Sou Hu Wang·2025-07-31 08:08Core Insights - WuXi AppTec has demonstrated strong organic growth, as evidenced by its impressive mid-year performance for 2025 [1] Revenue Performance - The company's total revenue for the first half of the year reached 20.8 billion RMB, representing a year-on-year increase of 20.6%. Revenue from continuing operations was 20.41 billion RMB, up 24.2% year-on-year [4] - The net profit attributable to shareholders for the first half was 8.56 billion RMB, reflecting a significant year-on-year growth of 101.9%. The diluted earnings per share were 2.99 RMB, up 106.2% year-on-year [4] Order Backlog - As of June 30, the order backlog for continuing operations stood at 56.69 billion RMB, marking a year-on-year increase of 37.2% [5] - The company has maintained double-digit growth in revenue, profit, and order backlog, outperforming the industry average [5] Growth Drivers - WuXi AppTec's growth strategy focuses on comprehensive empowerment and addressing customer needs, particularly in the context of rising pharmaceutical R&D costs and low success rates [6] - The CRDMO model, which covers the entire process from drug discovery to commercialization, has solidified customer loyalty and created scale effects [6][7] - The company generated 16.64 billion RMB in revenue from the top 20 global pharmaceutical companies, excluding COVID-19 projects, which represents a year-on-year growth of 24.1% [6] Business Segments - The three main business segments—chemistry, biology, and testing—work synergistically to empower clients [9] - The biology segment generated 1.25 billion RMB in revenue, a year-on-year increase of 7.1%, while the testing segment's revenue was 1.0 billion RMB, up 5.5% year-on-year [9] - The chemistry segment led growth with 16.3 billion RMB in revenue, reflecting a 33.5% year-on-year increase, and its adjusted non-IFRS gross margin improved to 49.0% [9][10] Pipeline and Future Prospects - The small molecule pipeline continues to convert efficiently, with 158 molecules transitioning from R&D to development in the first half of 2025 [10] - The TIDES business, which includes peptides and oligonucleotides, saw revenue of 5.03 billion RMB, a remarkable year-on-year growth of 141.6% [10] - The company is expanding its peptide production capacity, with expectations to double capacity by the end of 2025 [10][11] Financial Health - Operating cash flow for the first half was 7.07 billion RMB, a year-on-year increase of 49.1% [12] - The company plans to invest 7-8 billion RMB in capital expenditures while maintaining a free cash flow of 5-6 billion RMB [12] - WuXi AppTec has distributed a total of 3.84 billion RMB in cash dividends, including a special dividend of 1.01 billion RMB, reflecting management's confidence in future growth [13]