Core Viewpoint - WuXi AppTec's major shareholder, WuXi PharmaTech, has reduced its stake in WuXi AppTec again, selling 30.3 million shares for over HKD 2.3 billion, leading to significant stock price declines for both companies [2][4]. Group 1: Shareholder Actions - WuXi PharmaTech has conducted its fourth large-scale reduction of WuXi AppTec shares in the past year, totaling approximately HKD 69.5 billion in cash from these sales [4]. - The recent sale represents 2.47% of WuXi AppTec's total shares, with the stock price dropping by 7.29% following the announcement [2][4]. Group 2: Financial Impact - The sale of WuXi AppTec shares is classified as a "long-term equity investment," and the estimated net profit impact for WuXi PharmaTech in 2025 is approximately HKD 1.679 billion, accounting for over 10% of the company's net profit for 2024 [4]. - WuXi PharmaTech's revenue and net profit declined in 2024, with revenues of approximately CNY 39.241 billion, down 2.73%, and net profit of CNY 9.45 billion, down 1.63% [4]. Group 3: Business Performance - In 2025, WuXi PharmaTech's performance improved, with a revenue of CNY 20.8 billion in the first half, a 20.6% increase year-on-year, and a net profit of CNY 8.56 billion, more than doubling compared to the previous year [5]. - The company has a strong order backlog of CNY 56.69 billion, reflecting a 37.2% year-on-year growth, indicating sustainable performance recovery [5]. Group 4: Market Concerns - Concerns exist regarding the high proportion of overseas revenue, which accounted for over 80% of total revenue in the first half of the year, with significant contributions from U.S. clients [5]. - Geopolitical uncertainties and intensified competition in the CXO sector pose risks to long-term orders and profitability for WuXi PharmaTech [5][6]. Group 5: Strategic Moves - The continuous reduction in shareholding is seen as a strategic move to fund future global expansion, with planned expenditures of approximately CNY 7-8 billion for capacity expansion in various countries [8]. - The cash generated from the sale of WuXi AppTec shares will be used to enhance the company's integrated CRDMO business model to meet the growing demands of global clients [8].

Core Viewpoint - WuXi AppTec (药明康德) has announced a third round of share reduction in WuXi AppTec's subsidiary, WuXi Biologics (药明合联), since November last year, raising over 4.5 billion HKD in total from these transactions, indicating a strategic move to enhance its cash flow for global capacity expansion [1][2][4]. Group 1: Share Reduction Details - The recent share reduction involved the sale of 50.8 million shares of WuXi Biologics, accounting for approximately 4.23% of its total share capital, with a transaction value of about 2.178 billion HKD [2]. - Cumulatively, through three rounds of share reductions, WuXi AppTec has raised over 4.5 billion HKD, with the expected net profit contribution from these sales projected to be around 3.144 billion CNY in 2025 [1][2]. Group 2: Financial Performance of WuXi Biologics - WuXi Biologics reported a significant revenue increase of 90.8% year-on-year, reaching 4.052 billion CNY in 2024, with a net profit surge of 277% to 1.07 billion CNY [3]. - The stock price of WuXi Biologics has seen a remarkable increase of 251.56% from late July 2024 to the peak on April 1, 2025 [3]. Group 3: Strategic Focus of WuXi AppTec - WuXi AppTec's cash reserves stand at 18.322 billion CNY, with plans to utilize the proceeds from share sales to accelerate global capacity and capability development [4][5]. - The company aims to double its capital expenditure in the D&M (Development and Manufacturing) phase by 2025, with projected spending between 7 billion to 8 billion CNY [4][5]. - WuXi AppTec is currently constructing six bases globally, with significant expansions planned in Switzerland, the U.S., and Singapore to meet increasing global demand [5].

Core Viewpoint - WuXi AppTec is actively advancing the construction of its Middleton facility in the U.S., with plans to commence operations by the end of 2026. The company has also announced a third round of share reduction in WuXi AppTec's subsidiary, WuXi Biologics, since November of the previous year, indicating a strategic move to enhance its global capacity and talent retention [1][3]. Group 1: Share Reduction Details - On April 1, WuXi AppTec sold 50.8 million shares of WuXi Biologics, accounting for approximately 4.23% of the total share capital, with a transaction value of about HKD 2.178 billion, representing 3.43% of the company's latest audited net assets attributable to shareholders [1][3]. - The share reduction coincided with WuXi Biologics reaching a record high stock price of HKD 49.50 per share on the same day [1]. Group 2: Financial Implications - The proceeds from the share reduction will contribute an estimated investment income of CNY 1.847 billion to WuXi AppTec's 2025 semi-annual report [3]. - In 2024, revenue from U.S. clients is projected to be CNY 25.02 billion, making up approximately 64% of the company's total revenue, highlighting the significance of the U.S. market to WuXi AppTec's financial performance [3]. Group 3: Geopolitical Considerations - The company is facing uncertainties due to the impending implementation of U.S. "reciprocal tariffs," which could impact its revenue, particularly since the U.S. is its largest market [3]. - Management has acknowledged the global nature of tariff impacts and indicated that the specific effects on the company's business remain unclear and will require further observation [3].

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） 海外監管公告 本海外監管公告乃由本公司根據香港聯合交易所有限公司證券上市規則第 13.10B條作出。 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之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或 因依賴該等內容而引致之任何損失承擔任何責任。 茲載列本公司在上海證券交易所網站刊登的以下資料中文全文，僅供參閱。 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，2025年3月17日 截至本公告日期，本公司董事會包括執行董事李革博士、陳民章博士、胡正國先生、楊青博士及 張朝暉先生；非執行董事童小幪先生及吳亦兵博士；以及獨立非執行董事盧韶華女士、俞衛博士、 張新博士、詹智玲女士及冷雪松先生。 * 僅供識別 无锡药明康德新药开发股份有限公司 2024 年年度报告 公司代码：603259 公司简称：药明康德 无锡药明康德新药开发股份有限公司 2024 年年度报告 1 / 292 无锡药 ...