药明生物(02269) - 2025 - 中期业绩

Financial Highlights Interim Financial Highlights WuXi Biologics demonstrated strong performance in the first half of 2025, with revenue increasing by 16.1% to RMB 9.95 billion and net profit surging by 54.8% to RMB 2.76 billion, alongside significant improvements in gross and net profit margins and a 56.8% rise in basic earnings per share | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 9,953.2 | 8,574.2 | 16.1% | | Gross Profit | 4,252.9 | 3,350.0 | 27.0% | | Gross Margin | 42.7% | 39.1% | +3.6% | | Net Profit | 2,756.6 | 1,780.3 | 54.8% | | Net Margin | 27.7% | 20.8% | +6.9% | | Net Profit Attributable to Owners of the Company | 2,339.3 | 1,499.1 | 56.0% | | Net Margin Attributable to Owners of the Company | 23.5% | 17.5% | +6.0% | | Basic EPS (RMB) | 0.58 | 0.37 | 56.8% | | Diluted EPS (RMB) | 0.55 | 0.35 | 57.1% | - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025[3] Management Discussion and Analysis Business Review WuXi Biologics achieved robust growth in H1 2025, driven by its unique CRDMO platform and "Follow-the-Molecule" strategy, reaching a record 864 integrated projects and increasing total backlog to USD 20.3 billion, while expanding its client base and strengthening partnerships with top global pharmaceutical companies Overall Performance During the reporting period, WuXi Biologics added 86 new integrated projects, bringing the total to 864, including 429 preclinical, 344 early-phase clinical, 67 late-phase clinical, and 24 commercial manufacturing projects, while securing 9 external projects through its "Win-the-Molecule" strategy - The Group's business maintained robust growth and achieved excellent results, leveraging its unique integrated CRDMO platform and "Follow-the-Molecule" strategy[4] | Project Stage | New Projects H1 2025 | Total Projects as of June 30, 2025 | | :--- | :--- | :--- | | Integrated Projects | 86 | 864 | | Preclinical Projects | - | 429 | | Early-Phase Clinical Projects (Phase I/II) | - | 344 | | Late-Phase Clinical Projects (Phase III) | - | 67 | | Commercial Manufacturing Projects | - | 24 | | External Projects (Win-the-Molecule) | 9 (including 2 late-phase clinical) | - | - Total backlog increased to USD 20.3 billion as of June 30, 2025, comprising USD 11.4 billion in service backlog and USD 9.0 billion in potential milestone payment backlog[7] CRDMO Platform - Research (R) The Global Biologics Research (GBR) business unit, comprising approximately 800 scientists, offers comprehensive and efficient one-stop biologics discovery solutions, including standalone, modular, and fully integrated project services, while continuously enhancing capabilities in multispecific antibodies, protein production, and bispecific antibodies, and establishing strategic collaborations with global partners like GSK and BioNTech - The GBR business unit, composed of approximately 800 scientists, provides comprehensive and efficient one-stop biologics discovery solutions, supporting the entire process from initial concept to IND filing[10] - Leveraging VHH library technology, the WuXiBody™ platform, and protein engineering expertise, the company continuously empowers clients to develop multispecific and bispecific antibodies, with over 50 WuXiBody™ collaborations globally[11][12] - Strategic collaborations have been established with global partners such as GSK plc and Candid Therapeutics, with one molecule developed for GSK plc entering clinical trials, becoming the fourth WuXi Biologics-derived TCE to reach this stage[13] CRDMO Platform - Development (D) WuXi Biologics' biologics development team is dedicated to shortening project development cycles, having enabled over 660 IND filing projects through advanced technologies like the WuXia™ cell line development platform, WuXiUP™ ultra-high productivity continuous manufacturing process platform, WuXiUI™ bioprocess platform, and WuXiHigh™ high-concentration formulation development platform, continuously optimizing delivery times and ensuring quality - The development cycle from DNA to IND has been reduced to just nine months, enabling over 660 IND filing projects by the end of the reporting period[15] - The WuXia™ platform can enable 150 integrated CMC projects annually, having delivered over 1,000 cell lines and expanded to include WuXia RidGS™ and WuXiaADCC PLUS™ platforms[15] - The WuXiUP™ platform utilizes 1,000 to 2,000-liter single-use bioreactors to achieve batch yields equivalent to 10,000 to 20,000-liter stainless steel reactors, having developed over 170 processes for more than 60 molecules[16] - The WuXiHigh™ 2.0 platform achieves protein concentrations of up to 230 mg/mL and reduces viscosity by up to 90%, providing customized solutions for over 110 projects[18] CRDMO Platform - Manufacturing (M) WuXi Biologics' biologics cGMP drug substance facilities fully utilize single-use bioreactors and have upgraded to one-stop integrated drug product solutions, with late-phase clinical and commercial manufacturing projects continuously growing under the "Follow-the-Molecule" and "Global Dual Sourcing" strategies, achieving over 98% PPQ batch success rate and successfully completing PPQ production for the first commercial project on Asia's first 5,000-liter single-use drug substance production line - Biologics cGMP drug substance facilities fully utilize single-use bioreactors and have upgraded to one-stop integrated drug product solutions[19] - The number of late-phase clinical and commercial manufacturing projects continued to grow steadily, reaching 67 and 24 projects, respectively, by the end of the reporting period, with 2 "Win-the-Molecule" late-phase clinical projects secured[21] - Drug substance and drug product manufacturing facilities achieved a PPQ batch success rate of over 98%, with 25 PPQs expected to be completed as scheduled in 2025[21] - The three sets of 5,000-liter single-use bioreactors on the second drug substance production line at the Hangzhou MFG20 facility successfully completed PPQ production for the first commercial project, marking a significant breakthrough as Asia's first 5,000-liter single-use drug substance production line[21] Integrated Platform Ecosystem for Advanced Modalities WuXi Biologics has successfully built an integrated platform ecosystem for advanced therapeutic modalities, significantly expanding its service scope, with its subsidiary WuXi XDC excelling in ADC and bioconjugate drugs, and its microbial and HEK293 platforms continuously providing comprehensive end-to-end solutions for the development and manufacturing of various technology modalities - WuXi XDC (stock code: 2268) has secured 225 ongoing ADC and other bioconjugate iCMC projects globally, with 37 of them in Phase II and late-phase stages[24] - The microbial platform launched the EffiX™ expression platform, enabling high-yield, high-quality, highly stable, and scalable R&D and manufacturing of microbial-derived biologics, supporting various technology modalities such as antibody fragments, enzymes, VLPs, and pDNA[24] - The HEK293 platform for recombinant protein expression (WuXia293Stable brand) has been successfully established, addressing the challenge of expressing complex molecules in CHO cell lines and producing proteins with humanized post-translational modifications[27] Quality WuXi Biologics prioritizes quality, having successfully completed 44 national regulatory inspections since 2017 (including 22 EU EMA and US FDA inspections) without major findings or data integrity issues, and its five manufacturing facilities, including the first commercial PFS filling plant DP5, successfully passed US FDA PLI inspections, solidifying a 100% PLI pass rate record - Since 2017, 44 national regulatory inspections (including 22 EU EMA and US FDA inspections) have been successfully completed without any major findings or data integrity issues[25] - Five manufacturing facilities, including the first commercial PFS filling plant DP5, successfully passed US FDA Pre-License Inspections (PLI) without any critical findings or data integrity issues, solidifying an excellent record of 100% PLI pass rate[25] Sustainability WuXi Biologics integrates sustainability as a cornerstone of its business strategy, committed to enhancing ESG performance and providing end-to-end green solutions, having joined SBTi, UNGC, and PSCI, and receiving recognition from multiple ESG rating agencies, including DJSI, MSCI ESG AAA rating, Sustainalytics Negligible Risk rating, EcoVadis Platinum rating, and CDP A- climate change leadership score - Sustainability is considered a cornerstone of the business strategy, with a commitment to enhancing ESG performance and providing end-to-end green solutions[26] - The company has joined the Science Based Targets initiative (SBTi), the United Nations Global Compact (UNGC), and the Pharmaceutical Supply Chain Initiative (PSCI)[28] - Received recognition from multiple ESG rating agencies, including selection for the Dow Jones Sustainability Index (DJSI), MSCI ESG AAA rating, Sustainalytics' highest ESG rating (Negligible Risk), EcoVadis Platinum rating, and a CDP A- climate change leadership score[28] Regional Operations WuXi Biologics' manufacturing network spans multiple locations, implementing a "Global Dual Sourcing" strategy to continuously enhance capacity, with the Chengdu microbial commercial manufacturing base construction initiated, Ireland's MFG6 Phase II capacity expanded and PPQ production completed, MFG7 completing its second 12,000-liter scale PPQ production with products approved by EU EMA, MFG11 engineering construction progressing in Worcester, USA, and a new modular biologics manufacturing plant initiated in Singapore - Signed two facility asset divestiture transactions (German drug product facility and WuXi Vaccines Ireland facility) to optimize global operational efficiency and asset utilization[29] - Construction of a new microbial commercial manufacturing base in Chengdu, China, has commenced, which will be equipped with 15,000-liter fermenters and have an annual drug substance capacity of 80 to 110 batches[30] - Europe's Ireland MFG6 Phase II capacity increased to 6,000 liters, completing its first engineering batch and PPQ production; MFG7 completed its second 12,000-liter scale PPQ production, with products approved by EU EMA[30] - Engineering construction for MFG11 in Worcester, Massachusetts, USA, continues to advance, with six 6,000-liter single-use bioreactors to be installed; a new modular biologics manufacturing plant has commenced construction in Singapore, and WuXi XDC's Singapore manufacturing base achieved mechanical completion[33] WBS (WuXi Biologics Lean Operating Management System) WuXi Biologics introduced the WBS Lean Operating Management System in 2021 to drive business improvement by enhancing efficiency, quality, accelerating delivery, and reducing costs, completing approximately 130 improvement projects during the reporting period, effectively advancing strategic execution, strengthening risk and inventory control, optimizing business operational efficiency, and significantly enhancing core competitiveness - The WBS Lean Operating Management System was introduced in 2021, aiming to drive business improvement by enhancing efficiency and quality, accelerating delivery, and reducing costs[34] - Approximately 130 improvement projects were completed during the reporting period, effectively advancing strategic execution, strengthening risk and inventory control, optimizing business operational efficiency, and significantly enhancing core competitiveness[34] Future Outlook WuXi Biologics remains resilient amidst macroeconomic fluctuations and complex tariff environments, committed to enabling the entire biologics process from concept to manufacturing, as the biopharmaceutical industry maintains strong growth driven by increasing demand for advanced biotherapies and breakthroughs in next-generation modalities like bispecific antibodies, multispecific antibodies, and ADCs, with the company expecting to continue benefiting from the growth in biologics outsourcing services and planning to further enhance its integrated platform, strengthen capacity, and drive operational excellence through WBS and digitalization initiatives in H2 2025 - The company remained steadfast amidst macroeconomic fluctuations, successfully navigating complex tariff environments without any impact on its business[35] - The biopharmaceutical industry maintains strong growth due to demand for advanced biotherapies (oncology, autoimmune disorders, chronic disease management) and breakthroughs in next-generation technology modalities (bispecific antibodies, multispecific antibodies, ADCs)[35] - Biopharmaceutical and biotechnology companies are expected to continue demanding integrated outsourcing services from early research to commercial manufacturing[37] - In H2 2025, the company will continue to focus on enhancing its integrated platform, strengthening capacity, and driving operational excellence through WBS lean implementation and digitalization initiatives[38] Financial Review Revenue WuXi Biologics' revenue grew by 16.1% to RMB 9.95 billion in H1 2025, primarily driven by the successful execution of the "Follow-the-Molecule" strategy, expansion of technology platforms like ADC and bispecific antibodies, growth in research service revenue, and utilization of existing and new capacities | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 9,953.2 | 8,574.2 | 16.1% | - Revenue growth was primarily attributed to the successful execution of the "Follow-the-Molecule" strategy, expansion of technology platforms such as ADC and bispecific antibodies, growth in research service revenue, and utilization of existing and new capacities[39] Revenue by Region WuXi Biologics' revenue exhibits global diversification, with North America contributing the largest share at 60.5%, growing by 20.1%, while Europe accounted for 19.8% with 5.7% growth, China's revenue decreased by 8.5% to 13.0% of the total, and other regions of the world saw a significant 136.8% increase | Region | H1 2025 (RMB million) | Share | H1 2024 (RMB million) | Share | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | North America | 6,018.1 | 60.5% | 5,009.7 | 58.4% | 20.1% | | Europe | 1,968.6 | 19.8% | 1,863.0 | 21.7% | 5.7% | | China | 1,297.0 | 13.0% | 1,417.9 | 16.6% | -8.5% | | Rest of World | 669.5 | 6.7% | 283.6 | 3.3% | 136.8% | | Total | 9,953.2 | 100.0% | 8,574.2 | 100.0% | 16.1% | Revenue by Service Type In H1 2025, pre-IND service revenue grew by 35.2% to RMB 4.15 billion, accounting for 41.7% of total revenue, while late-phase (Phase III) clinical development services and commercial manufacturing revenue increased by 24.9% to RMB 4.29 billion, representing 43.1% of total revenue, and early-phase (Phase I & II) clinical development service revenue decreased | Service Type | H1 2025 (RMB million) | Share | H1 2024 (RMB million) | Share | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Pre-IND Services | 4,147.3 | 41.7% | 3,068.0 | 35.8% | 35.2% | | Early-Phase (Phase I & II) Clinical Development Services | 1,330.1 | 13.3% | 1,893.0 | 22.1% | -29.7% | | Late-Phase (Phase III) Clinical Development Services and Commercial Manufacturing | 4,288.9 | 43.1% | 3,434.4 | 40.0% | 24.9% | | Others | 186.9 | 1.9% | 178.8 | 2.1% | 4.5% | | Total | 9,953.2 | 100.0% | 8,574.2 | 100.0% | 16.1% | Revenue by Segment WuXi Biologics comprises two main business segments, Biologics and XDC, with H1 2025 external sales revenue for the Biologics segment at RMB 7.28 billion and for the XDC segment at RMB 2.67 billion, demonstrating significant growth in the XDC segment | Segment | H1 2025 External Sales (RMB million) | H1 2024 External Sales (RMB million) | | :--- | :--- | :--- | | Biologics | 7,281.0 | 6,961.6 | | XDC | 2,672.2 | 1,612.6 | - The XDC segment is dedicated to providing CRDMO services for ADCs and various bioconjugate drugs, while the Biologics segment continues to engage in the discovery, development, and manufacturing of biologics[42] Cost of Sales Cost of sales increased by 9.1% to RMB 5.70 billion in H1 2025, consistent with revenue growth, primarily comprising direct employee costs, raw material costs, and overheads | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 5,700.4 | 5,224.3 | 9.1% | - The increase in cost of sales is consistent with revenue growth, primarily comprising direct employee costs, raw material costs, and overheads[43] Gross Profit and Gross Margin Gross profit increased by 27.0% to RMB 4.25 billion in H1 2025, with gross margin improving from 39.1% to 42.7%, primarily due to cost savings and efficiency improvements achieved through WuXi Biologics' Lean Operating Management System (WBS) and digitalization initiatives | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 4,252.9 | 3,350.0 | 27.0% | | Gross Margin | 42.7% | 39.1% | +3.6% | - The improvement in gross margin is primarily attributed to cost savings and efficiency improvements achieved through WBS and digitalization initiatives[44] Other Income Other income slightly decreased by 3.6% to RMB 326.4 million in H1 2025, primarily due to a slight decline in research and other grants and interest income | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Other Income | 326.4 | 338.7 | -3.6% | - The slight decrease in other income was primarily due to a slight decline in research and other grants and interest income[46] Impairment Losses under Expected Credit Loss Model (Net of Reversals) Impairment losses (net of reversals) decreased by 29.7% to RMB 133.8 million in H1 2025, primarily attributed to management's continuous implementation of stringent credit control measures | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Impairment Losses | 133.8 | 190.2 | -29.7% | - The decrease in impairment losses was primarily attributed to management's continuous implementation of stringent credit control measures[47] Other Gains and Losses H1 2025 saw net other gains of RMB 361.0 million, primarily from net gains on equity investments and asset disposals, contrasting with net other losses of RMB 81.9 million in the prior period, mainly due to unrealized foreign exchange translation losses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Other Gains and Losses | 361.0 (Net Gain) | -81.9 (Net Loss) | - H1 2025 primarily benefited from net gains on equity investments and asset disposals, while H1 2024 was mainly impacted by unrealized foreign exchange translation losses[48] Selling and Marketing Expenses Selling and marketing expenses increased by 21.1% to RMB 270.1 million in H1 2025, primarily due to continuous investment in talent acquisition and retention to enhance business development capabilities, with the percentage of revenue slightly increasing to 2.7% | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 270.1 | 223.1 | 21.1% | | As % of Revenue | 2.7% | 2.6% | +0.1% | - The increase is attributed to continuous investment in talent acquisition and retention to enhance business development capabilities in the global market[49] Administrative Expenses Administrative expenses were approximately RMB 781.1 million in H1 2025, remaining relatively stable compared to the prior period | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 781.1 | 773.0 | 1.0% | Research and Development Expenses Research and development expenses were approximately RMB 343.5 million in H1 2025, consistent with the prior period | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Research and Development Expenses | 343.5 | 344.1 | -0.2% | Finance Costs Finance costs increased by 22.6% to RMB 83.5 million in H1 2025, primarily due to reduced capitalized interest expenses from project completion, partially offset by lower average bank borrowing balances and reduced interest expenses on the financing component of customer advances | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Finance Costs | 83.5 | 68.1 | 22.6% | - The increase in finance costs was primarily due to reduced capitalized interest expenses from project completion, partially offset by lower average bank borrowing balances and reduced interest expenses on the financing component of customer advances[52] Income Tax Expense Income tax expense increased by 150.5% to RMB 571.5 million in H1 2025, primarily due to higher profit before tax and reduced tax refunds, with the effective income tax rate remaining stable at 18.5% | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 571.5 | 228.1 | 150.5% | | Effective Income Tax Rate | 18.5% | 18.6% | -0.1% | - The significant increase in income tax expense was primarily due to higher profit before tax and reduced tax refunds received during the reporting period[53] Net Profit and Net Margin Net profit increased by 54.8% to RMB 2.76 billion in H1 2025, with net margin rising from 20.8% to 27.7%, while net profit attributable to owners of the company grew by 56.0% to RMB 2.34 billion, with net margin increasing from 17.5% to 23.5%, primarily due to higher gross profit and investment gains | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Net Profit | 2,756.6 | 1,780.3 | 54.8% | | Net Margin | 27.7% | 20.8% | +6.9% | | Net Profit Attributable to Owners of the Company | 2,339.3 | 1,499.1 | 56.0% | | Net Margin Attributable to Owners of the Company | 23.5% | 17.5% | +6.0% | - The increase in net profit and net margin was primarily due to higher gross profit and investment gains derived from the Group's investment and incubation portfolio[54] Basic and Diluted Earnings Per Share Basic earnings per share increased by 56.8% to RMB 0.58 in H1 2025, and diluted earnings per share grew by 57.1% to RMB 0.55, primarily due to the increase in net profit attributable to owners of the company | Metric | H1 2025 (RMB) | H1 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Basic EPS | 0.58 | 0.37 | 56.8% | | Diluted EPS | 0.55 | 0.35 | 57.1% | - The increase in basic and diluted earnings per share was primarily due to the increase in net profit attributable to owners of the company[55] Analysis of Statement of Financial Position Items Non-current Assets As of June 30, 2025, total non-current assets increased to RMB 35.99 billion, primarily driven by an increase in property, plant and equipment and growth in financial assets measured at fair value Property, Plant and Equipment The balance of property, plant and equipment increased by 6.7% to RMB 27.82 billion, primarily due to ongoing construction in Singapore and an increase in the RMB reported balance of European assets resulting from the appreciation of the Euro against the RMB | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 27,815.9 | 26,070.5 | 6.7% | - The increase was primarily due to ongoing construction in Singapore and an increase in the RMB reported balance of European assets resulting from the appreciation of the Euro against the RMB[56] Right-of-use Assets Right-of-use assets balance was approximately RMB 2.36 billion, remaining at the same level as at the end of 2024 | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Right-of-use Assets | 2,359.2 | 2,364.9 | -0.2% | Goodwill Goodwill was approximately RMB 1.53 billion, consistent with the end of 2024, originating from acquisitions of subsidiaries and businesses several years ago | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Goodwill | 1,529.9 | 1,529.9 | 0.0% | Intangible Assets Intangible assets were approximately RMB 441.1 million, consistent with the end of 2024, primarily comprising technology and customer relationships acquired, as well as patents and licenses held | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Intangible Assets | 441.1 | 442.4 | -0.3% | Investments in Associates Measured at Fair Value The investment balance in associate Shanghai Douneng Biotechnology Co., Ltd. decreased by 16.8% to RMB 1.05 billion, due to the re-evaluation of the investment's fair value during the reporting period | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Investments in Associates | 1,053.8 | 1,266.6 | -16.8% | - The decrease in the investment balance was due to the re-evaluation of the investment's fair value during the reporting period[60] Financial Assets Measured at Fair Value Non-current financial assets increased by 72.3% to RMB 1.95 billion, primarily due to fair value gains recognized on listed equity securities investments and new investments, while current financial assets grew by 80.1% to RMB 942.8 million, mainly attributed to WuXi XDC's increased investment in wealth management products | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Non-current Financial Assets | 1,952.9 | 1,133.3 | 72.3% | | Current Financial Assets | 942.8 | 523.6 | 80.1% | - The increase in non-current financial assets was primarily due to fair value gains recognized on listed equity securities investments and new investments, while the increase in current financial assets was mainly attributed to WuXi XDC's increased investment in wealth management products[61] Other Long-term Receivables and Provisions As of June 30, 2025, other long-term receivables increased to RMB 276.3 million, primarily including USD 30 million deposited into an escrow account from the Ireland vaccine manufacturing facility asset transaction, with management expecting the USD 24 million cap to be sufficient to cover potential claims and making a provision accordingly - As of March 31, 2025, the asset transaction related to the Ireland vaccine manufacturing facility was completed, with MSD International GmbH depositing USD 30 million into an escrow account[62] - Management expects the USD 24 million cap to be sufficient to cover potential claims that may arise post-closing, and a provision has been made under non-current liabilities[62] Current Assets As of June 30, 2025, total current assets increased to RMB 24.45 billion, primarily driven by increases in trade and other receivables, inventories, and contract costs Inventories Inventories increased by 8.8% to RMB 1.66 billion, primarily attributed to replenishing stock for the ramp-up of European entities and WuXi XDC accumulating reserves to facilitate business expansion | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Inventories | 1,655.0 | 1,521.7 | 8.8% | - The increase was primarily attributed to replenishing stock for the ramp-up of European entities and WuXi XDC accumulating reserves to facilitate its business expansion[63] Contract Costs Contract costs increased by 4.1% to RMB 1.55 billion, primarily attributed to the global business ramp-up and an increase in ongoing projects | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Contract Costs | 1,554.6 | 1,492.9 | 4.1% | - The increase was primarily attributed to the global business ramp-up and an increase in ongoing projects[64] Trade and Other Receivables Trade and other receivables increased by 23.7% to RMB 7.72 billion, primarily due to an increase in trade receivables as the Group's business expanded and revenue grew | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Trade and Other Receivables | 7,721.2 | 6,240.7 | 23.7% | - The increase was primarily due to an increase in trade receivables as the Group's business expanded and revenue grew[65] Contract Assets Contract assets decreased by 11.9% to RMB 169.1 million, primarily due to projects reaching milestones during the reporting period and being reclassified as trade receivables | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Contract Assets | 169.1 | 191.9 | -11.9% | - The decrease was primarily due to projects reaching milestones specified in contracts with customers during the reporting period and being reclassified as trade receivables[66] Assets Classified as Held for Sale As of June 30, 2025, relevant assets (including property, plant and equipment and inventories) amounting to approximately RMB 722.2 million have been reclassified as held for sale, with the transaction expected to be completed in H2 2025, following the sale of approximately RMB 3.38 billion in assets classified as held for sale at the end of 2024, which was completed in H1 2025 | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Assets Classified as Held for Sale | 722.2 | 3,377.1 | -78.6% | - The assets related to the Ireland vaccine manufacturing facility intended for sale at the end of 2024 were transacted in H1 2025; during the reporting period, the company entered into another contract to sell certain German assets to an independent third party, and these assets have been reclassified as held for sale[67] Current Liabilities As of June 30, 2025, total current liabilities slightly decreased to RMB 8.49 billion, primarily influenced by a reduction in trade and other payables, though contract liabilities and borrowings increased Trade and Other Payables Trade and other payables decreased by 22.1% to RMB 2.16 billion, primarily due to reduced advances from MSD International and lower salaries and bonuses payable after year-end bonus payments, partially offset by an increase in trade payables | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Trade and Other Payables | 2,164.5 | 2,778.2 | -22.1% | - The decrease was primarily due to reduced advances from MSD International and lower salaries and bonuses payable after year-end bonus payments, partially offset by an increase in trade payables[68] Contract Liabilities Current contract liabilities increased by 18.6% to RMB 2.80 billion, primarily due to entering into more contracts and management's commitment to strict upfront payment requirements, while non-current contract liabilities grew by 11.6% to RMB 159.4 million due to foreign exchange revaluation of Euro-denominated balances | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Current Contract Liabilities | 2,795.1 | 2,355.8 | 18.6% | | Non-current Contract Liabilities | 159.4 | 142.8 | 11.6% | - The increase in current contract liabilities was primarily due to entering into more contracts and management's commitment to strict upfront payment requirements, while the increase in non-current contract liabilities was due to foreign exchange revaluation of Euro-denominated balances[69] Lease Liabilities Total lease liabilities slightly increased by 3.1% to RMB 2.37 billion, consistent with the trend of increasing leased facilities and offices to support business expansion | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Lease Liabilities | 2,374.4 | 2,303.6 | 3.1% | - The increase is consistent with the trend of increasing leased facilities and offices to support the Group's business expansion[70] Liquidity and Capital Resources Bank Balances and Cash Total bank balances and cash and time deposits increased by 13.8% to RMB 11.60 billion, primarily due to proceeds from the sale of Ireland vaccine manufacturing facility assets and net cash inflow from operating activities, partially offset by payments for property, plant and equipment and share repurchases | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Bank Balances and Cash and Time Deposits | 11,596.9 | 10,186.2 | 13.8% | - The increase was primarily due to proceeds from the sale of Ireland vaccine manufacturing facility assets and net cash inflow from operating activities, partially offset by payments for property, plant and equipment and share repurchases[71] Treasury Policy WuXi Biologics adheres to a comprehensive financing and treasury policy, managing funding needs through diverse sources such as operating cash flow, proceeds from asset disposals, and internal/external financing, while centralizing treasury functions and negotiating derivative instruments like forward foreign exchange contracts with banks to mitigate foreign exchange risk - The company adheres to a comprehensive financing and treasury policy, managing funding needs through diverse sources such as operating cash flow, proceeds from asset disposals, and internal/external financing[72] - Treasury functions are centrally managed, and a range of derivative instruments, such as forward foreign exchange contracts, are negotiated with banks to mitigate foreign exchange risk[72] Significant Investments, Material Acquisitions and Disposals Significant Investments, Material Acquisitions and Disposals As of June 30, 2025, the Company held no significant investments, and there were no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - As of June 30, 2025, the Company held no significant investments, and there were no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[73] Indebtedness Borrowings Total borrowings increased by 3.7% to RMB 2.73 billion, primarily due to WuXi XDC's funding needs to support its rapid business expansion, with borrowings denominated in RMB, USD, and Euro, and the majority maturing within one year | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Borrowings | 2,732.7 | 2,636.2 | 3.7% | - The increase in borrowings was primarily due to WuXi XDC's funding needs to support its rapid business expansion[74] - Borrowings are denominated in RMB (RMB 1.24 billion, 1.4%-3.9%), USD (RMB 1.05 billion, 5.3%-5.7%), and Euro (RMB 444.0 million, 2.7%-4.2%), with approximately RMB 2.55 billion maturing within one year[74] Contingent Liabilities and Guarantees As of June 30, 2025, WuXi Biologics had no significant contingent liabilities or guarantees - As of June 30, 2025, the Group had no significant contingent liabilities or guarantees[75] Currency Risk WuXi Biologics faces foreign exchange risk primarily because revenue is denominated in USD, while purchases and expenses are settled in RMB, USD, and Euro, and the company holds USD and Euro-denominated borrowings and monetary assets/liabilities, mitigating this risk by closely monitoring net foreign exchange positions and entering into hedging instruments like forward contracts - The company faces foreign exchange risk primarily because revenue is denominated in USD, while purchases and expenses are settled in RMB, USD, and Euro, and it holds USD and Euro-denominated borrowings and monetary assets/liabilities[76] - Foreign exchange risk is mitigated by closely monitoring net foreign exchange positions and entering into a series of highly effective hedging instruments such as forward contracts[76] Pledged Assets As of June 30, 2025, pledged bank deposits were approximately RMB 13.8 million, remaining stable compared to the end of 2024, and buildings with a carrying value of approximately RMB 16.8 million were pledged as collateral for RMB-denominated borrowings of approximately RMB 43.7 million | Metric | As of June 30, 2025 (RMB million) | As of Dec 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Pledged Bank Deposits (RMB million) | 13.8 | 13.9 | -0.7% | | Pledged Buildings (Carrying Value, RMB million) | 16.8 | 16.9 | -0.6% | | Corresponding RMB Borrowings (RMB million) | 43.7 | 48.3 | -9.5% | Capital Gearing Ratio The capital gearing ratio decreased from 5.8% at the end of 2024 to 5.6% as of June 30, 2025, primarily due to the growth in total equity resulting from net profit recorded during the reporting period | Metric | As of June 30, 2025 | As of Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Capital Gearing Ratio | 5.6% | 5.8% | -0.2% | - The decrease in the capital gearing ratio was primarily due to the growth in total equity resulting from net profit recorded during the reporting period[78] Non-IFRS Measures Adjusted Net Profit and EPS Adjusted net profit increased by 11.6% to RMB 2.84 billion in H1 2025, with an adjusted net margin of 28.5%, while adjusted net profit attributable to owners of the company grew by 6.2% to RMB 2.39 billion, and adjusted basic earnings per share was RMB 0.59 | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Adjusted Net Profit | 2,840.0 | 2,544.8 | 11.6% | | Adjusted Net Margin | 28.5% | 29.7% | -1.2% | | Adjusted Net Profit Attributable to Owners of the Company | 2,388.8 | 2,250.3 | 6.2% | | Adjusted Net Margin Attributable to Owners of the Company | 24.0% | 26.2% | -2.2% | | Adjusted Basic EPS (RMB) | 0.59 | 0.55 | 7.3% | | Adjusted Diluted EPS (RMB) | 0.56 | 0.52 | 7.7% | - Adjusted net profit excludes share-based compensation expenses, foreign exchange gains/losses, and gains/losses from equity investments/asset disposals[81] Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) increased by 50.5% to RMB 4.22 billion in H1 2025, with an EBITDA margin of 42.4%, while adjusted EBITDA grew by 20.6% to RMB 4.31 billion, with an adjusted EBITDA margin of 43.3% | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | EBITDA (RMB million) | 4,221.8 | 2,805.9 | 50.5% | | EBITDA Margin | 42.4% | 32.7% | +9.7% | | Adjusted EBITDA (RMB million) | 4,305.2 | 3,570.4 | 20.6% | | Adjusted EBITDA Margin | 43.3% | 41.6% | +1.7% | Other Corporate Information Employees and Remuneration Policy As of the end of the reporting period, WuXi Biologics had a total workforce of 12,552 employees, including approximately 4,362 R&D personnel, with a key talent retention rate of approximately 98.8%, and employee costs (excluding retirement benefits and share-based compensation) increased by 12.7% to RMB 2.59 billion, supported by effective training systems and multiple equity incentive plans | Metric | As of June 30, 2025 | As of June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Employees | 12,552 people | - | - | | R&D Personnel | 4,362 people | - | - | | Key Talent Retention Rate | 98.8% | - | - | | Employee Costs (Excl. Retirement Benefits & Share-based Compensation) (RMB million) | 2,586.6 | 2,295.2 | 12.7% | - The company has effective training systems (onboarding and continuous in-service training) and multiple equity incentive plans (Pre-IPO Share Option Scheme, Restricted Share Award Scheme, Global Partner Share Award Scheme, etc.)[83][84] Interim Dividend The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025[85] Corporate Governance WuXi Biologics is committed to maintaining high standards of corporate governance, having adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with all applicable code provisions during the reporting period, and has adopted a code of conduct for directors' securities transactions no less exacting than the Model Code, with all directors confirming compliance with both the code and written guidelines during the reporting period Compliance with Corporate Governance Code WuXi Biologics is committed to maintaining high standards of corporate governance, having adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with all applicable code provisions during the reporting period - The Corporate Governance Code set out in Appendix C1 of the Listing Rules has been adopted, and all applicable code provisions were complied with throughout the reporting period[86] Compliance with Model Code for Securities Transactions WuXi Biologics has adopted a code of conduct for directors' securities transactions no less exacting than the Model Code, with all directors confirming compliance with both the code and written guidelines during the reporting period, and no non-compliance by employees with inside information was identified - A code of conduct for directors' securities transactions no less exacting than the Model Code has been adopted, and all directors confirmed compliance with both the code and written guidelines during the reporting period[87] Use of Proceeds from Fourth Placing The net proceeds from the fourth placing, approximately RMB 10.90 billion, were planned for acquiring additional DS/DP manufacturing capacity (40%), establishing large-scale manufacturing capacity (40%), investing in mRNA-related technologies (10%), and general working capital purposes (10%), with RMB 9.16 billion utilized and RMB 1.74 billion remaining as of June 30, 2025 | Use of Proceeds | Planned Use (RMB million) | Percentage | Actual Use as of June 30, 2025 (RMB million) | Net Unutilized Proceeds (RMB million) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Acquisition of additional Drug Substance/Drug Product (DS/DP) manufacturing capacity | 4,359.6 | 40% | 3,660.1 | 699.5 | By end of 2026 | | Establishment of additional large-scale manufacturing capacity for various technology platforms | 4,359.6 | 40% | 4,359.6 | — | Not Applicable | | Investment in mRNA-related technologies | 1,089.9 | 10% | 54.1 | 1,035.8 | By end of 2027 | | General working capital purposes of the Group | 1,089.9 | 10% | 1,089.9 | — | Not Applicable | | Total | 10,899.0 | 100% | 9,163.7 | 1,735.3 | | - The net proceeds from the fourth placing, approximately RMB 10.90 billion, were intended to raise additional capital to fund future development[88] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, WuXi Biologics repurchased a total of 60,539,500 shares on the Stock Exchange for a total consideration of approximately HKD 1.11 billion, and the repurchased shares have been cancelled, with the repurchase aiming to demonstrate the company's confidence in its business outlook and belief that the current share price does not reflect its intrinsic value | Month of Repurchase | Number of Shares Repurchased | Total Purchase Price (HKD million) | | :--- | :--- | :--- | | January 2025 | 9,509,500 | 165.79 | | April 2025 | 51,030,000 | 944.83 | | Total | 60,539,500 | 1,110.62 | - The share repurchases were intended to demonstrate the company's confidence in its business outlook and prospects, believing that the current trading price of the shares does not reflect their intrinsic value or the company's actual prospects[91] Review of Interim Results Independent auditor Deloitte Touche Tohmatsu has reviewed the interim financial information, and the Audit Committee, in conjunction with management and the independent auditor, has reviewed accounting principles and policies and discussed internal controls and financial reporting matters, concluding that the interim results comply with applicable accounting standards, laws, and regulations - Independent auditor Deloitte Touche Tohmatsu has reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[93] - The Audit Committee, in conjunction with management and the independent auditor, has reviewed accounting principles and policies and discussed internal controls and financial reporting matters, concluding that the interim results comply with applicable accounting standards, laws, and regulations[93] Events After Reporting Period No significant events affecting WuXi Biologics occurred after June 30, 2025 - No significant events affecting the Group occurred after June 30, 2025[94] Publication of 2025 Condensed Consolidated Interim Results and Interim Report This announcement has been published on the HKEX website and the company's website, and the interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be published on the HKEX and company websites in due course - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.wuxibiologics.com)[95](index=95&type=chunk) Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income WuXi Biologics' H1 2025 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income shows revenue of RMB 9.95 billion, profit for the period of RMB 2.76 billion, and total comprehensive income of RMB 4.11 billion | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 9,953,216 | 8,574,214 | | Cost of sales | (5,700,364) | (5,224,263) | | Gross profit | 4,252,852 | 3,349,951 | | Other income | 326,414 | 338,659 | | Other gains and losses | 360,977 | (81,882) | | Impairment losses (net of reversals) | (133,843) | (190,170) | | Selling and marketing expenses | (270,110) | (223,057) | | Administrative expenses | (781,134) | (772,988) | | Research and development expenses | (343,512) | (344,062) | | Finance costs | (83,543) | (68,074) | | Profit before tax | 3,328,101 | 2,008,377 | | Income tax expense | (571,490) | (228,067) | | Profit for the period | 2,756,611 | 1,780,310 | | Other comprehensive income (expense) for the period | 1,357,842 | (534,156) | | Total comprehensive income for the period | 4,114,453 | 1,246,154 | | Profit attributable to owners of the Company | 2,339,266 | 1,499,080 | | Profit attributable to non-controlling interests | 417,345 | 281,230 | | Total comprehensive income attributable to owners of the Company | 3,699,891 | 973,549 | | Total comprehensive income attributable to non-controlling interests | 414,562 | 272,605 | | Basic EPS (RMB) | 0.58 | 0.37 | | Diluted EPS (RMB) | 0.55 | 0.35 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, WuXi Biologics' Condensed Consolidated Statement of Financial Position shows total assets of RMB 60.44 billion, total liabilities of RMB 11.37 billion, and total equity of RMB 49.07 billion | Metric | As of June 30, 2025 (RMB thousand) | As of Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, plant and equipment | 27,815,903 | 26,070,458 | | Right-of-use assets | 2,359,237 | 2,364,916 | | Goodwill | 1,529,914 | 1,529,914 | | Intangible assets | 441,104 | 442,369 | | Investments in associates (FVTPL) | 1,053,845 | 1,266,560 | | Financial assets (FVTPL) | 1,952,924 | 1,133,265 | | Finance lease receivables | 78,470 | 85,665 | | Deferred tax assets | 483,095 | 444,318 | | Other long-term prepayments and receivables | 276,262 | 66,779 | | Total non-current assets | 35,990,754 | 33,404,244 | | Current Assets | | | | Inventories | 1,655,042 | 1,521,669 | | Finance lease receivables | 11,686 | 11,027 | | Trade and other receivables | 7,721,150 | 6,240,747 | | Contract assets | 169,123 | 191,927 | | Contract costs | 1,554,605 | 1,492,931 | | Tax recoverable | 53,233 | 14,105 | | Derivative financial assets | 6,177 | — | | Financial assets (FVTPL) | 942,764 | 523,593 | | Pledged bank deposits | 13,813 | 13,854 | | Time deposits | 3,157,800 | 1,907,016 | | Bank balances and cash | 8,439,058 | 8,279,182 | | Total current assets | 23,724,451 | 20,196,051 | | Assets classified as held for sale | 722,182 | 3,377,140 | | Total Assets | 60,437,387 | 56,977,435 | | Current Liabilities | | | | Trade and other payables | 2,164,548 | 2,778,195 | | Borrowings | 2,547,550 | 2,435,302 | | Contract liabilities | 2,795,070 | 2,355,772 | | Income tax payable | 518,464 | 647,658 | | Lease liabilities | 436,058 | 183,704 | | Derivative financial liabilities | 25,655 | 220,620 | | Total current liabilities | 8,487,345 | 8,621,251 | | Non-current Liabilities | | | | Deferred tax liabilities | 73,182 | 97,306 | | Borrowings | 185,140 | 200,898 | | Contract liabilities | 159,402 | 142,770 | | Lease liabilities | 1,938,314 | 2,119,945 | | Provisions | 171,806 | — | | Deferred income | 357,127 | 317,696 | | Total non-current liabilities | 2,884,971 | 2,878,615 | | Total Equity | 49,065,071 | 45,477,569 | Notes to the Condensed Consolidated Financial Statements 1. General Information WuXi Biologics (Cayman) Inc. was incorporated in the Cayman Islands on February 27, 2014, and listed on the Main Board of the Hong Kong Stock Exchange on June 13, 2017, operating as a biologics Contract Research, Development and Manufacturing Organization (CRDMO) providing end-to-end solutions for biologics discovery, development, and manufacturing, with its condensed consolidated financial statements presented in RMB - The Company was incorporated in the Cayman Islands on February 27, 2014, and its shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited ("HKEX") since June 13, 2017[102] - The Group operates as a biologics Contract Research, Development and Manufacturing Organization (CRDMO), providing end-to-end solutions for biologics discovery, development, and manufacturing[102] - The condensed consolidated financial statements are presented in Renminbi ("RMB"), which is also the Company's functional currency[103] 2. Basis of Preparation of Condensed Consolidated Financial Statements The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of the Listing Rules of the Stock Exchange - The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 issued by the International Accounting Standards Board and the applicable disclosure requirements of the Listing Rules of the Stock Exchange[104] 3. Principal Accounting Policies The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value, with the first-time application of amended IFRS accounting standards during this interim period having no significant impact on financial position and performance Application of Amended IFRS Accounting Standards The amendment to International Accounting Standard 21 "Lack of Exchangeability" issued by the International Accounting Standards Board was first applied during this interim period, but it had no significant impact on the Group's financial position, performance, and/or disclosures for the current and prior periods - The amendment to International Accounting Standard 21 "Lack of Exchangeability" issued by the International Accounting Standards Board was first applied during this interim period[106] - The application of amended IFRS accounting standards had no significant impact on the Group's financial position, performance, and/or disclosures for the current and prior periods[106] 4. Revenue from Contracts with Customers WuXi Biologics' revenue primarily derives from CRDMO services and the transfer of other goods, with H1 2025 CRDMO service revenue at RMB 9.77 billion, the majority of which (RMB 9.33 billion) is recognized at a point in time | Type of Goods or Services | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | CRDMO services | 9,766,347 | 8,395,447 | | Others | 186,869 | 178,767 | | Total | 9,953,216 | 8,574,214 | | Timing of Revenue Recognition | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | At a point in time (CRDMO services) | 9,328,459 | 7,677,286 | | At a point in time (Others) | 186,869 | 178,767 | | Over time (CRDMO services) | 437,888 | 718,161 | | Total | 9,953,216 | 8,574,214 | 5. Operating Segments WuXi Biologics' operating segments are primarily Biologics and XDC, with H1 2025 external sales revenue for the Biologics segment at RMB 7.28 billion and for the XDC segment at RMB 2.67 billion, and key operating decision-makers allocate resources and assess performance based on the operating results of each segment | Segment | H1 2025 External Sales (RMB thousand) | H1 2024 External Sales (RMB thousand) | | :--- | :--- | :--- | | Biologics | 7,281,020 | 6,961,624 | | XDC | 2,672,196 | 1,612,590 | - Key operating decision-makers allocate resources and assess performance based on the operating results of each segment, but segment assets and liabilities are not regularly reviewed[111] | Region | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | | :--- | :--- | :--- | | North America | 6,018,150 | 5,009,669 | | Europe | 1,968,580 | 1,862,991 | | China | 1,297,016 | 1,417,906 | | Rest of World | 669,470 | 283,648 | - As of June 30, 2025, the Group's non-current assets in Ireland, Germany, the United States, and Singapore amounted to RMB 8.41 billion, RMB 3.37 billion, RMB 2.38 billion, and RMB 2.89 billion, respectively[115] 6. Other Income Other income in H1 2025 was RMB 326.4 million, primarily comprising interest income from bank and other financial assets measured at amortized cost (RMB 175.4 million), research and other grants (RMB 122.3 million), and dividend income (RMB 28.7 million) | Source of Income | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income from bank and other financial assets measured at amortized cost | 175,357 | 191,996 | | Research and other grants (asset-related) | 19,558 | 12,021 | | Research and other grants (income-related) | 102,789 | 134,642 | | Dividends | 28,710 | — | | Total | 326,414 | 338,659 | - Research and other grants are primarily related to recognizing the Group's contributions to local high-tech industries and the economy, are unconditional, and not related to any assets[117] 7. Finance Costs Finance costs in H1 2025 were RMB 83.5 million, primarily comprising interest expenses on bank borrowings (RMB 51.1 million) and lease liabilities (RMB 40.9 million), net of RMB 8.5 million capitalized | Composition of Finance Costs | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest expense on financing component of customer advances received | — | 5,293 | | Interest expense on bank borrowings | 51,108 | 58,799 | | Interest expense on lease liabilities | 40,907 | 41,074 | | Less: Amount capitalized in cost of qualifying assets | (8,472) | (37,092) | | Total | 83,543 | 68,074 | 8. Profit Before Tax Profit before tax in H1 2025 was RMB 3.33 billion, primarily after deducting items such as depreciation, amortization, employee costs, impairment losses, and write-downs of inventories/contract costs | Deducted Items | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- |