Chang Jiang Shang Bao·2025-10-17 07:36Core Viewpoint - WuXi AppTec (药明康德) is actively reducing its stake in WuXi AppTec Holdings (药明合联) through multiple transactions, raising significant cash for strategic investments while experiencing a decline in R&D expenses and workforce [2][3][6]. Group 1: Share Reduction and Financial Impact - WuXi AppTec has sold 30.3 million shares of WuXi AppTec Holdings, representing 2.47% of its total share capital, for approximately HKD 23.46 billion [3]. - Over the past year, the company has cumulatively reduced its holdings in WuXi AppTec Holdings, generating HKD 69.5 billion (approximately RMB 63.72 billion) [6]. - The sale of shares is expected to impact the company's net profit for 2025 by approximately RMB 16.79 billion, which is over 10% of the latest audited net profit attributable to shareholders [4]. Group 2: R&D Expenses and Workforce Changes - WuXi AppTec's R&D expenses have been declining for two and a half years, totaling RMB 31.94 billion, which is only 3.18% of the total revenue of RMB 1003.81 billion during the same period [11]. - The company has seen a significant reduction in its workforce, with a total decrease of 6,529 employees, or 14.72%, from the end of 2022 to mid-2025 [12]. - Despite the workforce reduction, executive compensation remains high, with the CEO receiving a total of RMB 126 million over three years [13]. Group 3: Revenue Performance and Global Strategy - In 2022, WuXi AppTec reported revenue of RMB 393.55 billion, with a year-on-year growth of 71.84%, and net profit of RMB 88.14 billion, also up 72.91% [7]. - The company anticipates a return to double-digit revenue growth in 2025, adjusting its revenue forecast to between RMB 425 billion and RMB 435 billion [11]. - As of mid-2025, the company has a backlog of orders worth RMB 566.9 billion, reflecting a year-on-year increase of 37.2%, with significant contributions from U.S. and European clients [12].