Sou Hu Cai Jing·2025-10-17 10:32Core Viewpoint - WuXi AppTec's stock price has experienced significant volatility following a major share reduction, with implications for its financial performance and ESG commitments [1][2]. Group 1: Stock Performance and Share Reduction - WuXi AppTec announced the sale of 30.3 million shares of WuXi AppTec Holdings, representing 2.47% of the total share capital, for approximately HKD 23.46 billion, which is 3.67% of the company's net assets for 2024 [1]. - Following the announcement, WuXi AppTec's A-share price dropped from HKD 112.85 to HKD 95.92, a decline of over 15%, before recovering slightly to HKD 101.06, still down 10.45% from the pre-announcement level [1]. - WuXi AppTec Holdings' stock also faced declines, with three consecutive trading days showing drops of 7.29%, 3.97%, and 5.51%, ultimately narrowing the overall decline to 9.87% [1]. Group 2: Financial Performance and Share Reduction Impact - Over the past year, WuXi AppTec has reduced its holdings in WuXi AppTec Holdings four times, totaling 167 million shares or 13.87% of equity, raising over HKD 69 billion, contributing to an investment gain of HKD 43.51 billion, which accounts for 45.9% of the projected net profit for 2024 [2]. - In the first half of 2025, WuXi AppTec reported revenues of HKD 20.8 billion and a net profit of HKD 8.561 billion, reflecting a year-on-year growth rate of 101.92% [2]. - The company's stock has increased by over 85% since the beginning of the year, with its market capitalization approaching HKD 300 billion [2]. Group 3: ESG Commitments and Emission Reduction Goals - WuXi AppTec's greenhouse gas reduction targets have been verified by the Science Based Targets initiative (SBTi), aiming for a 42% reduction in operational emissions by 2030 based on 2024 levels [3][4]. - The company plans to reduce emissions from purchased goods and services and fuel-related activities by 25% within the same timeframe [3]. - Compared to peers, WuXi AppTec faces a more challenging reduction path due to a higher baseline for emissions, with a current operational emission level of 597,600 tons of CO2 equivalent that must be reduced to below 346,600 tons by 2030 [5][6]. Group 4: Operational Challenges and Energy Transition - WuXi AppTec's previous focus on intensity-based reduction has shifted to absolute reduction targets, requiring a significant cut in total emissions regardless of business growth [6]. - The company has increased its global production capacity, with over 30 bases worldwide, and plans to launch several new facilities starting in Q4 2026 [6]. - Currently, indirect emissions from purchased electricity and steam account for nearly 90% of total emissions, necessitating a systemic transition in energy sourcing to meet reduction targets [7].