and Investments - The debt-to-asset ratio decreased to 24.6% from 27.5%, indicating a stronger financial position[12] - The net cash used in investing activities for 2023 was RMB 6,817.0 million, a decrease of 26.8% compared to 2022, primarily due to timing differences in project settlements leading to reduced capital expenditures[38] - The net cash used in financing activities for 2023 was RMB 3,939.2 million, an increase of 210.0% compared to 2022, mainly due to increased cash dividend payments and repayment of bank loans during the reporting period[38] - The company has strategically focused on investments that support its existing value chain and promote advancements in the pharmaceutical and healthcare sectors[55] Governance and Leadership - The board consists of 12 members, including 5 executive directors, 2 non-executive directors, and 5 independent non-executive directors[116] - The company has a strong leadership team with diverse backgrounds in pharmaceutical and financial sectors[116] - The management team possesses extensive experience in the pharmaceutical industry, enabling the company to quickly adapt to market trends and customer needs[71] - The company emphasizes its commitment to innovation and strategic growth in the pharmaceutical industry[116] Risk Management - The company faces risks from potential declines in demand for pharmaceutical research services, which could negatively impact business if industry trends slow down or outsourcing ratios decrease[99] - The company is exposed to risks from changes in regulatory policies in the pharmaceutical research services industry, which could adversely affect operations if it fails to adjust its strategies accordingly[100] - The company has established a relatively complete internal control system to ensure compliance with laws and regulations, but faces risks if oversight of subsidiaries is insufficient[103] Future Outlook - The company expects 2024 revenue to reach RMB 38.3 billion to RMB 40.5 billion, with a growth rate of 2.7% to 8.6% excluding COVID-19 commercialization projects[24] - The company aims to build an integrated enabling platform to support innovation in the pharmaceutical industry, allowing any individual or company to realize their innovation dreams[90] - Future outlook indicates a projected revenue growth of 25% for the next fiscal year, driven by new product launches and market expansion strategies[128] Corporate Social Responsibility - The company is committed to enhancing customer stickiness and increasing customer conversion rates while continuously expanding its customer base[89] - The company aims to improve customer satisfaction through high-quality services and strict intellectual property protection, while expanding its global customer base, particularly targeting long-tail customers[93] - The company has not encountered any non-compliance cases related to bribery and corruption as of December 31, 2023, following anti-corruption training and initiatives[188]

Investment Rating - The report maintains a "Neutral" rating for WuXi AppTec (2359 HK) with a target price adjusted to HKD 37.00 [3][11]. Core Insights - WuXi AppTec's 2023 revenue increased by 2.5% year-on-year to RMB 40.34 billion, with various business segments showing different growth rates. However, the decline in COVID-related revenue and a challenging financing environment for pharmaceutical companies have led to a slowdown in revenue growth [2][8]. - The company has improved its operating efficiency, resulting in an increase in gross margin from 36.9% to 40.6% year-on-year. Shareholder net profit rose by 21.3% to RMB 10.69 billion, reflecting a 15.5% increase in adjusted Non-IFRS net profit [2][8]. - The outlook for 2024-25 revenue has been downgraded by 17.4% and 24.3% respectively due to extended order delivery times, reduced R&D spending by downstream pharmaceutical companies, and a still-recovering financing environment [2][3]. Summary by Sections Financial Performance - 2023 total revenue: RMB 40.34 billion, up 2.5% year-on-year [2][8]. - Shareholder net profit: RMB 10.69 billion, up 21.3% year-on-year [2][8]. - Adjusted Non-IFRS net profit: RMB 10.85 billion, up 15.5% year-on-year [2][8]. Revenue Forecasts - 2024E revenue forecast: RMB 39.69 billion, down 17.4% from previous estimates [7]. - 2025E revenue forecast: RMB 45.36 billion, down 24.3% from previous estimates [7]. Business Segment Performance - Chemical segment revenue growth: 1.1% [2]. - Testing segment revenue growth: 14.4% [2]. - Biological segment revenue growth: 3.1% [2]. - Cell and gene therapy CTDMO revenue growth: 0.1% [2]. Market Conditions - The financing environment for small and medium-sized pharmaceutical companies remains challenging, impacting demand for R&D outsourcing services [2][3]. - The potential impact of the U.S. Biologics Act on the company's U.S. business, which accounted for 64.8% of revenue in 2023, is being closely monitored [2][3].

Financial Performance - The company achieved a revenue of RMB 40,340.8 million for the year ended December 31, 2023, representing a 2.5% increase from RMB 39,354.8 million in 2022[2]. - Gross profit was RMB 16,372.5 million with a gross margin of 40.6%, compared to RMB 14,506.5 million and a gross margin of 36.9% in the previous year, marking a 12.9% increase[2]. - Net profit attributable to shareholders was RMB 10,690.2 million, reflecting a 21.3% increase from RMB 8,813.7 million in 2022, with a net profit margin of 26.5%[2]. - The adjusted net profit attributable to shareholders under non-IFRS was RMB 10,854.6 million, up 15.5% from RMB 9,399.3 million[2]. - The overall gross profit for the reporting period was RMB 16.37 billion, an increase of 12.9% compared to the previous year, with a gross margin of 40.6%[17]. - The company expects 2024 revenue to reach RMB 38.3 billion to RMB 40.5 billion, with a projected growth rate of 2.7% to 8.6% excluding COVID-19 commercialization projects[15]. - Adjusted EBITDA for the year ended December 31, 2023, was RMB 15,818.8 million, up from RMB 13,299.8 million in 2022, representing a growth of 11.4%[30]. - The adjusted EBITDA margin increased to 39.2% in 2023 from 33.8% in 2022, indicating improved operational efficiency[30]. - The net profit attributable to the parent company for the year ended December 31, 2023, was RMB 10,690.2 million, compared to RMB 8,813.7 million in 2022, reflecting a year-on-year increase of 20.1%[31]. - The adjusted net profit attributable to the parent company reached RMB 10,854.6 million in 2023, up from RMB 9,399.3 million in 2022, marking an increase of 15.5%[31]. Client and Revenue Growth - The company added over 1,200 new clients in 2023, with active clients exceeding 6,000, indicating strong demand for services[5]. - Revenue from U.S. clients reached RMB 26,130 million, a 42% increase when excluding COVID-19 commercialization projects[5]. - Revenue from the top 20 global pharmaceutical companies grew to RMB 16,110 million, a 44% increase when excluding COVID-19 commercialization projects[5]. - The chemical business generated RMB 29,171.5 million in revenue, a 1.1% increase, while excluding COVID-19 projects, it saw a robust growth of 36.1%[7]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 9.8336 per 10 shares, subject to shareholder approval[3]. - The proposed cash dividend for 2023 is RMB 9.8336 per 10 shares, an increase from RMB 8.9266 in 2022, with a total distribution amounting to RMB 2,882,031,329.68[121]. - 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[59]. Research and Development - The company’s pipeline includes 3,201 molecules, with 61 commercialization projects and 66 Phase III clinical projects as of the end of 2023[8]. - The company aims to enhance its capabilities in new drug development services, focusing on emerging technologies and innovative drug types[46]. - The company is investing 10% of its revenue into R&D, focusing on high-throughput screening (HTS) technologies[147]. - Future strategies include leveraging global resources for precision medicine product development and expanding clinical services to meet increasing global demand[106]. Operational Efficiency and Capacity Expansion - The company has continuously improved its asset utilization efficiency through strategic capacity expansions and mergers, enhancing service capabilities[47]. - The company has expanded its facilities globally, with new facilities in Suzhou and Qidong totaling 55,000 square meters, and an additional 20,000 square meters of GLP-certified facilities added in 2023[47]. - The new production capacity at the Taixing API production base officially commenced operations in January 2024, enhancing business growth capabilities[47]. - The company has achieved a significant increase in the volume of peptide solid-phase synthesis reactors to 32,000L as part of its capacity expansion efforts[47]. Financial Position and Liabilities - Total liabilities as of December 31, 2023, amounted to RMB 18,151.9 million, up from RMB 17,763.7 million in 2022, with 40.4% attributed to accounts payable and other payables[25]. - The debt-to-asset ratio decreased to 24.6% as of December 31, 2023, from 27.5% in 2022, primarily due to stable growth in free cash flow and retained earnings[27]. - Total assets as of December 31, 2023, included investments in associates amounting to RMB 2,180.4 million, a significant increase of 92.0% from RMB 1,135.7 million in 2022[32]. Market and Industry Trends - The global pharmaceutical R&D investment is projected to grow from USD 241.5 billion in 2022 to USD 335.7 billion by 2027, with a CAGR of approximately 6.8%[65]. - The global pharmaceutical R&D outsourcing ratio is expected to increase from 47.1% in 2022 to 57.0% by 2027, with the market size for outsourced services projected to grow from USD 133 billion to USD 252 billion, reflecting a CAGR of approximately 13.6%[64]. Risks and Challenges - The company faces risks from potential declines in demand for pharmaceutical R&D services due to industry slowdowns or budget adjustments by clients[74]. - The company is exposed to regulatory risks as the pharmaceutical R&D services industry is highly regulated, requiring timely adjustments to business strategies[75]. - The company has a significant global revenue proportion, making it vulnerable to international policy changes and geopolitical tensions that could impact its operations[79]. Employee and Management - The company has a total of 41,116 employees as of December 31, 2023, with compensation packages including base salary, allowances, bonuses, stock options, and other benefits[87]. - The management team possesses extensive experience in the pharmaceutical industry, enabling the company to quickly adapt to market trends and customer needs, driving rapid business growth[49]. Strategic Initiatives - The company aims to improve customer satisfaction through high-quality services and strict intellectual property protection, while expanding its global customer base, particularly targeting long-tail customers[69]. - The company is advancing the design and construction of facilities in locations such as Taixing, the United States, and Singapore to better meet global partner needs[68]. - The company has established a partnership with a leading academic institution to advance its drug discovery efforts[147].

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]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並表明概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 WUXI APPTEC CO., LTD.* 無錫藥明康德新藥開發股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2359） 2023年第一季度報告 本公告根據香港聯合交易所有限公司證券上市規則第13.09(2)條和第13.10B條及 香港法例第571章《證券及期貨條例》第XIVA部內幕消息條文作出。 下文為無錫藥明康德新藥開發股份有限公司（「本公司」，連同其子公司統稱「本 集團」或「我們」）2023年財政年度第一季度報告（「2023年第一季度報告」），所載 財務報告根據中國企業會計準則或國際會計準則理事會頒佈的國際財務報告 準則（「國際財務報告準則」）（視情況而定）編製且未經審計。 承董事會命 無錫藥明康德新藥開發股份有限公司 董事長 李革博士 香港，2023年4月24日 ...

無錫藥明康德新藥開發股份有限公司 WuXi AppTec Co., Ltd.* （於中華人民共和國註冊成立的股份有限公司） 2359 股份代碼： 年度 報 告 目錄 公司資料 2 董事長報告書 4 財務摘要 5 管理層討論與分析 6 五年統計 47 董事、監事及高級管理層履歷 48 企業管治報告 56 董事會報告 78 獨立核數師報告 129 綜合損益及其他全面收益表 135 綜合財務狀況表 137 綜合權益變動表 139 綜合現金流量表 141 綜合財務報表附註 144 ...