Investment Rating - The report maintains a "Buy" rating for WuXi AppTec (02268.HK) [1] Core Views - The company's 2025 performance met expectations, with revenue reaching 5,944 million RMB (+46.7%), gross profit of 2,139 million RMB (+72.5%), and a gross margin of 36.0% (+5.4%) [1] - Adjusted net profit for 2025 was 1,559 million RMB (+69.9%), with an adjusted profit margin of 26.2% (+3.6 percentage points) [1] - The company is expected to enter a commercialization phase, supported by a solid backlog of orders and a strong market position in the bioconjugate drug CRDMO sector [7] Financial Summary - Revenue projections for 2026, 2027, and 2028 are 8,043 million RMB, 10,503 million RMB, and 13,716 million RMB, respectively, with year-on-year growth rates of 35.3%, 30.6%, and 30.6% [3] - The net profit for the same years is projected to be 2,013 million RMB, 2,639 million RMB, and 3,371 million RMB, with growth rates of 36.0%, 31.1%, and 27.7% [3] - The earnings per share (EPS) is expected to increase from 1.18 RMB in 2025 to 2.68 RMB in 2028 [3] Market Position and Growth Drivers - The company has solidified its leading position in the global bioconjugate drug CRDMO market, increasing its market share to approximately 24% and signing a record 70 iCMC projects in 2025 [7] - The company’s overseas revenue accounted for 85% of total revenue in 2025, with significant demand from the North American market [7] - The company has a robust order backlog, with unfulfilled orders growing by 50.3% year-on-year to 1.5 billion USD by the end of 2025, ensuring long-term growth [7] Capacity Expansion and Strategic Moves - The company is advancing its global dual-plant capacity layout, with significant investments in production capabilities, including a recent acquisition of 31 million HKD to enhance DP production capacity [7] - The establishment of a one-stop production base in Wuxi and the upcoming GMP release of the Singapore facility are expected to meet diverse compliance production needs for clients [7]

Investment Rating - The report maintains a "Recommendation" rating for WuXi AppTec (02268.HK) [1] Core Insights - The company achieved a revenue of 5,944 million RMB in 2025, representing a year-on-year growth of 46.7%. The gross profit reached 2,139 million RMB, with a gross margin of 36.0%, an increase of 5.4 percentage points. The adjusted net profit was 1,559 million RMB, reflecting a growth of 69.9% [1][7] - The revenue structure is continuously optimized, with a significant increase in orders, particularly in the second half of 2025, where revenue reached 3,243 million RMB, a year-on-year increase of 35.9%. The company’s overseas revenue accounted for 85% of total revenue, driven by strong demand in the North American market [7] - WuXi AppTec has solidified its leading position in the global bioconjugate drug CRDMO market, increasing its market share to approximately 24% in 2025. The company signed 70 new iCMC projects, reaching a total of 252 projects in hand, which supports future growth [7] - The company is advancing its global dual-plant capacity layout, with significant progress in its Wuxi base and the acquisition of Dongyao Pharmaceutical for 3.1 billion HKD, adding 8 million bottles/year of DP capacity [7] - The revenue forecasts for 2026-2028 are 8,043 million RMB, 10,503 million RMB, and 13,716 million RMB, with expected growth rates of 35.3%, 30.6%, and 30.6% respectively. The net profit forecasts are 2,013 million RMB, 2,639 million RMB, and 3,371 million RMB, with growth rates of 36.0%, 31.1%, and 27.7% [7]

Stock Code: 2268.HK WuXi XDC 2025 Annual Results 24 March, 2026 | Hong Kong Disclaimer Forward-Looking Statements This presentation may contain certain "forward-looking statements" which are not historical facts, but instead are predictions about future events based on our beliefs as well as assumptions made by and information currently available to our management. Although we believe that our predictions are reasonable, future events are inherently uncertain and our forward-looking statements may turn out ...

Core Viewpoint - WuXi AppTec is poised to enter a commercial harvest period in the global XDC CRDMO sector, leveraging its end-to-end integrated bioconjugate drug CRDMO service capabilities and industry-leading technology platform [2] Group 1: Company Overview - WuXi AppTec has a strong technical foundation with proprietary technologies such as WuXiDARx™, X-LinC conjugation technology, and WuXiTecan-1 and WuXiTecan-2 payload conjugation platforms, establishing its leadership in the industry [3] - The company employs a strategy of "empower, follow, and win" to enhance early-stage client conversion and continuously attract new clients, resulting in a broad and rapidly growing customer base [3] Group 2: Market Potential - The bioconjugate drug industry is experiencing rapid growth, with ADC drugs expected to reach a sales figure of $66.2 billion by 2030, driven by the emergence of new ADC types such as bispecific ADCs and dual payload ADCs [2] - The outsourcing rate for ADC drug development is projected to remain high at around 60%, with WuXi AppTec expected to capture over 24% of the global ADC outsourcing market by 2025 [2] Group 3: Financial Projections - Revenue projections for WuXi AppTec are estimated at 59.22 billion, 80.11 billion, and 104.61 billion CNY for the years 2025, 2026, and 2027, reflecting year-on-year growth rates of 46.1%, 35.3%, and 30.6% respectively [4] - Net profit attributable to the parent company is forecasted to be 14.81 billion, 19.89 billion, and 26.00 billion CNY for the same years, with growth rates of 38.5%, 34.3%, and 30.7% respectively [4]

Investment Rating - The report assigns a "Buy" rating to WuXi XDC (02268.HK) for the first time, with a target price of HKD 80, compared to the current price of HKD 58.35 [2][11]. Core Insights - WuXi XDC is positioned to enter a commercialization phase, leveraging its end-to-end integrated CRDMO services and industry-leading technology platform to solidify its leading position in the bioconjugate drug CRDMO sector [1][15]. - The bioconjugate drug industry is experiencing rapid growth, with ADC drugs expected to reach USD 66.2 billion by 2030, and WuXi XDC projected to capture over 24% of the global ADC outsourcing market by 2025 [1][9]. Summary by Relevant Sections Company Overview - WuXi XDC is a joint venture between WuXi Biologics and Hengrui Medicine, focusing on ADC and broader bioconjugate drug markets, providing comprehensive CRDMO services [15][17]. Financial Projections - Revenue projections for WuXi XDC are as follows: - 2024: HKD 4,052 million - 2025: HKD 5,922 million (growth of 46.1%) - 2026: HKD 8,011 million (growth of 35.3%) - 2027: HKD 10,461 million (growth of 30.6%) - Net profit projections are: - 2024: HKD 1,070 million - 2025: HKD 1,481 million (growth of 38.5%) - 2026: HKD 1,989 million (growth of 34.3%) - 2027: HKD 2,600 million (growth of 30.7%) [2][11]. Industry Trends - The bioconjugate drug industry is rapidly expanding, with ADC drugs being the primary focus. The report highlights the emergence of several blockbuster ADC drugs, with six expected to exceed USD 1 billion in sales by 2025 [9][32]. - The outsourcing rate for ADC drugs is projected to remain high at approximately 60%, benefiting companies like WuXi XDC [9][29]. Technological Strengths - WuXi XDC boasts strong technical capabilities with proprietary technologies such as WuXiDARx™, X-LinC conjugation technology, and various payload conjugation platforms, enhancing its competitive edge [7][10]. Capital Expenditure and Growth Strategy - The company plans to invest HKD 1.7 billion in capital expenditures by 2026 to support its global dual-factory production strategy, enhancing its capacity for conjugated raw materials and formulations [7][10]. Market Position - WuXi XDC is expected to have a significant market share in the global ADC outsourcing market, projected to reach over 24% by 2025, reflecting its strong growth trajectory and market demand [1][9].

Core Viewpoint - WuXi XDC has announced a significant revenue growth forecast for 2025, alongside a cash offer to acquire Dongyao Pharmaceutical, indicating a strategic move to enhance its capacity and market position in the ADC CDMO sector [2][3]. Financial Performance - WuXi XDC expects a revenue increase of over 45% year-on-year for 2025, with gross profit growth exceeding 70% and adjusted net profit (excluding interest income) also projected to rise over 45% [2]. - Dongyao Pharmaceutical reported a revenue exceeding 1 billion RMB for 2024, marking a 41% year-on-year increase, with sales revenue from core products growing by 39% [5]. Acquisition Rationale - The acquisition of Dongyao Pharmaceutical aims to enhance WuXi XDC's operational capacity in China, broaden its project pipeline, and strengthen business synergies [3][4]. - Dongyao's existing production facilities and compliance qualifications will allow WuXi XDC to quickly utilize these resources, significantly reducing the time needed to ramp up production capacity [5][8]. Market Context - The ADC market is experiencing rapid growth, with the global ADC drug market expected to reach approximately $17.2 billion by 2025, and a compound annual growth rate (CAGR) of 30.6% projected from 2023 to 2032 [6]. - The ADC outsourcing service market is also anticipated to grow significantly, reaching $11 billion by 2030, with a CAGR of 28.4% from 2022 to 2030 [6]. Competitive Landscape - WuXi XDC's acquisition is seen as a strategic move to alleviate capacity constraints and enhance its competitive position in the ADC CDMO market, which is characterized by increasing consolidation among leading firms [9]. - The acquisition is expected to facilitate rapid capacity release, allowing WuXi XDC to take on more mid-to-late stage and commercial projects, thereby supporting sustained high growth in performance [9]. Strategic Implications - The acquisition reflects a broader trend of consolidation in the ADC CDMO industry, with larger firms leveraging mergers to enhance scale and efficiency, potentially increasing competitive pressure on smaller CDMO companies [9]. - WuXi XDC's strategy of acquiring established production capabilities is crucial for meeting the fast-paced commercialization demands of the ADC sector, which is currently facing a mismatch between expanding clinical pipelines and short-term production capacity [10][11].

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 的 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倚賴該等內容而引致的任何損失承擔任何責任。 WUXI XDC CAYMAN INC. （於開曼群島註冊成立的有限公司） 藥 明 合 聯 生 物 技 術 有 限 公 司* （股份代號：2268） 內幕消息 2026年醫療健康年會簡報 本公司股東及有意投資者應避免過分倚賴簡報所載的資料，且務請於買賣本公司 證券時審慎行事。 承董事會命 藥明合聯生物技術有限公司* 執行董事兼首席執行官 李錦才博士 香港，2026年1月14日 於本公告日期，本公司董事會包括(i)執行董事李錦才博士、張靖偉先生及席曉捷 先生；(ii)非執行董事陳智勝博士、顧繼傑博士及施明女士；及(iii)獨立非執行董 事Ulf GRAWUNDER博士、Kenneth Walton HITCHNER III先生及Hao ZHOU先生。 * 僅供識別 – 2 – 本 公 告 由 藥 明 合 聯 生 物 技 術 有 限 公 司 ...

Summary of WuXi AppTec Conference Call Company Overview - WuXi AppTec is a leading global contract research, development, and manufacturing organization (CRDMO) specializing in antibody-drug conjugates (ADCs) [2][3] Industry Insights - The ADC drug market is experiencing a surge in research and development activity, with Chinese companies holding a significant competitive advantage in the industry [2][5] - Chinese firms rank second globally in terms of publications and patent authorizations related to ADCs and dominate global ADC transactions [2][5] Key Financial Metrics - The company has maintained a high growth trajectory post-IPO, with a projected compound annual growth rate (CAGR) of 102% in revenue from 2022 to 2024 [2][3] - Revenue forecasts for 2025, 2026, and 2027 are estimated at 6 billion, 8.1 billion, and 10.7 billion RMB respectively, with net profits expected to reach 1.6 billion, 2.2 billion, and 2.9 billion RMB [4][7] Capital Expenditure Plans - WuXi AppTec plans to invest approximately 1.56 billion RMB in capital expenditures in 2025, with 900 million RMB allocated for the Singapore facility and 450 million RMB for the expansion of the Wuxi facility [5] - Total capital expenditures are expected to exceed 7 billion RMB by 2029 to expand production capacity in response to increasing project demands [2][5] Production Strategy - The company is implementing a dual-factory production strategy to enhance global supply chain capabilities, with the Singapore facility expected to complete machinery installation by mid-2025 and commence GMP production in 2026 [2][3] Technological Advancements - WuXi AppTec is enhancing its core competitiveness through proprietary technology platforms, including the Wuxi Da X conjugation technology platform, which supports the development of various conjugated drugs [6] - The company has accumulated extensive experience in linker and payload synthesis, which supports the development of new bioconjugate drugs and improves R&D efficiency [6] Profitability Drivers - Key drivers for profitability growth include increased production capacity from the Wuxi facility and the phased production launch of the Singapore facility, leading to improved capacity utilization and gross margin [4][7] - The company maintains reasonable growth in sales and management expenses while increasing R&D investments, contributing to overall growth [7]

Core Insights - The CXO (Contract Research Organization) sector is showing positive signals, with WuXi Biologics (2269.HK) and its spin-off WuXi AppTec (2268.HK) reporting strong growth in their H1 2025 performance [2][3] - WuXi Biologics achieved revenue of 9.95 billion yuan, a year-on-year increase of 16.1%, while WuXi AppTec reported revenue of 2.701 billion yuan, up 62.6% [2][3] Financial Performance - WuXi Biologics' IFRS gross profit grew by 27.0% to 4.25 billion yuan, with a gross margin of 42.7% [2] - WuXi AppTec's gross profit increased by 82.2% to 975 million yuan, with a gross margin of 36.1% [2] - EBITDA for WuXi Biologics rose by 50.5% to 4.22 billion yuan, with an EBITDA margin of 42.4% [2] Growth Drivers - WuXi AppTec raised its full-year revenue growth forecast from 35% to over 45%, reflecting strong confidence in its growth potential [3] - The growth is attributed to several factors, including leading technology platforms, expanded service offerings, and improved capacity utilization [4][5] Market Trends - The CXO industry is entering an upward phase, driven by demand recovery, supply-side adjustments, and improved external conditions [3] - The ADC (Antibody-Drug Conjugates) and bispecific/multispecific antibodies are key growth areas, with significant market potential projected [7][8] Order Backlog and Capacity - WuXi Biologics has a substantial order backlog of $20.34 billion, with unfulfilled service orders and potential milestone payments [5][6] - WuXi AppTec's iCMC project count reached 225, with a historical high of 37 new iCMC projects signed in H1 2025 [5][6] Industry Outlook - The ADC market is expected to grow significantly, with projections indicating a market size of $64.7 billion by 2030 [8] - The competitive landscape in the CXO sector is intensifying, with companies needing to innovate and adapt to maintain market share [9]

Core Viewpoint - WuXi AppTec (02268) has demonstrated strong growth and strategic positioning, raising its 2025 revenue growth forecast from 35% to over 45% based on order backlog and capacity release [1][10] Financial Performance - In the first half of 2025, WuXi AppTec achieved revenue of 2.701 billion RMB, a year-on-year increase of 62.2% [2] - Adjusted net profit reached 733 million RMB, with a growth rate of 69.6% [2] - Gross margin improved by 4 percentage points to 36.1%, while net profit margin stood at 27.6%, indicating enhanced profitability [2] Strategic Execution - The company's growth is attributed to the deep execution of its "empower, follow, and win molecules" strategy, with a total of 225 iCMC projects, including a record 37 new projects signed in the first half of 2025 [3] - WuXi AppTec secured 11 PPQ projects and 1 commercialization project, indicating steady progress in its project pipeline [3] Global Market Presence - International revenue accounted for 82% of total income, reflecting the effectiveness of the company's global strategy [5] - The acceleration of overseas market revenue is driven by clients advancing their pipelines and the trend of Chinese innovative drugs going global [5] Industry Dynamics - The upward revision of performance guidance is supported by multiple favorable factors, including sustained industry growth, robust order reserves totaling $1.329 billion (up 57.9% year-on-year), and accelerated project progress [7] - The company is positioned as a leader in the bioconjugate drug CRDMO sector, with over 2,300 early-stage research projects completed in the first half of the year [9] Client Base Expansion - As of June 30, WuXi AppTec served 563 clients, with 64 new additions since the end of 2024, including 13 of the top 20 global pharmaceutical companies [11] - The company's market share increased from 9.9% in 2022 to 22.2% currently, reflecting its strong position in the industry [11] Future Outlook - WuXi AppTec is expected to continue benefiting from the booming ADC market, with a projected compound annual growth rate of 31% from 2024 to 2030 [11] - The company is well-positioned to achieve a market capitalization of 100 billion RMB in the near future [11]